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Can You Refinance Student Loans While in School?

Can You Refinance Student Loans While in School?

Living with Student Loans
ELFI | October 28, 2022
Can You Refinance Student Loans While in School?

If you are like the majority of college students, you need to borrow money in the form of student loans to cover at least some of your education costs. But you may be wondering what the best way to handle them is while you’re in college. Should you start paying them while in school? Or should you wait until after graduation to make payments?  If you have loans with higher interest rates, you may be considering student loan refinancing as a way to tackle your debt. But can you refinance student loans while in school? Here’s what you should know. 

What is Student Loan Refinancing?

Student loan refinancing is a popular way to manage student loan debt. To refinance your loans, you work with a private bank, credit union, or online company to take out a new loan for the amount of your total existing education debt. Depending on the terms of the new loan, refinancing can help you save money, lower your monthly payments, or pay off your debt faster. 

Is it Possible to Refinance Student Loans While in School?

Can you refinance student loans while in school? It depends. Most lenders require borrowers to graduate and earn a four-year degree before they can refinance their debt. However, there are a few select lenders that do allow students to refinance in the following scenarios: 

Requirements for Refinancing Student Loans While in School

While borrower criteria varies by lender, ELFI has the following requirements for student loan refinancing: 

If you meet those requirements — or have a cosigner that does — you can refinance and consolidate multiple federal and private student loans into one. 

Considerations Before Refinancing While in School

Although refinancing while you’re in school can be an appealing idea, there are some considerations to keep in mind: 

Why Would You Refinance Student Loans While in School?

Refinancing has several benefits:

Can You Consolidate Debt While in School?

Consolidation is often confused with student loan refinancing, but it’s a very different process.  Direct Consolidation Loans are for borrowers that have several federal loans. You can consolidate your debt into one, making it easier to keep track of your loans and keep up with the payments.  When you consolidate, you also have the option of extending your loan term or enrolling in an IDR plan, a Direct Consolidation Loan can help you get a smaller payment.  Only federal loans are eligible for Direct Consolidation Loans, and only borrowers that have graduated, left school, or dropped below half-time status are eligible. 

Refinance Your Student Loans With ELFI

Can you refinance student loans while in school? While it’s possible to refinance your loans while you’re still in college, it’s not a strategy everyone should use. Finding a lender willing to work with you can be difficult, and you will likely need a cosigner to qualify for a loan. And unless you have a source of reliable income, keeping up with the payments can be tricky. Most borrowers will find they’re better off waiting until after graduation.  If you decide to refinance your loans, ELFI could be a great choice as a lender.* You can extend your term for as long as 15 years and choose between a fixed or variable interest rate. You can get a rate online without a credit check and view your loan options.