When to refinance student loans?

[pedstar09]

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My wife will be graduating from school around June, 2019 and we expect that she will have a contract from employer around May, 2019. When is the earliest we can refinance her loans? Her loans are GradPlus and direct unsubsidized. Thanks

 

[Renal_Prometheus]

yes, the earlier the better

 

[TMP-SMX]

When you decide you aren’t going for PSLF

 

[pedstar09]

I know we are not going to do PSLF for her. Can you refinance while she is still in school?

 

[mvenus929]

I know we are not going to do PSLF for her. Can you refinance while she is still in school?

Most banks want some sort of guarantee that you're actually going to pay back your loans. If you're still in school, you don't have any income and won't be able to make payments on said loans. Even with a contract in hand, it's going to be difficult to prove you can pay the amount.

Additionally, residents typically get horrible deals on refinancing because their incomes are so low--you can't get a 5 year repayment plan because you don't have the income to support it, so you end up with variable interest rates, or interest rates very close to your original interest rate with the government.

This is why most people will wait to refinance until after residency. Based on your post, I'm not sure what field your wife is in, but if she's not going to residency, then by all means, refinance as soon as she starts her job.

 

[pedstar09]

Thanks all! I guess a good time will be to start looking/applying once she finalizes her job next calendar year!

 

[Mman]

it's been a long time since I've done this, but doesn't the interest rate only change once per year (something like July 1st) and isn't the new rate announced like 90 days ahead of time? You basically can wait and see if the rate will be going up in the future and then consolidate before that happens. Or if it will be lower the next year you can wait til it lowers and then consolidate. I confess it's been a while for me.

 

[bwmd]

Laurel Road refinances post-match graduating MS4s with a match letter.

 

[Zadafabra]

definitely earlier. wish you good luck!

 

[deleted642280]

I will be planning to refinance this year after fellowship. Has anyone done it with a company they like/recommend?

 

[FlowRate]

Most banks want some sort of guarantee that you're actually going to pay back your loans. If you're still in school, you don't have any income and won't be able to make payments on said loans. Even with a contract in hand, it's going to be difficult to prove you can pay the amount.

Additionally, residents typically get horrible deals on refinancing because their incomes are so low--you can't get a 5 year repayment plan because you don't have the income to support it, so you end up with variable interest rates, or interest rates very close to your original interest rate with the government.

This is why most people will wait to refinance until after residency. Based on your post, I'm not sure what field your wife is in, but if she's not going to residency, then by all means, refinance as soon as she starts her job.

The other reason, maybe not applicable to OP, is doing residency somewhere really expensive and having to forbear your loans.

 

[TMP-SMX]

The other reason, maybe not applicable to OP, is doing residency somewhere really expensive and having to forbear your loans.

This is why REPAYE is a great option for people unsure or who can't afford large loan payments. It subsidizes the interest for three years. Alternatively, many of the private lenders allow for lower payments during residency.

 

[Black Coffee 24/7]

Does anyone have the refinance interest rate post residency for someone w/ 780+ credit score? I just want to know the competitive rates currently. Thanks

 

[potential_fut_doc]

Does anyone have the refinance interest rate post residency for someone w/ 780+ credit score? I just want to know the competitive rates currently. Thanks

Wondering this as well. Credit score is around 740 and most likely I'm going to refinance (my loans are not large enough to be worth PSLF)