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Refinancing while federal student loan interest accrual has been paused

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  • Refinancing while federal student loan interest accrual has been paused

    Hello, I was thinking about refinancing my federal loans now while rates were likely to be low, but if federal loan interest accrual is paused, should I wait until later? I'm a 3rd year resident about to graduate in 06/2020. I will not qualify for PSLF after graduation.

  • #2
    no rush. you have time.

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    • #3
      I'm monitoring the situation now. My variable rate for Laurel Road would be 2.4%, which is down from the 3.795% I have now (refinanced that about a 1-1.5 years ago).

      with you still having federal loans, I'd likely wait, too

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      • #4
        so we're far away from this actually happening, but this was released by senate democrats:
        https://finance.yahoo.com/news/senat...164550986.html

        And we just paid off our last student loans a month ago! Can I have the last $10k back? (of course not)

        Realize it's been released by the minority party in the senate (so it's not likely the majority even lets it come to a vote), much less would trump sign it

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        • #5
          Wait it out. I literally just refinanced with Earnest. I am outside of the cancellation window (I think it was five days after signing), but my loan is not completed in being set up with them. When I log in to my account, it says "It's happening !We're setting up your loan om our system." I called them today to ask them to cancel and they said it was impossible. I argued that I cannot access my loan since it is not completed, and the website states as such, but they would not budge. My timing is terrible.

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          • #6
            much less would trump sign it[/QUOTE]

            Trump's inner democrat is coming out.
            He did an exec order to halt student loans interest... I'm not sure why we're still labeling him as this staunch republican.
            He just wants to spend $$$ to halt the downward spiral thats going on so he can get re-elected. Does he (or any republican) care about the national debt? hellz no they don't. All a politician (dem or rep) care about is reelection.

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            • #7
              I completed my refinance with Earnest in 2/18/20 down to 1.89% variable. It was my second refinance as I got to 4.85% as a resident. Honestly it doesn’t bother me as I believe I am responsible for paying back my loans. I’ll just put the payments on autopilot for 5 years and invest as I have a two year EF. I think this is a great plan for those with modest incomes relative to their student loan burden.

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              • #8
                I pulled the trigger yesterday. SoFi 2.15% variable for 5 years; down from 3.79% fixed that I last did a little over a year ago. (first refinance was in the 4.8% range IIRC). The fixed rate for this offer was 3.4%. Still better than what I had, but the difference going to variable was justified.

                I'm still on the resident/fellow plan, but I've been using my entire fellowship stipend/bonus to pay on this. Going to stick to my $1,300/mo payment now then minimum payment when I start working in July. I'll have to do some assessing regarding how much to pay on loans versus invest the differences.

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                • #9
                  Originally posted by SerrateAndDominate View Post
                  I pulled the trigger yesterday. SoFi 2.15% variable for 5 years; down from 3.79% fixed that I last did a little over a year ago. (first refinance was in the 4.8% range IIRC). The fixed rate for this offer was 3.4%. Still better than what I had, but the difference going to variable was justified.

                  I'm still on the resident/fellow plan, but I've been using my entire fellowship stipend/bonus to pay on this. Going to stick to my $1,300/mo payment now then minimum payment when I start working in July. I'll have to do some assessing regarding how much to pay on loans versus invest the differences.
                  why would you do this now when the interest rate is going to be zero for 6 months?

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                  • #10
                    Originally posted by drmka26 View Post

                    why would you do this now when the interest rate is going to be zero for 6 months?
                    Did you not see they already refinanced last year?

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                    • #11
                      Originally posted by Peds View Post

                      Did you not see they already refinanced last year?
                      ah, no i didn't see that. makes sense. apologies

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                      • #12
                        Yeah I’ve been out of the public loan sector for a couple years now since I knew I was going to private practice

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                        • #13
                          Originally posted by SpicedRum View Post
                          Hello, I was thinking about refinancing my federal loans now while rates were likely to be low, but if federal loan interest accrual is paused, should I wait until later? I'm a 3rd year resident about to graduate in 06/2020. I will not qualify for PSLF after graduation.
                          # 1 it hasn't happened yet. # 2 it's only temporary. So you might as well apply, lock in your rate, and then drag your feet finalizing it until September (assuming refinancing is right for you.)
                          Helping those who wear the white coat get a fair shake on Wall Street since 2011

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                          • #14
                            I would hold off on refinance. You have NO interest coming your way. Bajillion companies wanting to refinance. Dont be in a hurry: get no interest accrual benefit from the government, avail it and pay down principal. When the gravy train stops, refinance. Rates haven't increased much since 2008 and with latest calamity, expect low fed rate for years.

                            Good time to have debt I guess.

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