Yes, you can refinance federal student loans. Refinancing your student loans means having a private lender pay off your existing balance by giving you a new loan with new terms. Here are more details about refinancing federal student loans and how to go about the process.
Federal student loans help pay for college. At the time you got your existing loan policy, you may not have been satisfied with your interest rates. You may consider refinancing your federal student loans when your current financial situation has changed. Your few years studying in college may have given you enough time to boost your credit score, which means you could get more favorable interest rates with a new student loan policy.
There are three steps to refinancing your federal student loan:
When you refinance your federal student loans, you will get a new policy with new terms according to your current credit score and financial situation. You can only refinance your federal student loans through a private lender. The federal government has no student loan refinancing programs. The federal government does have student loan consolidation options, which are different programs altogether.
The private lender will pay off your existing federal student loans through the new policy they give you. You can no longer return your government loans to the federal student loan program when you refinance them through a private lender. Accordingly, you will lose access to the following federal student loan benefits:
You can refinance federal student loans through private lenders. The private lenders will pay off your existing federal student loans by giving you a new student loan policy, which you must pay off according to the new terms. If you are wondering whether refinancing your federal student loans is a good idea, visit our article on the pros and cons of refinancing student loans.