Student loan consolidation companies

Consolidation could be a great option if you have multiple federal student loans. Different servicing companies offer consolidation for student loans to combine multiple loans into a single one with less interest and a new repayment plan. We'll be looking at these companies and their services

Updated by Martin Paul on 13th June 2019

Student loan debts could affect you in many ways, preventing you from saving for retirement or qualifying for other loans such as personal loans and mortgage.

Having a strategy (such as consolidation) for debt management could help in your debt elimination.

Consolidation could be a bold step that may plummet you out of debt. However, it must only be undertaken when you have a broad idea of how it works.

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What is student loan consolidation?

Consolidation is often confused with refinancing. They are quite different because consolidation can only be done for federal student loans while refinancing can be done for both the federal student loans and private student loans.

Student loan consolidation is a process that involves taking out a new big loan to pay off several small loans in order to get a reduced interest rate and a single pending loan with a better repayment plan, which saves you a lot of money.

Why Consolidate?

When you’re stuck with multiple loans, each having its own repayment plan and interest, it becomes difficult to keep track of these loans or make multiple payments for them.

Consolidating your federal student loans may give you access to multiple repayment plans which has the potential of reducing your monthly payments and interests

Is it a good idea?

Whether or not student loan consolidation is a good idea, it depends on either your current financial condition or the type of debt you wish to consolidate

Student loan consolidation companies

Below are six best student loan consolidation companies of 2019

  • Discover

  • Earnest

  • Laurel Road

  • SoFi

  • Education Loan Finance

  • Splash Financial


Discover is a lender whose services are online-based. They are regarded as one of the best lenders with the lowest interest rates.

They function just like any other traditional bank would and provides many services as other banks do such as credit card issuing and account checking.

Discover consolidates many federal loans and can refinance a wide range of private student loan types such as undergraduate, MBA, health professions, graduate, etc


  • The rates offered are both fixed and variable rates

  • Loan term spans from 15 to 20 years and no application, origination or late fees are imposed on borrowers

  • Deferment and forbearance are also offered by Discover Finances


Discover has had many praises from its customers, most of which are strongly related to their great customer services.

  • Some card members have reported that their queries have been quickly resolved

  • The mobile app is rich with many features such as live chat with customer support

  • The grand reward program gives 1% cashback on every purchase and a 5% cashback on other categories

  • Some members complained that Discover did not secure their account against fraudulent transactions


Earnest is a financing company, founded in the year 2013.

It has funded over $4.5 billion just on student loans alone for over 50,000 borrowers.


  • The rates offered are both fixed and variable rates and the loan term spans within 5 to 15 years

  • The loan amount offered is usually from $5000 for the school-certified cost of attendance

  • Earnest does not charge for any application fee but charges an undisclosed origination fee

  • They provide autopay discounts and options for deferment and forbearance.


Earnest has more positive reviews than any other servicer

  • Customer Satisfaction for Earnest is based on the speed and flexibility of its operation

  • They provide better rates than other competitors

  • Highly professional and wonderful to do business with

  • Excellent support with friendly staff who are truly helpful

Laurel Road

Laurel Road is an online-based lender which is a division of KeyBank.

It was formed in the year 2013 and has been refinancing and consolidating student loans ever since.

Borrowers can complete the entire application for loan consolidation online with Laurel Road on their website.


  • The type of loan that can be consolidated are the graduate, resident, fellows, and Parent Loans

  • They offer both fixed and variable rates for a duration ranging from 5 to 20 years

  • Loan amount starts from $5,000

  • There is no application fee but they charge an undisclosed amount as an origination fee

  • Up to 12 months forbearance options are provided in cases of hardship


Just like Earnest, Laurel Road has also received an appraisal from thousands of customers, most of which are linked to their customer support and interaction with their customers.

  • The experience is easy, straightforward and amazing

  • Some customers have claimed that the whole experience completely exceeded their expectations

  • The easy nature of the application process has also received much appraisal

  • User-friendly website with great chat support


Since the establishment of SoFi in 2011, it has consolidated and refinanced student loans for over 250,000 students in the united states, resulting in about $18 billion.

It is one of the few servicers offering student loan consolidation to borrowers with as low as 650 credit score.


  • The rate types offered are both fixed and flexible

  • Loan amount starts from $5,000

  • No application fee is charged but origination fees are undisclosed

  • Autopay and other additional SoFi loan discounts are offered

  • Deferment and forbearance options are made available to borrowers


Some of the reviews on the services of SoFi from its thousands of customers are:

  • Amazing experience

  • The application process was quick and simple

  • Quick debt relief after consolidating

  • High approval rate

Education Loan Finance

The Education loan finance, popularly known as ElFi among its borrowers, was established back in the year 2015 by the Tennessee based SouthEast Bank for the purpose of assisting borrowers on consolidating and refinancing education loans into a single loan to lower their cost of education.


  • They provide both fixed and variable loan terms

  • Loan amount starts from $15,000 or higher

  • They do not charge for any application or origination fees

  • Options are available for deferment and forbearance


  • Working with ELF to consolidate my student loans was surprisingly easy

  • They were very friendly and supportive

  • The process was quick and easy

  • Great service and rates

  • Amazing website user interface

Splash Financial

Splash financial is a BBB A+ accredited student loan consolidation and refinance lender who operates in all 50 states in the United States.

They can consolidate the federal loans such as parent PLUS loans and refinance all private loans for undergraduate, graduate, MBA and medical.

A special refinance program is even made available for doctors who are yet to complete their residency or fellowship


  • Rate types offered are both fixed and variable

  • Loan term starts from 5 to 15 years

  • Loan amount ranges from $75,000 to $300,000

  • No application or origination fee is required

  • No discount is provided

  • Cosigner release is made available after 12-months of on-time payments


  • Enables faster repayment

  • Limits costs to save money on loan

  • Offers payment flexibility

  • Great customer support


When you consolidate your student loans, you combine multiple loans into one.

Student loans often come from either the federal government or private lenders such as credit union and banks. Be sure to choose the best option for your student loan consolidation.

Consider the pros and cons of consolidating as this may vary based on the kind of loans you have.

Finally, be sure to choose from the perfect lender who satisfies your needs.