refinancing student loans

[Chelsea FC]

Hi guys, I am just starting (today) on my journey on becoming more financially knowledgeable actually just purchased the white coat investor and will dedicate some time on this site to learn all the terminology etc.
I am just writing to seek a little advice, I was a international student here for most of undergrad before getting my green card due to that I have amassed over $80,000 in college student loan dept (3 loans at Navient and 1 at sallie mae) all private loans with interest rates ranging from 7% to 11% on my loans . I am wondering if it would be a good idea to refinance my loans to a lower rate so I dont end up paying more money at the end of 4 years of medicals school + residency. Is it possible to refinance private loans and what negatives could come from me doing so and what companies should I look at when planning on refinancing .
Thanks all!

---

Members don't see this ad.

 

[holycrap]

Holy crap 80k just from undergrad??!

 

[deleted480308]

Hi guys, I am just starting (today) on my journey on becoming more financially knowledgeable actually just purchased the white coat investor and will dedicate some time on this site to learn all the terminology etc.
I am just writing to seek a little advice, I was a international student here for most of undergrad before getting my green card due to that I have amassed over $80,000 in college student loan dept (3 loans at Navient and 1 at sallie mae) all private loans with interest rates ranging from 7% to 11% on my loans . I am wondering if it would be a good idea to refinance my loans to a lower rate so I dont end up paying more money at the end of 4 years of medicals school + residency. Is it possible to refinance private loans and what negatives could come from me doing so and what companies should I look at when planning on refinancing .
Thanks all!

Make sure you know how it impacts eligibilty for federal loan forgiveness programs

 

[Chelsea FC]

Make sure you know how it impacts eligibilty for federal loan forgiveness programs

They are private student loans so I think they don't qualify for federal loan forgiveness.

 

[Chelsea FC]

Holy crap 80k just from undergrad??!

Name checks out..
And yes undergrad really screwed me but it is what it is.

 

[holycrap]

Good luck bro that's brutal

 

[d2rx]

Refinancing now will mean you cannot defer your loans while in med school and residency. Why not just wait till you become an MD?

 

[The White Coat Investor]

Do you have any income? If not, I wouldn't expect anyone to refinance those loans. You can try, but don't hold your breath. There are some lenders who will refinance your loans as a resident. You might get them down to 5.5%. I would do that for private loans that won't be eligible for IBR/PAYE/REPAYE/PSLF.

I can't really tell where in your training you are at from your post, but if in medical school it might be possible to transition some of your debt to better debt. For example, if you don't need the maximum direct loans to pay for school and living expenses, you could take out more and use it to pay off those 11% private loans.

 

[Chelsea FC]

Do you have any income? If not, I wouldn't expect anyone to refinance those loans. You can try, but don't hold your breath. There are some lenders who will refinance your loans as a resident. You might get them down to 5.5%. I would do that for private loans that won't be eligible for IBR/PAYE/REPAYE/PSLF.

I can't really tell where in your training you are at from your post, but if in medical school it might be possible to transition some of your debt to better debt. For example, if you don't need the maximum direct loans to pay for school and living expenses, you could take out more and use it to pay off those 11% private loans.

Thanks for the response, after I made this post I read your book and it has influenced me to make major life changes for the good and sent me on a financial book reading binge.
I am wondering if they would allow me to consolidate if I have one of my parents be a co-signer (their income is around 30k a year). I'm a incoming MS1 so I don't have a income and every company I reached out to don't allow for more than a 3 year deferment/forbearance so I am at risk for defaulting on my loans if I take a extra year for research for competitive specialties or I would have to wait until second year to defer my loans. It seems the best option is transferring my excess med school federal loans to pay off my high interest private school ones. I just feel trapped with 80k undergrad debt.

 

[The White Coat Investor]

With that income? Probably not. But if they had a higher one they would probably allow it. Not always a good idea though even if it is allowed. Then your loans don't go away if you die or become disabled. Your parent is on the hook for them!

You're right that $80K of undergrad debt was a big financial error. But that's water under the bridge now. All you can do now is make better decisions going forward. Work, frugal living, restructuring debt when possible etc.