Answers to Your Top Questions About Dental School Student Loan Refinancing

If you’re like most current and future dentists, you’re in the process of accumulating significant student loan debt. The organization Education Data Initiative reported that the average 2024 dental school grad has nearly $300,000 in combined undergrad, grad, and professional loans. That’s more than the average for medical school, and you’ll pay even more if you specialize in your dentistry career.

While you may plan to refinance your six-figure loans for a better interest rate after you’re established as a practicing dentist, you can possibly benefit from looking for a new dental school loan rate even as a student or resident.

Is It a Good Idea to Refinance Your Dental School Loans?

If you can qualify for a lower interest rate and better terms, consider refinancing your dental school debt right away. Taking this step will help you save on your monthly payments as well as pay less overall. You can save money, streamline your financial life, and even refinance again down the road to cut your APR even further. This strategy helps dental school students and grads make a real dent in their total debt before they even begin to practice.

Certain aspiring dentists may not want to refinance their student debt. For example, are you thinking about applying for loan forgiveness for your federal loans through public service? If you refinance your federal loans, they become private loans, and you lose the opportunity to do so. However, you can consolidate federal loans in this situation to lower your monthly payments with a longer loan term.

When Should You Refinance Your Dental School Loans?

You can potentially benefit from refinancing your dental school loans as long as you can qualify for a lower interest rate or better terms. Even if you don’t have great credit or steady income, you could still possibly refinance with the help of a parent, spouse, or family member who will cosign on your behalf.

4 Steps to Get a Dental School Student Loan Refinance

If you think you don’t have time to refinance your dental school loans, think again. Whether you’re currently a student, resident, or practicing dentist, follow this simple four-step process to find out if you can save:

• Access your available rates. If you have good credit and steady income or a cosigner with these qualities, you can potentially qualify for a lower APR on your dental school loans.
• Pick the right offer for your needs. If you aren’t sure how to decide on a desirable dental school refinance loan, start by looking at the lowest-rate offers. You should also consider factors such as prepayment penalties and other fees, available discounts, mobile and online features, and customer service.
• Complete your application. After the initial rate quote, the lender will pull a full report to verify your information. You should prepare to provide additional documentation, including a copy of your driver’s license or passport, pay stubs or other proof of income, statements for both federal and private dental school loans you plan to refinance, and a copy of your Social Security card.
• Await loan payoff. Keep paying your existing dental school loans until your refinance lender settles these accounts. At that point, you will begin making payments on the refinance loan as agreed in your loan documents. Most lenders take about three weeks to pay off your old loans after approving you for a dental school refinance loan.

Can You Refinance Student Loans While Still in Dental School?

Some lenders allow you refinance your student loans as a dental student or resident. Even making small monthly payments toward your debt during those years can make a big difference in the total cost of your education with interest. Refinancing dental school loans for a lower rate while in school means even more money will go toward your loan principal, for a much faster payoff.

Can You Refinance Dental School Loans With Poor Credit?

Although poor credit can pose a challenge when you want to refinance dental school debt, you may want to explore the possibility of applying with a cosigner. A friend or family member with good credit and income can act as a cosigner, but they must agree to take on the loan payments if you default. However, many lenders have cosigner release programs after a few years.

Is This a Good Time to Refinance My Dental School Loans?

You should definitely consider refinancing now to save money on your dental school loans. You could potentially access five-figure savings on the overall cost of your student debt over time.