I was reminded once more this week while speaking to a group of physicians that there are many, many graduating residents out there who owe $300K, $400K, or even more in high-interest student loans. If you're not going to be going for Public Service Loan Forgiveness, then it would behoove you to refinance those loans and then live like a resident until they're paid off.
I've written before about student loan refinancing. You basically couldn't do it before 2013, at all. However, since then there have been a handful of players come into the market willing to take your 5-10% loans and turn them into 3-5% loans. Better than a kick in the teeth, right? I've been so happy to see these companies pop up, that I've tried to get as many of them as possible to advertise with me on the blog. Although every reader (especially residents) doesn't qualify to refinance their loans, many do and should. It's really a win-win-win situation. The companies make money, the doctors save thousands in interest, and I make a few bucks by selling ads or through affiliate agreements. [Full disclosure: I have a financial relationship with all of the companies mentioned on this page.]
One of those companies, Social Finance (SoFi), surprised me this last week when they announced they were lowering rates again. For the first time since 2003 or so, when my cohort got out of medical school, it is actually possible to refinance your loans to a rate under 2%, and I think that's pretty exciting. Sofi's new rates are as follows:
| Period | Fixed | Variable |
| 5 Year | 3.5-5.5% | 1.9-4.2% |
| 10 Year | 4.6-6.5% | 2.7-4.5% |
| 15 Year | 5.1-7.0% | 3.0-4.9% |
| 20 Year | 5.4-7.2% | 3.3-5.2% |
[Update 2/2017- These rates are now out of date on this nearly 2 year old post. You can find current SoFi rates here. Also, their disclaimer. All rates, terms, state availability, and savings calculations are current at the time this article was written. Rates, terms, state availability, and savings calculations may update in the future. For current rates and terms visit SoFi.com]
I was so excited I tweeted it out and even mentioned in the monthly newsletter. My contact at Darien Rowayton Bank quickly wrote back to let me know that they also had lowered rates recently. (No surprise as this marketplace is pretty competitive.) Here are their current rates:
| Term Option | Fixed APR* | Variable APR* |
|---|---|---|
| 5 – Year | 3.50% – 4.75% | 1.92% – 3.68% |
| 10 – Year | 4.50% – 5.50% | 2.63% – 3.88% |
| 15 – Year | 5.00% – 6.00% | 2.98% – 3.98% |
| 20 – Year | 6.25% | 3.98% |
Then, two days before this post was supposed to be published, I got an email from blog advertiser CommonBond. They've gone ahead and lowered rates too.
Here are their new rates:
| Term | Fixed | Variable |
| 5 Years | 3.89-5.99% | 1.92-5.29% |
| 10 Years | 4.74-6.49% | 3.41-5.29% |
| 15 Years | 5.62-6.99% | 3.71-5.54% |
| 20 Years | 5.99-7.24% | 4.29-5.67% |
CommonBond also has the hybrid loans (fixed for 5 years, then variable) I wrote about recently and are now lending to a lot more physicians, dentists, accountants, engineers, attorneys, healthcare executives etc.
New Blog Advertiser CU Student Loans has also lowered rates recently. They only offer 15 year variable loans, but the rates for that particular loan are competitive with on the low end at least. (2.76%-8.01%.) They also work with a group that offers some other options, such as a 15 year fixed loan.
Although it sucks to have a savings account paying less than 1%, at least this era of historically low interest rates gives a chance for graduating docs with massive student loan burdens to lock in the low rates my classmates got back in 2003. Please don't miss it. Also keep in mind that YOUR rate may not be lower with any given lender than with the other lenders, so it pays to look at all of them. But nevertheless, this is a drop of up to 0.75% across the board. Take advantage while you can. Also, keep in mind if you refinance with SoFi or Common Bond through the links on this page, not only do I make some money, but they'll pay you $300. DRB will also match that $300. I suggest you put that toward the principle on the loan.
Check Your Rate with SoFi today!
Refinance with DRB today!
Refinance with CommonBond today!
Refinance with CU Student Loans today!
Have you already refinanced your student loans? Why or why not? Are you glad you did? Which company did you use? How was your experience? Comment below!
I applied to refi my loans and they gave me a worse rate than I have with the fed govt, around 8.5 fixed. They said it was because I had too high of debt ($450k)and only had a guaranteed income of $1100/day or 35 % of my production whatever was higher(I estimated a base income of about $250k.) I informed them that I was on track to make $300k after the first few months out of residency and I had near 800 for my credit score and expected a better interest rate, and they didn’t care. they said it all came down to the debt being too high. I may reapply after I finish a full year of work so I can prove to them that I indeed made $300k+. Seemed illogical to me
I’m sorry to hear that. Was that with all four companies I have listed? You find you get a better rate with one than another given your relatively high debt burden. I suggest you live like a resident this year, make crazy payments on the debt, and next year when your income is $300K and your debt is $300K you can probably get a better rate.
No I just tried Drb because I had heard they had the lowest rates. Maybe I should try the others but I assume they will give me similarily poor rates. I just went to a conference where a big financial group for dentist called Cain watters recommended that for a lot of dentists with high debt like myself the only real way to save for retirement and get out of debt is by saving up about $35-50k in your first year or two (paying minimums on loans) to show banks that we are good practice loan candidates, and buying our own practices. He was saying that as a business owner you are able to save way more for retirement pre tax than as an employee and typically earn more since you don’t have a middle man eating up a chunk of your profits. This obviously doesn’t apply to those with higher incomes but for a lot of dentists making in the. < 300k range it is probably a smart move even if it means not paying off your student loans quite as aggressively in the first year or two.
Interesting that they would see $50K in a bank and $450K in loans and think that looks better than $400K in loans and $0 in the bank, but I don’t always understand the decisions that underwriters make. I’d suggest at least looking at the other lenders. It only takes 5 minutes to get your quote from SoFi and you can do it completely online with only a soft pull on your credit.
I followed your advice and was able to get my rate down to 5.49% fixed instead of the 7.5% Fixed DRB offered me. I did the math and it should save me around 200k if I pay it off in 15 years.
That’s great! Pay it off in 5 years and you’ll save even more.
Are you sure sofi only does a soft pull? I asked if it was a hard or soft pull and got an ambiguous answer. Based on their explanation it seemed to be a hard pull, but they wouldn’t say directly. Can you find out for sure?
It’s soft to get the rate, then hard if you proceed with the full application. That’s straight from the founder’s mouth.
4th year med student here, so these questions may be underinformed…
I have about $65K in loans with 13.5K of that subsidized (part of that sorta lucky last class of students to get subsidized grad loans whoop). The rest of my loans are at 6.8 and 5.4%. I was planning on making the standard 10 year payment or as much as possible every month (about 550-600/mo) but enrolling in IBR to take advantage of having the interest subsidized on that 13.5K for three years.
– Can I refinance just my unsub loans?
– Would it make sense at all to refinance to one of the 15 year fixed rates which could be less than the rates I have now? Or should I wait until maybe year 2 of 4 of residency when I would know an attending salary is around the corner to try and get a variable 5 or 10 year rate?
-Do you think I would even be able to qualify for the longer 15 year fixed rates on a resident salary? (No other debt, excellent credit score)
I am lucky to have a relatively low debt burden but I want to save all I can on interest – is sticking to the usual IBR plan my best bet for now?
Definitely appreciate any thoughts!
You are way ahead of the game. You can’t mess this up either way. With that low of balance left, you may get approved for a refinance at the start of residency. Also, since you seem so with-it be aware that you could even have that nearly paid all the way down using moonlighting income to supplement your resident income (are you single?). Good luck.
You should be able to just refinance your subsidized loans. I think you’ll probably qualify since your loan burden is low. You’d have to apply to know for sure.
You can always refinance again, so I wouldn’t let that keep you from doing it now. However, you may not get a rate much lower than 5.4% if you want a 15 year fixed.
I think a resident should be very hesitant to leave IBR. You just don’t have the buffer you need in case something big happens in your life and you need that lower payment. Don’t worry too much. $65K in loans can be wiped out VERY quickly as an attending. While most new attendings won’t have my salary, I think I could wipe that out within 3 months of residency graduation by continuing to live like a resident.
Great post! You bring nothing but good news to the many of us burdened with student loan debt. I refinanced my students loans which were at 6.8% with 1)So FI, 10k, 10 year variable @ 3.5% & 2)DRB, 70k, 10 year fixed at 4.5% with automatic debit. I was please with both processes, a little bit of lag in their approval and communication but it was worth it to get those rates.
As a few have mentioned above, with the new lower rates, would it be possible to refi a refi? Would companies be willing to do this on their own loans, or would we have to match them against each other to get a better deal? Thanks as always!
I’d try to refi a refi. You should be a better prospect after the loan is paid down and bit and your salary goes up a bit. But I’d guess they’d be a little hesitant to refinance their own higher interest loan.
Applied through commonbond, DRB, sofi. Commonbond and SOFI applications much easier. Ended up getting the best rate with Commonbond. 2.1% Variable. They have a 220k cap on the loan. Ive already paid down a lot so won’t have much left beyond the 220k new loan. I didn’t apply for a fixed through commonbond, but SOFI I think had about 5% fixed on the “find my rate”. No house, no kid. Wife will finish residency herself in June. Will plan on paying off in 2-3 years. It seems WCI would agree with going with the variable in this situation.
Really great experience with Commonbond. Whole thing took less than a week, and that was with a couple of delays on my end. Very nice and supportive costumer service. Even had responses to emails at 11pm. Definitely recommend, especially in the past year when it seems they have really made their rates competitive.
Way to go, Pete! That is great news. One question: You paid down a lot and are still a little over $220k… what was the high point of your loans?
Congrats again.
Great to hear. 2.1% is pretty sweet. I agree if you’re going to pay this off in 2-3 years that it’s worth running the interest rate risk yourself.
My rate of 2.1% was wrong- actually got 1.92% from Commonbond! Forgot to factor in the .25 reduction for electronic payments. Also from what I heard from them, I think the main factor in their underwriting is credit score. I had contacted them to tell them my income was higher due to bonuses and they said income did not matter for the rate. I think my credit score was over 810. This may be reason why getting a better rate than Sofi for me if perhaps they put more emphasis on income or income/debt.
Absolutely. A good example of why it is worth applying with everyone. An extra 0.25-0.5% a year over 5 years on $200K+ in loans is certainly worth the time checking your rates.
Thanks! About 280 I think. During residency I paid 1K/month to try to keep things from getting more out of control. Then have paid alot down since starting real work. Wife has another ~170k but her job may repay 20k/year for 3 (or 6) years, so we will probably be less aggressive with hers. Hopefully a lot of people will refinance to save some money. WCI doing a great job in getting the word out.
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Our story,
First off-WCI-love your site and blog! Have been following and educating myself with your info for a few years-and have referred you to all of our medical/dental friends!
My hubby just started practicing in September and his salary is $250k plus call ($25-30k/annually). We have approx $375k in student loans. We didn’t consolidate upon graduation because of the whole spousal obligation to debt issue, but I just read your comment about taking out life insurance to cover the loans and we will definitely be looking into that option!
That being said-We are going to try refi with at least 2 if not all 4 of the companies you suggested, and I’m leaning towards variable loans to pay off debt quickly.
But my question is this: we own a home (renting it out) with not much equity and are renting a home we live in, my hubby will not be eligible to make partner until fall 2016. We have high hopes of paying down our debt aggressively, but only have his income as I stay home with our soon to be 4 children. After having no car payments, we are unavoidably having to take on car payments again to accommodate our growing family with a larger car this summer.
We’ve managed to payoff our credit cards and our current credit score is 810.
We also have to opportunity to invest in real estate through my hubby’s company in the next couple of years. We aren’t able to contribute to his retirement plan until JAN 2016. My husband has the potential to exponentially increase his earnings over the next 5 years as he is a orthopedic spine surgeon-but for now-it’s a modest living for that field (considering our debt from 11yrs of school/residency/fellowship).
How should we proceed re: fixed/variable considering all our other expenses/risks?
Thank you so much for your wisdom in this area!!!!! We are diligent savers and budget wisely, “living like residents” as much a possible-but just looking for advice on the next step.
Replied to your comment on the other thread. Don’t know why some get held and others do not.
Thanks for the post! I’m a 4th year medical student starting residency in a few months. Would it be prudent for me to refinance my loans at this point or should I look into doing this after residency? Thanks!
You won’t be able to refinance your loans unless you have a very low student loan balance or make a lot of money. You should certainly have a strategy for starting to make payments under the federal loan programs that are available. These companies that refinance student loans require low debt to income ratios, that just isn’t the case for a freshly minted resident.
I agree. Nobody is going to refinance you as an intern. Take a look again as you approach residency graduation.
I just came across an ad for Earnest which is advertising student loan refinancing. I wonder if you’ve heard much about them. Their website is meetearnest.com
That’s a new one to me. Always glad to see people working to help out indebted docs.
Thanks for this great post. I’m a 4th year med student graduating in a few months with 185k in debt, most of it in unsubsidized federal loan at 6.8% with just 17k as subsidized from 2010.
I just got married and I’m lucky enough to be with a wife who is financially secure, with about $100k in liquid savings and earning around $200k gross annual income. I am interested in refinancing as an intern with her as my cosigner (I know, she’s a winner). I’m seeking the best interest rate and we’ve both agreed on trying to pay off the debt aggressively before I finish residency in 4 years. To maximize my chances of these companies refinancing me, I was hoping to have her pay off a certain amount off the top to reduce my starting debt and then asking for a 5 year term. I figure I will use my entire resident plan after 401k and tax sheltered savings to pay down the debt while we live off her salary.
Does this sound like a reasonable plan? If so, how much off the top should we pay off with her savings? Or any thoughts? Thanks!
I’d make sure you have a 3 months worth of expenses sized emergency fund and put all the rest of the cash toward your loans. Then put them on the lowest rate variable rate 5 year loan you can get and try to pay them off in 2-4 years. You can guys can live just like your (not her) classmates and pay it all off completely in 2 years if you’re willing. I mean, you guys basically have an attending salary and only $100K to pay off after the cash is applied.
Thanks, WCI! That’s encouraging. This is a tremendous site and I have been recommending it to all my graduating classmates.
Our financial picture will be much clearer after tomorrow’s match and will help us budget for the area we are living in, and more importantly, if she’ll still be able to stay with her current amazing employer.
WCI,
What are your thoughts on DRB refinancing student loans while still in training with minimal required payments ($100/month) until after training is complete (with 6 months grace period if needed)? This is their newest program targeting physicians in training.
For a physician not planning on PSLF, seems like a safe option to cut the rate down significantly (current rate 7%) while in training.
Just found out about it 15 minutes ago. I think it’s awesome. I’ll be doing a post on it soon. The obvious caveat- you can’t get forgiveness once you refinance so be darn sure you don’t need/want it.
Hi WCI,
I currently have $200,518 with Great Lake. They are all federal loan. i am just learning about refinancing. my interest rate is 6.55%. I am actively paying it…plan to pay off in 4-5year. I am a 1st year outpatient family medicine attending.
I am a little anxious because i am still learning about refinacing.
What is your recommendation?
I’m presuming you’re not working for a 501(c)3 and would not consider it. If you would, consider PSLF.
Once that decision is made, might as well apply to get refinanced with the top 3-4 companies. Take the one that offers you the lowest rate. I favor a variable rate for a period of under 5 years. A doc today reported that he had refinanced at a variable 1.92%. On $200K, that’s over $10K a year going to principal instead of interest!
And of course, live like a resident until the debt is gone. Assuming you have an income of something like $150K a year, you might be able to pull it off in as little as 3 years, but your 4-5 is probably more realistic. It took me four to pay off my “student loans.” But if I can spend months away from my family in a war zone paying off my loans, I’m sure most docs can suck it up a bit and work extra hard until the loans are gone in a job and location of their choosing!
WCI,
Thank you for your quick response. I am not considering the PSLF because i just want to be done with this loans as soon as possible. I am definitely living like a resident. Paying it off in 3years will be great but expecting a new baby so thats why the aim is 4-5years. i will definitely apply to 3-4 company and see the best offer. one more question: Will applying to multiple company and they all pulling my credit score affect my credit history?
Yes, but the effect on your score is relatively minor. If you’re planning to buy a house in the next year it might matter a little.
Back in June I refinanced 200K with DRB at 10-year 2.75% variable. Over the last 10 months, I managed to pay my principal down to 150K. After the rates dropped, I was curious if I could get a fixed rate with Sofi near my current variable rate. I just went through the process and was approved for their lowest rate for 5 year fixed at 3.5% (3.75% before the autodebit deduction). I plan to pay off the loan within 2 years barring some catastrophic event. Would you recommend I take the fixed rate of 3.5%, or try for a variable rate around 2%? What is the likelihood of variable rates rising dramatically in the next two years? Great site, and thank you!
Crystal ball still cloudy. I have no idea. Certainly I wouldn’t expect a dramatic increase but you’re only talking about 0.75%, which could easily happen. I’d still do variable probably.
Sofi offered me 1.91% variable, so the spread between variable and fixed is around 1.5%, or around $2200/yr (which will diminish as I pay off the loan). Thanks again.
Saw this today.
http://finance.yahoo.com/news/student-loan-refinancing-boom-could-120000166.html
Who knew that refinancing your high interest student loan would be un-American. I actually never thought of being the one who was subsidizing all the other loans. Glad I refinanced mine a long time ago….
Who did you think was getting hosed from all this? Of course it’s the taxpayer, who is stuck with all the loans that aren’t going to be paid back.
I’m currently paying the minimum after doing income based repayment on my student loans, and am surviving during residency. Most of my loans are 6.8%, and my montly payment is $700, and it’s ONLY going to the interest (my principle loan amount does not change month to month after my payment is made). After looking at this article, and checking a few of the links, it seems as if I can pay less with a refinanced loan (around 600 per month) and actually make a dent in my debt. Is there any negative to this that I’m not seeing, or would I be crazy to not go through with it? Thanks.
I guess I should also add that I’m planning on paying off my loans in full by my 5th year out of training.
Are you aware that two companies will refinance you during residency? DRB requires a $100 a month payment and link capital requires none. I expect other companies to get into the game soon. $0-100 beats $600 and 1.9-4% beats 6.8%.
Oh, I used those links to check it out. Maybe I clicked something incorrectly in the process. I can just call them and talk to them.
Yes, those definitely beat what I’m paying right now. How risky are variable loans, though? I was looking at the fixed.
Well, the risk is that your interest rate could rise. I have no idea what the likelihood of that is.But if you’re going to pay your loans off fast, that risk isn’t so high for you.
Fair enough. What you said has made sense. Especially if I get a lower rate (and pay off even only 10k of the loan before graduation from fellowship – 2020), I’ll be able to pay it the rest of the way off during my first year as an attending.
I think I’m going to have to end up calling these companies rather than doing everything online, as some of what is showing up doesn’t make sense. (need for a cosigner, for example)
Thanks for the replies! Appreciate your time and knowledge. If I refinance, I’ll make sure they know it was through your website.
Thanks, very kind of you.
For me it’s really hard to estimate how much I could pay per month and in my understanding once you refinance the payments are pretty inflexible.
Questions:
1. Can you pay more than the payment amount to pay off the balance sooner? If so can you chose where to apply the extra money (interest vs. primary)?
2. Can you refinance already refinanced loan?
1. Yes, you can pay more. In residency, expect extra payments to go to interest because you’re not paying the full interest. As an attending, they should all go to principle.
2. Yes.
Hi WCI,
Thank you very much for the helpful information. I currently have about $200,000 in federal student loans: $57,000 FFEL loan at 6.55%, $42,000 direct loan at 6.55%, and $103,000 direct loan at 6.3%. I’ve made payments under IBR for about 4 years in training, but haven’t touched the principal (about $20,000 of my loans is interest). I start my first job as an attending next month (salary approx $200,000) at a facility eligible for PSLF. I’m considering refinancing the FFEL loan under a 5 year plan, as it isn’t eligible for PSLF. However, would refinancing this loan increase my IBR payment for my 2 direct loans, offsetting the benefit of refinancing the FFEL loan at a lower interest rate? If I do refinance, will my interest capitalize on the FFEL loan?
I’m also considering relocating in about 1 year, so I don’t know if I’ll still be eligible for PSLF down the road if I change jobs. I don’t know if it makes the most sense to pursue PSLF at this time, or to try and pay everything off as quickly as possible. I’m leaning towards pursing PSLF for my direct loans in the event that I do stay at my new job for several years, but I also hate seeing my principal increase every month.
I would definitely appreciate any advice! Thank you so much.
*I mean I hate seeing my total balance increase every month (not the principal).
I don’t think it would. Your IBR for those 2 loans is basically going to be the 10 year standard payment.
If you stay at a job that qualifies for PSLF, then using it is wise. But the second you leave, refinance and pay them off.
Thank you very much – I truly appreciate everything that you do for us!
A couple of things here:
You probably shouldn’t refinance your FFEL’s if you are in IBR and pursuing PSLF.
1) If you are single or have a low earning spouse then you may want to switch to REPAYE to maximize PSLF.
2) Your IBR payment stays the same no matter what loans it is paying off. So, if you refinance your FFEL loans your entire IBR payment will go towards your direct loans for PSLF. Currently, 28.5% of your IBR payment is going towards your FFEL’s. In essence, you are getting a “free subsidy” on your FFEL’s if you stay in IBR for PSLF. Your IBR payment on $200k will be about $2,300 per month and $655 of that will go towards your FFELS. I look at this as a $7,800 per year subsidy for your FFELS.
This trick only works with IBR, not with PAYE or REPAYE.
Thank you so much for the information! That’s very helpful, and I haven’t thought about it like that. I thought that the amount of federal debt was a factor in determining the IBR payment amount, but it sounds like it’s essentially just the salary (at least the attending salary), if I understand correctly. It makes sense to pay that $7,800 per year towards the FFEL, instead of towards the loans that will hopefully be forgiven.
That being said, do you think it makes the most sense to keep all 3 loans in IBR, switching to REPAYE for the direct loans and refinancing the FFEL, or switching to REPAYE for the direct loans and keeping the FFEL in IBR? I’m not sure which would save me the most overall. Thanks again!
Just to be clear, FFELs are not eligible for PSLF nor REPAYE. The borrower would need to consolidate to convert them to direct loans. In doing so, the PSLF and/or REPAYE “clock” would reset to zero.
Thank you. Yes, for this reason I do not intend to consolidate. That’s why I’m investigating the option of refinancing the FFEL loan, while pursing PSLF for the 2 direct loans.
Yes, FFELS are not eligible but can become eligible for PSLF, PAYE, and REPAYE. This all has to be set up correctly at the beginning. I’ve met others who have paid 3-4 years of IBR/PAYE but who also had $30-$40k of FFELs.
Hi-I am new to WCI and learning a lot! I finished residency with about $400,000 in student loans (sadly-all from medical school). I am currently with government students loans ranging from 6.5-8.7%. I am on the IBR plan and have only managed to get my loan down to 370,000 and FINALLY thought about refinancing (I don’t plan to do PSLF). My husband is making a resident salary for another 3 years and I am making about 250,000. We do not have a house or any other credit card debt (though we are thinking about buying a house, but not sure if we should just attack my student loans first).
Do you recommend consolidating my DIRECT loans under REPAYE or keeping IBR? And refinancing the rest of the loan with Sofi or one of the other companies listed on this website?? Or should I refinance the entire loan. I am also thinking about applying to fellowship…if I don’t refinance soon though, I feel like I won’t be able to put a dent in the loans. Appreciate your feedback and comments…learning a lot!
Since you don’t plan to go for PSLF, I’d refinance all your loans ASAP if you can get someone to loan you the money. 8.7% is brutal. You may be able to get that down to as little as 2-3% variable, allowing you to put an extra $20K a year toward principal instead of interest. Given your debt to income ratio, you may have a hard time finding someone to refinance you at all, much less at the best rates. Be very sure you’re not going to go for PSLF before refinancing.
I’d definitely prioritize your student loans over a house until you guys are both in stable attending jobs, but if everything else is really looking good in your financial life, buying an inexpensive house wouldn’t be the end of the world. Not enough info to really give good advice about that.
thanks for the feedback. I just applied to SoFi and they said i am “preapproved” with the rates listed throughout this forum (5.7% max rate on 20 year fixed). Sounds like refinancing is a must-just not sure if I should do all of the loan or part of it (want to keep the option of doing fellowship open within next 1-2 years). I would also moonlight to bring in extra money. we are thinking to buy a house around mid 300k so the mortgage would be about the cost of a rental in our area. thanks again.
Yes, if you need the lower payments during training then you’d best not refinance.
How long have you been in IBR for and how long will your fellowship be? How much student loans does your husband have? These are questions that I would be asking you if you were a client of mine. Based on the info provided, REPAYE would cost less but it is unclear if that is the best option for you. Are you sure your loans even qualify for PSLF? A lot of people don’t have the right type of loans.
thanks for the feedback. I have been on IBR since residency so now is my 4th year. My husband has about 80,000 student loan but is managing to pay down monthly. Fellowship would be 2 years but it is still kind of in the air ( I like to keep my options open). I was not planning to do PSLF because we are restricted to location for another 3 years minimum. So, I am thinking to refinance all of my loans (except leave the DIRECT loans with Nelnet and change it from IBR to RePaye). Not sure if this changes any recs? SoFi said I am preapproved with different variable/fixed rates similar to what people have posted here. I also got the 300$ discount for using this website!
Does your spouse have any federal student loans? If not, I suggest you consider refinancing. First Republic (no personal interest) offers very competitive rates, but limited to certain locations. Should you receive a 3.5% interest rate, 10-year term, for $370k, then monthly payments = $3,660. This is manageable given your annual household income of $300k. Please note when you refi with a commercial lender, there’s no returning to the federal system.
My wife and I are both physicians, and we both finished our fellowships this year. After making IBR payments on our federal student loans (interest rate 6.55%) throughout residency and fellowship, we finished our training both with significant student loan debt – me with ~167K, and her with ~239K. I signed on with a physician group in August and now draw a salary of 222K per year. However, my wife and I decided that it would be best for our family if she didn’t start work right away and instead spend time at home with our children, at least for another ~6 months. When she does start work again, it may be either full time or part time as a rheumatologist.
My question is this: would it make sense to refinance both of our student loan debt at this time? I am loathe to let our loans continue to balloon at the current interest rate. However, with her not working, will she qualify for the best interest rates now, even with me as a cosigner? If she refinances now, would she be able to refinance again later down the line once she starts working again, without me as a cosigner? Would it make make more sense to just refinance one of our loans, and keep the other on IBR for now, since our actual discretionary income is not that high with a single income and a new mortgage? Also, are there any companies that will refinance our loans as a consolidated package?
Might as well apply and find out what rates you qualify for, no? $400K in debt is a lot on only your salary. Be sure neither of you will be going for PSLF before you refinance. Yes, you can refinance again later. I doubt you would get any discount on IBR payments with a $222K income, but you can run the numbers easily and see. I wouldn’t refinance them as a consolidated package even if you could. If one of you dies you want that person’s loans to go away.