Explore the Best Lenders to Refinance Your Medical School Loans in 2025

Pursuing a career in medicine can lead to a personally fulfilling and financially rewarding career. In 2023, the median annual salary for physicians was $239,200, according to data compiled by the U.S. Bureau of Labor Statistics. Some specialists can earn significantly more.

But the cost of medical school can be formidable. The median student debt for 2024 graduates was about $205,000, according to the Association of American Medical Colleges. Physicians looking to alleviate some of this financial burden often turn to medical school loan refinancing to obtain more favorable interest rates.

Earnest stands out as the best medical school loan refinance lender on the Credible platform, with a rating of 4.8 out of 5 stars. This high mark reflects its flexible repayment terms, competitive rates, and lower credit score requirements, among other factors. SoFi and ELFI are also strong options, offering perks for members and refinancing for high loan balances.

Best refinance lenders for medical school loans

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine the best student loan refinance lenders for medical school loans, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.

Student loan refinancing interest rates

As you consider the various refinancing options, one key factor to keep in mind is how your credit score affects the interest rates you qualify for. A higher credit score usually leads to lower interest rates, reflecting a lower risk to lenders. A lower credit score is more likely to result in higher interest rates due to perceived higher lending risks.

How much can you save by refinancing medical school debt?

Refinancing can be most beneficial if you have a high loan balance and interest rate. Doctors can easily have six figures of student loan debt. Interest on a high amount of debt can mean paying thousands more than you borrowed over the life of the loan.

Let's say your loan balance is $100,000 at an 8% interest rate. You have nine years left on your repayment term. But then you refinance and qualify for a 6% interest rate with a 10-year term. In this scenario, your monthly savings would be $192. Your lifetime savings would be $7,378.

Refinancing medical school loans: Eligibility requirements

Although eligibility requirements for refinancing medical school student loans can vary between companies, here are the common factors most lenders consider:

• Citizenship: You must be a U.S. citizen or permanent resident to be eligible for refinancing with most lenders.
• Credit score: Lenders use credit scores to assess your financial reliability. While minimums vary, a FICO score of at least 670 is usually required to qualify. Higher credit scores will improve your chances of approval and may also secure you a lower interest rate.
• Income: Your income level is used to evaluate if you can manage the new loan's monthly payments. Different lenders have different minimum income requirements.
• Loan amounts: There are specific minimum and maximum thresholds for the total debt amount that you wish to refinance, which vary by lender.
• Debt-to-income ratio (DTI): This is the proportion of your income that goes toward paying debt. Medical school student loan refinancing lenders typically prefer borrowers whose DTI is 36% or lower.
• Degree: Lenders sometimes offer refinancing to current medical residents and fellows, although these options may carry higher interest rates than standard refinancing plans. If your residency is eligible for student loan forgiveness, delaying refinancing might be more advantageous.

Understanding these requirements can help you better prepare for refinancing your medical school loans and potentially secure more favorable terms.

Loan forgiveness vs. refinancing: Which is better?

Refinancing medical school debt may help you save a substantial amount. But depending on your employer and type of student loan, you may qualify for the Public Service Loan Forgiveness (PSLF) program, which could help you save even more.

The PSLF program forgives federal student loans after a decade of qualifying employment and monthly payments. Doctors who work for a nonprofit or government organization may qualify.

“Before refinancing, the borrower should calculate the potential amount of forgiveness they will forgo by refinancing and compare this with the potential savings they will receive by refinancing into a lower interest rate loan. If the potential forgiveness is greater, they should not refinance,” says Mark Kantrowitz, author of “How To Appeal for More College Financial Aid.”

Kantrowitz notes that doctors may qualify for PSLF credit if their residency, internship, and fellowship are at a nonprofit 501(c)(3) hospital. You can use the PSLF employer search tool to verify if your workplace qualifies.

See Also: When Should You Refinance Student Loans?

How refinancing affects loan forgiveness

Refinancing federal student loans turns them private, making you ineligible for PSLF and other federal benefits. If you qualify for forgiveness, refinancing could cost you more in the long run. But if you have both federal and private loans, you may be able to take a hybrid approach.

“When you have both PSLF-eligible and non-PSLF-eligible loans, it might be best to keep them separate,” says Brent Boden, a certified financial planner (CFP) and wealth manager at Savvy Advisors.

“You can pursue PSLF for the eligible loans while refinancing the non-eligible loans to get a lower interest rate. This allows you to maximize your benefits from both options without losing the potential forgiveness for the eligible loans,” adds Boden.

You should also consider your career goals. If you want to start your own practice as a physician, that can impact whether it's the right time to pursue refinancing.

“If a medical student's career goal is owning a practice (or multiple practices), then refinancing is not the priority. I would instead focus on getting into the practice first and then worry about managing the student loans,” says Stephen B. Dunbar III, a financial adviser and executive vice president at Equitable Advisors who works with many doctors and dentists as clients.

“Most lenders would prefer to see cash in the bank, strong earnings, and a strong practice as opposed to lower student loan balances,” Dunbar adds.

Additionally, doctors can look into other state and employment-based repayment assistance and forgiveness opportunities for health care workers. For example:

• The National Health Service Corps Loan Repayment Program
• The Regents Physician Loan Forgiveness Program in New York State
• The Colorado Health Service Corps Loan Repayment Program

How to refinance medical school loans

If you've done a cost-benefit analysis and decided student loan refinancing is the right option, here's how to refinance student loans as a doctor:

1. Research lenders: Compare the best lenders for medical school loan refinancing and look at origination fees, interest rates, and repayment terms. See if lenders offer any perks or bonuses, and check customer reviews online.
2. Prequalify: Lenders usually let you check your rate and prequalify for a refinancing loan. Typically, this doesn't impact your credit score as the lender does a soft credit pull. A hard credit pull happens when you submit your full application, and this causes a slight dip in your credit score.
3. Prepare documents: Gather your driver's license and Social Security number to prove your identity. You'll also need pay stubs, tax returns, or bank statements to verify your income. Finally, get your latest student loan statement so the refinancing lender has your current loan amount and lender information.
4. Submit an application: Fill out the application online and before submitting, double-check your answers for accuracy and completeness.
5. Add a cosigner, if applicable: Refinancing can secure lower interest rates for doctors. But if your credit profile doesn't meet the lender's requirements, or you want a competitive advantage, add a cosigner. Cosigners must meet the lender's requirements and are liable for the loan.

Effective strategies for managing medical school debt after refinancing

Refinancing your medical school loans can lead to significant savings on interest. However, it's important to stay proactive in managing the remaining debt. Here are some tips to help you manage your medical school debt effectively after refinancing:

• Cut unnecessary expenses: Thoroughly review your budget to identify and eliminate any non-essential spending. Common areas where you can cut costs include unused subscriptions, dining out, and regular use of delivery services. Minimizing these expenses can free up more of your budget to put toward debt repayment.
• Prioritize high-interest loans: Implement the debt avalanche method, which involves prioritizing the repayment of your loans with the highest interest rates first while maintaining minimum payments on others. “Once the highest-interest loan is paid off, you move on to the next highest,” says Brent Boden, a certified financial planner (CFP) and wealth manager at Savvy Advisors. “This can help accelerate your debt payoff and save you money in the long run.”
• Make extra payments: When you receive unexpected cash, such as bonuses, tax refunds, or gifts, consider using it to make additional debt payments. This approach can reduce your total balance and interest costs more quickly.
• Stay focused on financial goals: Remember the initial reasons for refinancing your medical school loans. Continue to build and maintain an emergency fund and work toward other financial goals. “Allocating your resources wisely can also help in achieving long-term objectives like saving for a house down payment or investing,” Boden says.

By following these strategies, you can effectively manage and reduce your medical school debt after refinancing, putting you on a faster path to financial freedom.