The term "refinance" refers to the process of paying off an existing loan with a new loan, typically at a lower interest rate or with different terms. Full definition
Consolidation of loans is the refinancing of multiple other loans to combine them into a single larger loan. (nfcc.org)
The caveat here is that many federal benefits are forfeited when federal student loans are refinanced with a private lender. (lendedu.com)
However, once federal loans are refinanced with a private lender, you lose many of the protections and repayment plans offered to federal borrowers — such as income - driven repayment plans, forgiveness eligibility, and deferment and forbearance protections. (lendedu.com)