Personal Loan to Pay Off Student Debt: Is It Worth It?

JetzLoan helps you explore your options for consolidating student loans. We connect you with lenders offering competitive rates and flexible terms, potentially simplifying your repayment journey.

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This site does not offer loans directly. We connect users with lenders. APR varies. See lender terms.

How to Get a Personal Loan for Student Loan Debt

1

Fill Out Our Secure Form

Provide some basic information about your student loans and financial situation. This allows us to match you with potential lenders.

2

Compare Loan Offers

Review personalized loan offers from multiple lenders. Compare <b>APR range 6%–36%</b>, loan amounts, and repayment terms to find the best fit.

3

Fund Your Loan & Pay Off Student Debt

Once you choose a lender, complete their application process. Upon approval, funds will be disbursed, allowing you to pay off your existing student loans.

Can a Personal Loan Replace Student Loan Debt?

Using a personal loan to consolidate or refinance student debt is becoming increasingly common, particularly for borrowers seeking student loan refinancing alternatives. A personal loan provides a lump sum of funds that can be used to pay off federal and private student loans. This simplifies repayment into one fixed monthly payment. However, it’s crucial to understand the implications. While a personal loan could offer lower interest rates than your current student loans – especially with good credit – you'll also forfeit the unique benefits associated with federal student loans. The average approval rate for personal loans is around 60%, but this figure varies significantly based on credit score and income. Many lenders require a minimum credit score of 580, though some specialize in bad credit debt consolidation options with slightly lower requirements. A typical loan amount ranges from $1,000 to $50,000.

Woman reviewing student loan payoff options with a personal loan.

Personal Loan Options for Paying Off Student Debt Compared

LenderAPR RangeLoan Term (months)Minimum Credit ScoreForfeits Federal Benefits?
LightStream 5.5%–19.9% 24–84 660+ Yes
SoFi 6.9%–14.9% 24–72 680+ Yes
Upgrade 7.5%–35.9% 24–84 620+ Yes
PenFed 5.9%–29.9% 24–60 620+ Yes
Earnest 6.9%–19.9% 24–72 700+ Yes

Key Considerations When Using a Personal Loan to Pay Off Student Loans

Losing Federal Protections: The Key Risk

One of the most significant drawbacks to replacing federal student loans with a personal loan is the loss of valuable borrower protections. These include income-driven repayment plans, which adjust your monthly payments based on your income and family size, and potential student loan forgiveness programs like Public Service Loan Forgiveness (PSLF). Approximately 40% of borrowers are enrolled in some form of income-driven repayment, highlighting the importance of these options. Furthermore, federal loans may offer deferment or forbearance periods during times of financial hardship, which aren't always available with personal loans. It’s crucial to carefully weigh the potential savings from a lower interest rate against the loss of these safety nets before making a decision. Many borrowers choose pay off credit card debt first, then consider student loan options.

Financial advisor helping a couple consolidate student debt.

Actionable Tips for Paying Off Student Debt with a Personal Loan

1

Review Your Credit Score Before Applying

Check your credit report, aim for a score above 680, and correct any errors before submitting applications. Higher score can lower your APR, but remember that even with good credit you may still lose federal benefits.

2

Calculate Total Cost Including Fees And Interest

Add up the APR, origination fees, and any prepayment penalties to determine the true expense. Use a calculator to compare total repayment amounts across lenders.

3

Assess Federal Benefits Before Switching Loans

If you hold federal student loans, explore income‑driven repayment or forgiveness programs first. Switching to a personal loan will forfeit these protections, so weigh the trade‑offs carefully.

4

Enroll In Autopay To Unlock Rate Discounts

Set up automatic monthly debits to potentially receive a 0.5% APR reduction. This can save money and ensure on‑time payments.

5

Map Out Monthly Payments And Payoff Timeline

Create a budget that fits the new payment amount and set a target payoff date. Sticking to the plan prevents missed payments and reduces interest accrual.

Why Choose JetzLoan

Fast & Easy Application

Our streamlined application process makes it quick and simple to find potential loan options.

Wide Network of Lenders

We connect you with a diverse range of lenders, increasing your chances of finding the right fit.

Secure & Confidential

Your personal information is protected by industry-leading security measures.

Dedicated Support Team

Our knowledgeable team is here to answer your questions and guide you through the process.

Frequently Asked Questions

What credit score do I need to qualify for a personal loan to pay off student loans? +
While requirements vary by lender, generally, you’ll need a credit score of 620 or higher. However, some lenders specialize in working with borrowers who have bad credit and may offer options with slightly lower thresholds.
Will applying for a personal loan affect my credit score? +
Applying for multiple loans within a short period may result in a small, temporary dip in your credit score due to hard inquiries. However, JetzLoan’s initial matching process often includes a no hard credit check.
How much can I borrow with a personal loan for student loans? +
Typical loan amounts range from $1,000 to $50,000, but this depends on your creditworthiness, income, and the lender’s policies. You may be able to consolidate multiple student loans into one fixed monthly payment.
What are the risks of consolidating federal student loans with a personal loan? +
Replacing federal loans with a personal loan means forfeiting benefits like income-driven repayment plans and potential student loan forgiveness programs. Carefully consider these implications before proceeding.
What is the typical interest rate on a personal loan for student loan consolidation? +
Interest rates vary based on your credit score, loan amount, and lender. You can expect an APR range 6%–36%, but it’s important to compare offers from multiple lenders.
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Total Interest Paid$1,957
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