Let’s start by saying that there is no single medical school loan refinance company that’s best for everyone. Refinance companies vary in terms of eligibility requirements, interest rates, and other terms and conditions. When refinancing medical student loans, it’s important to look for a lender who is offering you the best deal for your circumstances.
It takes several years of study before you can qualify to practice medicine. And medical school can be expensive. By the time you’ve completed medical school, you’ll likely have accumulated several loans every year. These could add up to a few thousand dollars in federal and private student loans.
Managing so many different loans can be challenging. Many medical students choose to refinance their loans so they are easier to manage. Refinancing medical school loans involves exchanging your current loans for brand-new loans. The new loan will have a new interest rate and new terms and conditions.
There are several reasons why you may choose this option.
Of course, there are a few downsides to refinancing student loans. It helps to understand the pros and cons before proceeding with this option.
From the pros and cons, it’s plain to see that refinancing medical school loans may not be the right option for you.
Refinancing is a good idea if the new interest rates are lower than your current interest rates. For example, if you have high-interest private student loans, refinancing at a lower rate could save you a lot. Borrowers generally qualify for lower rates if their credit score is high or when market interest rates are down.
Refinancing also helps if you want to combine multiple loans into one loan, which simplifies monthly payments. It also lowers the likelihood of missing payment deadlines.
Regardless of other factors, you should not consider refinancing if you are pursuing federal loan forgiveness. This is because you can only refinance medical student loans with private lenders. When you refinance federal student loans, they become private loans and lose all benefits and protections associated with the original loan. That means you will no longer be eligible to apply for student loan forgiveness.
It also best not to refinance if you’re planning on working fewer hours or part time for personal reasons. Or if your household debt-to-income ratio is higher than 1.0 – 1.5 and you don’t expect it to get lower within five years. For example, this may be if you earn $1000,000 but your debt is more than $150,000.
If you’ve decided that refinancing is the right option for you, these are the top eight medical school loan refinance companies that we recommend:
Once you’ve decided to ahead with refinancing medical school loans, the first step is to find the best lender for you.
Step 1: Start with the list above or do a general online search for ‘medical school loan refinance companies’.
Step 2 – Check each lender’s eligibility criteria. Every lender will have their own minimum credit score requirement. Shortlist those lenders whose requirements you meet.
Step 3 – Check the interest rates for each lender on your shortlist. You want to identify lenders offering the lowest rates and also low or zero fees.
Step 4 – Request quotes from the companies that you’ve shortlisted as good matches for you. These initial applications will trigger only a soft credit check, which won’t hurt your credit. DO NOT submit an application at this stage. Only request a quote. Submitting an application will trigger a hard credit check, which will shave a few points off your credit score. Multiple applications will pull your score down by several points.
Step 5– Choose your preferred lender, select the monthly repayments and terms of your new loan, and proceed with your loan application.
RaptorFi makes it easy for you to get personalized student loan refinance rates by answering a few questions. And it’s free too!
We hoped you enjoyed this article! Remember, you canand potentially lower your monthly student loan payments and save money.