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How Long Does It Take to Consolidate Student Loans?

Student Loan Consolidation - How Long Does it Take?
Rebecca Safier
Rebecca SafierUpdated November 19, 2024
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How long it takes to consolidate student loans varies by lender? If you’re applying for federal loan consolidation, the process typically takes 30 to 45 days.  Consolidation can simplify loan repayment by giving you a single loan with just one monthly bill. Consolidation can also lower your monthly payment by giving you a longer period of time (up to 30 years) to repay your loans. The Federal Student Aid site says about the timeline to consolidate, “Your application will be processed in about six weeks. Reach out to your loan servicer to check the status of the application.”

What Is Student Loan Consolidation?

Student loan consolidation typically refers to combining multiple student loans into one to simplify repayment. When applying for federal loan consolidation, however, it is also possible to consolidate a single loan to make it eligible for certain federal repayment plans. In fact, there are two main ways to consolidate student loans. First, you can consolidate federal student loans into one with a Direct Consolidation Loan. Alternatively, you can consolidate federal student loans, private student loans, or both by refinancing with a private lender.Recommended: Student Loan Consolidation vs. Student Loan Refinancing

Federal Loan Consolidation 

Federal loan consolidation involves replacing one or more of your federal loans with a Direct Consolidation Loan. It allows you to combine multiple loans into one so you only have a single bill to pay back. Federal loan consolidation may also let you choose a new repayment plan, sometimes even allowing you to access plans that your loans didn’t qualify for previously. Parent PLUS Loans, for example, are only eligible for Income-Contingent Repayment (ICR) if you consolidate them first.  This is an arrangement for the repayment of a loan where the regular amount to be paid by the borrower depends on his or her income.Finally, federal loan consolidation is one way to get your student loans out of default and back into good standing. Note that private student loans are not eligible for federal loan consolidation. 

Private Loan Consolidation 

Private loan consolidation refers to refinancing one or more of your student loans with a private lender, such as a bank, credit union, or online lender. If you refinance multiple loans, you can combine them into a single new loan. Depending on your credit, you could get a better interest rate than you have currently. Plus, you can choose new repayment terms. Both private and federal student loans are eligible for refinancing. However, refinancing federal loans turns them private, meaning they become ineligible for federal repayment plans and student loan forgiveness programs. Recommended: 5 Steps to Refinance Student Loans

How to Consolidate Student Loans

You can apply for Direct Loan Consolidation at no cost on the Federal Student Aid website. According to Federal Student Aid, most applicants complete the process in 30 minutes or less. In your application, you’ll select which of your federal student loans you would like to consolidate. If any of your loans are in their grace period, you can request that Federal Student Aid delays processing your application until it ends. You’ll also choose a new student loan servicer and select a repayment plan. The application offers a useful repayment estimator tool so you can see what paying off student loans would look like on each plan.Finally, you’ll review and accept the terms and conditions, provide your personal information, and sign your application. At this point, the Department of Education will verify your loans and loan amounts. If you have older loans, the Department may need to request Loan Verification Certificates (LVCs) from your lenders. Once it has verified your loans, it will pay them off and issue you a new Direct Consolidation Loan.

How Long Does Student Loan Consolidation Take?

Student loan consolidation often takes six weeks to conclude, according to the FSA.About two weeks before your new consolidation loan is disbursed, you’ll receive a Loan Summary Statement. The statement will provide you with the total amount of your new consolidation loan, a new weighted average interest rate, repayment schedule, and repayment term, as well as the deadline for canceling the consolidation. It will also provide you with an estimate of the interest and principal you will pay over the life of the loan.Once your loans are confirmed, you’ll receive a Loan Summary Statement. At this point, you have 10 business days to make changes or cancel your consolidation request. After these 10 days, it typically takes another three business days for your new consolidation loan to be disbursed. 

How Long Does Refinancing Private Student Loans Take? 

Student loan refinancing can be a faster process than federal consolidation, but it will vary by lender. Some lenders can process your application and issue your new loan in just a few weeks. If you apply for refinancing with a cosigner, it takes about 10 business days to process your application.The process of applying for student loan refinancing can also be completed relatively quickly. To start, you can apply for prequalification online in a matter of minutes. If you see any offers you like, you can submit a full application with supporting documentation. Once the lender receives your application, it will typically take a few weeks to confirm your information and put together your new loan. Assuming you’re approved to refinance, the new lender will pay off your existing loan(s) and issue the new, refinanced one in its place. 

The Takeaway

Neither federal student loan consolidation nor private student loan refinancing will happen overnight, but you won’t have to wait long. You can often finish the Direct Loan Consolidation process in 30 to 45 days. Alternatively, you can refinance your student loans in less than a month, depending on the lender you choose. Refinancing student loans has the potential to save you money, as creditworthy borrowers may qualify for better interest rates than they have now. Be cautious about refinancing federal student loans, though, as doing so means forfeiting access to federal benefits. Make sure to consider all the pros and cons of student loan refinancing before you apply. If you’re interested in checking your offers, Lantern by SoFi can help you with refinancing student loans.

Frequently Asked Questions

How long does it take to process a student loan consolidation?
Will consolidating my student loans lower my credit score?
How long does it take to refinance student loans?
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About the Author

Rebecca Safier

Rebecca Safier

Rebecca Safier has nearly a decade of experience writing about personal finance. Formerly a senior writer with LendingTree and Student Loan Hero, she specializes in student loans, financial aid, and personal loans. She is certified as a student loan counselor with the National Association of Certified Credit Counselors (NACCC).
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