Refinancing could save thousands in interest
If you’re looking for new ways to save money, refinancing your medical school loans may be a smart step. Whether you have private loans, federal loans, or a mix of both, or maybe you’ve already refinanced in the past – you can take steps now to prepare for your 2021 repayment strategy. The upcoming year is a unique borrowing opportunity with refinance rates at record lows.
So why are rates so low?
The Federal Reserve’s decision to maintain lower interest rates to stimulate the economy lowered rates for qualified borrowers refinancing their student loans. 2021 student loan refinance rates are anticipated to remain the lowest in history – impacting both federal and private loan rates.
In the current environment, variable rates can be a great option. Consider taking advantage of lower variable rates now and refinancing later to a fixed rate should rates begin to increase. It’s important to remember most lenders don’t charge pre-payment or origination fees when you refinance your student loans.
Know what types of student loans you have.
- If you have private student loans, now is the perfect time to refinance at a lower rate and save thousands in interest since there’s virtually no downside of refinancing private loans.
- Already refinanced your student loans? There’s no cost to refinance multiple times so you can take advantage of historic low rates.
- If you have federal student loans, you shouldn’t refinance until the relief package ends. In the meantime, shop around for a private refinance student loan and check your potential refinance rate before you must start paying on your loans again. Use our helpful tool to help you find your refinance rate in minutes. It’s important to note this is a soft credit pull and no adverse impact to your credit score.
- Visit the National Student Loan Data System, login with your FSA ID and review the details of your federal loans. Next, verify your loan status, interest rates and repayment plan. Once you’re ready, reach out to a Commerce Bank Student Loan Specialist to set up your complimentary repayment consultation.
- It’s important to keep in mind if you refinance federal student loans to private student loans, you’ll lose federal benefits, including your eligibility for the PSLF program and Income-Drive Repayment programs.
- If you haven’t already, check the U.S. Department of Education’s blog post 6 Things to Know About Public Service Loan Forgiveness During the COVID-19 Emergency and ensure your eligibility hasn’t changed.
Increase your odds for a better rate.
- Do a credit score check and make improvements where possible.
- Visit annualcreditreport.com and review your credit bureau files – it’s free once a year.
- If you have bad credit, no income, credit card debt or federal student loans consider refinancing once you’ve taken steps to increase your credit score.
- Most doctors don’t have free time to spend working through the details of refinancing their student loans. Each lender has a different refinancing process. That’s why it’s important to shop around and get a sense of how each lender will streamline the process for you. Once you find a lender that you trust, the process should be painless.
Remember, refinancing your student loans should save you money, not cost you money.
Using credit responsibly is a behavior all consumers should strive for. Be sure to understand your current financial footing before making a decision like refinancing student loans for a mortgage and analyze your credit report to ensure accuracy. Organizations like Commerce can help you to determine whether you're eligible to refinance, and potentially save thousands over the life of your loan.
Contact our specialist today Learn more about our Medical Refinancing Loan options