But, regardless of my opinion, refinancing is used for a variety of purposes.
Defaulted loans may be consolidated in certain circumstances.
You may NOT consolidate a joint consolidation loan.
If you’ve already consolidated, you have the right to “re-consolidate” into Federal Direct in order to participate in the Public Service Loan Forgiveness program. Otherwise, borrowers can only reconsolidate under certain limited circumstances. Sadly, you cannot consolidate private student loans into a federal consolidation loan. Interest rates for federal student loans borrowed on or after July 1, 2006 are fixed.
Federal consolidation loans allow borrowers to combine several federal student loans into one loan to streamline loan repayment.
The monthly payment amount may decrease because repayment can be spread over a longer time period.