If you’re seeking federal student loan forgiveness or are on an income-based repayment plan, you’re probably wondering if you can apply those federal protections to your private student loans.
Unfortunately, you can’t.
It isn’t possible to transfer private student loans to federal loans. That means you can’t have private loans forgiven through public service student loan forgiveness, and you cannot enroll your private student loans in a federal income-based repayment plan.
Fortunately, you do have other options if you’re seeking more borrower protections for your private student loans.
These include refinancing, talking to your lender, or seeking loan forgiveness related to your career.
Refinance to Get the Federal Benefits You Want
If you’re seeking federal borrower protections for your private student loans, private refinancing is your best option. Refinancing involves securing a new private loan to pay off your current student loans. You can refinance just your federal loans, just your private student loans, or both.
Student loan lenders keep implementing new ways to entice borrowers like you and to make repaying your debt a little easier.
Refinance with the right lender and you’ll enjoy perks and options like:
- A single payment for all your student loans
- A reduced monthly payment by extending the loan term or lowering your interest rate
- A shorter loan term that reduces the total cost of your loan
- Deferment due to academics or active duty military
- Forbearance of up to 24 months for periods of unemployment or economic hardship
- Death and disability discharge
- Co-signer release after a set number of on-time payments
- An automatic 0.25% interest rate deduction if you enroll in autopay
Find a lender that gives you as many perks as possible. Sure, it won’t quite be the same as transferring private student loans to federal student loans (which again, isn’t possible), but it’s likely your best option if you aren’t satisfied with your current lender(s).
Check out these lenders we’ve vetted and partner with.
| Lender | Variable Rates (APR) | Fixed Rates (APR) | |
|---|---|---|---|
|
1.99% - 8.56% |
2.95% - 8.77% |
Learn More |
|
1.74% - 5.64% |
2.44% - 5.79% |
Learn More |
|
2.39% - 6.01% |
2.79% - 6.69% |
Learn More |
|
2.43% - 7.84% |
3.48% - 7.03% |
Learn More |
|
2.56% - 6.87% |
2.59% - 6.74% |
Learn More |
|
3.24% - 5.54% |
3.34% - 5.69% |
Learn More |
| Lender | Variable Rates (APR) | Fixed Rates (APR) | |
|---|---|---|---|
|
|
1.04% - 11.98% |
3.34% - 12.99% |
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|
|
1.05% - 11.44% |
3.49% - 12.78% |
Learn More |
|
|
1.78% - 11.56% |
5.17% - 14.96% |
Learn More |
|
|
3.52% - 9.50% |
5.45% - 9.74% |
Learn More |
|
5.66% - 14.07% |
3.69% - 13.91% |
Learn More |
Other Ways to Get Similar Federal Benefits for Your Private Student Loans
Whether you refinance or not, there are a few other ways you can obtain perks for your private student loans that are similar to federal borrowing protections.
See if any of the following ideas make sense for your situation:
Talk to your lender about your options
For the most part, student loan lenders understand that tough times happen. If you’re struggling to make payments on your private student loan, reach out to your lender. Discuss your options before you miss a payment to avoid risking default. You may be surprised to learn what they can do to help you.
Many lenders offer a period of forbearance, during which you might owe nothing, just interest, or a flat rate. This gives you a chance to save up or find a new job before you need to resume full principal and interest payments. It’s not as great as the long-term income-driven repayment plans offered by the federal government, but it does offer some relief.
Pursue career-based loan forgiveness
Although not the norm, some student loan forgiveness programs forgive federal and private student loan debt. It all depends on the specific program.
Some of the jobs that offer student loan forgiveness are nurses, physical therapists, other medical professionals, and dental professionals. Research student loan forgiveness programs for your job or industry to see what you might qualify for.
Here are a few examples of loan forgiveness programs that forgive both federal and private student loan debt:
- Nurse Corps Loan Repayment Program (LRP): Nurse Corps pays off up to 60% of your unpaid nursing education debt while you work in an eligible Critical Shortage Facility in a high need area.
- State Loan Repayment Program (SLRP): In some states, eligible dental and medical professionals can apply to receive federal and private student loan forgiveness.
- Montana Institutional Nursing Incentive Program: Registered nurses practicing in a Montana state prison or hospital can apply to receive up to $3,750 per year in federal and private student loan forgiveness.
- NYS Licensed Social Worker Loan Forgiveness (LSWLF) Program: Eligible social workers can receive up to $26,000 in federal and private student loan forgiveness from the state of New York.
Work for a company that helps you pay off your student loans
Paid time off, health insurance, and matching 401K plans aren’t the only employee perks out there. Some companies have added student loan repayment assistance to their list of employee benefits. That means more money going on your loans each year, getting you a little closer to becoming debt-free.
According to the 2019 Employee Benefits Survey by the Society for Human Resource Management, 8% of companies offer student loan repayment assistance. This is double what it was just two years prior, so it’s likely even more companies will get on board in the coming years.
If you’re in the market for a new job, focus your search on companies that want to help you pay down your student debt. Companies to look at include:
- Fidelity
- PricewaterhouseCoopers (PwC)
- Aetna
- Penguin Random House
- Chegg
- CommonBond
- Staples
- Live Nation
Every company runs their program a little differently, so make sure you know exactly what you’re getting into when you accept student loan repayment assistance. Are you giving up matching 401K contributions? Will you need to pay taxes on the contributions? Does it require you to commit to working there for a set number of years? Talk to an HR representative to get the full picture.
Final Thoughts on Transferring Private Student Loans To Federal Loans
You can’t transfer private student loans to federal loans but that doesn’t mean you’re totally out of luck. Get some of the benefits you seek by:
- Refinancing your private student loans with a new lender
- Talking to your current lender about forbearance or repayment plans
- Applying for student loan forgiveness programs that forgive private student loan debt
- Working for an employer that offers student loan repayment assistance
