FROM OUR PARTNERS
Physicians can refinance medical school loans during and after residency. We’ve evaluated the best refinancing options based on rates, terms, process, fees, and overall quality.
Splash Financial partners with various banks and lenders to offer a competitive interest rate.
LendKey streamlined the digital application process to save you time and effort by comparing competitive rates from a smaller bank or credit union.
First Tech Federal Credit Union provides competitive rates, but you'll require a membership to receive those benefits. To become a member, you'll have to meet some strict requirements.
SoFi provides an easy online application process, so you can receive a rate estimate in minutes without a hard credit check.
UNDERGRADUATE LOANS: Fixed rates from 3.47% to 12.55% annual percentage rate ("APR") (with autopay), variable rates from 2.26% to 13.54 % APR (with autopay). GRADUATE LOANS: Fixed rates from 4.60% to 12.55% APR (with autopay), variable rates from 2.96% to 13.54% APR (with autopay). PARENT LOANS: Fixed rates from 4.48% to 13.05% APR (with autopay), variable rates from 2.06% to 14.04% APR (with autopay). For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 06/08/2022.
There are several reasons why you might want to consider refinancing your medical school student loans:
Medical school loans can be a heavy burden for medical students. The average medical student graduates with $241,600 of debt and interest rates are often higher than the prime rate.
If you’re planning to refinance, here’s an example of how much you could save:
Based on the above scenario, if you refinance at a 3% rate, your monthly payments will drop to $966 and your lifetime cost will drop to $115,873.
Before you refinance, there are several requirements you should consider first:
Refinancing student loans can help you save money on interest and make monthly payments more manageable. Just keep to note if you refinance a federal student loan, you will no longer qualify for existing or future benefits offered by the federal government. That’s where consolidating might be worth looking into.
Consolidation usually results in lower monthly payments because you combine multiple debts into one, but the tradeoff is that it extends the life of your debt. This could mean paying more in interest over time, especially if you’re consolidating at a higher interest rate than what you were paying on your original loans.
If you have federal student loans, consolidation can be an excellent way to simplify payments and keep certain options open.
You can keep Public Service Loan Forgiveness (PSLF) available through repayment plans that include income-driven repayment plans such as Pay As You Earn (PAYE). If you refinance into a fixed rate plan with no income-driven options, it will make PSLF unavailable for borrowers with higher incomes. Consolidation may be a better option because it makes the possibility of forgiveness available while saving money on interest.
To summarize, refinancing is your best option to save money while consolidation is your best option for maintaining federal loan benefits.
Refinancing your student loan will temporarily hurt your credit score from the hard credit pull. However, it can be beneficial in the long run for your credit score as you continue to make payments on time.
Here are some factors to consider to help you choose the best medical school loan refinancing option: