Things You'll Need:
- Student loans that are not in default
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Step 1
Determine whether you stand to benefit from refinancing. Student loan refinancing is often called consolidation because it usually involves rolling up several loans into one larger loan, which only requires one large payment. If you have several small student loans, you likely stand to benefit from consolidation. Another thing to consider is the prevailing interest rates. If interest rates have fallen recently, it will be a good time to refinance and lock in at low rates. If interest rates have risen significantly since you took out your loans, it might be a bad time to refinance.
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Step 2
Work on raising your credit. While student loan refinancing may not be as difficult to obtain as car loan, the better your credit score, the lower your interest rates will be.
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Step 3
Find a lender that offers student loan refinancing. Student loan refinancing is a large market, and it is usually much easier to secure willing lenders for student loan refinancing than it is to get a personal loan. Normal banks usually offer loan refinancing, although the best deals can often be found through online lenders.
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Step 4
Work with the lender to determine how your loans can be consolidated, what your new rate will be, and how it compares to your old rate. Student loan refinancers are different from the original lenders, so it is in their interest to save you some money to get you to refinance. The refinancing lender should be able to tell you exactly how much money you stand to save over the life of your loans.
