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6 Best Companies for Refinancing Medical School Loans of March 2024

Refinancing medical school loans is a no-brainer for physicians who won’t use federal loan benefits and have good enough credit to qualify for a lower interest rate.

Cecilia Clark
By
Last updated on February 22, 2024
Edited by
✅ Fact checked and reviewed
Des Toups
Edited by
✅ Fact checked and reviewed

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Best Companies for Refinancing Medical School Loans

Lender
NerdWallet Rating
Min. credit score
Fixed APR
Variable APR
Learn more
SoFi Parent PLUS Refinancing

SoFi Parent PLUS Refinancing

Check rate
on SoFi's website
on SoFi's website
Best for Refinancing during residency

650

5.24-9.99%

6.24-9.99%

Earnest Student Loan Refinance

Earnest Student Loan Refinance

Check rate
on Earnest's website
on Earnest's website
5.0
/5
Best for Refinancing after residency

650

5.19-9.74%

5.99-9.74%

Check rate
on Earnest's website
on Earnest's website
Splash Financial Student Loan Refinance

Splash Financial Student Loan Refinance

Check rate
on Splash Financial's website
on Splash Financial's website
5.0
/5
Best for Refinancing during residency

650

6.64-8.95%

7.60-7.85%

Check rate
on Splash Financial's website
on Splash Financial's website

Our pick for

Refinancing during residency

Refinancing can save you money while you’re earning less as a resident, but your balance may increase by the time your residency ends.

SoFi Parent PLUS Refinancing
Check rate
on SoFi's website
on SoFi's website
SoFi Parent PLUS Refinancing

SoFi Parent PLUS Refinancing

5.0
Min. credit score

650

Fixed APR

5.24-9.99%

Variable APR

6.24-9.99%

Key facts

Minimum payment during residency: $100/month.

Pros
  • 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.
  • Additional perks like career planning, job search assistance and entrepreneurship support available.
Cons
  • No co-signer release available.
  • Loan size minimum is higher than most lenders.
Qualifications
  • Typical credit score of approved borrowers or co-signers: 700+.
  • Loan amounts: $5,000, up to your total outstanding loan balance.
  • Must have a degree: Yes, an associate degree or higher.
Available Term Lengths5, 7, 10, 15 or 20 years
DisclaimerFixed rates range from 5.24% APR to 9.99% APR with 0.25% autopay discount. Variable rates range from 6.24% APR to 9.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 13.95% APR; 15- and 20- year terms are capped at 13.95% APR. SoFi rate ranges are current as of 02/01/24 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi. You may pay more interest over the life of the loan if you refinance with an extended term.
Read Full Review
Splash Financial Student Loan Refinance
Check rate
on Splash Financial's website
on Splash Financial's website
Splash Financial Student Loan Refinance

Splash Financial Student Loan Refinance

Min. credit score

650

Fixed APR

6.64-8.95%

Variable APR

7.60-7.85%

Key factsBest for receiving offers from multiple lenders.
Pros
  • Select from multiple repayment options between 5 and 25 years.
  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons
  • Loan features vary by lender.
  • Forbearance and death discharge may not be available.
  • You may need to become a member of a credit union to qualify.
Qualifications
  • Splash Financial currently does not offer variable rates or accept co-signers through NerdWallet.
  • Typical credit score of approved borrowers or co-signers: 700+.
  • Loan amounts: $10,000 to $500,000.
  • Must have a degree: Yes, a bachelor’s degree or higher.
Available Term Lengths5 to 25 years
DisclaimerSplash Financial, Inc. (NMLS # 1630038) reserves the right to modify or discontinue products and benefits at any time without notice. The information you provide is an inquiry to determine whether Splash’s lending partners can make you a loan offer, but does not guarantee you will receive any loan offers. Terms and conditions apply. Products may not be available in all states. These rates are subject to change at any time. If you do not use the specific link included on this website, offers on the Splash website may include other offers from lending partners that may have a higher rate. Fixed Rate options range from 6.64% APR - 8.95% APR (without autopay). Variable rate options range from 7.60% APR (with autopay) to 7.85% APR (without autopay). Variable APRs and amounts subject to increase or decrease. Lowest rates are reserved for the highest qualified borrowers and may require an autopay discount of 0.25%. Some of the rates are based on the one-month London Interbank Offered Rate (“LIBOR”) index and some are derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). Fixed loans feature repayment terms of 5 to 20 years. For example, the monthly payment for a sample $10,000 with an APR of 5.47% for a 12-year term would be $94.86. Variable loans feature repayment terms of 5 to 25 years. For example, the monthly payment for a sample $10,000 with an APR of 5.90% for a 15-year term would be $83.85.
Laurel Road Student Loan Refinance
Check rate
on Laurel Road's website
on Laurel Road's website
Laurel Road Student Loan Refinance

Laurel Road Student Loan Refinance

Min. credit score

660

Fixed APR

5.44-9.75%

Variable APR

5.49-9.95%

Key facts

Minimum payment during residency: $100/month.

Pros
  • You can refinance parent PLUS loans in your name.
  • Refinancing available for medical and dental residents.
  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons
  • Payment postponement isn’t available if borrowers return to school.
Qualifications
  • Typical credit score of approved borrowers or co-signers: Did not disclose.
  • Loan amounts: $5,000 up to your total outstanding loan balance.
  • Must have a bachelor's degree. For parent PLUS loans, the child does not need to have graduated to refinance.
Available Term Lengths5, 7, 10, 15 or 20 years
DisclaimerFull Laurel Road Disclaimers. Rates as of 3/18/24, rates subject to change. Terms and Conditions Apply. All products subject to credit approval. IMPORTANT INFORMATION: Please note that if you refinance qualifying federal student loans with Laurel Road, you may no longer be eligible for certain federal benefits or programs and waive your right to future benefits or programs offered on those loans. Examples of benefits or programs you may not receive include, but are not limited to, Public Service Loan Forgiveness, Income-driven Repayment plans, forbearance, or loan forgiveness. Please carefully consider your options when refinancing federal student loans and consult http://studentaid.gov/ for the most current information. Laurel Road is a brand of KeyBank National Association. All products offered by KeyBank N.A. ©2022 STUDENT LOANS ARE NOT FDIC INSURED OR GUARANTEED. KeyCorp® All Rights Reserved. Laurel Road is a federally registered service mark of KeyCorp. 3 Corporate Drive, 4th fl, Shelton, CT 06484.
ISL Refinance Loan

ISL Refinance Loan

Min. credit score

660

Fixed APR

6.81-11.83%

Variable APR

N/A

Key factsBest for saving on interest before graduation and borrowers who didn’t finish school.
Pros
  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.
  • You can refinance without a degree.
  • You can refinance while in school or during a medical residency.
Cons
  • Interest rates vary by refi product.
Qualifications
  • Typical credit score of approved borrowers or co-signers: Approximately 750.
  • Loan amounts: $5,000 to $300,000. (Minimum for California residents is $10,000.)
  • Must have a degree: No.
Available Term Lengths5, 7, 10, 15 or 20

Our pick for

Refinancing after residency

Earnest Student Loan Refinance
Check rate
on Earnest's website
on Earnest's website
Earnest Student Loan Refinance

Earnest Student Loan Refinance

Min. credit score

650

Fixed APR

5.19-9.74%

Variable APR

5.99-9.74%

Key factsBest for borrowers who want to customize their repayment schedule to pay off debt fast.
Pros
  • Customizable payments and loan terms.
  • Option to skip one payment every 12 months.
  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons
  • Loans aren't available in Nevada.
Qualifications
  • Typical credit score of approved borrowers or co-signers: 760.
  • Loan amounts: $5,000 to $500,000.
  • Must have a degree: No, but must be within six months of graduation and have income or a job.
Available Term Lengths5 to 20 years
DisclaimerActual rate and available repayment terms will vary based on your income. Fixed rates range from 5.44% APR to 9.99% APR (excludes 0.25% Auto Pay discount). Variable rates range from 6.24% APR to 9.99% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.
Laurel Road Student Loan Refinance
Check rate
on Laurel Road's website
on Laurel Road's website
Laurel Road Student Loan Refinance

Laurel Road Student Loan Refinance

Min. credit score

660

Fixed APR

5.44-9.75%

Variable APR

5.49-9.95%

Key facts

Laurel Road offers special pricing to physicians. This is not a set interest rate discount, but rates may be lower than what the lender advertises

Pros
  • You can refinance parent PLUS loans in your name.
  • Refinancing available for medical and dental residents.
  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons
  • Payment postponement isn’t available if borrowers return to school.
Qualifications
  • Typical credit score of approved borrowers or co-signers: Did not disclose.
  • Loan amounts: $5,000 up to your total outstanding loan balance.
  • Must have a bachelor's degree. For parent PLUS loans, the child does not need to have graduated to refinance.
Available Term Lengths5, 7, 10, 15 or 20 years
DisclaimerFull Laurel Road Disclaimers. Rates as of 3/18/24, rates subject to change. Terms and Conditions Apply. All products subject to credit approval. IMPORTANT INFORMATION: Please note that if you refinance qualifying federal student loans with Laurel Road, you may no longer be eligible for certain federal benefits or programs and waive your right to future benefits or programs offered on those loans. Examples of benefits or programs you may not receive include, but are not limited to, Public Service Loan Forgiveness, Income-driven Repayment plans, forbearance, or loan forgiveness. Please carefully consider your options when refinancing federal student loans and consult http://studentaid.gov/ for the most current information. Laurel Road is a brand of KeyBank National Association. All products offered by KeyBank N.A. ©2022 STUDENT LOANS ARE NOT FDIC INSURED OR GUARANTEED. KeyCorp® All Rights Reserved. Laurel Road is a federally registered service mark of KeyCorp. 3 Corporate Drive, 4th fl, Shelton, CT 06484.
College Ave Student Loan Refinance
Check rate
on College Ave's website
on College Ave's website
College Ave Student Loan Refinance

College Ave Student Loan Refinance

Min. credit score

Mid-600s

Fixed APR

6.99-11.99%

Variable APR

6.99-11.99%

Key factsBest for borrowers who want a nonstandard loan term — six or nine years, for instance.
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 Lengths5 to 15 years
DisclaimerCollege 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. If a payment is returned, you will lose this benefit. 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 1/2/2024. 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.
ISL Refinance Loan

ISL Refinance Loan

Min. credit score

660

Fixed APR

6.81-11.83%

Variable APR

N/A

Key factsBest for saving on interest before graduation and borrowers who didn’t finish school.
Pros
  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.
  • You can refinance without a degree.
  • You can refinance while in school or during a medical residency.
Cons
  • Interest rates vary by refi product.
Qualifications
  • Typical credit score of approved borrowers or co-signers: Approximately 750.
  • Loan amounts: $5,000 to $300,000. (Minimum for California residents is $10,000.)
  • Must have a degree: No.
Available Term Lengths5, 7, 10, 15 or 20

Should you refinance medical school loans?

Refinancing is one of several strategies for paying off medical school debt. The best option for you will depend on factors like the type of loans you have — federal or private — and your career goals.

If you have federal loans, consider refinancing if you won’t need an income-driven repayment plan and don’t plan to pursue medical school loan forgiveness. While there are several forgiveness programs, only federal loans qualify for the widest available one: Public Service Loan Forgiveness.

If you borrowed private medical school loans, there’s little downside to refinancing if you can qualify for a lower interest rate. That may be during your residency, when you become an attending physician or both.

Refinancing medical school loans during residency

Student loans can be a financial burden while you’re making less money as a resident. You have two primary options to help manage those payments:

  1. Use a federal income-driven repayment plan. This could shrink your federal loan payments to as little as $0 during residency, depending on your income. Opting for income-driven repayment can make sense if you want to keep your options open post-graduation — to pursue nonprofit work or a lower-paying career, for example — or you can’t meet a refinance lender’s financial criteria.

  2. Refinance during your residency. A few lenders have specific refinancing programs for medical residents. These let you pay as little as $100 a month before full payments start once your residency ends. Consider this option if refinancing medical school loans fits your long-term career goals and you can qualify for a lower interest rate while you’re a resident — you may need a co-signer to do that.

No matter which strategy you choose, interest will likely accrue faster than you can pay it — so you may end up with a balance at the end of your residency that's bigger than what you started with. Making larger-than-minimum payments can help keep the interest at bay.

Refinancing medical school loans after residency

If you choose not to refinance during your residency, use that time to work on building your credit so you can get the best possible rate in the future. Refinance as soon as you can qualify to save the most money.

For example, refinancing $201,490 — the average medical school debt in 2019 — from a 7% APR to a 5% APR would save about $200 a month and more than $24,200 total. But that assumes you have 10 years left on your loan term. If you waited a couple years, your potential savings will shrink.

As your income continues to grow, you'll likely have more refinancing options and be eligible for lower interest rates. It can make sense to refinance medical school loans multiple times because lenders typically don’t charge fees to do so, meaning you start saving right away.

How to refinance medical school loans

  1. Confirm that refinancing is right for you. Before refinancing federal student loans, triple-check that you are comfortable giving up federal loan benefits including access to Public Service Loan Forgiveness and income-driven repayment plans. If you have a mix of federal and private student loans and want to maintain access to those programs, refinance just the private loans.

  2. Check if you qualify. You generally need a credit score that's at least in the high 600s to qualify for student loan refinancing. The higher your score, the lower the rate you'll likely get. Some lenders have pre-qualification processes that allow you to see a personalized rate before you officially apply — they'll do a soft credit pull, which won't hurt your credit score, to determine your rate.

  3. Shop around and apply. Get rate estimates from multiple lenders and choose the one that offers you the lowest rate.

Consolidating medical school loans

Refinancing at a lower interest rate is only possible with private lenders. Some may refer to their products as med school consolidation loans, but private consolidation loans and refinancing are the same thing.

Federal consolidation, like refinancing, can combine your loans into a single loan. But you can only consolidate your med school debt with the government if you have federal student loans.

Medical student debt consolidation won’t save you money; your interest rate will be the weighted average of your original loans. But consolidation can make sense as a loan management strategy. For example, you may want to take this step before pursuing Public Service Loan Forgiveness — that way you’ll only have to track a single loan payment.

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.

Last updated on February 22, 2024

To recap our selections...

NerdWallet's Best Companies for Refinancing Medical School Loans of March 2024

  • SoFi Parent PLUS Refinancing: Best for Refinancing during residency
  • Earnest Student Loan Refinance: Best for Refinancing after residency
  • Splash Financial Student Loan Refinance: Best for Refinancing during residency
  • Laurel Road Student Loan Refinance: Best for Refinancing during residency + Refinancing after residency
  • ISL Refinance Loan: Best for Refinancing during residency + Refinancing after residency
  • College Ave Student Loan Refinance: Best for Refinancing after residency

Frequently asked questions

  • Consider refinancing medical school loans if you know you won’t use federal loan benefits — or if you already have private student loans — and your credit is good enough to lower your interest rate.

  • Some lenders let you refinance during your medical residency, while others make you wait until you’re an attending. Based on your long-term plans, consider refinancing during your residency and after.

  • Savings will vary based on your loan terms. By refinancing $201,490 — the average medical school debt in 2019 — from a 7% APR to a 5% APR, you would save about $200 a month and more than $24,200 total over a 10-year term.

  • You can consolidate medical school loans if they're federal student loans. Federal loan consolidation lets you make a single payment, but it won't decrease your interest rate or save you money like refinancing.

Further reading

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