 TITLE: Student Loan Refinancing: What It Is and How to Do It CONTENT: How Refinancing Student Loans Is Different From Consolidation\n-------------------------------------------------------------\nThe terms \"refinance\" and \"consolidate\" are sometimes used interchangeably when referring to student loans. But while it's possible to combine multiple loans into one through the process of refinancing, the term \"student loan consolidation\" is most often used to describe a specific strategy available through the federal government.\nFederal student loan consolidation is when you join several federal loans together, leaving you with a single outstanding balance and monthly payment. It's different from refinancing, though, because you don't need good credit to qualify, and you also won't get a lower interest rate.\nInstead, your new rate will be a weighted average of your previous loans' rates, rounded up to the next one-eighth of 1%. Your interest rate will also be fixed, while refinance lenders generally give you the option to choose between fixed and variable interest rates. Federal student loan consolidation is a good idea if you're having trouble keeping track of multiple loan bills, or if you need to consolidate to be eligible for certain repayment programs. END