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5 Best Lenders to Refinance Vet School Loans of May 2022

Refinancing student loans may not be an option or make sense for many veterinarians.

Ryan Lane
Jan 26, 2022

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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.

Best Lenders to Refinance Vet School Loans

PenFed Student Loan Refinance
Check rate

on Purefy's website

PenFed Student Loan Refinance

5.0

NerdWallet rating 
PenFed Student Loan Refinance

Min. credit score

670

Fixed APR

4.49-6.68%

Variable APR

N/A
Check rate

on Purefy's website

Variable APR

N/A

Key facts

The maximum debt-to-income ratio for PenFed/Purefy borrowers with graduate loans depends on their income. If you earn between $50,000 and $99,999, your DTI must be 40% or less. For incomes above $100,000, the maximum increases to 45%.

Pros

  • Married couples can refinance student loans into a single loan.

  • You can refinance parent PLUS loans in your name.

  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.

Cons

  • Estate is still responsible for the loan if the borrower dies.

Qualifications

  • Typical credit score of approved borrowers or co-signers: 773.

  • Loan amounts: $7,500 to $300,000.

  • Must have a degree: Yes, at least a bachelor’s degree.

Available Term Lengths

5, 8, 12 or 15 years

Disclaimer

Rates and offers current as of May 13, 2022. Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 4.49% APR - 6.68% APR. Fixed Rates will vary based on application terms, level of degree and presence of a co-signer. These rates are subject to additional terms and conditions and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.

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College Ave Student Loan Refinance
Check rate

on College Ave's website

College Ave Student Loan Refinance

5.0

NerdWallet rating 
College Ave Student Loan Refinance

Min. credit score

Upper 600s

Fixed APR

3.49-6.74%

Variable APR

3.44-6.64%
Check rate

on College Ave's website

Variable APR

3.44-6.64%

Key facts

College Ave has a maximum debt-to-income ratio of 50%, but the average ratio for approved borrowers is less than 25%.

Pros

  • You can choose any loan term between 5 and 15 years.

  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.

Cons

  • No co-signer release available.

  • Students cannot refinance a parent PLUS loan in their name.

Qualifications

  • Typical credit score of approved borrowers or co-signers: Mid-700s.

  • Loan amounts: $5,000 to $300,000, depending on the highest degree earned.

  • Must have a degree: Yes, an associate degree or higher.

Available Term Lengths

5 to 15 years

Disclaimer

College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation. This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 5/19/2022. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.

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Education Loan Finance Student Loan Refinance
Check rate

on Education Loan Finance's website

Education Loan Finance Student Loan Refinance

5.0

NerdWallet rating 
Education Loan Finance Student Loan Refinance

Min. credit score

680

Fixed APR

2.73-5.99%

Variable APR

1.86-6.01%
Check rate

on Education Loan Finance's website

Variable APR

1.86-6.01%

Key facts

ELFI has a maximum debt-to-income ratio of 55%.

Pros

  • You are assigned a student loan advisor.

  • You can refinance parent PLUS loans in your name.

Cons

  • Payment postponement isn’t available for borrowers who return to school.

  • The minimum amount to refinance is more than many lenders require.

  • No co-signer release available.

Qualifications

  • Typical credit score of approved borrowers or co-signers: 774.

  • Loan amounts: $15,000 up to your total outstanding loan balance.

  • Must have a degree: Yes, at least a bachelor’s degree.

Available Term Lengths

5, 7, 10, 15 or 20 years

Disclaimer

Subject to credit approval. Terms and conditions apply. https://www.elfi.com/terms/

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Nelnet Bank Student Loan Refinance
Check rate

on Nelnet Bank's website

Nelnet Bank Student Loan Refinance

5.0

NerdWallet rating 
Nelnet Bank Student Loan Refinance

Min. credit score

640

Fixed APR

3.49-7.44%

Variable APR

2.69-9.20%
Check rate

on Nelnet Bank's website

Variable APR

2.69-9.20%

Key facts

Nelnet Bank has a maximum DTI of 45% for borrowers without a co-signer.

Pros

  • International students can apply with a co-signer who is a qualified U.S. citizen or permanent resident.

  • You can see if you'll qualify and what rate you'll get without a hard credit check.

Cons

  • Below-average customer support compared with other lenders.

  • Doesn't allow biweekly payments via autopay.

Qualifications

  • Typical credit score of approved borrowers or co-signers: Did not disclose.

  • Loan amounts: $5,000 - $225,000.

  • Must have a degree: No.

Available Term Lengths

Multiple term options

Disclaimer

Fixed interest rates range from 3.49% APR (with auto debit discount) to 7.44% APR (without auto debit discount). Your interest rate will depend on your (and if applicable, your cosigner's) credit qualifications. The fixed interest rate will remain the same for the life of the loan. Variable interest rates range from 2.69% APR (with auto debit discount) to 9.20% APR (without auto debit discount). Your interest rate will depend on your (and if applicable, your cosigner's) credit qualifications. Variable rates may increase after consummation. Variable rates for Nelnet Bank Refinance Loans are calculated as the One-Month SOFR plus the applicable Margin percentage. Variable rates will be based on the highest One-Month SOFR as published by the Federal Reserve Bank of New York and/or the Wall Street Journal "Money Rates" table on the twenty-fifth day (or the next business day) of the immediately preceding calendar month. The variable rate may change on the first day of each month if the SOFR index changes. This may result in higher monthly payments. The current One-Month SOFR index is 0.30% as of May 1, 2022. The lowest rate for each loan type requires automatically withdrawn ("auto debit") payment. The lowest rate is available only to the most creditworthy applicants. Not all borrowers will receive the lowest rate. The interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the credit history of the borrower and, if applicable, the cosigner, (2) the repayment option and loan term selected, (3) the loan type selected, and (4) the highest level of education attained. If approved, applicants will be notified of the rate qualified for within the stated range.

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RISLA Student Loan Refinance
Read review

RISLA Student Loan Refinance

4.5

NerdWallet rating 
RISLA Student Loan Refinance

Min. credit score

680

Fixed APR

3.49-8.14%

Variable APR

N/A
Read review

Variable APR

N/A

Key facts

RISLA has a maximum debt-to-income ratio of 50%. It also offers an income-based repayment program — a rarity among private lenders — making this a strong option for veterinarians concerned with their future earnings.

Pros

  • Income-based repayment plan available, with forgiveness after 25 years.

Cons

  • No co-signer release available.

  • Students cannot refinance a parent PLUS loan in their name.

Qualifications

  • Typical credit score of approved borrowers: 748.

  • Loan amounts: $7,500 to $250,000, depending on the highest degree earned.

  • Must have a degree: No.

Available Term Lengths

5, 10 or 15 years

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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%.

» MORE: Calculate your debt-to-income ratio

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.

STUDENT LOAN REFINANCE RATINGS METHODOLOGY

Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and the top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.

We consider 41 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.

Read more about our ratings methodologies for student loan refinance and our editorial guidelines.

Last updated on January 26, 2022

To recap our selections...

NerdWallet's Best Lenders to Refinance Vet School Loans of May 2022