Want to see how you can Lower Your Payments, Interest, or Both? You might want to change your monthly payment from 20 year fixed to a 10 year fixed? Or minimize your interest 6.8 Federal loans to a lower 2-3% refinanced rate, or something in between. See how much money you could save with our ODsonFinance student loan refinancing calculator.
This is the current lowest rate that each lenders offer at the moment. This entirely depends on the total loan balance, variable or fixed and the duration of your loan term (how quickly you want to pay off the loan), in addition to other factors such as income to debt, credit scores, etc.
In general, most OD refinancing their 20 years Federal loans at 6.8% will get the lowest offered rate at such as ~2.25%, if they have good credit score and sign up for a variable rate at 5 years.
Some individuals will get the rates if they qualify, while some won’t. With every lender we have had reports of colleagues getting the lowest rates as well as some that didn’t. Ultimately the decision is the lenders and not ours. But great news, every single lender will work directly with you to see how you can improve your application.
When you refinancing your student loans with a private lender, it will change the existing terms with regards to interest rate and time to repay.
Consolidation basically converts multiple loans into one resulting in an average, single weighted interest rate. Often making it easier to track of. Consolidating is usually offered with your Federal Loan program.
Fixed interest rates stay the same for the entire term of the loan. Your minimum monthly payment will always be the same. Variable interest rates tend to be lower than fixed interest rates at least initially. They typically change based on federal interest rates. Therefore, your monthly payment could change over the course of the loan.
Just think of a fixed rate, as “insurance against increasing rates” and your “premium” is the higher interest rate. Fixed is usually better but it doesn’t make much of a significant difference mathematically if you are able to pay off your loans within 5 years.
Yes. There is no limit to how often you refinance your loans. But, you should only so if it makes sense since as saving 1% or greater interest rate. Other reasons to refinance your student loans would be to change the term or monthly payment (thus usually a lower interest rate), and to remove a co-signer.
If you are refinancing AGAIN with the same lender, certain banks such as First Republic will require you to have a certain bank deposit and/or certain number of referrals to waive a refinancing fee. Please consult with your loan advisor.
If you refinance again with a new bank, you are eligible for ANOTHER cash bonus. Usually the cash bonus is for new applicants only. A lot of ODs do this as a form of "Refi Hack"
ABSOLUTELY NOT. Once you refinance your student loans, you are no longer eligible for federal loan forgiveness programs including the 10 years Public Service Loan Forgiveness program and 20-25 Total forgiveness after making income-driven payments after 20-25 years.
So if you are pursuing any of these programs, we do NOT recommend student refinancing.
Only certain lenders will offer full loan forgiveness. This depends on the specific refinance company. For our partners, currently only Sofi, Earnest, Brazos, and Commonbond will forgive your loans if you die or become disabled.
For LendKey and Credible, it depends on the specific lender selected during your application, so they will let you know during the application process. Please check directly with each lenders.
First Republic will NOT forgive your loans if you die or become disabled.
Generally no, but some income-based payments options are available during time of hardships for certain banks. The only one that we are aware of is First Republic, Earnest and Common-bond but it is usually for a few months. However, some companies may make accommodations on a case-by-case basis.
Thus, If you require income-based payments or anticipate a need in the near future, you should not refinance your federal loans.
Generally in the past, it used to be no. But private lenders have made some significant changes some of its policies to accommodate recent borrowers.
SoFi does offer loan deferment for borrowers who in school (graduate degree only), disability rehabilitation training, unemployment, economic hardship such as (but not limited to medical expenses, medical leave from work, relocation for employment purposes, damage expenses to your home or automobile -not regular wear and tear), and legal fees and/or Military (active duty/National Guard). Sofi also offer Forbearance for unemployment, economic hardship, military mobilization and/or Natural Disaster.
Earnest do offer deferment for borrowers pursuing graduate education, serving active military and/or Peace Corps duty. But interest will accrues during the deferment period. Forbearance is an also an additional protection that may be offered by Earnest for clients who are experiencing an inability to make their monthly payment due to a documented and verifiable hardship.
Brazos does offer loan deferment for borrowers who have economic hardship (3 months at time, up to 12 months) or Forbearance, along with active Military duty (up to 36 months) and Natural Disaster forbearance (up to 3 months).
Commonbond does offer forbearance for borrowers who have economic hardship or Natural Disaster forbearance (COVID-19).
First Republic currently does NOT offer forbearance during economic hardship.
Splash, Credible, Lendkey is dependent on individual lenders since they work with multiple banks.
LaurelRoad who is not our partner yet, do offer forbearance for up to 12 months
Remember that interest continues to accrue during periods of forbearance. At the end of the forbearance period, the accrued interest is added to the balance of your student loan and the loan is re-amortized to ensure the loan pays off in the applicable repayment term. This could change your monthly payments.
As always, please consult directly with each specific lender.
(1) Current Student Refi Rates: Still fairly low at around 3-4% fixed, considering that inflation is 4-5%. The feds announced recently that it doesn't plan to increase rate though 2022, but will gradually have 3-4 spikes until 2024 but take that with a grain of salt since the economy can change.
(2) Biden extends federal loan pause until 1/30/2022: Since the CARES Student loan benefits are set to expire until end of January 30, 2022, with the likelihood no more extension, our advice is still the same, those optometrists with FedLoans, enjoy the 0% benefits, make extra payment (more will just go toward principal) and/or prioritize invest/retirement more. Then reassess when more news comes out at the end of 1/30/22. We recommend gathering your financial documents by 12/1/2021 and start applying before the rush in 1/2022. There is a general consensus among refi lenders that after 1/2022, as there is a mad rush of demand, lenders can choose to be more selective in their approval process (lower DTI, higher credit score, work experience, etc) and increasing their overall rates.
(3) Those with private student refi loans: if you can get 1% better, now is the perfect time to refi. A majority of our refi traffic is from doctors doing a form of refi- hack (jumping from lender to lender to get the best $1000 bonus). As always, we will strive to keep up on the latest news so stay tuned!
Checking your interest rate with not have any impact on your credit score since companies do what’s called a “soft check.” However, if you accept an offer and fully complete an application, they will need to do a "hard pull", thus your credit score could be affected minimally.
If you are planning to apply for home mortgage or large business loan within 6 months, we recommend waiting to refinance your student loans.
Every refinance company has their own requirements but usually, the higher your credit score, the lower your rate will be similar to any bank loan. Typically you will need a score of at least 700-750 to be get a decent rate or even be approved.
Nope! Most companies will actually pay you cash bonus to refinance with them. None of our partners will charge an origination fee. So please be cautious of any companies requesting an upfront fee as this could be a scam or un-reputable company.
The only situation we came across if our member lives in Florida and if they refinance via First Republic, then you will owe a Florida Stamp Tax (which is currently at $0.35 on every S100). Please consult with your lender for more details.
Yes. All our partner companies do NOT have any prepayment penalty.
First, you have to set up auto monthly payments to pay the minimum payment as set by your loan contract. For any additional payment, you can either make manual payments each month toward the loan as lump sum or increase the minimum monthly payment (Depends on lenders). Most of our ODsonFinance member use this method to aggressively pay off their 10 years refinanced loans within 3-5 years.
Most companies give you an additional discount to have your monthly student loans payments automatically drafted from your bank account. This is usually 0.25%. Keep in mind that our lowest current rates are often displayed with this autopay discount already assumed.
No. This is generally not required. If you don’t meet the minimum requirements for approval such as your income to debt is too high (Usually greater than 1:3), poor credit score, or not enough cash savings, then a company may request a co-signer in order to be eligible.
We recommend NOT using a cosigner since your debt becomes your spouse/parents debt. If you do decide to use one, make sure both parties understand the risks involved. Usually many lenders will recommend you wait and work with you to improve your financial situations for future approval.
Student loan refinancing companies earn money by receiving your payments each month via the interest that you paid as a fee. Therefore, in order to obtain your business, they offer a cash bonus. Other banks such as First Republic want to have a more lasting relationship with you as banking client, so they only cater to location-specific customers and will be extremely competitive in their rates.
Currently, our partners offer cash bonuses of up to $1000 and/or a special discount rate of 0.25%.
Typically you will receive your money within 4-8 weeks of the loan being disbursed, but will depends on the lenders. If you haven't receive your cash bonus, please directly contact your loan advisor/customer support first. Then finally us at Admin@ODsonFinance.com, so we can check with our partners.
While this varies with each refinance company, typically you will receive your bonus as a direct deposit into your checking account, Paypal or as a gift-card. Please consult with your lender after your application is completed.
YES. We do get a small referral fee for each loan that is refinanced through one of the links. Aaron and Dat are extremely transparent when it comes to financial disclosure. We both have full time job running our own clinic and both financially happy! Basically, we don't need the additional profit to support us or our families which give us a lot of freedom to do what is best for members.
We were both young broke optometrists with massive student debt, so please rest-assured that we have negotiated with each company to take the small amount possible, and transferring that saving to you, the applicant, in the form of the highest bonus or discount rate possible. Which would not be possible if you would gone online by yourself or via another colleagues personal referral link.
We went though multiple talks with the legal and marketing teams of each bank, or sometime we were approached by lenders due to the group’s high engagement/targeted audience (Special shout-out to you guys!)
We then negotiated endlessly (often back and forth) with each of them; sometime this process would take days or even months for a contract to be signed and finalized by both parties.
We had one simple mission which was to get the best deals for Optometrists, either in a larger cash bonus or discounted rate for members compared to the typical applicant going online by themselves.
This usually results in us taking a significantly lower referral bonus compared to other websites.
Great question! We are always amazed by how fast and huge this community have gotten! So thank you to everyone for spreading the word! But Dat and Aaron are currently working with bankers to help Optometrist to get the lowest rate on their home mortgages, business loans, personal loans, student loans and honestly any demand/feedback y'all give us!