Know the difference

Federal consolidation vs. private refinancing

Student loan consolidation can help you simplify your finances by combining multiple loans into one. Take a look at how these two options for consolidation compare:

Direct Loan Consolidation (Federal)

  • Multiple federal student loans are combined into one loan with one monthly payment.

  • Your interest rate is the average rate of all loans being consolidated.

  • You may be able to extend the length of your loan, which can lower your monthly payments, but result in more payments over time.

  • It's more convenient, but not a money-saving option.

CommonBond Refinancing (Private)

  • Multiple federal and private student loans are combined into one loan with one monthly payment.

  • Your new interest rate is based on your credit history and financial health.

  • On average, CommonBond members save $24,046 by refinancing to a lower rate.

  • Refinancing federal student loans with a private lender will forego federal student loan protections, such as public service forgiveness and income-based repayment plans.