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Medical School Student Loan –Medical school is an expensive investment, with many students graduating with a significant amount of debt. According to the Association of American Medical Colleges (AAMC), the median debt for medical school graduates in 2021 was $200,000. If you are one of the many medical school graduates struggling to manage your student loan debt, you may be considering refinancing your loans to get a better interest rate and payment terms.
Best Medical School Student Loan Refinance Lenders 2023
In this article, we will explore the best medical school student loan refinance lenders to help you make an informed decision.
SoFi is a popular lender that offers student loan refinancing to medical school graduates. They offer fixed and variable interest rates starting as low as 2.74% and 2.25% APR, respectively. Additionally, they do not charge any application, origination, or prepayment fees.
One of the standout features of SoFi is their unemployment protection program. If you lose your job, you can apply to have your payments put on hold for up to 12 months at a time, for a maximum of three years. They also offer a variety of repayment plans, including deferred, interest-only, and immediate repayment options.
SoFi also offers a referral program, where you can earn a cash bonus for every friend or family member you refer who refinances their loans with SoFi. The only downside to SoFi is that they require a minimum credit score of 650 to qualify for refinancing.
CommonBond
CommonBond is another popular lender that specializes in refinancing student loans for medical school graduates. They offer both fixed and variable interest rates starting as low as 2.49% and 2.06% APR, respectively. Additionally, they do not charge any application, origination, or prepayment fees.
One unique feature of CommonBond is their “hybrid” repayment plan. This plan allows you to make interest-only payments for the first four years of the loan term, and then switch to full principal and interest payments for the remainder of the loan term. This can be a helpful option for graduates who may not have a high income right after graduation.
CommonBond also offers a deferment option for up to 24 months if you experience financial hardship. Additionally, they have a social promise program, where they partner with Pencils of Promise to fund the education of a child in need for every loan they fund.
The main downside to CommonBond is that they require a minimum credit score of 660 to qualify for refinancing.
Earnest
Earnest is a lender that offers student loan refinancing to medical school graduates with competitive interest rates starting as low as 2.57% APR for a fixed-rate loan and 1.88% APR for a variable-rate loan. They also offer flexible repayment terms, including customized loan terms and an option to skip one payment per year.
One unique feature of Earnest is their Precision Pricing system. This system allows borrowers to choose a customized monthly payment based on their budget, rather than being limited to pre-set payment options. Additionally, they offer a variety of repayment plans, including deferred, interest-only, and immediate repayment options.
Earnest does not charge any application, origination, or prepayment fees, and they offer a variety of discounts for autopay and multiple loans refinanced with them. However, they do require a minimum credit score of 650 to qualify for refinancing.
Laurel Road
Laurel Road is a lender that offers student loan refinancing to medical school graduates with competitive interest rates starting as low as 2.50% APR for a fixed-rate loan and 1.89% APR for a variable-rate loan. They also offer a variety of repayment terms, including 5, 7, 10, 15, and 20-year loan terms.
One unique feature of Laurel Road is their “Residency and Fellowship” program, which allows medical school graduates to make reduced payments of $100 per month for up to four years during their residency or fellowship program. Additionally, they offer a deferment option for up to 12 months if you experience financial hardship.
Laurel Road does not charge any application, origination, or prepayment fees, and they offer a variety of discounts for autopay and multiple loans refinanced with them. However, they do require a minimum credit score of 660 to qualify for refinancing.
LendKey
LendKey is a lender that partners with community banks and credit unions to offer student loan refinancing to medical school graduates. They offer fixed and variable interest rates starting as low as 2.25% and 1.90% APR, respectively. Additionally, they do not charge any application, origination, or prepayment fees.
One unique feature of LendKey is that they offer a cosigner release option after 12 months of on-time payments. This can be helpful for graduates who may have a cosigner on their loans but want to remove them from the loan in the future.
LendKey also offers a variety of repayment plans, including deferred, interest-only, and immediate repayment options. However, they do require a minimum credit score of 660 to qualify for refinancing.
How to Refinance a Medical School Loan
Determine your eligibility
Before you start the refinancing process, you need to determine if you are eligible for refinancing. Generally, you need to have a good credit score, a stable income, and a low debt-to-income ratio. Most lenders require a minimum credit score of 650, but some lenders may require a higher score.
Shop around for lenders
There are many lenders that offer refinancing for medical school loans. It is important to shop around and compare interest rates, loan terms, and fees to find the best option for you. You can use online comparison tools to get a sense of what different lenders offer.
Gather your documents
Once you have chosen a lender, you will need to gather your financial documents. This typically includes your pay stubs, tax returns, and any other documentation of your income and expenses.
Apply for refinancing
You can apply for refinancing online or by phone. You will need to provide your personal and financial information, including your income, expenses, and debt. You will also need to choose your loan term and interest rate.
Get approved
If your application is approved, the lender will send you a loan agreement that outlines the terms of your refinanced loan. Make sure to read the agreement carefully and understand the interest rate, repayment term, and any fees associated with the loan.
Sign the loan agreement
If you agree to the terms of the loan, you will need to sign the loan agreement and provide any additional documentation requested by the lender.
Pay off your old loan
Once your new loan is approved and funded, the lender will pay off your old medical school loan. This means that you will start making payments on your new loan and no longer owe money on your old loan.
Make payments on your new loan
After refinancing, you will start making payments on your new loan according to the terms of your loan agreement. It is important to make your payments on time and in full to avoid penalties and potential damage to your credit score.
Conclusion
If you are a medical school graduate struggling with student loan debt, refinancing your loans may be a good option to save money on interest and get better payment terms. The lenders listed above offer competitive interest rates, flexible repayment terms, and unique features to help you manage your debt.
When considering which lender to refinance with, be sure to compare interest rates, repayment terms, and any fees associated with the loan. Additionally, make sure you meet the lender’s eligibility requirements, including credit score and debt-to-income ratio.
Refinancing your student loans can be a great way to save money and simplify your finances, but it is important to weigh the pros and cons before making a decision. By doing your research and choosing the best lender for your needs, you can take control of your student loan debt and achieve financial freedom.