Private-sector lawyers with high incomes, excellent credit and a history of on-time debt payments should consider refinancing their law school loans.
Lawyers who work in the private sector are typically excellent candidates for student loan refinancing. Here’s why:
They generally have high incomes. The median starting salary at private-sector firms is $155,000, according to the National Association of Law Placement. Borrowers with solid earnings will likely qualify for the best rates.
They may not need federal loan benefits. At that salary level, private sector lawyers may not need options that reduce payments based on income. And because they’re not public servants, they also won’t qualify for federal loan forgiveness programs.
The best lender to refinance law school loans will be the one that offers you the lowest interest rate. But you may want to consider additional criteria based on your career or loan repayment goals. Here are our picks, as well as tips for determining if refinancing law school loans is right for you.
Private-sector lawyers with high incomes, excellent credit and a history of on-time debt payments should consider refinancing their law school loans.
Lawyers who work in the private sector are typically excellent candidates for student loan refinancing. Here’s why:
They generally have high incomes. The median starting salary at private-sector firms is $155,000, according to the National Association of Law Placement. Borrowers with solid earnings will likely qualify for the best rates.
They may not need federal loan benefits. At that salary level, private sector lawyers may not need options that reduce payments based on income. And because they’re not public servants, they also won’t qualify for federal loan forgiveness programs.
The best lender to refinance law school loans will be the one that offers you the lowest interest rate. But you may want to consider additional criteria based on your career or loan repayment goals. Here are our picks, as well as tips for determining if refinancing law school loans is right for you.
Lender | NerdWallet rating | Min. credit score | Fixed APR | Variable APR | Learn more |
---|---|---|---|---|---|
Earnest Student Loan Refinance Check rate on Earnest's website | Excellent for Refinancing before graduation | 650 | 5.19- | 5.99- | Check rate on Earnest's website |
Excellent for
Refinancing before graduation
Earning a six-figure salary? Consider lenders that help you pay loans as quickly as possible to minimize interest costs.
on Earnest's website
Min. credit score
650Fixed APR
5.19-Variable APR
5.99-on Earnest's website
According to the National Center for Education Statistics, law school students graduate with an average total debt of $145,500. That would lead to a total repayment amount of $202,726, based on a 10-year repayment plan and an interest rate of 7%.
Refinancing law school loans at an interest rate of 5% would drop that total to $185,190 — a difference of $17,536. Use a student loan refinancing calculator to see how much you might save.
It can make sense for you to refinance law school loans in the following instances:
You work in the private sector. Big Law lawyers and other private-sector attorneys with high incomes, excellent credit and a history of on-time debt payments will likely receive low interest rates, making them ideal candidates for student loan refinancing.
You already have private student loans. Whether you took out private loans for law school or your undergraduate degree, it makes sense to refinance them if you’ll qualify for a lower interest rate — even if you work in the public sector. Private loans won't qualify for federal repayment programs.
You previously refinanced your loans. You can refinance student loans as often as you want. For example, you may want to refinance right after finishing law school and again after making partner, if you're on that track. You may get a lower rate as you earn more money or raise your credit score.
Avoid refinancing federal student loans if you work in public service or might want to. Public interest lawyers may be eligible for better repayment options than refinancing, including Public Service Loan Forgiveness and Loan Repayment Assistance Programs.
Also, you generally can’t refinance bar exam loans. If you have these, prioritize paying them off fast, since their interest rates are high.
To recap our selections...