If you are unhappy with your repayment plan, interest rates, or AidVantage customer service but unable to pay off your loan, student loan consolidation could be the solution to your problems.
Consolidation is a fairly simple process. Old loans get eliminated and replaced with a new loan. Borrowers can consolidate some or all of their loans.
At the end of consolidation, your old loans are paid in full, and you have to pay off a new loan with newer and hopefully much better terms.
If you are looking to consolidate AidVantage loans, there are two processes you can go through federal and private consolidation. Federal consolidation happens through the Department of Education. Private consolidation, through a private lender, is usually called student loan refinancing. There are significant differences between the two choices, so you must make an informed decision. Because there is no way to “undo” a consolidation, any mistake you make is permanent.
Sherpa Note: This article originally covered Navient student loan consolidation. When Navient changed its name to AidVantage, this article was updated to reflect the new name.
Federal Direct Consolidation
The major advantage of federal loan consolidation is that you get to keep all of the perks associated with federal loans. These perks include income-driven repayment plans and student loan forgiveness. Another advantage of the federal loan consolidation process is that anybody can do it. There are no credit or income requirements.

The downside is that consolidating your federal loans doesn’t lower your interest rate. It just groups your loans. The goal behind a federal consolidation is to gain eligibility for preferred federal programs.
The danger is that federal consolidation is not the best strategy for some borrowers. Combining the wrong federal loans could result in borrowers not being eligible for preferred repayment plans. Anyone considering federal direct consolidation should be sure to understand the pros and cons of the process.
Finally, you can only consolidate federal student loans into a federal loan consolidation. If you hope to convert your private loans into federal loans to get on IBR or qualify for student loan forgiveness, you are out of luck. Absent an act of Congress, this financial move is not possible.
Private Consolidation aka Student Loan Refinancing
If you look at the refinance lenders on the market, you will see a wide selection of lenders advertising better interest rates. By slashing your interest rates, you can lower your monthly payments and get your loan paid off faster.
All loans are eligible for private loan refinancing, even federal. If you are thinking of refinancing your federal loans into a private loan, tread carefully. You can save a bundle by locking in low-interest rates, but you must give up the perks that go with federal loans. There is a lot to think about when it comes to private consolidation of federal loans.
If you want to go this route, you will need to have a good credit score and a decent income. The individual requirements and programs vary from company to company, so it pays to shop around.
![]() | Splash is extremely focused on interest rates. They consistently have the lowest rates in numerous loan categories. Read more... |
![]() | ELFI is a traditional bank with a major focus on quality customer service. Getting approved is hard for some borrowers, but those that do get approved receive excellent interest rates. Read more... |
![]() | SoFi is the biggest name in the student loan refinance space. They consistently offer excellent rates with high approval numbers. Read more... |
![]() | Earnest attempts to look at the big picture for borrowers. The application requires a bit more information, but it doesn't take long to complete, and could result in an approval where other lenders might reject. Read more... |
![]() | LendKey partners with smaller banks and credit unions across the country. This approach results in higher approval numbers and competitive loan terms. Read more... |
One thing many people forget about credit scores is that shopping around doesn’t hurt your credit score. As a result, it pays to apply at several places to find the best rate.
How To Start the Consolidation Process on AidVantage Loans
Given the enormous differences between private refinancing and federal consolidation, it shouldn’t be much of a surprise that starting each process is dramatically different.
Because the process is identical regardless of loan servicer, AidVantage borrowers will have the same consolidation process as MOHELA, Nelnet, and others. Additionally, AidVantage has no ability or authority to stand in the way of the process.

Federal Direct Consolidation – The Department of Education handles all federal student loan consolidation requests. Borrowers can start the consolidation by applying through this portal from the Department of Education. Completing the application usually takes less than half an hour. However, it usually takes several weeks or even months before the Department of Education finalizes everything.
Refinancing with a Private Lender – To refinance with a private lender, a borrower must pass a credit check to get approved. I usually recommend shopping around to get the lowest interest rate. This adds a bit of extra time to the process but can result in significant savings. Our student loan refinance company list has links to the various lender application forms.
Consolidating AidVantage Loans
Just because you can’t pay off your AidVantage loan tomorrow or next week doesn’t mean you are stuck with the same loan and the same terms for years to come. Student loan consolidation offers ways to get lower payments, lower interest rates, and pay off your loan faster.
Ok, this is page describes the ramifications of consolidation; not “how to”. Helpful advice though.
That is a fair point.
I’ve added some additional info on the “how to” aspect to make it more helpful.
Thanks for sharing your thoughts!
A lower interest rate is very tempting, however consolidation muddies the water somewhat. Consolidation, particularly undergrad and graduate loans seems to bury all details.