Attending medical school can be extremely expensive: As of 2021, 76% to 89% of medical school graduates leave school with an average of $203,062 in total education debt, according to the Association of American Medical Colleges.
Keep in mind that this cost doesn’t include any student loan debt students might have taken on for studies prior to attending medical school.
Although medical school graduates can generally expect to earn a six-figure salary, facing this massive amount of student loan debt can still be overwhelming.
Here’s the average medical school debt in several categories:
Average medical school debt
Here’s a look at the average medical school debt and earnings for graduates nationwide, based on information from the AAMC and the Bureau of Labor Statistics:
- Average medical school debt: $200,000
- Average education debt after medical school: $203,062
- Median salary with a medical school degree: $208,000
- Average salary with a medical school degree: $262,916
- Average time to repay medical school debt: 13 years
Before you attend medical school, it’s important to understand the full cost involved. This way, you can make the right decisions with your finances.
While medical school graduates generally make six-figure incomes, accruing interest on high student loan balances could lead to a longer repayment time.
Median medical school debt by year
| Median medical school debt | Cumulative debt at graduation |
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The chart above shows median total education debt for medical school graduates is:
- For the class of 2015-2016: $190,000
- For the class of 2020-2021: $200,000
That’s an increase of 5%, without adjusting for inflation.
Total education debt includes both medical school and pre-med debt taken on to earn a bachelor’s degree.
Excluding pre-med debt and looking only at loans taken out for medical school, the median medical school debt at graduation is:
- For the class of 2015-2016: $180,000
- For the class of 2020-2021: $200,000
That’s an increase of 11%, without adjusting for inflation.
Learn More: U.S. Student Loan Debt Statistics
Public vs. private medical school debt
Another factor in future student loan debt is where someone chooses to attend medical school. In general, private medical schools come with higher costs compared to public schools.
According to the AAMC, while only 71% of students at private medical schools graduate with education debt compared to 74% of students at public medical schools, the average private medical school debt is higher than the average public medical school debt:
- Average private medical school debt: $215,000
- Average public medical school debt: $200,000
As of 2022, graduates from the following 15 medical schools left school with the highest amounts of debt compared to other schools:
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Nova Southeastern University Patel College of Osteopathic Medicine (Patel) | | |
Western University of Health Sciences | | |
West Virginia School of Osteopathic Medicine | | |
| | |
Michigan State University College of Osteopathic Medicine | | |
Marian University College of Osteopathic Medicine | | |
University of Southern California (Keck) | | |
| | |
Edward Via College of Osteopathic Medicine | | |
| | |
William Carey University College of Osteopathic Medicine | | |
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University of Vermont (Larner) | | |
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Extreme medical school debt
Not only has average medical school debt grown significantly, but it’s not unusual for med students to borrow more than average.
Here’s how the debt levels broke down for recent medical school graduates according to the AAMC 2021 Medical School Graduation Questionnaire:
Most medical students borrow less than $300,000 — but about one out of every seven medical students borrow more than that, according to the Association of American Medical Colleges (AAMC).
Looking only at members of the class of 2021 who borrowed to get their degree, AAMC found:
- Borrowed less than $150,000: 21.1%
- Borrowed $150,000 to $299,999: 37.4%
- Borrowed $300,000 or more: 14.3%
Looking at all members of the class of 2021:
- Graduated without debt: 29.5%
- Graduates with debt who plan to apply for loan forgiveness: 46.7%
Cost to repay medical school debt
The cost to repay medical school debt depends primarily on three factors:
- The interest rates on your loans
- What you do with your loans in residency
- How long it takes you to pay your loans back
If you’re wondering how long it’ll take to pay off your student loans and how much it will cost, enter your current loan information into the calculator below to find out. Use the slider to see how increasing your payments can change the payoff date.
Average interest rates on medical school loans
If you’re using federal student loans to pay for medical school along with your pre-med studies, there are three interest rate tiers to expect — one for undergraduates, one for graduate students, and one for PLUS Loans.
Many doctors will have all three types of loans by the time they graduate from medical school.
Keep in mind: Federal student loans come with fixed rates that will remain the same throughout the life of the loan.
These rates are set by Congress and are adjusted annually to account for the government’s cost of borrowing.
Based on average student loan interest rates in recent years, a typical medical school graduate would have loan balances and interest rates that look like this:
| | |
|---|
Direct Subsidized and Unsubsidized Loans
(for undergrad students) | | |
Direct Unsubsidized Loans
(for graduate students) | | |
Direct PLUS loans
(for graduate and professional students) | | |
|
Typical loan balances and interest rates for med school grads
Most graduate and professional students can borrow up to an aggregate limit of $138,500 in federal Direct Subsidized and Unsubsidized Loans (no more than $65,500 in subsidized loans). But if you attend medical school, you might qualify for a higher limit in unsubsidized loans.
Once medical school students have exhausted their subsidized and unsubsidized loan limits, they could turn to federal Direct PLUS Loans or private student loans. These loan types could cover your school’s cost of attendance (minus any other financial aid you’ve received).
How long does it take to pay off medical school debt?
The standard student loan repayment plan for federal student loans is 10 years of monthly payments. But if you’re struggling to make your payments each month, you can extend your repayment term or reduce how much you pay each month through an alternative or income-based repayment plan.
Here are the repayment options available for federal student loan borrowers:
| |
|---|
| 10 years (10 to 30 years for Consolidation Loans) |
| 10 years (10 to 30 years for Consolidation Loans) |
| |
Revised Pay As You Earn Repayment Plan (REPAYE) | 20 years (up to 25 years for graduate loans) |
Pay As You Earn Repayment Plan (PAYE) | |
Income-Based Repayment Plan (IBR) | 20 years (for new borrowers after July 2014) or 25 years (for borrowers who took out loans before July 2014) |
Income-Contingent Repayment Plan (ICR) | |
Keep in mind that refinancing with a private student loan or consolidating multiple federal loans into a single Direct Consolidation Loan can extend the time it takes to repay medical school loans.
How interest piles up during residency
In addition to the interest rates on your loans, your repayment costs will depend on how long it takes you to pay back your loans. Residency can add three to seven years to your repayment timeline.
During residency, many medical school grads make only partial monthly payments on their loans or no payments at all. Here are a few things to remember when it comes to interest:
- Most loans will accrue interest during residency. With the exception of need-based subsidized loans taken out as an undergraduate, federal and private student loans continue to accrue interest during residency.
- Payments might not cover total interest. If your loans are in deferment or forbearance or you enroll in an income-driven repayment plan like Revised Pay As You Earn (REPAYE), your monthly payments may not cover the interest you owe.
- Interest could capitalize. Some or all of the unpaid interest you owe could capitalize when you finish your residency — meaning it will be added to your loan balance.
Below, you can see how interest could pile up during the six-month grace period that comes with most federal student loans after graduation as well as during your three years of residency.
This table assumes that you’ll request mandatory forbearance after your grace period and make no payments on your loans during residency.
| | | Loan balance after residency |
|---|
| | | |
Interest charges on $241,600 in education debt at a weighted average interest rate of 5.67% during 6-month grace period and 36-month residency. |
Tip: If you’re able, it’s a good idea to pay even part of the interest that you owe on your loans while you’re completing your residency.
This can help keep your loan balance from growing so dramatically.
Learn More: How to Pay Off $200,000 in Student Loans
Average salary with a medical school degree
Starting your medical career with more than $200,000 in student loan debt might sound frightening. But the good news is that most new doctors earn a salary that’s equal to or greater than their total debt — making it easier to manage.
As of May 2021, doctors earned the following according to the Bureau of Labor Statistics:
- Median: $208,000
- Average: $262,916
Here’s how these earnings break down by specialty:
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Family and general practitioners | |
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Physicians and surgeons, all other | |
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Obstetricians and gynecologists | |
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Check Out: Student Loan Requirements: How to Qualify for a Student Loan
How to get rid of medical school debt
While most doctors will eventually earn a high salary, they also end up with more student loan debt compared to other graduate and professional students for their degrees. Additionally, they bring in a relatively low income during their three to seven years of residency.
Thankfully, there are a few options available that could help you more easily pay off your medical school debt.
1. Explore loan forgiveness
If you’re a medical professional who works for a nonprofit or government agency, you might be eligible for Public Service Loan Forgiveness after making qualifying payments for 10 years.
Or you could consider signing up for an income-driven repayment (IDR) plan. On an IDR plan, your payments will be based on your income — typically 10% to 20% of your discretionary income. Any remaining balance could be forgiven after 20 to 25 years, depending on the plan.
Tip: There are also several other medical school loan forgiveness and assistance programs available that could help you get some or all of your loans forgiven.
2. Be proactive during residency
Residents typically don’t earn enough to make full payments on their student loans. If this applies to you, consider:
- Requesting a mandatory forbearance: This will let you temporarily pause your payments during residency. Just keep in mind that your loans will continue accruing interest during forbearance.
- Signing up for an IDR or graduated repayment plan: Under an IDR plan, your payments will be based on your income, while a graduated repayment plan will start off with low payments that increase every two years. Making payments under either of these options could help keep your interest from wildly accruing.
3. Consider a more aggressive repayment schedule post-residency
Once you complete your residency and begin making a higher salary, you might be able to manage a more aggressive repayment plan.
In general, paying your loans off faster will save you money on interest and reduce your overall loan cost.
4. Look into refinancing
Refinancing your student loans might be a good idea in some cases. Depending on your credit, you might qualify for a lower interest rate through refinancing — which could reduce your interest charges and possibly help you pay off your student loans faster.
Or you could opt to extend your repayment term to get a lower monthly payment. Just remember that if you choose a longer term, you’ll pay more in interest over time.
Keep in mind: While you can refinance both federal and private loans, refinancing federal student loans will cost you access to federal benefits and protections — such as IDR plans and student loan forgiveness programs.
If you’re wondering how competitive your loan is, the loan score tool below can help. Just enter your APR, credit score, monthly payment, and remaining balance (estimates are fine) to see how your loan stacks up.
How to refinance medical school debt
If you decide to refinance your medical school loans, follow these four steps:
- Research and compare lenders. Be sure to compare as many lenders as possible to find the right loan for your situation. Consider not only interest rates but also repayment terms, any fees charged by the lender, and eligibility requirements.
- Pick a loan option. After comparing lenders, pick the loan option that best suits your needs.
- Complete the application. Once you’ve picked a lender, you’ll need to fill out the full application and submit any required documentation, such as tax returns or pay stubs. Also be prepared to provide information regarding each of the loans you want to refinance.
- Manage your payments. If you’re approved, continue making payments on your old loans while the refinance is processed. Afterward, you might consider signing up for autopay so you won’t miss any payments in the future — many lenders offer a rate discount to borrowers who opt for automatic payments.
If you’re ready to compare lenders, Credible can help: You can see your prequalified rates from our partner lenders in the table below in two minutes — without affecting your credit.
Advertiser DisclosureOverview
Brazos offers refinancing loans to Texas residents who have a bachelor’s degree or higher from an eligible school. There are no origination or application fees, and interest rates could be lower than what you find with other private lenders.
However, some borrowers may find that Brazos has relatively strict eligibility requirements. Borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can’t meet those minimums alone, you can add a cosigner that can be released after 24 on-time consecutive payments.
pros
- Five loan terms available
- Competitive rates
- Cosigner release
- No origination or application fees
- Autopay discount of 0.25 percentage points
cons
- Only available to Texas residents
- High minimum credit and income requirements
- Bachelor’s degree required
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
Yes, after 24 on-time payments
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has a bachelor’s degree or higher.
Overview
Citizens student loan refinancing is available to qualified borrowers who want to refinance at least $10,000.
Borrowers who earned undergraduate degrees can refinance as much as $300,000 in student loans. Those who borrowed for graduate or professional degrees can refinance from $500,000 to $750,000. Citizens refinancing loans are available with fixed or variable rates. Repayment terms are flexible, ranging from five to 20 years.
Medical residents can refinance student loans and only pay $100 per month for up to four years while completing residency or fellowship.
pros
- Range of repayment options between 5 and 20 years
- Offers prequalification with no impact on credit score
- Offers rate discounts for existing customers and autopay
cons
- Cosigners not eligible for release until after 36 payments are made
- Refinancing unavailable until you make 12 payments on your loans if you earned an associate degree or no degree at all
- Minimum loan amounts are higher than some other lenders
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
$10,000 up to total refinance amount
Overview
ELFI offers student loan refinancing to borrowers who graduated with a bachelor's degree or higher. Borrowers can even refinance their parents' PLUS loans in their own name. Plus, each ELFI borrower gets paired with a student loan adviser to help them through the refinancing process.
While borrowers can add a cosigner to their application, they can't release that cosigner later on. ELFI also doesn't offer rate discounts, but borrowers can apply for a forbearance of up to 12 months if they're experiencing financial hardship.
pros
- Doesn’t charge application or origination fees
- Borrowers are assigned to a student loan adviser
- Student borrowers can refinance parent PLUS loans in their name
- Clear credit and income requirements
- Offers financial hardship forbearance of up to 12 months
cons
- Doesn’t offer any discounts
- Need at least a bachelor’s degree to refinance
- Doesn’t offer cosigner release
- Charges fees for late and returned payments
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Overview
EdvestinU offers student loan refinancing through Granite Edvance Corporation, a New Hampshire-based nonprofit. The lender stands out with competitive interest rates and flexible repayment terms for borrowers with strong credit. To qualify, you'll need a credit score of at least 700 and an annual income of $30,000 for loans less than $100,000 or $50,000 for larger amounts. However, loans aren't available in all U.S. states.
Unlike many lenders, EdvestinU lets you refinance without a degree or while still enrolled in school. New Hampshire residents also receive a 1.5 percentage point interest rate reduction, making it an excellent option for those in the state.
pros
- You can refinance without a degree or while enrolled in school
- Autopay rate discount available
- New Hampshire residents save 1.5 percentage points on their interest rate
cons
- Refinancing is only available in select states
- High minimum credit score requirement
- Requires a higher minimum loan balance than some lenders
- Cosigner release requires 2 years of on-time payments
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
Overview
INvestEd is a nonprofit based in Indiana that offers student loan refinancing to borrowers nationwide. It offers competitive rates and a discount for setting up autopay. INvestEd also allows cosigners to be released after 12 on-time payments, which is sooner than some other student loan refinancing lenders.
However, the most you can refinance through INvestEd is $250,000, less than what other lenders may allow. It also has strict credit and income requirements to qualify, or you'll need an eligible cosigner. INvestEd clearly defines its credit requirements before you apply, but you can't prequalify with a soft credit check.
pros
- Refinancing available even for non-degree holders
- Offers a one-quarter percentage point rate discount for autopay
- Deferment available while in school, military service or under financial hardship
- Will release cosigners after as few as 12 payments
cons
- Relatively low maximum refinance amount compared with some competitors
- Doesn’t offer prequalification to see rates before you apply
- No refinancing available for international students
- Parent loans cannot be refinanced in student’s name
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Overview
Iowa Student Loan Liquidity Corporation (ISL) is a nonprofit organization that can refinance student debt for undergraduates and their parents, graduate students, and medical and dental professionals. No degree is required to refinance, and even students who are still in school may qualify — a rarity in the marketplace.
The maximum amount you can refinance depends on the type of debt, though limits are generally high. ISL is also one of the few private lenders to offer a graduated repayment plan, where payments start small but gradually increase with time.
pros
- No degree required
- Certain borrowers can qualify for graduated repayment
- No origination, prepayment, or late fees
- Transparent credit and income requirements
- Autopay discount of 0.25 percentage points
cons
- No variable rates offered
- Caps on maximum loan amounts
- Maine residents not currently eligible
- Minimum loan amount of $10,000 for California residents
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 minimum ($10,000 for California residents); maximum of $200,000 for in-school applicants, $300,000 for undergraduate and parent loans, and up to $400,000 for medical and dental professionals
Eligibility
Must be a U.S. citizen or permanent resident (Maine residents are not eligible); cannot have defaulted on any private or federal student loan; and meet additional requirements depending on the type of refinance loan.
$10,000 up to the total amount
Overview
Massachusetts Educational Financing Authority (MEFA) is a student refinancing lender offering a wide range of options, including to borrowers who didn't finish school. Though the lender doesn't offer variable-rate options, its fixed-rate loans have competitive rates.
MEFA's mission is to provide affordable student loans, and it doesn't charge any fees. You must have at least $10,000 in student loans to refinance, and you must have made a minimum of six consecutive on-time payments over the last six months. Borrowers who are unable to qualify on their own can add a cosigner to their application.
pros
- You can refinance without having graduated
- Doesn’t charge fee
- Can prequalify to check your rate
cons
- Can’t release a cosigner
- Doesn’t have any discounts
- Can’t refinance parent student loans
- Doesn’t offer variable-rate loans
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Overview
The Rhode Island Student Loan Authority (RISLA) is a nonprofit lender offering student loan refinancing to borrowers across the U.S. You can refinance even if you didn't complete your degree, as long as you have at least $7,500 in student loan debt.
What makes RISLA unique is the flexibility it offers borrowers. If you're facing financial difficulties, RISLA provides income-based repayment options to help manage your payments. For added relief, you can access up to 24 months of forbearance, which is more than many lenders offer. If you return to graduate school, you can defer your payments for up to three years, giving you time to focus on your studies without worrying about loan payments.
pros
- Offers income-based repayment
- Generous payment relief options
- You can refinance without a degree
- Get a rate discount when you enroll in autopay
cons
- High minimum income requirement
- No cosigner release option
- Fewer repayment terms to choose from
- Does not offer variable rates
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Overview
Brazos offers refinancing loans to Texas residents who have a bachelor’s degree or higher from an eligible school. There are no origination or application fees, and interest rates could be lower than what you find with other private lenders.
However, some borrowers may find that Brazos has relatively strict eligibility requirements. Borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can’t meet those minimums alone, you can add a cosigner that can be released after 24 on-time consecutive payments.
pros
- Five loan terms available
- Competitive rates
- Cosigner release
- No origination or application fees
- Autopay discount of 0.25 percentage points
cons
- Only available to Texas residents
- High minimum credit and income requirements
- Bachelor’s degree required
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
Yes, after 24 on-time payments
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has a bachelor’s degree or higher.
Overview
Citizens student loan refinancing is available to qualified borrowers who want to refinance at least $10,000.
Borrowers who earned undergraduate degrees can refinance as much as $300,000 in student loans. Those who borrowed for graduate or professional degrees can refinance from $500,000 to $750,000. Citizens refinancing loans are available with fixed or variable rates. Repayment terms are flexible, ranging from five to 20 years.
Medical residents can refinance student loans and only pay $100 per month for up to four years while completing residency or fellowship.
pros
- Range of repayment options between 5 and 20 years
- Offers prequalification with no impact on credit score
- Offers rate discounts for existing customers and autopay
cons
- Cosigners not eligible for release until after 36 payments are made
- Refinancing unavailable until you make 12 payments on your loans if you earned an associate degree or no degree at all
- Minimum loan amounts are higher than some other lenders
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
Loan Amounts
$10,000 up to total refinance amount
Overview
ELFI offers student loan refinancing to borrowers who graduated with a bachelor's degree or higher. Borrowers can even refinance their parents' PLUS loans in their own name. Plus, each ELFI borrower gets paired with a student loan adviser to help them through the refinancing process.
While borrowers can add a cosigner to their application, they can't release that cosigner later on. ELFI also doesn't offer rate discounts, but borrowers can apply for a forbearance of up to 12 months if they're experiencing financial hardship.
pros
- Doesn’t charge application or origination fees
- Borrowers are assigned to a student loan adviser
- Student borrowers can refinance parent PLUS loans in their name
- Clear credit and income requirements
- Offers financial hardship forbearance of up to 12 months
cons
- Doesn’t offer any discounts
- Need at least a bachelor’s degree to refinance
- Doesn’t offer cosigner release
- Charges fees for late and returned payments
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Overview
EdvestinU offers student loan refinancing through Granite Edvance Corporation, a New Hampshire-based nonprofit. The lender stands out with competitive interest rates and flexible repayment terms for borrowers with strong credit. To qualify, you'll need a credit score of at least 700 and an annual income of $30,000 for loans less than $100,000 or $50,000 for larger amounts. However, loans aren't available in all U.S. states.
Unlike many lenders, EdvestinU lets you refinance without a degree or while still enrolled in school. New Hampshire residents also receive a 1.5 percentage point interest rate reduction, making it an excellent option for those in the state.
pros
- You can refinance without a degree or while enrolled in school
- Autopay rate discount available
- New Hampshire residents save 1.5 percentage points on their interest rate
cons
- Refinancing is only available in select states
- High minimum credit score requirement
- Requires a higher minimum loan balance than some lenders
- Cosigner release requires 2 years of on-time payments
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
Overview
INvestEd is a nonprofit based in Indiana that offers student loan refinancing to borrowers nationwide. It offers competitive rates and a discount for setting up autopay. INvestEd also allows cosigners to be released after 12 on-time payments, which is sooner than some other student loan refinancing lenders.
However, the most you can refinance through INvestEd is $250,000, less than what other lenders may allow. It also has strict credit and income requirements to qualify, or you'll need an eligible cosigner. INvestEd clearly defines its credit requirements before you apply, but you can't prequalify with a soft credit check.
pros
- Refinancing available even for non-degree holders
- Offers a one-quarter percentage point rate discount for autopay
- Deferment available while in school, military service or under financial hardship
- Will release cosigners after as few as 12 payments
cons
- Relatively low maximum refinance amount compared with some competitors
- Doesn’t offer prequalification to see rates before you apply
- No refinancing available for international students
- Parent loans cannot be refinanced in student’s name
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Overview
Iowa Student Loan Liquidity Corporation (ISL) is a nonprofit organization that can refinance student debt for undergraduates and their parents, graduate students, and medical and dental professionals. No degree is required to refinance, and even students who are still in school may qualify — a rarity in the marketplace.
The maximum amount you can refinance depends on the type of debt, though limits are generally high. ISL is also one of the few private lenders to offer a graduated repayment plan, where payments start small but gradually increase with time.
pros
- No degree required
- Certain borrowers can qualify for graduated repayment
- No origination, prepayment, or late fees
- Transparent credit and income requirements
- Autopay discount of 0.25 percentage points
cons
- No variable rates offered
- Caps on maximum loan amounts
- Maine residents not currently eligible
- Minimum loan amount of $10,000 for California residents
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 minimum ($10,000 for California residents); maximum of $200,000 for in-school applicants, $300,000 for undergraduate and parent loans, and up to $400,000 for medical and dental professionals
Eligibility
Must be a U.S. citizen or permanent resident (Maine residents are not eligible); cannot have defaulted on any private or federal student loan; and meet additional requirements depending on the type of refinance loan.
Loan Amounts
$10,000 up to the total amount
Overview
Massachusetts Educational Financing Authority (MEFA) is a student refinancing lender offering a wide range of options, including to borrowers who didn't finish school. Though the lender doesn't offer variable-rate options, its fixed-rate loans have competitive rates.
MEFA's mission is to provide affordable student loans, and it doesn't charge any fees. You must have at least $10,000 in student loans to refinance, and you must have made a minimum of six consecutive on-time payments over the last six months. Borrowers who are unable to qualify on their own can add a cosigner to their application.
pros
- You can refinance without having graduated
- Doesn’t charge fee
- Can prequalify to check your rate
cons
- Can’t release a cosigner
- Doesn’t have any discounts
- Can’t refinance parent student loans
- Doesn’t offer variable-rate loans
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Overview
The Rhode Island Student Loan Authority (RISLA) is a nonprofit lender offering student loan refinancing to borrowers across the U.S. You can refinance even if you didn't complete your degree, as long as you have at least $7,500 in student loan debt.
What makes RISLA unique is the flexibility it offers borrowers. If you're facing financial difficulties, RISLA provides income-based repayment options to help manage your payments. For added relief, you can access up to 24 months of forbearance, which is more than many lenders offer. If you return to graduate school, you can defer your payments for up to three years, giving you time to focus on your studies without worrying about loan payments.
pros
- Offers income-based repayment
- Generous payment relief options
- You can refinance without a degree
- Get a rate discount when you enroll in autopay
cons
- High minimum income requirement
- No cosigner release option
- Fewer repayment terms to choose from
- Does not offer variable rates
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
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Emily Guy Birken
Emily Guy Birken is an authority on student loans and personal finance. Her work has been featured by Forbes, USA Today, Fox Business, MSN Money, and MarketWatch.
