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Student Loan Consolidation vs Refinancing

Federal consolidation (lower monthly payment, lose income-based repayment option) vs private refinance (0.5-2% rate reduction, lose federal benefits)—consolidate if on PSLF path, refinance if priva...

Editorial Team February 25, 2026

Sources: Official issuer websites, Federal databases, Community reports

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Student Loan Consolidation vs Refinancing

Federal consolidation (lower monthly payment, lose income-based repayment option) vs private refinance (0.5-2% rate reduction, lose federal benefits)—consolidate if on PSLF path, refinance if private/high rate. Example: $100K at 6% = $600/mo vs 4.5% = $506/mo × 120 payments = $11,280 savings (refinance)

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*Key Metrics: Setup & Returns | Timeline: 25-30 mins | Effort: Minimal | ROI: $0-15,000*

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