Consolidating federal and private school loans

This will show up as an inquiry on a credit report which can impact a credit score.Too many inquiries over a long period of time can lower a credit score, so you need to be certain you want to pursue refinancing and/or consolidating your student loan before completing the application process.

Lenders who charge for their services should be scrutinized closely.Some borrowers want to refinance their loan to get a lower interest rate than they have with their original loan.Some want to reduce their monthly payment to making budgeting easier.If the cosigner has good credit and meets other requirements, the borrower may be approved for the loan.

Once approved for a loan, the borrower is notified of their interest rate (both variable and fixed) and repayment length.

The best banks to refinance and consolidate student loans look at a borrower’s creditworthiness when determining whether or not to approve them for a new loan.