student_loan Archives

Jun

2025

Do College Credits Expire?

By Kim Franke-Folstad | Life & Career, Student Loans, student_loan | Comments Off

If you’ve been thinking about going back to college to finish your degree, you may have wondered, how long are college credits good for? Are the credits I earned years ago still worth anything? Do college credits expire?

The answers to those questions depend on a few different factors. Here’s what you need to know about when college credits expire.

Key Points

• Technically, college credits do not expire, but certain types of credits may face transfer issues if outdated.

• Credits for core courses such as English and history remain valid and generally transfer smoothly.

• STEM and graduate credits have a shorter shelf life, 10 and 7 years, respectively.

• Colleges may restrict the number of transfer credits accepted.

• New federal regulations mandate the release of transcripts for credits paid for with federal aid, effective July 2024.

When Do College Credits Expire?

Technically, college credits don’t expire. When students earn credits for taking college courses, those credits will always appear on the official transcript from the school they attended.

The question is whether another school or program will accept those credits if a student wants to transfer them. And that can be a gray area.

The good news is that older, “nontraditional learners” — undergraduate and graduate students in their mid-20s, 30s, 40s, and up — are not an unusual sight on college campuses these days. Schools that hope to attract students who are looking to complete a degree may be especially open-minded about transferring their credits.

In the fall of 2023, more than 6.2 million adults ages 25 and older were enrolled in college, accounting for almost one-third of total enrollment, according to the National Center for Education Statistics. And the number of adults going back to school and getting a bachelor’s degree or higher has been on the rise for at least a decade, the Census Bureau reports. So most college admissions offices should be prepared to answer questions about how long are college credits good for, the possibility of transferring old credits, or if some credits have a shelf life at their school.

Those policies can vary. A college doesn’t have to accept transfer credits unless it has a formal agreement with the transferring institution or there’s a state policy that requires it. A credit’s transferability also may depend on the type of course, the school it’s coming from, or how old the credit is. These deciding factors are sometimes referred to as the three R’s: relevance, reputation, and recency.

What Criteria Do Schools Consider?

How long do college credits last? Here are some things schools may look at when deciding whether to accept transfer credits:

Accreditation Is Key

Accreditation means that an independent agency assesses the quality of an institution or program on a regular basis. Accredited schools typically only take credits from other similarly accredited institutions.

General Education Credits Usually Transfer

Subjects like literature, languages, and history tend to qualify for transfer without a challenge. So if you completed those core classes while working toward your bachelor’s degree, you may not have to repeat them.

Other Classes May Have a ‘Use By’ Date

Because the information and methods taught in science, technology, engineering, and math courses can quickly evolve, credits for these classes may have a more limited shelf life — typically 10 years.

Graduate Credits May Have a Short Life Expectancy

If the coursework for your field of study in graduate school would now be considered out of date, it’s likely that some or all of your credits won’t transfer. Graduate program credits are generally denied after seven years.

There Could Be a Limit on Transfers

Many institutions set a maximum number of transfer credits they’ll accept toward a degree program. For example, the Rutgers School of Arts and Sciences won’t take more than 60 credits from two-year institutions for an undergraduate degree, and no more than 90 credits from four-year institutions. No more than 12 of the last 42 credits earned for a degree may be transfer credits.

At the University of Arizona, the maximum number of semester credits accepted from a two-year college is 64. There is no limit on the credits transferred from a four-year institution, but a transfer student must earn 30 semester credits at Arizona to earn an undergraduate degree. And credit won’t be given for grades lower than a C.

Some Transfer Credits May Count Only as Electives

If a student’s new school determines that an old class was not equivalent to the class it offers, it may require the student to repeat the coursework in order to fulfill requirements toward a major. But the new school still may consider the old class for general elective credits, which can at least reduce the overall course load required to obtain a degree.

If at First You Don’t Succeed, You Can Try Again

Many schools allow students to appeal a credit transfer decision — whether it’s an outright denial or a decision that a course will be allowed only as an elective. The time limit for an appeal may be a year, a few weeks, or just a few days, so it can pay to be prepared with the evidence necessary to make your case.

The relevant paperwork might include a class syllabus, samples of completed coursework, and a letter from the instructor that explains the coursework.

Students also may have to meet with someone at the school to talk about their qualifications, or they may be asked to take a placement exam to test their current level of knowledge in a subject.

How to Request Transcripts

Some schools allow students to view an unofficial record of their academic history online or in person through the registrar’s office. So if it’s been a while and you aren’t sure what classes you took or what your grades were, you might want to start there.

After a refresher on what and how you did at your old college, it might be time to check out how your target school or schools deal with transfer credits.

Many colleges post their transfer credit policies on their websites, so you can get an idea of what classes you may or may not have to repeat. Or you can use a website like Transferology.com, or try the “Will My Credits Transfer” feature at CollegeTransfer.net, to get more information about which credits schools across the country are likely to accept.

When you’re ready to get even more serious, you may want to see if your target school makes transfer counselors available, or if someone in the academic department you’re interested in will evaluate your record and advise you as to how many of the credits you’ve earned might be accepted toward your major.

You’ll probably need to have an official transcript sent directly to your target institution to document your grade-point average, credit hours, coursework, and any degree information or honors designations. There may be a small fee for this service, and it could take several days to process the request.

Once your target school has had time to review your transcripts, you can expect to receive a written notice or a phone call telling you how many of your credits will transfer. When you know where you stand, you can decide if you want to appeal any of the school’s transfer decisions, if you’re ready to move forward in the application process, or if you want to check out other schools.

Previously, students who still owed money to their schools could find it difficult to get their official transcripts because schools could withhold transcripts in those cases. But as of July 2024, new federal regulations require colleges to release transcripts for credits the student paid for with federal aid, such as federal loans, grants, or work-study. The only credits schools may withhold are those that the student still owes money for.

State governments may have their own laws regarding transcripts. The following 13 states ban most holds on transcripts.

• California

• Connecticut

• Colorado

• Illinois

• Indiana

• Louisiana

• Maine

• Maryland

• Minnesota

• New York

• Ohio

• Oregon

• Washington

• The District of Columbia also bans transcript holds.

In addition, certain schools may have their own policies about transcript holds. So some students might hit a road bump at the registrar’s office if they’re behind on their loans.

Recommended: Private Student Loans Guide

How Old Debt Can Affect Transferring Credits

Of course, one of the basics of student loans is repaying them. If you’re delinquent, the problems caused by unpaid student debt can go beyond trouble with transcripts.

If you’re planning to return to school and you’re behind on your student loans, you may have difficulty borrowing more money until you’ve put some money toward student loans and gotten them back on track.

The Federal Student Aid (FSA) Program offers flexible repayment plans, loan rehabilitation and loan consolidation opportunities, forgiveness programs, and more for federal borrowers hoping to get back in good standing. The Federal Student Aid office’s recommended first step (preferably before becoming delinquent or going into default) is to contact the loan servicer to discuss repayment options.

Another possible solution for those who have fallen behind on their payments can be refinancing student loans. Borrowers with federal or private student loans, or both, may be able to take out a new loan with a private lender and use it to pay off any existing student debt.

One of the advantages of refinancing student loans is that the new loan may come with a lower interest rate or lower payments than the older loans, especially if the borrower has a strong employment history and a good credit record. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.) A student loan refinancing calculator can help you determine how much you might save.

Even if you’re doing just fine and staying up to date on your student loan payments, if you’re thinking about going back to school and you’ll need more money, a new loan with just one monthly payment might help make things more manageable.

However, if you have federal loans, it’s critical that you understand what you could lose by switching to a private lender — including federal benefits such as deferment, income-driven repayment plans, and public student loan forgiveness.

Recommended: How to Get Out of Student Loan Debt

Moving Forward (With a Little Help)

If you’re excited about the possibility of going back to school to finish your degree (or earn a new one), you might not have to let concerns about financing keep you from moving forward.

You can contact your current service provider with questions about payment options on your federal loans. And if you’re interested in refinancing with a private loan now, you can start by shopping for the best rates online, then drill down to what could work best for you.

With SoFi, for example, you can prequalify online for student loan refinancing in minutes, and decide which rate and loan length suits your needs.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Are my college credits still good after 20 years?

Possibly, but it depends what kind of credits they are. Credits earned for core courses like English, history, art, and languages should still be valid after 20 years. However, credits for STEM (science, technology, engineering, and mathematics) courses typically expire in 10 years, and graduate-level courses generally expire in seven years.

Do your credits expire if you don’t finish your degree?

Technically, college credits don’t expire if you don’t finish your degree. However, you may or may not be able to transfer them to another school, depending on what type of credits they are and how long it’s been since you earned them. Credits for core courses like English and history typically remain valid over the long-term and you should be able to transfer them. But credits for STEM courses generally expire after 10 years.

Can a college withhold your transcripts if you still owe them money?

As of July 2024, thanks to new federal regulations, a college can no longer withhold your transcript for credits you paid for with federal aid, such as federal loans, grants, or work-study. The only credits schools are allowed to withhold from your transcript are those for which you still owe money.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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SOSLR-Q225-035

Jun

2025

How and When to Combine Federal Student Loans & Private Loans

By Nancy Bilyeau | Fresh Out of School, Student Loans, student_loan | No Comments

One of the biggest student loan myths is that borrowers can’t combine federal student loans and private student loans into one refinanced loan.

It’s understandable why people may think that, since this wasn’t always an option. And consolidation through the Department of Education is only available for federal student loans.

But now you can choose to combine federal and private loans. So it’s important to learn whether combining them is right for you, and if it is, how to consolidate private and federal student loans.

Table of Contents

Can I Consolidate Federal and Private Student Loans?
Steps to Consolidating Federal and Private Loans
Federal Student Loan Interest Rates
Federal Student Loan Benefits

Key Points

• Borrowers can now combine federal and private student loans through refinancing, which simplifies payments and may result in lower interest rates.

• Refinancing federal loans with a private lender results in the loss of federal benefits, such as forgiveness programs and income-driven repayment plans.

• Interest rates for federal student loans are fixed and determined annually, while private loans may offer lower rates based on creditworthiness and income.

• Federal student loans offer various benefits, including deferment and forbearance options, which are not available once loans are refinanced as private loans.

• Evaluating financial goals and loan details is essential before deciding to refinance, as it can impact payment terms and overall debt costs.

Can I Consolidate Federal and Private Student Loans?

If you’ve ever wondered, can I consolidate federal and private student loans?, the answer is yes. You can combine private and federal student loans by refinancing them with a private lender.

Through this process, you apply for a new loan (which is used to pay off your original loans) and obtain one with a new — ideally lower — interest rate.

Although you are combining your loans, refinancing isn’t the same thing as federal student loan consolidation.

Key Differences Between Consolidation and Refinancing

Some people use the words “refinance” and “consolidate” interchangeably, but consolidating student loans is a different process than refinancing student loans.

Federal student loans can be consolidated into one loan by taking out a Direct Consolidation Loan from the government. To be eligible for a Direct Consolidation Loan you must have at least one Direct Loan or one Federal Family Education Loan (FFEL). Federal loan consolidation does not typically lower your interest rate. The new student loan consolidation rate is the weighted average of the interest rates of your prior loans, rounded up to the nearest ⅛ of a percent.

You can only consolidate federal student loans in this way. Private student loans are not eligible for federal loan consolidation.

When you refinance student loans, you exchange your old student loans for a new private loan. You can refinance private student loans, federal student loans, or a combination of both types. When you refinance, you may be able to get a lower interest rate, which could help you save money on interest over the life of the loan, or more favorable loan terms, if you qualify.

However, refinancing federal loans makes them ineligible for federal benefits such as deferment and income-driven-repayment plans.

Pros and Cons of Combining Federal and Private Loans

Before you combine federal and private student loans, there are a number of things to think about. Consider the following advantages and drawbacks.

Pros:

• Combining federal and private loans may result in a lower interest rate if you qualify, which could help you save on interest over the life of the loan.

• You may be able to lower your monthly payments through refinancing by extending the term of your loan.

• Combining your loans can help you manage and streamline your payments since you’ll have just one loan rather than several.

Cons:

• Combining federal and private loans through refinancing means you’ll lose federal protections like forgiveness and deferment.

• In order to get lower interest rates, you’ll need a good credit score, a stable job, and a steady income.

• If you extend the term of the loan to lower your monthly payments, you’ll pay more interest over the life of the loan.

If you’re still debating what to do, here’s an easy decision tree to help you understand whether refinancing federal and private loans is the right option for you:

Steps to Consolidating Private and Federal Loans

If you decide that loan consolidation makes sense, here’s how to consolidate private and federal student loans through refinancing:

1. Decide which loans you want to consolidate. For instance, maybe you’d like to combine some of your federal loans with your private loans, but not all of them.

2. Look into lenders. Private lenders that provide refinancing include banks, credit unions, and online lenders. Each one offers different rates and terms. Find out about any fees they might charge, what kind of customer service they have, and what their eligibility requirements are.

3. Shop around. Each lender uses different criteria to determine if you’re eligible for a loan and the rates and terms you may get. To help find the best deal, you can prequalify with several lenders. Prequalifying involves a soft credit check, not a hard credit inquiry, so your credit score won’t be affected.

4. Apply for refinancing. Once you’ve selected a lender, you can fill out a loan application. You can typically do this online. You’ll need to provide your personal, employment, and salary information, as well as details about your private and federal student loans. Be sure to have backup like pay stubs and loan paperwork readily available since you may need to provide it. The lender will do a hard credit check, which could temporarily cause your credit score to drop a few points.

5. Find out if you’re approved. In general, you’ll learn whether you’re approved within several days. Keep an eye out for information from your new lender about the payments and due dates on the new loan.

Federal Student Loan Interest Rates

Depending on loan type and disbursement date, federal student loan interest rates are reassessed annually, every July. For the 2025-2026 school year, interest rates on new federal student loans range from 6.39% to 8.94%. Interest rates on federal student loans are determined by Congress and fixed for the life of the loan.

How Interest Rates Affect Consolidation and Refinancing Decisions

As noted earlier, when you apply to refinance, private lenders evaluate things like your credit history and credit score, as well as other personal financial factors, to determine the interest rate and terms you may qualify for.

If you’ve been able to build credit during your time as a student, or your income has significantly improved, you may be able to qualify for a more competitive interest rate than the rate on your current federal student loans — and perhaps any private student loans you have — when you consolidate your loans by refinancing with a private lender.

To get an idea of how much refinancing could potentially reduce the cost of interest on your loans, crunch the numbers with SoFi’s student loan refinancing calculator.

Federal Student Loan Benefits

Federal student loans come with a number of federal benefits and protections. If you refinance your federal loans — whether you’re consolidating them with private loans or not — the loans will no longer be eligible for federal benefits and protections.

Protections You May Lose When Combining Loans

Before you move ahead with refinancing, take a look at your loans to see if any of the following federal loan benefits and programs apply to you — and whether you might want to take advantage of them in the future. If you think you might need any of these protections, combining loans by refinancing them likely isn’t a good idea for you.

Student Loan Forgiveness

There are a few forgiveness programs available for borrowers with federal student loans. For example, under the Public Service Loan Forgiveness Program (PSLF), your Direct Loan balance may be eligible for forgiveness after 120 qualifying, on-time payments if you’ve worked in public service for an eligible nonprofit or government organization that entire time.

Pursuing PSLF can require close attention to detail to ensure your loan payments and employer qualify for the program. The qualification requirements are clearly stated on the PSLF section of the Federal Student Aid website.

Similarly, the Teacher Loan Forgiveness Program is available for teachers who work in eligible schools that serve low-income families full-time for five consecutive years. The total amount forgiven depends on factors like the eligible borrower’s role and the subject they teach.

Income-Driven Repayment Plans

Income-driven repayment plans can ease the burden for eligible borrowers who feel their loan payments are higher than they can afford. With income-driven repayment, monthly payments are calculated based on borrowers’ discretionary income and family size, which can lower how much you owe each month. That can make your student debt more manageable. The repayment period on these plans is 20 to 25 years.

Just be aware that when you lower your payments or extend your repayment term, you’ll pay more interest over time.

Deferment or Forbearance

Borrowers who are having difficulty making payments on their student loans may qualify for deferment or forbearance, two programs that allow borrowers to temporarily pause payments on their federal student loans.

The biggest difference between them is that with forbearance, the borrower is responsible for paying the interest that accrues on the loan. Forbearance can have a major financial impact on a borrower, as any unpaid interest will be added to the original loan balance. With deferment, the borrower may or may not be responsible for paying the interest that accrues. For instance, those with Direct Subsidized Loans are not responsible for paying the accruing interest.

Refinancing Your Student Loans

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How does refinancing affect my credit score?

Refinancing affects your credit score because when you submit a formal loan application, the lender will check your credit score and credit history, which is known as a hard credit inquiry. That may cause your credit score to drop a few points temporarily.

Can I keep federal loan protections if I refinance?

No. Refinancing federal student loans with a private lender means that you lose access to federal programs and protections like income-driven repayment and forgiveness.

What are the risks of refinancing student loans?

The risks of refinancing federal student loans is losing access to federal programs and protections. In addition, if you extend the term of the loan through refinancing to lower your monthly payments, you’ll end up paying more interest over the life of the loan.

Is it better to consolidate or refinance student loans?

Whether it’s better to consolidate or refinance your student loans depends on your situation. If you have federal loans and want to combine them all into one loan to streamline your payments and make them more manageable, consolidation may be the right option for you.

On the other hand, if you have private loans and your credit and financial background is strong, refinancing may help you get a lower interest rate, which could help you save money. Refinancing may also be worth considering if you have federal loans and won’t need to use any of the federal benefits they provide, and you can qualify for a lower interest rate.

What should I consider before combining federal and private student loans?

Before combining federal and private student loans through refinancing, make sure you won’t need to use any of the federal benefits that federal student loans provide, such as income-driven repayment and deferment. Remember, refinancing makes federal loans ineligible for these programs.

Also, consider whether your credit and financial history is strong enough to qualify for a lower interest rate than you have on your current loans before refinancing.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOSLR-Q225-033

Jun

2025

Can a Parent PLUS Loan Be Transferred to a Student?

By Kayla McCormack | Debt Payoff, Student Loans, student_loan | No Comments

If you took out a federal Parent PLUS loan to help your child through college, you may be wondering if it’s possible to transfer the loan into your child’s name now that they’ve graduated and have an income. While there are no federal loan programs that allow for this, there are other options that let your child take over the loan.

Read on to learn how to transfer a Parent PLUS loan to a student.

Table of Contents

How to Transfer a Parent PLUS Loan to a Student
Parent PLUS Loan Overview
Can a Child Make the Parent PLUS Loan Payments?
Parent PLUS Loan Refinancing
Alternatives to Transferring a Parent PLUS Loan

Key Points

• Transferring a Parent PLUS loan to a student involves refinancing through a private lender.

• The student must apply for a new loan to pay off the Parent PLUS loan.

• Once refinanced, the student becomes responsible for the new loan’s repayments.

• Refinancing can potentially lower the interest rate and monthly payments.

• The process is irreversible, making the student solely responsible for the debt.

How to Transfer a Parent PLUS Loan to a Student

There are no specific programs in place to transfer a Parent PLUS loan to a student, but there is a way to do it. To make the transfer of the Parent PLUS loan to a student, the student can apply for student loan refinancing through a private lender. The student then uses the refinance loan to pay off the Parent PLUS loan, and they become responsible for making the monthly payments and paying off the new loan.

Here’s how to refinance Parent PLUS loans to a student.

Gather Your Loan Information

When filling out the refinancing application, the student will need to include information about the Parent Plus loan. Pull together documentation about the loan ahead of time, including statements with the loan payoff information, and the name of the loan servicer.

Compare Lenders

Look for lenders that refinance Parent PLUS loans (most but not all lenders do). Then shop around to find the best interest rate and terms. Many lenders allow applicants to prequalify, which doesn’t impact their credit score.

Fill Out an Application

Once the student has found the lender they’d like to work with, they will need to submit a formal application. They can list the Parent PLUS loan on the application and note that it is in their parent’s name, and include any supporting documentation the lender requires.

Eligibility Requirements for Refinancing a Parent PLUS Loan

To refinance a Parent PLUS loan to a student, the student should first make sure that they qualify for refinancing. Lenders look at a variety of factors when deciding whether to approve a refinance loan, including credit history and credit score, employment, and income. Specific eligibility requirements may vary by lender, but they typically include:

• A credit score of at least 670 to qualify for refinancing and to get better interest rates

• A stable job

• A steady income

• A history of repaying other debts

If approved for refinancing, the student can pay off the Parent PLUS loan with the refinance loan and begin making payments on the new loan.

Advantages of Refinancing a Parent PLUS Loan

The main advantage of refinancing a parent student loan like a Parent PLUS loan is to get the loan out of the parent’s name and into the student’s. However, there are other potential advantages to refinancing student loans, including:

• Lowering the interest rate

• Reducing the monthly payments

• Paying off the loan faster

• Helping the student to build a credit history

Disadvantages of Refinancing a Parent PLUS Loan

While it may be beneficial to refinance a Parent PLUS loan into a private loan, there are some disadvantages to Parent PLUS vs. private loans that should be considered. The drawbacks include:

• Losing federal student loan benefits, including income-driven repayment, deferment options, and Public Service Loan Forgiveness

• Possibly ending up with a higher interest rate, especially if the student has poor credit

• The student is solely responsible for the monthly payment, which might become a hardship if their income is low

If you do choose to refinance your Parent PLUS loan, you should note that this process is not reversible. Once your child signs on the dotted line and pays off the Parent PLUS loan, the debt is theirs.

Parent PLUS Loan Overview

The Department of Education provides Parent PLUS loans that can be taken out by a parent to fund their child’s education. Before applying, the student and parent must fill out the Free Application for Federal Student Aid (FAFSA®).

Then the parent can apply directly for a Parent PLUS loan, also known as a Direct PLUS Loan.

The purpose of a Parent PLUS loan is to fund the education of the borrower’s child. The loan is made in the parent’s name, and the parent is ultimately responsible for repaying the loan. Parent PLUS loans come with higher interest rates than federal student loans made to students, plus a loan fee that is the percentage of the loan amount. These loans are not subsidized, which means interest accrues on the principal balance from day one of fund disbursement.

Parents are eligible to take out a maximum of the cost of attendance for their child’s school, minus any financial aid the student is receiving. Payments are due immediately from the time the loan is disbursed, unless you request a deferment to delay payment. You can also opt to make interest-only payments on the loan until your child has graduated.

Pros and Cons of Parent PLUS Loans

Parent PLUS loans allow you to help your child attend college without them accruing debt.

Pros of Parent PLUS loans include:

You can pay for college in its entirety. Parent PLUS loans can cover the full cost of attendance, including tuition, books, room and board, and other fees. Any money left over after expenses is paid to you, unless you request the funds be given directly to your child.

Multiple repayment plans available. As a parent borrower, you can choose from three types of repayment plans: standard, graduated, or extended. With all three, interest will start accruing immediately.

Interest rates are fixed. Interest rates on Parent PLUS loans are fixed for the life of the loan. This allows you to plan your budget and monthly expenses around this additional debt.

They are relatively easy to get. To qualify for a Parent PLUS loan, you must be the biological or adoptive parent of the child, meet the general requirements for receiving financial aid, and not have an adverse credit history. If you do have an adverse credit history, you may still be able to qualify by applying with an endorser or proving that you have extenuating circumstances, as well as undergoing credit counseling. Your debt-to-income ratio and credit score are not factored into approval.

Cons of Parent PLUS loans include:

Large borrowing amounts. Because there isn’t a limit on the amount that can be borrowed as long as it doesn’t exceed college attendance costs, it can be easy to take on significant amounts of debt.

Interest accrues immediately. You may be able to defer payments until after your child has graduated, but interest starts accruing from the moment you take out the loan. By comparison, federal subsidized loans, which are available to students with financial need, do not accrue interest until the first loan payment is due.

Loan fees. There is a loan fee on Parent PLUS loans. The fee is a percentage of the loan amount and it is currently (since October 2020) 4.228%.

Can a Child Make the Parent PLUS Loan Payments?

Yes, your child can make the monthly payments on your Parent PLUS loan. If you want to avoid having your child apply for student loan refinance, you can simply have them make the Parent PLUS loan payment each month instead.

However, it’s important to be aware that if you do this, the loan will still be in your name. If your child misses a payment, it will affect your credit score, not theirs. Your child also will not be building their own credit history since the debt is not in their name.

Parent PLUS Loan Refinancing

As a parent, you may also be interested in refinancing your Parent PLUS loan yourself. Refinancing results in the Parent PLUS loan being transferred to another lender — in this case, a private lender. With refinancing, you may be able to qualify for a lower interest rate. Securing a lower interest rate allows you to pay less interest over the life of the loan.

When you refinance federal Parent PLUS loans, you do lose borrower protections provided by the federal government. These include income-driven repayment plans, forbearance, deferment, and federal loan forgiveness programs. If you are currently taking advantage of one of these opportunities, it may not be in your best interest to refinance.

Parent Plus Loan Consolidation

Another option for parents with Parent PLUS loans is consolidation. By consolidating these loans into a Direct Consolidation Loan you become eligible for the income-contingent repayment (ICR) plan, which is an income-driven repayment (IDR) plan. (Parent PLUS loans are not eligible for IDR plans otherwise.)

On an ICR plan, your monthly payments are either what you would pay on a repayment plan with a fixed monthly payment over 12 years, adjusted based on your income; or 20% of your discretionary income divided by 12 — whichever is less.

One thing to consider if you consolidate a Parent PLUS loan is that you may pay more interest. In the consolidation process, the outstanding interest on the loans you consolidate becomes part of the principal balance on the consolidation loan. That means interest may accrue on a higher principal balance than you would have had without consolidation.

Alternatives to Transferring a Parent PLUS Loan

Instead of learning how to transfer Parent PLUS loans to a student, you could opt to keep the loan in your name and have your child make the monthly loan payments instead. But as noted previously, if you go this route and your child neglects to make any payments, it affects your credit not theirs. Also, when the loan remains in your name, the child is not building a credit history of their own.

You could also choose to consolidate Parent PLUS loans, as outlined above. Just weigh the pros and cons of doing so.

And finally, you could refinance the loan in your name to get a lower interest rate or more favorable terms, if you qualify.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What if I can’t pay my Parent PLUS loans?

If you are struggling to pay your Parent PLUS loan, get in touch with your lender right away. One option they may offer is a deferment or forbearance to temporarily suspend your payments. Keep in mind that with forbearance, interest will continue to accrue on your loan even if payments are postponed.

You could also consider switching the repayment plan you are enrolled in to an extended repayment plan, or refinancing your loan in order to get a lower interest rate.

Can you refinance a Parent PLUS loan?

Yes, you can refinance a Parent PLUS loan through a private lender. Doing so will make the loan ineligible for any federal borrower protections, but it might allow you to secure a more competitive interest rate or more favorable terms. You could also opt to have the refinanced loan taken out in your child’s name instead of your own.

Is there loan forgiveness for Parent PLUS loans?

It is possible to pursue Public Service Loan Forgiveness (PSLF) with a Parent PLUS loan. To do so, the loan will first need to be consolidated into a Direct Consolidation loan and then enrolled in the income-contingent repayment (ICR) plan.

Then, you’ll have to meet the requirements for PSLF, including 120 qualifying payments while working for an eligible employer (such as a qualifying not-for-profit or government organization). Note that eligibility for PSLF depends on your job as the parent borrower, not your child’s job.

What happens if a Parent PLUS loan is not repaid?

If you can’t make the payments on a Parent PLUS loan, contact your loan servicer immediately to prevent the loan from going into default. The loan servicer can go over the options you have to keep your loan in good standing. For instance, you could change your repayment plan to lower your monthly payment. Or you could opt for a deferment or forbearance to temporarily stop the payments on your loan.

Can a Parent PLUS loan be consolidated with federal loans in the student’s name?

No, Parent PLUS loans cannot be consolidated with federal student loans in the student’s name. You can only consolidate Parent PLUS loans in your name.

SOSLR-Q225-032

Jun

2025

How to Refinance Student Loans: A Step-by-Step Guide

By Sarah Brooks | Fresh Out of School, Student Loans, student_loan | No Comments

After graduation, the average student loan borrower has $38,375 in student loan debt, according to the Education Data Initiative. Meanwhile, the average graduate student holds significantly more — approximately $92,997.

If you’re looking for a little relief from student loan debt, one option to consider is student loan refinancing. Refinancing through a private lender may give you the opportunity to lower the interest rates on your loans and save money over the life of the loan.

However, refinancing federal loans means losing access to federal benefits, so make sure you fully understand the details about how to refinance student loans before moving forward. This student loan refinance guide has the information you need.

Key Points

• Refinancing student loans replaces existing loans with a new loan, potentially lowering interest rates and monthly payments.

• Borrowers with strong credit and income may qualify for better loan terms, while those with weaker credit might need a cosigner.

• Refinancing federal student loans with a private lender removes access to benefits like income-driven repayment and federal loan forgiveness.

• The refinancing process includes comparing lenders, choosing the best offer, submitting the necessary documents, and waiting for approval.

• Extending the term of the loan can reduce monthly payments but may result in higher overall interest costs.

How Student Loan Refinancing Works

Student loan refinancing is the process of paying off your existing student loans with a new loan from a private lender. Ideally, the new loan would have a better interest rate or better terms. For example, a borrower may want to switch from a fixed rate loan to a variable rate loan or extend the term of the loan in order to lower their monthly payments. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.)

You might be wondering, is refinancing student loans worth it? To understand why a borrower might refinance, it helps to first understand the major components of a student loan. Every student loan is comprised of the following variables:

1. The value of the loan (the “principal”)

2. The interest rate on the loan

3. The repayment period (also known as the loan’s term)

When a borrower refinances their student loan(s), they are typically looking to change either the second or third list item above, or both. Keep in mind that refinancing means forfeiting federal loan benefits such as income-based repayment plans, deferment, and forbearance.

7 Steps to to Refinance Student Loans

If you’re considering refinancing student loans, you’ll want to compare lenders and select the loan with the best interest rate and term. Once you choose a lender, you’ll apply for the loan and start making payments to the new lender.

Here’s a more in-depth look at how to refinance student loans in seven steps.

1. Should You Refinance Student Loans?

The first question you need to ask yourself is, “Should I refinance my student loans?” To answer the question, you need to know the specific types of student loans you have. Student loans come in two main varieties: federal and private.

Federal student loans are backed by the U.S. government’s Department of Education. These are the loans that borrowers apply for by filling out the Free Application for Federal Student Aid (FAFSA®) form. Private loans, on the other hand, are obtained through a bank, credit union, or online lender, and they are not backed by the U.S. government.

Determine which types of loans you have and which ones you want to refinance. Federal student loans, for example, can be consolidated into one loan with one monthly payment, known as a Direct Consolidation Loan. If you’re planning on using federal benefits, this option could be the best.

If you want to refinance private loans only or federal and private loans, you can explore a student loan refinance. Keep in mind, though, that you will lose access to federal benefits when refinancing with a private lender.

Next, ask yourself the following questions:

Am I planning on using a student loan forgiveness program?

Because refinancing is the process of paying off your existing loans with a new, private loan, you will lose access to the programs offered by federal loan programs, such as student loan forgiveness and income-driven repayment.

If you are currently working towards student loan forgiveness, you’ll probably want to think twice before refinancing your federal student loans.

Am I currently using an income-driven repayment plan?

Income-driven repayment plans that base monthly payments on discretionary income and family size are available for many federal student loans. Private loans don’t generally offer any such programs. If you need to keep your monthly payments low and have exclusively federal student loans, refinancing might not be right for you. Refinancing with a private lender eliminates your access to the federal income-based repayment plans.

Am I planning on using a forbearance or deferment program?

Both federal forbearance and student loan deferment allow the borrower to suspend their payments for a period of time and for a variety of reasons, such as economic hardship or military service. Student loan forbearance and deferment are for federal student loans only. If you think you may need this benefit in the future, it may not be in your best interest to refinance with a private lender.

Do I have a good or great financial history?

When you refinance your student loans, your lender will base your interest rate on your credit score, credit profile, debt-to-income ratio, payment history, and other financial data. If your credit score is less than ideal, you may not qualify for a lower interest rate, which could defeat the purpose of refinancing. It’s wise to be aware of where you stand credit-wise before moving forward with a refinance.

Recommended: Student Loan Consolidation vs Refinancing

2. Prepare Your Personal Financial Information

If you decide that refinancing is right for you, it’s a good idea to shop around with different lenders to check their student loan refinancing rates. Before you do that, though, you’ll want to have your basic personal financial information ready. This may include:

• Name

• Address

• Total student loan debt

• Income

• Credit score estimate

The information a borrower needs to provide varies from lender to lender, but this gives you an idea.

3. Compare Lenders

Because student loan refinancing companies set their own rates and terms, it is important to do some shopping around. Not only will you want to get rate quotes, but you may also want to ask questions, such as:

• Are there fees, such as origination fees?

• Is there a prepayment penalty if I want to pay my loan off early?

• Can the lender refinance both federal and private loans?

• Is there a forbearance program if I am laid off from my job?

• How do I access customer service?

• What is the loan application timeline?

If a lender interests you, you can submit the information you gathered from Step 2. With this information, the lender will likely run a soft credit check. This should not affect your credit score, but make sure the lender guarantees it won’t.

If you meet a lender’s eligibility requirements, they’ll generally provide you with multiple offers, including offers with different term lengths and interest rates (both fixed and variable rates). This student loan refinancing calculator can help you crunch all the numbers.

4. Choose a Lender and Loan

After you’ve had the chance to review both the loan offers and the lenders themselves, it’s time to decide.

While many borrowers gravitate toward the loan with the lowest interest rate, it is worth remembering that the lowest rate might not amount to the lowest amount of total interest paid on a loan.

The longer the loan’s term, the more interest a borrower will pay. For example, if you have a loan term of 10 years, you’ll have to pay off the entire loan balance plus the interest that was accrued over the 10 years. But, if you extend your loan term 20 years, that means 10 more years of interest accruing on your loan.

Also, a loan that charges an origination fee could end up costing more than a loan with a higher rate of interest and no origination fee. Often, an origination fee is added to the balance of the loan, with the interest rate calculated on top of this new figure.

5. Gather Necessary Documents

Once you’ve chosen a lender and a loan, you’ll submit documentation that supports the information you provided during the initial rate check, as well as identifying information.

Although it will vary by lender, you’ll likely need some combination of the following:

• Proof of citizenship

• Social Security number

• Paystubs, tax returns, or other income verification

• Statements for all of the loans you are planning to refinance

If you are applying for a refinance with a cosigner, they will need to provide this information, as well.

6. Apply

Once you’ve gathered all your documentation, it’s time to apply for a refinance loan. The lender will then typically run a hard credit check and send the application through a final approval process.

A lender should inform you if any of your documentation is missing, but you may want to check back in after a few days if you haven’t heard anything.

7. Waiting for Approval

Once you’ve applied for the loan and submitted your documentation, all that’s left to do is wait for your approval. How long this process takes will depend on the lender, but it could be as short as 24 hours and as long as a couple of weeks. Check with each lender to be sure.

Once your loan is approved, consider signing up for autopay if the lender offers it. Many lenders offer a discounted rate — usually about 0.25% — for borrowers who have payments automatically deducted from their accounts.

Pros and Cons of Refinancing Student Loans

There are both pros and cons to refinancing student loans. For example, while you could receive a lower interest rate and lower monthly payment, you will lose access to federal benefits and programs.

Pros and Cons of Refinancing Student Loans
Pros	Cons
Lower interest rate possible	Lose access to federal forgiveness and repayment programs
Lower monthly payment possible	May pay more in interest over the life of the loan
Switch from fixed to variable rate, or vice versa	Fees may be charged
Option to change the loan term	Lose any remaining grace periods
Condense multiple loans into one loan with one payment	Must have good credit to qualify for the best rates

Refinancing Student Loans With SoFi

You’ve learned how to refinance student loans and what the process entails. If you decide that refinancing is right for you, SoFi offers an easy online application, competitive rates, and flexible loan terms.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What is the best way to refinance student loans?

The best way to refinance student loans is to shop around with different lenders to compare the rates and terms you can get. You can also ask about any fees involved, such as origination fees or prepayment penalties. Then compare the different offers you receive to decide which one is best. Besides the interest rates, consider the loan terms (a shorter term typically means higher monthly payments, and a longer term means you’ll typically pay more interest over the life of the loan), and how any fees might impact your payments.

Can I refinance both federal and private student loans together?

Yes, you can refinance federal and private student loans together. Just be aware that refinancing federal loans makes them ineligible for federal benefits like income-driven repayment plans and deferment. If you think you might need these benefits at some point, refinancing your federal loans is probably not the best option for you.

Does refinancing student loans mean the same thing as consolidating student loans?

Refinancing and consolidating student loans are similar, but they mean different things. A student loan refinance is done through a private lender and combines multiple federal and/or private loans into one loan with one monthly payment — ideally, with a lower interest rate or more favorable loan term. If you refinance federal loans, you lose access to federal benefits.

A student loan consolidation is done through the U.S. Department of Education and combines multiple federal loans into one. Your payment does not typically decrease, but you do keep access to federal benefits and streamline your monthly payments into one.

Can refinancing a student loan help to pay off debt faster?

Refinancing student loans could potentially help you pay off your student loan debt quicker. Ideally, when you refinance, you’ll reduce the amount of interest you pay and shorten the length of your loan. This allows you to pay less money in interest overall and get rid of your debt sooner. However, your monthly payments will typically be higher with a shorter loan term.

What are the downsides of refinancing student loans?

The biggest downside to refinancing federal student loans is losing access to federal benefits, such as repayment plans and forgiveness programs. However, if you are in a field that’s not eligible for forgiveness and you don’t plan on needing a deferment or forbearance, it could be worth the savings to refinance. It’s best to carefully weigh the pros and cons for your specific situation before moving forward.

To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q225-021

Jun

2025

Guide to Refinancing Private Student Loans

By Lisa Moran | Fresh Out of School, Student Loans, student_loan | No Comments

Private student loans are often used to bridge the gap between what a student receives in federal funding and the cost of attending college. While private loans can help students pay for their education, they don’t come with federal benefits such as income-driven repayment plans or forgiveness.

But there are ways to make private loan repayment easier. If you refinance private student loans at a lower interest rate and/or with more favorable terms than your existing loans, you can save money over the life of the loan. Here’s what to know about refinancing private student loans to decide if this option is right for you.

Key Points

• Private student loans lack the benefits of federal loans, including income-driven repayment plans and forgiveness options.

• Refinancing private student loans can lead to lower interest rates and better terms, potentially easing repayment and saving money over the loan’s life.

• Individuals with a stable job, good credit score, and solid financial profile may qualify for favorable refinancing terms.

• Combining private and federal loans through refinancing may simplify payments but will result in the loss of federal protections and benefits.

• Before refinancing, it’s crucial to assess overall finances, since improved credit scores and stable income can enhance chances of securing better loan terms.

Can I Refinance My Private Student Loans?

Borrowers can refinance private student loans if they qualify. If you have a steady job, a good credit score, and a solid financial profile, you may be eligible for a lower interest rate or better terms when you refinance student loans.

A new interest rate and loan term can mean a lower monthly payment — though you may pay more interest over the life of the loan if you refinance with an extended term. By contrast, a shorter term will likely raise your monthly payment, but you’ll pay off your loan sooner. A student loan refinancing calculator lets you crunch the numbers to see how different scenarios play out.

It’s important to note that the terms student loan consolidation vs. refinancing are often confused, but there are key differences between them. Those wondering how to consolidate private student loans should be aware that private loans can’t be consolidated, but they can be refinanced. Only federal student loans can be consolidated with a federal Direct Consolidation Loan.

💡 Recommended: Private Student Loan Refinance

Pros and Cons of Refinancing Private Student Loans

There are advantages and disadvantages to refinancing private student loans, and it’s critical to weigh them carefully when exploring whether to refinance.

Pros:

• You may qualify for a lower interest rate, which could save you money.

• Refinancing could help you get more favorable loan terms.

• Your monthly payments might be lower if you opt for a longer loan term.

• Combining your loans through refinancing can streamline your payments and make them easier to manage.

Cons:

• To get the lowest interest rates when refinancing, you’ll need excellent credit, which FICO® defines as a score of 800 or more.

• You’ll generally need a steady income, stable employment, and a low debt-to-income ratio to qualify for refinancing.

• Choosing to extend your loan term to lower your payments means you’ll end up paying more in interest over the life of the loan.

• Opting for a shorter loan term to pay off your loans faster means your monthly payments will likely be higher.

How to Refinance Private Student Loans

Wondering how to refinance private student loans? If you’re interested in pursuing a private student loan refinance, here’s how to get started:

Prepare Your Financial Information

To provide a rate quote for you, most lenders will need some personal financial information, such as your total student loan debt, income, and an estimate of your credit score.

Check Rates With Multiple Lenders

When it comes to student loan refinancing rates, private lenders set their own rates and terms. That means it’s important to shop around. In addition to getting a rate estimate (which involves a soft credit check that shouldn’t affect your credit score), you’ll want to ask about any other fees (such as an origination fee), if there’s a prepayment penalty, and if they have any deferment or forbearance programs.

Choose a Lender and Apply

As you review the options, consider the amount of interest you’ll pay over the life of the loan and factor in the cost of any fees. Depending on how long the term length is, for example, the lowest interest rate might not translate to the lowest amount of total interest.

When you apply for refinancing, you’ll need to supply documents that back up the financial information you shared for the initial rate check. Depending on your credit and financial history, applying with a cosigner may help you secure a better interest rate. Be sure to continue to make payments on your existing loans while you wait for your new loan to be approved.

What to Consider Before Refinancing Private Student Loans

If you’re thinking of refinancing, odds are you’re hoping to lower your interest rate, simplify the repayment process, and save money. In order to get a low rate that will make refinancing worth it, it’s a good idea to look at your overall finances before you apply.

Lenders make offers based on a variety of factors including proof of a stable job, a healthy cash flow, a good credit score, and a reliable history of paying back previous debts. If you need to, take a few months to work on building your credit to increase your chances of getting a better interest rate.

If you’re considering refinancing your federal loans along with your private loans, make sure you won’t miss out on federal advantages down the road. For instance, if you plan to return to school full-time, you could be eligible to defer your federal loans while you’re back in school. Once you refinance your student loans, however, you’re no longer able to defer payment or have access to any other federal loan benefits.

Recommended: What Is Considered a Bad Credit Score?

Refinance My Private Student Loan

If you’re wondering whether to refinance your private student loans, it can help to look at the interest rates on your loans and your monthly payment amount. If you can refinance private student loans with better terms than your existing loans and you won’t need access to federal benefits for any federal loans, refinancing might be a good option for you.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can student loans be forgiven if refinanced?

No. If you refinance federal student loans, you’ll have a new private loan with new terms and you’ll no longer have access to federal benefits and protections, including forgiveness. Private lenders do not offer programs similar to the federal loan forgiveness programs.

Why would you refinance student loans?

Refinancing student loans allows you to replace your existing loans with a new loan with new terms. You may be able to save money if you refinance with a lower interest rate or if you shorten the length of your loan term to pay off your loan faster.

Refinancing can also give you the opportunity to change the terms of your existing loan to remove a cosigner, for instance, and also to simplify your repayment process by replacing multiple loans with a single loan.

Can I refinance both federal and private student loans?

Yes, you can refinance private and federal student loans with a private lender. When you refinance, you replace your existing loans with a new loan, ideally one with more favorable terms. If you refinance federal loans, however, you will lose access to federal benefits and protections.

Do I need a cosigner to refinance my private student loans?

Whether you need a cosigner depends on your credit and financial history. If you don’t have strong credit and a solid financial background, you may need a cosigner to qualify for refinancing in order to get better rates and terms.

How does refinancing private student loans affect my credit score?

Refinancing student loans may temporarily affect your credit score when you submit an application for the loan. That’s because lenders do a hard check on your credit, which can cause your credit score to drop a few points.

Can you refinance student loans multiple times?

Yes, you can refinance student loans multiple times — there is no limit on the frequency. However, one thing to keep in mind is that when you refinance multiple times within a fairly short period, the multiple hard credit checks involved may have a negative (although temporary) impact on your credit score.

Can private loans be consolidated?

The only way private student loans can be consolidated is through refinancing. Refinancing replaces all your old loans with one new loan with new terms. Federal student loans can be consolidated through the federal Direct Loan Consolidation program.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q225-028