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I just transitioned a year ago from the NHSC scholarship program into the loan repayment program. Recently I've been working a lot on finances and was able to find a really awesome way to effectively put my remaining loans into a "bonus" grace period so that I pay as little as possible towards the loans while waiting to finish them off with the NHSC LRP.
Basically, I found a lender that allows you to refinance your student loans with a low interest rate (nothing new there), but also allows you to pay interest-only for the first two years, and most importantly puts you into a "paid ahead" status when you make a lump sum payment so that you no longer have to make monthly payments for however many months that lump sum payment would have covered. The key is the "paid ahead" status, because if you refinance before you make your NHSC lump sum payment, you won't have to pay again until your loan is paid off with the loan repayment program (depends on your loan size and how much repayment you are getting). Most all of the refinancers don't do this for lump sum payments and instead just shorten your loan term.
Anyway, I just went through refinancing myself (unfortunately right after I made my $50k payment, so I will be paying the interest-only for the next little while until I get the $20k), and posted all the details on this strategy on my personal blog. A life in the day of...: Using Refinancing to Maximize Benefit from the NHSC or State Loan Repayment Programs
Let me know if you have any questions!
Basically, I found a lender that allows you to refinance your student loans with a low interest rate (nothing new there), but also allows you to pay interest-only for the first two years, and most importantly puts you into a "paid ahead" status when you make a lump sum payment so that you no longer have to make monthly payments for however many months that lump sum payment would have covered. The key is the "paid ahead" status, because if you refinance before you make your NHSC lump sum payment, you won't have to pay again until your loan is paid off with the loan repayment program (depends on your loan size and how much repayment you are getting). Most all of the refinancers don't do this for lump sum payments and instead just shorten your loan term.
Anyway, I just went through refinancing myself (unfortunately right after I made my $50k payment, so I will be paying the interest-only for the next little while until I get the $20k), and posted all the details on this strategy on my personal blog. A life in the day of...: Using Refinancing to Maximize Benefit from the NHSC or State Loan Repayment Programs
Let me know if you have any questions!
