It’s natural to consider transferring your student loans to another lender, especially if it offers improved repayment terms or lower interest rates. Known as refinancing or consolidation, this process allows you to merge multiple loans into a single one. It simplifies your finances and makes it much easier to manage and track your payments.
Being informed about your options for handling student debt is key. It can help lower financial stress and save you money over time. By understanding these choices, you can make decisions that best support your financial goals.
Types of Student Loans: Federal vs. Private
Federal Student Loans
Federal student loans come in several types, each designed to meet different needs. The most common are Direct Subsidized Loans and Direct Unsubsidized Loans. Direct Subsidized Loans are for undergraduate students with financial need. The government pays the interest on these loans while you’re in school at least half-time, during your grace period, and during deferment periods. This can save you a lot of money in interest charges over time.
Direct Unsubsidized Loans, on the other hand, are available to both undergraduate and graduate students. You don't need to show financial need to receive these loans. Unlike subsidized loans, interest on unsubsidized loans starts accruing as soon as the money is disbursed. While you can choose not to pay the interest while you’re in school, it will capitalize, meaning it gets added to your principal balance and you’ll have to pay interest on the higher amount once you being repayment.
Federal student loans offer several benefits. Loan forgiveness programs like Public Service Loan Forgiveness and Teacher Loan Forgiveness are available if you meet specific criteria. Federal loans have fixed interest rates, flexible repayment plans, and options for deferment or forbearance if you encounter financial difficulties. These advantages make federal student loans a safe and manageable option for financing your education.
Private Student Loans
Private student loans are different from federal loans in several ways. Unlike federal loans, private student loans are issued by banks, credit unions, and other lenders. They don't offer the same benefits as federal loans, such as loan forgiveness programs or income-driven repayment plans. On the plus side, private loans can help when scholarships, grants or federal loans don't cover the full cost of your education. Sometimes they can even offer lower interest rates, especially if you have a good credit score or a co-signer with strong credit.
Keep in mind though, private student loans come with some risks. They can have variable interest rates, so your payments could go up over time. Also, private lenders often require you to start making payments while you're still in school. If you face financial hardship, you most likely will not have the same options for deferment or forbearance that federal loans offer. It’s important to read all the terms and conditions carefully before taking out a private loan to ensure it aligns with your financial situation and future goals.
Transferring Student Loans: What You Need to Know
Can You Transfer Between Borrowers?
No, you generally can't transfer student loans from one person to another. This applies to both federal and private student loans. Each borrower is responsible for repaying their own loans. Federal student loans are designed to stay with the original borrower. The lender and the government have agreements with that specific person based on their financial need and academic status.
For private student loans, the rules are similar. Private lenders also issue loans based on individual credit history and ability to repay. Transferring a loan to another person would involve too many financial risks for lenders.
There are unique circumstances, though. If you take out a private student loan with a co-signer, the co-signer is equally responsible for the debt. This means if you, the primary borrower, can't make payments, the co-signer must step in. A co-signer making payments does not mean the loan has been transferred as you both remain responsible for the loan.
However, some private lenders do offer co-signer release programs. Under these programs, if the primary borrower makes a certain number of consecutive on-time payments, as well as meets other conditions, the co-signer can be removed from the loan. The co-signer hasn’t transferred the loan, they have only been released. The loan still belongs to you.
Transferring Between Lenders
Yes, you can transfer student loans between lenders through a process called refinancing. This applies to both federal and private student loans. Refinancing involves taking out a new loan from a different lender to pay off your existing loans. It allows you to potentially secure better interest rates or repayment terms.
For federal student loans, transferring them to a private lender means you lose access to federal benefits. These benefits include income-driven repayment plans and loan forgiveness programs. Once you refinance your federal loans with a private lender, they become private loans. You'll need to carefully consider if the potential savings are worth losing those federal protections.
When it comes to private student loans, the process is straightforward. You apply for a new loan with a different private lender. If approved, the new lender pays off your original loan. This can consolidate multiple loans into one, or simply give you a better rate or repayment plan.
Important things to consider when changing lenders include your credit score and the terms of the new loan. A higher credit score can help secure a lower interest rate. Always read the fine print to understand any fees or penalties associated with refinancing. Think about your financial goals and what's most manageable for your budget long-term.
Refinance Offers
Edvisors (Edvisors Network, Inc.
) provides independent advertising-supported platforms for consumers to search compare and apply for private student loans.
- Choose your own monthly payment
- No fees of any kind and exceptional customer service for the life of your loan
- Check your rate in under 2 minutes
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.70% APR to 10.74% APR (excludes 0.25% Auto Pay discount). Variable rates range from 6.13% APR to 10.74% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.
*Auto Pay Discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance. Not all borrowers will qualify for our lowest rates, and your rate will be based on creditworthiness at time of application.
The information provided on this page is updated as of 05/19/2025. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice.
Earnest Loans are made by Earnest Operations LLC. Earnest Operations LLC, NMLS #1204917. 300 Frank H. Ogawa Plaza, Suite 340, Oakland 94612. California Financing Law License 6054788. Visit www.earnest.com/licenses for a full list of licensed states. For California residents: Loans will be arranged or made pursuant to a California Financing Law License.
Earnest loans are serviced by Earnest Operations LLC with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770). Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2025 Earnest LLC. All rights reserved.
THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
- Actual prequalified rates from multiple lenders in 3 minutes.
- Checking rates on Credible is free and will not impact your credit score.
- You could lower your interest rate or reduce your monthly payment.
Student Loan Refinancing Rate and Terms Disclosure:
The lenders on the Credible.com platform offer fixed rates ranging from 3.88% - 11.38% (3.88% - 11.38% APR). Variable interest rates offered by the lenders on Credible.com range from 4.35% - 12.37% (4.35% - 12.37% APR). Variable rates will fluctuate over the term of the borrower's loan with changes in the Index rate. The Index will be either LIBOR, SOFR, or the Prime Rate of interest as published in the Wall Street Journal (WSJ). The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Rates are subject to change at any time without notice. Your actual rate may be different from the rates advertised and/or shown above and will be based on factors such as the term of your loan, your financial history (including your cosigner’s (if any) financial history) and the degree you are in the process of achieving or have achieved. While not always the case, lower rates typically require creditworthy applicants with creditworthy cosigners, graduate degrees, and shorter repayment terms (terms vary by lender and can range from 5-20 years) and include loyalty and Automatic Payment discounts, where applicable. Loyalty and Automatic Payment discount requirements as well as Lender terms and conditions will vary by lender and therefore, reading each lender’s disclosures is important. Additionally, lenders may have loan minimum and maximum requirements, degree requirements, educational institution requirements, citizenship and residency requirements as well as other lender-specific requirements.
- Minimum loan amounts starting at $5,000 and no loan maximums
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1The rates displayed may include a 0.25% autopay discount.
2To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
- Our customers have reported that they are saving an average of $278 every month or will see an average of $20,774 in total savings after refinancing their student loans with ELFI.1
- Prequalify in as little as two minutes
1Average savings calculations are based on information provided by SouthEast Bank/ ELFI customers who refinanced their student loans between 01/03/23 and 03/01/23. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon a number of factors.
2Rates accurate as of 01/01/25. The interest rate and monthly payment for variable rate loans may increase after closing. Your actual interest rate may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10 year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. To qualify for refinancing or student loan consolidation through ELFI, you must have at least $10,000 in qualified student loan debt and must have earned a bachelor’s degree or higher from an approved post-secondary ELFI institution. ELFI Parent Loans are limited to a maximum of the 10-year term.
College Ave Student Loans
- Variable rate range: 6.99% – 13.99% APR1
- Fixed rate range: 6.99% – 13.99% APR1
- No application or prepayment fees
- Apply in 3 minutes or less for instant credit decision
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a refi borrower who selects the Full Principal & Interest Repayment Option with a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3$5,000 is the minimum requirement to refinance. The maximum loan amount is $250,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.
Information advertised valid as of 03/01/2023. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
- 2-Minute rate check with no impact on your credit score
- 0.25 rate reductions when enrolled in automatic payments
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1Terms and Conditions Apply
Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile, and it may be based on your credit score, level of degree earned, and the availability and credit score of a cosigner applicant. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Variable rates may increase after consummation. Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if your meet the lender's eligibility criteria. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
2Conditional Offers
In the event that you would like to move forward with any of the conditional offers, you will be required to complete an application with the lender on this website, at which point a hard credit inquiry will be conducted (which may affect your credit score).
3Intentionally Omitted
4AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 5 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
As of 03/07/2025 student loan refinancing rates range from 4.89% to 9.44% Fixed APR with AutoPay.
5Important Notice Regarding the Refinancing Of Your Federal Student Loans
Please be aware that you may potentially lose certain benefits associated with your federal student loans by refinancing such federal loans with a private student loan consolidation. These benefits may include favorable repayment options, loan and fixed interest rates, extended loan terms, and loan forgiveness. We strongly advise that you seek professional advice and examine our benefits and options before refinancing your federal loans. It is important to us that you are comfortable with potentially forfeiting benefits that may not be offered through our consolidation loan.
6Promotional Bonuses
If you were offered a bonus in connection with a promotional offer, your application must be initiated through this page immediately following the email, direct mail or banner advertisement in which the offer was presented. The offered promotional bonus will be provided within six weeks of loan disbursement. You must have a PayPal account in order to receive the bonus. The bonus is non-transferable and no other reward will be substituted. All borrowers entitled to a bonus will have an account automatically created for them on LendKey’s referral platform. Bonuses must be claimed within 90 days of notification of account creation or they will expire.
*Acorns® Member Bonus: $50 deposited into new borrower’s Acorns account within 8 weeks of loan funding. Not redeemable for cash and non-transferable.
*ChangEd Bonus: $100 will appear in the borrower's ChangEd account within 90 days of loan funding. Not redeemable for cash and non-transferable.
*Collective Rate members get 1% of refinanced loan balance back as a welcome bonus
* LendKey Email invitation offer: Please refer to the terms contained within the email.
*Mint user bonus of $100: Offer available as of May 19th, 2022 to Mint users who refinanced using the Mint mobile or web link.
*For members of NYU Alumni Association, AARN, Employees of the City of Austin, TX, Montefiore Medical System, and the Massachusetts College of Pharmacy, a bonus will be awarded within 8 weeks of loan funding. The bonus will be $100 for loan balances of under $100,000, and $300 for loan balances over $100,000. This offer is non-transferable.
*For members of NYU Alumni Association, residents of Maine, Nevada, North Dakota, Rhode Island, or West Virginia are not eligible.
*Tuition.io Bonus: 1% of refinanced loan balance will be awarded within 8 weeks of loan funding via PayPal. You must have a PayPal account in order to receive the award.
*Unifimoney: 1% cashback bonus will be deposited directly into the user’s Unifimoney account within 6-8 weeks of loan funding. You must have a Unifimoney account in good standing to receive the bonus. Application must be initiated through the link via the Unifimoney app.
7Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.8Calculator
The calculator provides estimates based on the information provided and is for illustrative purposes only. Actual estimated payments can only be determined after you apply and provide all necessary documentation for review. We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding your specific financial situation.
Consolidation and Refinancing Options
Federal Loan Consolidation
Federal loan consolidation simplifies the process of managing multiple student loans by combining them into one single loan. Here’s how it works:
When you consolidate your federal student loans, the Department of Education pays off your existing loans and issues you a new Direct Consolidation Loan. This means you only have to make one monthly payment instead of multiple payments to different loan servicers. The interest rate on the consolidated loan is a fixed rate. It’s calculated by taking the weighted average of the interest rates of the loans you're consolidating, rounded up to the nearest one-eighth of a percent.
Pros of Consolidating Federal Loans:
- Simplified Payments: Only one monthly payment makes managing your loans easier.
- Fixed Interest Rate: Your new loan will have a fixed interest rate, which can be beneficial if you have variable-rate loans.
- Access to Repayment Plans: Federal Loan Consolidation will keep your loans eligible for income-driven repayment plans or forgiveness programs.
Cons of Consolidating Federal Loans:
- Potential Loss of Benefits: Some borrower benefits may be lost.
- Longer Repayment Term: Extending your repayment term means you might pay more in interest over the life of the loan.
- Interest Capitalization: Any unpaid interest on your original loans gets added to your principal balance when you consolidate, which increases the overall amount you owe.
- No Interest Rate Reductions: Consolidation does not lower your interest rate; it’s simply a weighted average of your original rates.
Refinancing Private Loans
Refinancing private student loans means taking out a new loan to pay off your existing loans. This process usually involves applying for a new loan with a different lender. If your application is approved, the new lender pays off your old loan, and you start making payments to the new lender.
One of the main benefits of refinancing is the potential to secure a lower interest rate. This can save you money in the long run. You may also be able to change the terms of your loan, such as extending the repayment period to reduce your monthly payments, making it easier to manage your finances.
However, there are risks involved with refinancing, especially if you choose to refinance federal loans into private loans. By doing so, you lose access to federal protections like income-driven repayment plans and loan forgiveness programs. Private loans don't offer the same benefits or flexibility, so it's important to weigh these risks before making a decision.
Tips for Managing Student Loans Effectively
Managing student loans doesn’t have to be overwhelming. Here are some practical tips and strategies to help you stay on top of your loan payments and make informed decisions about your financial future.
Strategies for Staying on Top of Loan Payments:
- Create a Budget: Start by tracking your income and expenses to understand where your money goes. Allocate a portion of your budget specifically for loan payments.
- Set Up Auto-Pay: Many lenders offer interest rate reductions if you set up automatic payments. It also ensures you never miss a payment.
- Make Extra Payments: Whenever possible, pay more than the minimum. Even small extra payments can reduce your overall interest and shorten the loan term.
- Prioritize Higher-Interest Loans: If you have multiple loans, focus on paying off the ones with the highest interest rates first to save money in the long run.
Resources for Budgeting and Planning Loan Repayment:
- Use Budgeting Tools: Apps like YNAB (You Need a Budget) can help you keep track of your finances and stay organized.
- Loan Calculators: Online loan calculators can help you understand how different payment amounts and schedules will affect your loan over time.
- Financial Counseling: Many universities and financial institutions offer free or low-cost financial counseling to help you plan your repayment strategy.
Fully understanding your loan terms before making any changes is important. This includes knowing your interest rates, repayment schedules, and any benefits or protections tied to your loans. Always read the fine print and reach out to your lender if you have any questions.
Carefully consider all your options before refinancing or consolidating your loans. While these choices can offer lower rates or simplified payments, they can also result in the loss of federal benefits. Be sure to weigh the pros and cons to make the best decision for your situation.
By implementing these strategies and utilizing available resources, you can effectively manage your student loans and achieve financial stability.
