Can I get a personal loan to pay off a student loan?

You may be able to get a personal loan to pay off a student loan, but it depends on the lender. Some lenders do not allow you to use their personal loans for anything education-related, including student loan refinancing, so you should contact the lender directly to see if they’ll allow it. For your convenience, below are popular lenders’ policies on using a personal loan to pay off a student loan.

Policies for Using a Personal Loan to Pay Off a Student Loan

To see how much refinancing a student loan will save you, check out WalletHub’s student loan refinance calculator. You should also familiarize yourself with the pros and cons of using a personal loan to pay off a student loan.

Pros of Using a Personal Loan to Pay Off a Student Loan

1. You could get a lower interest rate. In general, personal loans have an interest rate range of 4% - 36%.
2. You could release your student loan cosigner. If you have a cosigner on your student loan and decide to pay it off with a personal loan, the student loan account will be closed. This will release the cosigner from the loan agreement.

Cons of Using a Personal Loan to Pay Off a Student Loan

1. You can’t get federal student loan forgiveness. Federal programs will forgive all or some of your student loan debt if you are eligible. For some programs, you must be a government employee or a teacher. There is no program like this for personal loans.
2. You can’t deduct a portion of your personal loan from your taxes. You can deduct up to $2,500 in student loan interest from your taxes per year. You cannot do this with a personal loan.
3. Not all lenders allow it. When you get a personal loan, you have to sign an agreement saying you will follow the terms of the loan. Many personal loan providers do not allow you to use your funds to pay for post-secondary education expenses.