Talk to a Home Loan Expert or use our refinance calculator to see if refinancing your home can help you consolidate your debt.

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Because the new loan is still a student loan, the borrower can’t use it to pay off debts besides existing college debts.

This means your student debts cannot be combined with credit cards or other debts under this type of loan. Borrowers can usually only qualify for loans equal to their current student loan payoff amounts.

The new loan could provide savings by offering a lower interest rate than you’re paying on credit card debts, but you’ll probably pay more on your student debts with this method.

“Generally speaking, it isn’t going to be a great strategy for someone,” De Gisi adds.

Many homeowners take cash out to pay off high-interest debt or make home improvements.

Use our refinance calculator to see if you have enough equity to reach your financial goal.

Some private lenders can refinance student loans to lower than their current rates, but this is usually because the new loan is still classified as a student loan.

“You can refinance student loans to a lower interest rate, and that loan will still be limited to qualified education expenses,” says Phil De Gisi, CMO of lender Common Bond, which offers student loan refinancing.

The average credit card interest rate is around 15%.