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Can I selectively refinance certain student loans?

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  • Can I selectively refinance certain student loans?

    I am a graduating pediatric resident who is interested in trying to more aggressively pay off my federal student loan debt once I begin fellowship, especially since I'll get the opportunity to moonlight for extra cash. Through my loan servicer, FedLoan, I have my total loan balance spread over multiple loan groups with different interest rates (Direct Subsidized, Direct Unsubsidized, Direct PLUS). I was considering refinancing just the Direct PLUS loans for now as these carry the highest interest rate (7.65% fixed) and I believe that I should be able to afford the payments (estimated pre-screener on SoFi for just the PLUS loans, totalling $105,000, showed payments of about $1200/month for a 10-year fixed rate of 6.75% which I may be able to reduce further with my wife cosigning).

    Is it possible to selectively refinance just those loans, leaving my Direct Subsidized/Unsubsidized loans with FedLoan to continue an income-based repayment plan?

  • #2
    It was for me. Mine were all federal loans that were sold to Cornerstone. Each disbursement had a different loan number associated with it. I graduated med school in 2008, so my first two years are at like 2.675% and 4.25%, so not substantially better than what I could have gotten for even a variable rate loan 2 years ago when I refinanced. My last two years were at 6.8%, and I refinanced just those.

    It was a little bit futzy, however. When DRB cut my check, Cornerstone loan applied it equally across all my loans, despite me having given DRB the appropriate loan numbers. In speaking with DRB after the fact this was a Cornerstone loan problem. I was able to communicate with Cornerstone after the fact and have the funds applied only to the 6.8% loans, but it did require several phone calls and some diligence on my part.

    Hope that helps.


    • #3
      Yep exact same experience here.  Make sure to write down your balances before whoever mails the check.  My servicer also screwed it up I think they actually applied the loans to the lowest interest rates..  Was fixed after some calls.