Most of the content about refinancing dental school loans talks about how much interest dental graduates could save and how fast they can pay down your debt.
Click here to know about the top 5 best lenders to refinance your dental school loan!
In spite of that, if you only focus on your dental student loans, you won’t see the forest for the trees. The best dentist student loan refinancing deal depends on your long-term practice goals.
You can use these three strategies to determine if, when, and how to refinance student loans.
Do you need to refinance dental school student loans?
If your household debt-to-income ratio is less than 1.5-to-1, you probably need to refinance your dental school loans. Your cash-back bonus could range from $100 to $1,275 if you use our referral links.
You might not reach that ratio until you become a practice owner. According to the American Dental Education Association, dental students who graduated in 2022 averaged $293,900 in debt. With a $120,000 associate salary, a 1.5-to-1 debt-to-income ratio would mean owing less than $180,000 in student loans.
These are the only dentists I see who come out with less than $200,000:
- Scholarships for military dentists under the HPSP.
- Helped by parents, grandparents, or spouses.
- I attended a public in-state program, lived like a pauper, and worked every weekend as a waitress.
- Saved money from a previous full-time job.
Consequently, most dentists aren’t in a position to refinance right away with a private student loan lender.
How to refinance dental school student loan debt
The majority of borrowers simply want to find the lender offering the lowest interest rate. Yes, that makes sense. Here are four other factors to consider if multiple private lenders offer you similar lower rates:
- What are the origination, application, and prepayment fees?
- Is the lender flexible with repayment terms, hardship forbearance, academic or military deferments?
- When you die or become permanently disabled, will your student loans be discharged?
- Discounts and benefits: Does the lender offer special perks to dentists (such as lower residency payments)?
Refinance dental school loans and the lender’s customer service reputation are also important factors to consider.
Also Read: Latest ISL Student Loan Refinance Review 2024
Top refinance lenders for dental school student loans
Here are our top picks for dental school student loan refinancing lenders. Lenders each have their own features, advantages, and limitations. These details can help you decide which lender is right for you.
SoFi: Best online lender
Online lender SoFi is popular among medical and dental school graduates. These professionals can take advantage of a specialized refinancing program offered by the company.
During residency, you have a lot of flexibility. You can make $100 monthly payments. The payments may not cover all the accrued interest, which is capitalized at the end of your residency and added to the loan balance.
With SoFi, you can prequalify without affecting your credit score. Additionally, it offers access to a student debt coach to add a personal touch. If you are navigating the often confusing world of loan refinancing, this could make all the difference.
- Loan amounts: $10,000 — Total outstanding loan balance
- Term lengths: 5, 7, 10, 15, or 20 years
- Fixed rates (APR): 4.24% — 9.99% with autopay
- Autopay rate reduction: 0.25%
- Fees: None
Credible: Best marketplace
In the dental school loan refinancing market, Credible stands out for its high-quality service. RISLA, Nelnet Bank, Citizens Bank, and ELFI are Credible’s lender partners.
A one-stop shop for comparing multiple loan terms, interest rates, and other features without having to visit each lender’s website separately. Credible directs you to the lender’s website to complete the application once you have found the right fit.
When you check rates on Credible, your credit score won’t be affected. Credible’s service is free, so comparing before you commit is a budget-friendly option.
- Loan amounts: $5,000 — Total outstanding loan balance (depend on lender)
- Term lengths: 5–20 years (depend on lender)
- Rates: 4.40% — 14.25% APR
- Autopay rate reduction: Depends on lender
- Fees: Depend on lender
Earnest: Best skip-a-payment benefit
Earnest has an impressive 4.8 editorial rating and offers a unique perk — skipping a payment once a year without penalty. Dental professionals may benefit from this feature if they encounter unexpected financial hurdles.
In addition to the skip-a-payment benefit, Earnest offers other flexibility features. Sign up for biweekly automatic payments, for example, to speed up your loan repayment. For the perfect monthly payment, you can adjust the term to the day.
- Loan amounts: $5,000 — Total outstanding loan balance
- Term lengths: 5–20 years
- Rates: Starting at 4.96% APR
- Autopay rate reduction: 0.25%
- Fees: None
How to choose a dental school loan refinancing lender
So you’re ready to refinance your dental school loans. Where do you start? Here’s a streamlined guide to help you navigate this significant decision.
- Assess your needs: First, figure out your financial situation. Know the types of loans you have, your credit score, and what kind of monthly payment you can afford.
- Get multiple quotes: Once you know where you stand, shop around. Collect quotes from many lenders. This is where you can find the interest rate and loan terms that work best for you.
- Consider extra features: After gathering your quotes, delve into the details. Take note of any perks a lender offers, such as flexible repayment plans or career coaching. These could tip the scales in a lender’s favor.
- Read reviews and seek recommendations: Do your homework. Check out reviews and ask for recommendations. It can offer invaluable insights into lender customer service and reliability.
Dive deeper into our refinancing student loans article to get all the details.
Also Read: Best Companies To Refinance Medical School Loans
FAQ
Can I refinance my dental school loans during residency?
Yes, some lenders allow you to refinance during residency, offering low monthly payments until you complete your training.
Is it better to refinance after residency?
It depends on your financial situation and goals. After residency, you may qualify for lower interest rates, but you also lose federal benefits if you refinance federal loans.
What happens to my federal benefits if I refinance?
Refinancing federal loans with a private lender means losing federal benefits, such as Public Service Loan Forgiveness and income-driven repayment plans.
Conclusion
Financing dental school loans offers more than financial ease; it’s a way to brighten your future. You’ll gain stability and career advancement with flexible repayments and potential loan forgiveness.
Programs like PSLF are perfect for those who are passionate about community dental services. The journey isn’t just about loans; it’s about bringing financial well-being and meaningful service together.
