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What is the longest term when refinancing student loans?

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  • What is the longest term when refinancing student loans?

    I am a resident who is finishing up residency next month. I am married with four young children. Our goal is to get into our "forever home" as quickly as possible because it is important to us that we get our children settled in their school/church/friend network sooner rather than later. I have a student loan with a balance of $357k that is currently accumulating 0% due to COVID. I am currently using REPAYE. I do not plan to go for PSLF as my job is with a private group.

    My current plan is to prioritize saving for a down payment for the first year after residency. During this time, I plan to do four things:
    (1) Rent housing for ~12 months.
    (2) Refinance my student loans.
    (3) Aggressively save for a down payment in an Ally savings that will allow the future mortgage to be 2x my income. Doing this will leave me with enough for all living expenses and about $1500 to put toward the student loan every month.
    (4) Assure myself that my job is a good long-term fit.
    (5) Shop around for a preferable house/neighborhood/school/church/etc.
    (6) Move into the forever home at the end of 12 months, just in time for school to start in the fall of 2021.

    After that first year, I plan to aggressively pay down my student loans and will be able to accomplish that within 4-5 years.

    My question is: what terms are commonly selected during the refinancing process? 5 years? 10 years? Will lenders allow 30-year terms? The reason I am asking is because I am seeking to minimize my student loan payment during the first 12 months after residency, even though I plan to pay off my loans within 6 years. And by selecting a 30-year term, assuming a 3% rate, I would expect a $1500 monthly payment [=PMT(0.03/12,30*12,357200,0,1)]. This would fit within my budget while aggressively saving for a down payment.

    I appreciate any insight. Thanks!
    Last edited by snow20; 05-28-2020, 11:53 AM.

  • #2
    The most common I have seen are 5, 7, 10, 15, 20. A higher rate with longer terms. Here is a list of lenders and current deals.


    • #3
      You may want to look into doctor mortgage loans.

      Depending on your specifics and rates of your student loans and possible mortgage, it may make sense to save a smaller down payment and instead pay off more of your student loans.