This post is was originally published on The College Investor
Studying to become a doctor? By the time you graduate from medical school, you’ll have wracked up $190,000 in educational debt on average.
Sure you’ll have high earning potential and stable job prospects, but that kind of debt is a tough pill to swallow- especially during residency when you’re not earning much, but you have to start making payments on your debt.
Medical student debt, can be overwhelming and expensive. can make it easier to handle during your training. The company offers decent rates, and amazing terms.
If you’re struggling with Medical education debt, look Splash Financial, but be sure to compare the terms and conditions with other lenders before you decide.
In the past, medical professionals often had to struggle through residency before finding refinancing options. Today, medical residents and medical students have a myriad of low-cost refinancing including Splash Financial, a company the specializes in refinances debt for medical professionals.
If you’re in medical school, residency, or just starting your career, refinancing your loans with Splash Financial could be a savvy move. But before you apply, here’s what you need to know.
No Origination Fees
Splash Financial charges no origination fees when you refinance your educational debt. For some borrowers (especially people planning to pay off their loans quickly), this can yield a ton of savings.
However, Splash Financial isn’t the only company offering this perk. SoFi, CommonBond and other upstarts are also offering this option, so be sure to compare rates before you commit to any company in particular.
$1 per month payments during training
The thing that sets Splash Financial apart from other loan refinancing companies is that borrowers don’t have to make their full payments right away.
During medical school, residency, and for 90 days following residency, you can make $1 per month payments. In many cases, this will save you more than putting your loans on a federal income-based repayment plan. Once your grace period expires, you’ll have ten years to pay off the loans.
Okay interest rates (better than subsidized loans)
Right now, Splash Financial charges a 5.29-5.44% interest rate on their loans. All loans are ten year, fixed rate loans. You must meet minimum credit criteria (Splash calls it responsible borrowing) to refinance with Splash Financial. Loans must be between $25,001 and $346,000.
A lot of borrowers (especially fully-employed doctors) can find better interest rates than those offered by Splash. However, medical students and residents may struggle to find rates as low as Splash offers (especially given the $1 per month payments during training).
Possible options for forbearance
Refinancing your loans to Splash Financial means you can’t qualify for Public Student Loan Forgiveness (an option for many medical professionals who work in not-for-profit hospitals), but Splash offers some peace of mind for borrowers.
First, Splash can cancel the debt if you die or become permanently disabled. Splash also has a track record of helping borrowers who need forbearance due to financial troubles. Neither of these things is guaranteed by Splash, but it’s helpful to work with a company that does what it can to help borrowers out).
Should you refinance with Splash Financial?
Medical student debt, can be overwhelming and expensive. Splash Financial can make it easier to handle during your training. The company offers decent rates, and amazing terms. If you’re struggling with Medical education debt, look Splash Financial, but be sure to compare the terms and conditions with other lenders before you decide.
Could refinancing your student loans help you save money?