If you’ve built a positive credit history, you may benefit by getting a lower interest rate, which will help reduce the cost of your loans.Private lenders may also offer choices for how many years you take to repay the loan; you might select a shorter repayment period to save on total cost or a longer repayment period if you need lower monthly payments.
Finally, keep in mind that you don’t have to choose just one.
If you have both federal and private student loans, you could consolidate your federal loans through the federal program to preserve your federal benefits and still refinance your private student loans with a private lender to get a better interest rate or repayment term that fits your budget.
The impact of either refinancing or consolidating student loans will vary depending on whether you have private student loans or federal student loans. consolidation guide: When you refinance student loans, you are taking a loan from a private lender to repay existing student loan debt.
The government doesn’t offer refinance loans, so you can’t get one through the Department of Education.
Refinancing, on the other hand, is done only through private lenders.