When to refinance student loans?
Started by pedstar09
yes, the earlier the better
When you decide you aren’t going for PSLF
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.
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.
D
deleted642280
I will be planning to refinance this year after fellowship. Has anyone done it with a company they like/recommend?
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.
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)
