By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    first aid guide
    A Deep Dive into First Aid and CPR Certification
    February 19, 2024
    back pain
    No More Aches! A Guide To Effective Back Pain Relief
    March 28, 2024
    workplace first aid
    First Aid Training Can Improve Workplace Health & Safety
    June 27, 2024
    Latest News
    Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
    July 20, 2025
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    healthcare literacy
    Are You Health Literate?
    July 4, 2012
    Patient Power in Indiana
    December 9, 2011
    2/365 teenage pregnancy
    Make IUDs and Implants More Affordable and Accessible for Teens
    September 25, 2012
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Why Refinancing Medical School Lending Makes Sense
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Medical Education > Why Refinancing Medical School Lending Makes Sense
Medical EducationPolicy & Law

Why Refinancing Medical School Lending Makes Sense

Diana Hope
Diana Hope
Share
4 Min Read
medical school lending
Shutterstock Licensed Photo - By ESB Professional
SHARE

Once you graduate from medical school you probably assume your financial situation will improve dramatically. While it is true that you will finally be earning money, as opposed to borrowing it, you may still face tight finances as you begin repaying the money you have borrowed. Fortunately, there are ways to lower your monthly expenses while still making progress on your debt. One way to make the repayment process less painful is through refinancing. You may be tempted to wait until you complete your residency before refinancing. Acting early can help you save thousands of dollars in interest. This money will be particularly beneficial in these early years of your career, where your earnings will be lower, but you are expected to begin debt repayment.

Contents
How Refinancing HelpsCircumstances When Refinancing Makes SenseWhat You Need to Know

How Refinancing Helps

When you refinance your medical school loans, you can roll all of your school debt into one loan. Paying this off at a lower interest rate or with a longer repayment term will lower your monthly expenses. Having a lower payment gives you more freedom in your budget. Owing less interest allows you to save money for other things, such as a home, or to more aggressively pay down the principal on your debt. There are benefits to both options. If you plan to stay in the same area for more than a few years, purchasing a home can be a smart move. Aggressively paying off debt can also be a good choice. Owing less money gives you more freedom in the career choices you make.

Circumstances When Refinancing Makes Sense

Anytime you can consolidate and refinance at a lower interest rate, you are making a smart choice. There are some times, in particular, that refinancing is a great option. For example, if you are not eligible for loan forgiveness. If your residency is at a for-profit hospital or your existing debt is private, then loan consolidation is probably a good choice. Consolidation makes it much easier to keep track of your debt. Having everything available on one statement allows you to easily keep track of the repayment process. Rolling everything into one loan at a lower interest rate also allows you to take advantage of the improvement in your creditworthiness that naturally occurs as you transition from student to employed professional

What You Need to Know

Consolidating and refinancing medical school debt is a quick and painless process. Unlike when you refinance a mortgage, there are low to no fees associated with doing so. The entire process is quick and painless. You may be curious about how the process is affected by your credit. The lender will generally want to see fair to good credit scores when qualifying you for consolidation. Just like any other loan, the better your score, the less interest you will pay. Income should not stop you from refinancing this debt. While your residency income may be low compared to the amount of debt you owe, lenders understand the timeline from medical school through residency, fellowships, and being a fully qualified, practicing physician, and how your income will change over time. Your future earning potential makes you an attractive prospect to lenders.

More Read

A Citizen’s Guide To Healthcare Rights
Good riddance: United finally gives up on ACA marketplaces
Collaborating with Patients in the Digital Information Age
New Research on ACOs and the Accountable Care Opportunity
32 HealthCare Systems Named Pioneer ACOs
TAGGED:Medical school
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

botox certification
Help Improve People’s Skin Health Via Botox Certification
Skin Specialties
July 22, 2025
Telemedicine Apps
Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
Health
July 20, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
How IT and Marketing Teams Can Collaborate to Protect Patient Trust
Global Healthcare Policy & Law
July 17, 2025
paramedics in surgical gloves and masks
How Health Choices and Legal Actions Intersect After an Injury
Health care
July 16, 2025

You Might also Like

Health Insurance Exchanges: Will State IT Departments be Able to Meet the Deadlines?

February 27, 2013

Does Legalized Marijuana Impact the Healthcare Industry?

January 4, 2016
medical malpractice lawsuit
Policy & Law

Filing Deadlines for Malpractice Lawsuits to Cover Medical Bills

December 2, 2024

Further Disruptive Changes in Health Care Delivery

September 3, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?