Refinancing student loans

[triguitarpharm]

Anyone have tips for refinancing? Recent grad here looking into it. Is it even worth it to do? Seems rates aren't very competitive. I was hoping to lower my monthly payments and stretch it out over 10-20yrs at a low rate, how naive of me... the rates I'm seeing on all these websites are not really any better than the federal rates I borrowed at (which are horrible, 6%...)

I have a family and planned on working 50hrs a week my first year to save a ton and buy a house. After this I figured I would start to focus on loans by paying an extra 500-1000/mo. What does everone think of refinancing, home loans, paying off debts, etc? I know you all have opinions. Lol.

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[Drugsarefun2350]

I refinanced through sofi, got a 5 yer variable for like 3.2%, take a look into them

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[Momus]

which employer will allow you to work this much?

There is always moonlighting, part time jobs at hospital/retail/indy, and Uber. Who said it had to be 1 employer?

 

[triguitarpharm]

I'm working part time for the 2 largest hospital systems in Missouri. There are plenty of hours available to pick up.

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[pezdispenser]

The rates are only good for shorter terms like 5 years. Still, I would really focus on paying off all student loans in 5 years anyway, so combined with the low interest rate, you will see serious progress on paying down the principal balance. If you leave it on a 20 year term with a 6%+ rate, most of your payments will go towards the interest and the principal balance will hardly go down at all. This will be very discouraging because you will feel like you will never get out of debt. Check out Dave Ramsey www.daveramsey.com for advice on how to get out of debt fast.

Also, hold off on buying a house. It's just going to strain your cash flow and you won't be able to make serious extra payments on your student loans. You think an "extra 500-1000/mo" is good? Nah, I'm talking 3500-4500 total towards your loans to blitz them out.

Good job on hustling and getting 2 jobs. That's the way to do it these days.

 

[cj98]

I refinanced through sofi. I have about 95k in loans with a 4% interest rate and I'm thinking about buying a house in the 180k range. I'm in CA so I expect the housing prices to increase which is why I'd like to buy soon. Has any other pharmacist done this and your experience? Is this doable/a wise decision or should I wait until I pay off more of my loans?

Background : 140k income w/ government benefits so retirement is going to be okay hopefully

 

[monkieez]

When you refinance do you have to pay over a specific period of time ? I want to pay off my loans in the next few years and was wondering if private loans often have penalities for paying off loans early. Would it even be worth the headache if I am planning to pay off loans quickly?

 

[Momus]

I refinanced through sofi. I have about 95k in loans with a 4% interest rate and I'm thinking about buying a house in the 180k range. I'm in CA so I expect the housing prices to increase which is why I'd like to buy soon. Has any other pharmacist done this and your experience? Is this doable/a wise decision or should I wait until I pay off more of my loans?

Background : 140k income w/ government benefits so retirement is going to be okay hopefully

In CA? You must be buying a shack or living in bum fu3k Egypt.

I feel like I can't save fast enough to buy a 2nd property. Decent neighborhood, good school district rated 9-10, 3 BR old house cost around 700k in San Diego. Three years ago, it would have cost 500k.

 

[cj98]

In CA? You must be buying a shack or living in bum fu3k Egypt.

I feel like I can't save fast enough to buy a 2nd property. Decent neighborhood, good school district rated 9-10, 3 BR old house cost around 700k in San Diego. Three years ago, it would have cost 500k.

Hahaha, I'm in the central valley though...

 

[lane one]

Anyone have tips for refinancing? Recent grad here looking into it. Is it even worth it to do? Seems rates aren't very competitive. I was hoping to lower my monthly payments and stretch it out over 10-20yrs at a low rate, how naive of me... the rates I'm seeing on all these websites are not really any better than the federal rates I borrowed at (which are horrible, 6%...)

I have a family and planned on working 50hrs a week my first year to save a ton and buy a house. After this I figured I would start to focus on loans by paying an extra 500-1000/mo. What does everone think of refinancing, home loans, paying off debts, etc? I know you all have opinions. Lol.

I'm in the process of refinancing right now and yes, the offers suck. I've got good credit and my offers for 7-8 term are all around 6% fixed. Still will save me money, but not as much as I hoped.

There is always moonlighting, part time jobs at hospital/retail/indy, and Uber. Who said it had to be 1 employer?

Lol. Bonus points if you wear your white coat, and give out GoodRx cards to all your customers.

 

[Sine Cura]

Refinancing with First Republic might be beneficial if you won't have to use forebearance or deferment options available for federal loans. I personally would prefer the flexibility of having the ability to defer payments in the event of job loss or medical disability

 

[radio frequency]

I wish I'd gone with First Republic myself; their rates are spectacular. Too late now; I've paid off too much of my loan (win-lose?)! There are some refinancing companies that give you flexibility of job loss occurs. SoFi offers this and I think DRB does too. Not sure about FR.

Make sure to look at the total monthly payment as well as interest rate when refinancing. I've had to sock a ton of money at my loans right off the bat because I felt too cash strapped to buy a home on my minimum payments (which were high in order to get the best rates). Getting rid of loans will be helpful in easing my cash flow and getting into a home.

 

[ldiot]

I'm in the process of refinancing right now and yes, the offers suck. I've got good credit and my offers for 7-8 term are all around 6% fixed. Still will save me money, but not as much as I hoped.



Lol. Bonus points if you wear your white coat, and give out GoodRx cards to all your customers.

6%...? What the hell? That's higher than the federal loans... how is that saving you money? I was hoping for 3-4% when I graduate and refi. I guess to be fair they were 6.8% for a year or too but still.

 

[lane one]

6%...? What the hell? That's higher than the federal loans... how is that saving you money? I was hoping for 3-4% when I graduate and refi. I guess to be fair they were 6.8% for a year or too but still.

Yeah most of mine were 6.8%. Needless to say I was disappointed with the 6% offer.

 

[last chance]

I refinanced through sofi, got a 5 yer variable for like 3.2%, take a look into them

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Would you mind sharing a little bit about your credit history? Mine's not excellent but I thought it was decent enough since it's around 740's. But my pre-qualified rate is much higher than yours.. I'm trying to see if there's something I can do in the next few months that will help me reduce the interest rate (ideally low 3% range like yours)

 

[PharmtoCS]

Lol. Bonus points if you wear your white coat, and give out GoodRx cards to all your customers.

As a new grad, I wonder if I should be really scared for my future when I'm getting these emails:

 

[rxdawg21]

Would you mind sharing a little bit about your credit history? Mine's not excellent but I thought it was decent enough since it's around 740's. But my pre-qualified rate is much higher than yours.. I'm trying to see if there's something I can do in the next few months that will help me reduce the interest rate (ideally low 3% range like yours)

I refinanced 2 years ago and got 3.5% fixed for 5 years. To get a low rate you have to do a 5 year payoff plan, 10 years or more the rate goes up. Credit score is just one thing they look at, they look at your income and your debt to income ratio. For me my income was >120k when I refinanced and my student loan debt left was 68k out of a starting 81k, so that is why I got the best possible rate (along with a 740ish credit score). My friend who had a 100k income (would not include his spouses just his) and a 150k debt load did not get the same deal, however he did do a variable rate and got in the mid 2% range, I do not know what it is now but preferable not much higher as rates have gone nowhere.

 

[ldiot]

I refinanced 2 years ago and got 3.5% fixed for 5 years. To get a low rate you have to do a 5 year payoff plan, 10 years or more the rate goes up. Credit score is just one thing they look at, they look at your income and your debt to income ratio. For me my income was >120k when I refinanced and my student loan debt left was 68k out of a starting 81k, so that is why I got the best possible rate (along with a 740ish credit score). My friend who had a 100k income (would not include his spouses just his) and a 150k debt load did not get the same deal, however he did do a variable rate and got in the mid 2% range, I do not know what it is now but preferable not much higher as rates have gone nowhere.

Do you think it's better to wait 6 months-1year before refinancing to show a reliable income/degree of job security as opposed to refinancing the day you get your first paycheck? I was thinking that may be perceived as higher risk for the lender if you have no work history. My credit score is high 700s but my debt will be 160-170k. Some of the reading I've done has suggested that for the first year I stick with the federal loans for two reasons: establish work history to potentially get a lower rate, and federal loans offer more generous hardship options in the event that my first job goes south (whereas the private companies that I'd refinance with probably would be less likely to pause payments in the event of job loss)

 

[rxdawg21]

Do you think it's better to wait 6 months-1year before refinancing to show a reliable income/degree of job security as opposed to refinancing the day you get your first paycheck? I was thinking that may be perceived as higher risk for the lender if you have no work history. My credit score is high 700s but my debt will be 160-170k. Some of the reading I've done has suggested that for the first year I stick with the federal loans for two reasons: establish work history to potentially get a lower rate, and federal loans offer more generous hardship options in the event that my first job goes south (whereas the private companies that I'd refinance with probably would be less likely to pause payments in the event of job loss)

I refinanced my loans about a year after graduation. (When first out drb didn't refinance pharmacist loans and sofi gave me a 5+% rate that I declined). I would try to refinance after 2-3 months just due to the fact 3% change in interest would save you 5k just in the first year alone. If you don't get the rate you want try after 6+ months or maybes year and after lowering your balance to 120 or less.

After a few months you should have a feel for how good or secure your job is

 

[ldiot]

I refinanced my loans about a year after graduation. (When first out drb didn't refinance pharmacist loans and sofi gave me a 5+% rate that I declined). I would try to refinance after 2-3 months just due to the fact 3% change in interest would save you 5k just in the first year alone. If you don't get the rate you want try after 6+ months or maybes year and after lowering your balance to 120 or less.

After a few months you should have a feel for how good or secure your job is

Thanks for the info. I'll probably apply after 6 months or a year. I think I'll try to stash away my first 2-3 months of pay in my checking account and then throw everything else at the loan. Hopefully by the time I apply I can show a solid work history and make some progress on the loan. I'd rather pay the higher interest for a little while in order to get a better offer when I refi, it will save me some money in the long run.

 

[d2rx]

I graduated last year and refinanced in November, just as the payments began. Went with DRB at 3.35% variable (currently 3.61). I was also offered 4.5% fixed. I am glad I went with the variable rate. I have saved quite a bunch. It will take sometime for my interest rate to get to 4.5% variable. When I refinanced, my credit score was 800 (according to DRB). I refinanced a 171k, but had another 30k in private loans from undergrad at 3.25% prime rate. I might have got the a better rate if my total amount owed was lower. Note: my repayment with DRB is for 10 years. I also applied to SOFI and got ~3.5% variable and 4.99% fixed for 5 years! I have been aggressive towards paying my loans. My current balance with DRB is 141k. I have paid about $4500 monthly the past 7 months. I am currently thinking of refinancing again, with another lender. My credit score is now between 824 - 833, from the various credit agencies.

 

[mentos]

I refinanced about 30k with DRB, 2.9% variable for 5 years last year. You do need excellent credit to get a good rate. My federal loans were 6.8% so it was significant savings. It has gone up to 3.3% variable, not a big deal. I've paid it down to 22k now. I'm considering paying it off in full by the end of this year. If you can't pay it off within 5 years I don't think it's worth it.

They also give a $200 referral bonus and I referred a few friends so that was nice.

 

[last chance]

I refinanced 2 years ago and got 3.5% fixed for 5 years. To get a low rate you have to do a 5 year payoff plan, 10 years or more the rate goes up. Credit score is just one thing they look at, they look at your income and your debt to income ratio. For me my income was >120k when I refinanced and my student loan debt left was 68k out of a starting 81k, so that is why I got the best possible rate (along with a 740ish credit score). My friend who had a 100k income (would not include his spouses just his) and a 150k debt load did not get the same deal, however he did do a variable rate and got in the mid 2% range, I do not know what it is now but preferable not much higher as rates have gone nowhere.

Hey I really appreciate your input. I was able to get VARIABLE 3.5% with Lendkey.. It's not as good as yours but certainly better than other options.. They told me that I can request re-evaluation for better rates anytime. Hopefully in a 6 month or so, I'll be able to qualify for better rates.

 

[Redtwogreen]

When you refinance do you have to pay over a specific period of time ? I want to pay off my loans in the next few years and was wondering if private loans often have penalities for paying off loans early. Would it even be worth the headache if I am planning to pay off loans quickly?

It definitely depends on the lender. That is a question you should definitely be asking when you are interviewing companies that you are considering to refinance with. Most companies these days will let you pay off quickly, and most companies will let you refinance basically an infinity amount of times. So, say for example, you refinance and get an interest rate of 5.9% and then you wait a year, your income increases or whatever, you refinance, and they will give you a better interest rate of 5%. You can do that over and over and over with most companies. Depending on how high your current interest is, refinancing is likely a good choice. We are paying off $600k of debt and are knocking it out as quickly as we can-- we are def refinancing because many of our loans have interest rates of 7.9%.

 

[radio frequency]

It definitely depends on the lender. That is a question you should definitely be asking when you are interviewing companies that you are considering to refinance with. Most companies these days will let you pay off quickly, and most companies will let you refinance basically an infinity amount of times. So, say for example, you refinance and get an interest rate of 5.9% and then you wait a year, your income increases or whatever, you refinance, and they will give you a better interest rate of 5%. You can do that over and over and over with most companies. Depending on how high your current interest is, refinancing is likely a good choice. We are paying off $600k of debt and are knocking it out as quickly as we can-- we are def refinancing because many of our loans have interest rates of 7.9%.

$600k? Good God, I hope that includes your house.

 

[Dred Pirate]

$600k? Good God, I hope that includes your house.

even then......

although I know a couple who have combined student loan debt of over $350k.... plus house, plus cars (they shouldn't have bought)

 

[Claydoe]

I refinanced 100k at 8% to 4.1% with Sofi. They offered me 5.5% over 10 years with a credit score of 743, but my dad was willing to cosign to bring it down to 4.1%

 

[Redtwogreen]

$600k? Good God, I hope that includes your house.

I wish! Law school for me, a masters degree and dental school for hubby.

 

[radio frequency]

I wish! Law school for me, a masters degree and dental school for hubby.

Yikes. At least you theoretically have some big shovels to dig yourselves out of the big hole! That kind of debt could be devastating to pharmacist families.

 

[Student Loan Planner]

Make sure you check multiple places. As long as your debt to income ratio is below 1.5 go for it! If it's between that and 2, then just make sure you're committed to paying it off. Higher than that and you're probably better off using the government programs. Places I'd check for rates include DRB, lendkey, sofi, credible, earnest, common bond, and citizens bank. Also see if first republic applies to you