Medical School Loans: How to Refinance and Consolidate

Medical school loans are loans assessed by medical school students to help them cover medical school expenses including tuition and other expenses. They assess both federal loans and sometimes private loans to be able to cover medical school expenses.

Medical School Loans

Loans have come in handy, helping both undergraduate and graduate school students with their basic expenses while sojourning through life on campus especially in the medical school with expenses such as tuition, accommodation, and other relevant medical school expenses on the high.

This article is designed to guide you through the several loan option that exist while in medical school and how to refinance and consolidate.

Eligibility Requirement for Federal School Loans

The main eligibility criteria for this type of loan is that the student must be a medical school student, however, law school loans eligibility may differ from lender to lender, based on their business policy and from student to student based on the student’s financial status and repayment ability.

Medical students who are citizens of the United States can be eligible for federal medical school loans, while students of another origin can also be eligible for other types of loans if they have a cosigner and has a very good credit score with the ability to pay back the loan.

Repaying medical school loans

When thinking of applying for a medical school loan, it is important to think of a repayment plan ahead of the loan maintain a good credit score and be debt-free.

In most instances, medical student loan payments are due following a six-month, post-graduation grace period. This is to give ample time for medical students to begin planning for loan repayment well in advance of their graduation date. Here are some tips to guide you in repayment of your medical school loans.

  • Understand the type of debt you are taking on: Understanding the type of debt you are taking on can help you plan and manage your debts effectively once those loans become payable. Medical school loans accrue interest while you’re in school and typically enter repayment six months after you graduate.
  • Seek loan forgiveness: Loan forgiveness means you don’t have to pay back some amount from the loan you have assessed. Several loan forgiveness programs could help you service your loans without having to pay up everything that you owe.
  • Refinance: Refinancing your medical student loans can help organize your repayment process as it gives you better opportunities to interface with just one lender when repaying your medical school loans.

Refinancing your medical school loans

Student loan refinancing is likely the best option for doctors paying off medical school debt aggressively. If you can get a lower rate, you could save thousands of dollars in interest over the life of your loan. It is best to refinance medical school loans while in the early period of the loan as you finish medical school. With private loans, the calculation is fairly simple: It’s about the rate you’re paying.

If interest rates have decreased since you first took out your loans, or if you’re in a better financial position, refinancing your private medical student loans likely makes sense. A lower interest rate means a lower monthly payment and less total interest costs over the life of the loan.

Also Read: Best Student Loan Repayment Plans

This is different with federal loans as federal loans offer attractive options like income-driven repayment plans, forbearance and deferment periods, and loan forgiveness programs. You should consider refinancing your medical school loans if:

  • Your income rises in your medical career: as your income rises you can now afford to pay more pay month during your repayment period, so you would be sure to conveniently pay off the interest accrued from refinancing.

There are steps to follow if you are considering refinancing your medical school loans:

  • Decide whether you should refinance: the step should always begin in the decision stage, when you have federal loans you may likely want to opt for other special features associated with federal loans like income-based repayment plans or loan forgiveness opportunities, while with private loans you should check if you can qualify for lower rates in interest than your current loan status offer you.
  • Know your credit score: most private lenders have a credit score limit before a student can apply or be eligible for loan refinancing with them. It is important to know if you qualify to refinance your medical school loans with certain lenders if you have a preferred lender, and don’t meet the requirements, try to work on your credit score.
  • Apply for refinancing: This is done by filling out an application form with a lender after you have decided on the best lender for your loan refinancing. Once you’ve settled on a refinance lender, follow its instructions on how to fill out a full application. You may need to provide documentation of your income, assets, or other financial information.
  • Pay off existing loans: your refinance lender would give you instructions on to pay off your existing loans so that you are left with just the refinanced loan.

Consolidating your medical school loans

Medical school loan consolidation means that the federal government pays off the medical school loans you have from other federal programs, leaving you with one lender and one monthly payment.

You can, of course, simply pay more each month on your medical school consolidation loan than its terms require. And as you become more established as a medical professional and your income increases, you will be able to increase the amount you pay on your medical school loan consolidation even more.

If you decide to adopt this method of repayment, make sure you stipulate in writing with each payment you make that the extra funds go toward reducing your principal, which will in turn reduce the amount of interest you pay with each month.


If you have both federal and private loans, it would be difficult to consolidate them, so refinancing could be the best option in that instance, it is important to know when to opt for medical student loans, and have a repayment plan to back up assessing that medical school loans.

Hope the information on this write up will be useful to you, do use the comment box below to ask your questions and also do share to help those that are looking for this great opportunity.

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