Consolidating student loans from aes
I’m still getting lots and lots of questions about what to do with your student loans.
Although there are sometimes exceptions, it is helpful for borrowers, particularly medical school borrowers, to see the rules of thumb all mapped out in a helpful way.
And yes, you can refinance multiple times at increasingly better rates as your financial situation improves.
There is no “break-even period” since there is no cost to you to refinance.
I had a slow night shift a few months ago, so I put together this flowchart which I’ll update if things change again (as they did in December 2015 with the institution of Re PAYE.) Pretty sweet huh.
So start at the upper left, with medical school graduation.
Many of them will give you a rate estimate within minutes.
Take the best rate you’re offered as terms are generally very similar (read the fine print of course.) Of course, you need to remember that you don’t borrow your way out of debt.
Control your lifestyle so you can get this monkey off your back within 2-5 years of graduation. Unless you are in a terrible loan situation (think dentist making 0K with 0K in loans), there’s really little excuse for a doc to have student loans for longer than 5 years. Just like the grass feels better when your house is paid off and your car sounds better when it is paid off, you’ll enjoy your job more when your student loans are paid off.First Republic Bank – 0 back to you Reviewed here, First Republic offers the lowest rates but only available in California, New York City, Boston, Greenwich CT, Portland OR, and Palm Beach FL.In order to get the negotiated WCI deal, email [email protected] with the words “First Republic Referral” in the subject line for a direct referral or contact my banker Kerry Berchtold at 339-235-0419 or and let her know you were referred by WCI.Step 2 is to refinance all private loan debt and enter the Re PAYE program (assuming you can make the payments) with your federal debt.Step 3 is to refinance your private loans again (you should get a better rate upon residency graduation) and decide whether or not to go for PSLF. If so, go into IBR or PAYE (which cap payments at a 10 year standard repayment- Re PAYE does not.) Step 4 is to live like a resident until the loans are gone.