How to Transfer Student Loans to Another Lender

Student loan consolidation or refinance may be the best way to transfer your loans to another lender.
Cecilia Clark
By Cecilia Clark 
Updated
Edited by Des Toups

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

Key takeaways

  • You can consolidate federal student loans to get a different servicer; you may get a longer repayment term that decreases your payment but increases total interest.

  • You can refinance your student loans to a private lender and get a lower interest rate and different repayment term. Federal borrowers shouldn’t refinance right now.

  • You can transfer Parent PLUS loans to your child through refinancing privately and serve as a co-signer if your child doesn’t meet the requirements on their own.

Transferring your student loan to another lender can get you a lower interest rate and different repayment term. It could also allow you to transfer a parent loan to your child.

But just as no one loan is right for all borrowers, no one method for transferring a loan is right for everyone.

The way you should go about it depends on your current situation and what you want to get out of a new loan and lender. Consider these options.

Get accurate refinance options in just 2 minutes with Credible
Compare pre-qualified rates from multiple lenders with no impact to your credit score.

Powered by

Options for federal student loan borrowers

Federal student loan consolidation

Federal student loan consolidation won’t change your lender, but it will allow you to choose a new student loan servicer. This process lets you combine several federal student loans into a single, easier-to-manage federal student loan. While it does not reduce your interest rate, it can lower your payment by extending the term. The downside is that the extended term will mean you pay more over time.

You can complete a consolidation loan application at studentaid.gov.

Consolidation might be right for you if:

  • You are unhappy with your servicer or have several servicers and want to simplify your loan under one.

  • You want to decrease your monthly payment amount.

  • You have FFEL loans and want to qualify for Public Service Loan Forgiveness, or PSLF.

  • You have variable-rate federal loans and want to switch to a fixed rate loan.

Consolidation isn’t right for you if:

  • You want to pay off student loans faster.

  • You want to decrease your total repayment amount.

  • You don’t want to lose credit for payments made toward PSLF or your existing income-driven repayment plan, or IDR.

Private student loan refinance

Refinancing your federal student loans means that your loans will move to a private lender. Doing this can get you a lower interest rate and give you the flexibility to choose a shorter or longer repayment term.

While refinancing can be a good option for decreasing your loan payments or decreasing the amount you’ll pay on your student loans overall, now is not the right time for federal student loan borrowers to refinance. Federal student loans are currently in an interest and payment-free forbearance until September 2022. Refinancing will cause you to lose that benefit. You will also lose access to other federal student loan benefits by refinancing to a private lender.

After the interest-free forbearance period is over, refinancing might be right for you if:

  • You have solid finances, a strong credit profile and a stable income to help you qualify for a low rate.

  • You won’t need access to federal student loan benefits, like IDR.

Student loan refinancing isn’t right for you if:

  • You’ll need access to federal student loan benefits.

  • You don’t qualify for a lower rate than what you currently have.

Options for private student loan borrowers

If you have private student loans, refinancing will get you a different lender with a new interest rate and repayment term.

Unlike with federal student loans, private student loan borrowers don’t risk losing any benefits by refinancing. So take advantage of refinancing if you have private loans and can qualify for a lower interest rate.

Private student loan companies offer their lowest rates only to those with the strongest financial and credit profiles. But you can save money — monthly or in total repayment — even if you don’t qualify for the lowest advertised rate. And you can refinance as many times as you qualify, so check your student loan refinance rates periodically.

Lenders typically look for these qualifications for refinancing:

  • Credit score in the high 600s.

  • Debt-to-income ratio below 50%.

  • A degree from a qualifying institution.

If you don’t qualify on your own, you might still be able to refinance with a qualified co-signer.

Options for Parent PLUS borrowers

If you took out federal Parent PLUS loans and are looking to have them transferred to your child, refinancing can provide a pathway.

To do this, first identify Parent PLUS refinance lenders that allow loan transfers. Have your child prequalify with multiple lenders to see where they can get the best rate.

If your child meets the lender's qualifications on their own, you can fully transfer the loan to them.

If they don’t, you can serve as a co-signer on the refinanced loan and work with them to meet the lender’s co-signer release requirements. Many lenders allow co-signer release after a set number of successful payments.

Student loan refinancing from our partners

SoFi Student Refinancing logo
Check Rate

on SoFi

SoFi

5.0

NerdWallet rating 
SoFi Student Refinancing logo

5.0

NerdWallet rating 
Fixed APR 

5.24% - 9.99%

Min. credit score 

650

Check Rate

on SoFi

Earnest Student Loan Refinance logo
Check Rate

on Earnest

Earnest

5.0

NerdWallet rating 
Earnest Student Loan Refinance logo

5.0

NerdWallet rating 
Fixed APR 

5.19% - 9.74%

Min. credit score 

650

Check Rate

on Earnest

Splash Financial Student Loan Refinance logo
Check Rate

on Splash Financial

Splash Financial

5.0

NerdWallet rating 
Splash Financial Student Loan Refinance logo

5.0

NerdWallet rating 
Fixed APR 

6.64% - 8.95%

Min. credit score 

650

Check Rate

on Splash Financial

Spot your saving opportunities
See your spending breakdown to show your top spending trends and where you can cut back.