Do Lenders Charge an Upfront Fee to Refinance Medical Student Loans?
‣ In some cases, lenders will charge an origination or “obligation fee”. Most of if not all of the lenders we have partnered with on this site do not a have any type of fees associated with their loans. This means that you will not see any surprises when you see your next bill after choosing to refinance your medical student loans or any initial sneaky fees that you may not have known about prior to refinancing.
Will I be Required to Make Payments During Residency or a Fellowship?
‣ Almost all lenders will require for you to make some type of payment during your time in residency or fellowship. Back in 2009, there was a bill that allowed for you to put off paying back your student loans until you finished your residency or fellowship. This bill has since been eliminated. The best way to know for sure is to reach out to the lender who you are looking to go with and see what their terms are. Many of the lenders we showcase offer a great list of tools and even discounts for things like auto-payment from your bank account.
Will The Lender Help You Through Financial Hardship?
‣ One of the most common questions you will want to ask your lender is how they will help you in the case of financial hardship. Each of the lenders featured on this site have varying financial hardship programs and you will want to consult your lender to determine which program will work best for you and your situation prior to selecting the lender. These programs can be a huge help if you have an unfortunate situation such as job loss or other financial mishaps.
When Do You Have To Start Making Payments?
‣ One of the most important things you need to get clear with your lender off the bat is when you are expected to make your first payment. In most cases, there is no grace period and once the loan has been funded the lender will expect you to pay. Be sure when you are working with your lender to ask how long it will take for your previous loans to be paid and when you should expect your first loan payment. If setting up automatic payments is import to you, your lender will generally be able to provide you with guidelines as to when you can expect to make your first payment as well as setting up auto-pay.
Can You Release Your Cosigner?
‣ One of the biggest questions you should consider when looking for a lender is if they offer co-signer release. If you may not qualify initially for refinancing based on your own income or credit, you may have the opportunity to use a co-signer. All of our lending partners allow for users to use a co-signer, not only will this help you get approved but it may also lead to you getting a lower monthly payment due to your co-signers credit score and work history among other factors considered. Getting approved is great, but your co-signer will also want to know the terms of their agreement and at what point they can be removed from the loan. Before using a co-signer be sure to ask the lender about their practices with co-signers. Some allow for them to be released after just 12 months while others may not release until 24 months has been completed.