BEST OF
5 Best Lenders to Refinance Vet School Loans of March 2021
Refinancing student loans may not be an option or make sense for many veterinarians.
Refinancing student loans at a lower interest rate may help veterinarians who want to pay less each month or over the life of their loan. But meeting a lender’s qualifications without a co-signer could be difficult for many vets.
Veterinarians may finish school with debt that is more than double their salary. Most refi lenders want applicants whose debt-to-income ratio, or DTI, is less than 50%. If you can hit that number and don’t need federal student loan benefits — like making payments based on your income — consider how much you might save by refinancing vet school loans.
Here are our picks for the best refinance lenders for veterinary student loans, plus additional advice to help vets decide whether refinancing is right for them.
Refinancing student loans at a lower interest rate may help veterinarians who want to pay less each month or over the life of their loan. But meeting a lender’s qualifications without a co-signer could be difficult for many vets.
Veterinarians may finish school with debt that is more than double their salary. Most refi lenders want applicants whose debt-to-income ratio, or DTI, is less than 50%. If you can hit that number and don’t need federal student loan benefits — like making payments based on your income — consider how much you might save by refinancing vet school loans.
Here are our picks for the best refinance lenders for veterinary student loans, plus additional advice to help vets decide whether refinancing is right for them.
Summary of Best Lenders to Refinance Vet School Loans of March 2021
Lender | NerdWallet Rating | Fixed APR | Variable APR | Min. Credit Score | Learn More |
---|---|---|---|---|---|
Best for Spousal consolidation | 2.99 - 5.15% | 2.16 - 4.46% | 670 | Check Rate on Purefy's website | |
Best for Customer service | 2.79 - 5.99% | 2.39 - 6.01% | 680 | Check Rate on Education Loan Finance's website | |
Best for Customized repayment terms | 3.34 - 5.69% | 3.24 - 5.54% | Upper 600s | Check Rate on College Ave's website | |
Best for Wiggle room with payments | 2.99 - 5.98% | 2.00 - 5.51% | 680 | Check Rate on Nelnet Bank's website | |
Best for Repayment options | 3.49 - 8.14% | N/A | 680 | See my rates on NerdWallet's secure website |
on Purefy's website
PenFed Student Loan Refinance
Fixed APR
Variable APR
Min. Credit Score
on Purefy's website
on Education Loan Finance's website
Education Loan Finance Student Loan Refinance
Fixed APR
Variable APR
Min. Credit Score
on Education Loan Finance's website
on College Ave's website
College Ave Student Loan Refinance
Fixed APR
Variable APR
Min. Credit Score
on College Ave's website
on Nelnet Bank's website
Nelnet Bank Student Loan Refinance
Fixed APR
Variable APR
Min. Credit Score
on Nelnet Bank's website

on NerdWallet's secure website
RISLA Student Loan Refinance

Fixed APR
Variable APR
Min. Credit Score
on NerdWallet's secure website
Debt-to-income ratio for refinancing vet school loans
Student loan refinance lenders consider many factors when evaluating applicants, including their credit scores, financial history and debt-to-income ratio. Meeting a lender’s DTI requirements may be the biggest hurdle for some veterinarians — the average vet school debt is $183,014, yet veterinarian salaries start at an average of $76,633.
Refi lenders determine DTI by comparing your gross monthly income to your monthly debt obligations. Here’s how this would work for a veterinarian who owes $183,014 and earns $76,633:
Her monthly loan payments would be $1,968 on a standard, 10-year repayment plan, assuming current federal student loan interest rates.
Her gross monthly income would be $6,386.
Her DTI would be 31% (1,968/6,386) — but that’s for student loan payments alone. Including rent, utilities and other obligations could easily push that number above 50%.
If you want to refinance veterinary school loans but can’t because of your DTI, finding someone to co-sign your loan could help. If you go this route, look for a refinance lender that offers a co-signer release program — not all do.
If your DTI is manageable, compare all refi options to ensure you get the best rate possible.
Should you refinance vet school loans?
With veterinary school costs typically exceeding $200,000, the majority of students take on debt for their doctor of veterinary medicine degree. The type of loans you borrowed to pay for vet school and your employer will play a big part in whether it makes sense to refinance.
If you have private student loans: There’s little downside to refinancing private vet school loans if you can qualify for a lower interest rate.
If you have federal student loans: Government options are the best student loans for vet school because of their repayment flexibility and protections. By refinancing, you give up access to options such as Public Service Loan Forgiveness and income-driven repayment.
If you work for an eligible nonprofit or government agency: Don’t refinance federal student loans if you will qualify for tax-free Public Service Loan Forgiveness. Most animal hospitals are privately owned, so this may not be a concern for many veterinarians.
Which option saves you more money?
The most important federal benefit for vets will likely be income-driven repayment, which can greatly reduce monthly payments depending on how much money you earn. These plans also forgive your remaining debt after 20 or 25 years of eligible payments, but that amount is taxed.
» MORE: How to pay off vet school loans
Vets aiming for income-driven forgiveness should compare how much they’d repay overall — including taxes — to how much refinancing would cost. Let’s again consider our example veterinarian who owes $183,014 and makes $76,633:
By choosing income-driven repayment. She would pay $206,098 over 20 years on the Pay As You Earn, or PAYE, plan with an additional $236,795 forgiven, according to the Department of Education’s Repayment Calculator. At a tax rate of 30%, the total repaid could be roughly $277,136.
By refinancing vet school loans. If our veterinarian qualified for an interest rate of 5% and chose a 20-year term — typically the longest refinance lenders offer — she would repay $289,874 overall. That’s roughly $12,730 more than under income-driven repayment.
Refinancing may not make sense for this veterinarian, but your numbers will depend on your personal situation. For example, you may face a larger bill if you earn too much money to qualify for PAYE.
If you have good credit and enough income to handle the 10-year standard plan, compare refinancing on those terms as well. For example, $183,014 of debt would result in a total repaid of $255,900, assuming the current graduate PLUS loan rate of 7.08%. Refinanced at 5%, that total falls to $232,938 — a savings of nearly $23,000.
Use the Repayment Calculator and a student loan refinance calculator to determine your savings.
Last updated on December 16, 2020
To recap our selections...
NerdWallet's Best Lenders to Refinance Vet School Loans of March 2021
- PenFed Student Loan Refinance: Best for Spousal consolidation
- Education Loan Finance Student Loan Refinance: Best for Customer service
- College Ave Student Loan Refinance: Best for Customized repayment terms
- Nelnet Bank Student Loan Refinance: Best for Wiggle room with payments
- RISLA Student Loan Refinance: Best for Repayment options