The Definitive Guide to Refinancing Dental School Debt
$247,227 in dental school debt.
That’s the number dental students around the country need to familiarize themselves with – because that’s how much dental school debt the average graduating senior now possesses.
Student loans are an inevitability for many dental students, but being hundreds of thousands of dollars in debt can prevent borrowers from realizing their goals in life. For example, their loans will undoubtedly influence their career choices and can prohibit them from buying their dream homes, saving for retirement, traveling the world, and saving for their kids’ education.
When this occurs, refinancing can be a great way to achieve some financial freedom. It can get borrowers out of debt more quickly – while helping them save a ton of money in interest.
When To Refinance Your Dental School Debt
Borrowers need to tackle dental school debt head on. Six figures of debt is a lot, but it’s not completely unmanageable – especially with a good salary. First, they need to figure out what they owe, how long it will take them to pay it off, and how much interest they’ll end up paying in the long run.
Armed with those facts and figures, borrowers should refinance their loans under two very specific circumstances:
1. The loans carry high interest rates. Federal loan rates for professional programs like dental school tend to be higher than undergrad rates. Plus, many dental school students have high-interest private loans as well. Interest rates are currently quite low, so it’s a great time to refinance at a more favorable rate.
2. Their financial situation has improved. If the borrower’s financial situation has improved considerably since taking out the initial loans, they can achieve more favorable rates, terms, and monthly payments by refinancing. In general, an improved financial situation involves a good credit score and a higher annual income.
How To Get Started
If borrowers possess high-interest loans or are in an improved financial situation since graduation, there’s a strong chance that they will benefit from refinancing their dental school debt. To get started, use our easy loan refinancing calculator to determine potential savings, and compare rates from private lenders to find an ideal loan.