Jan
05
2026
A man and a woman filling out paperwork for a student loan transfer, with the image focusing on their hands and the forms.

Guide to Student Loan Transfers

By | Debt Payoff, Student Loans, student_loan | Comments Off on Guide to Student Loan Transfers

Sometimes student loan debt can start to feel like it’s slowing you down. Maybe the interest rate is too high, you’re not happy with your loan terms, or you’re frustrated with the lender’s customer service. If so, you have the right to look for a new lender and transfer your debt to a different company.

However, you can’t simply ask a new lender to take on your debt with the same terms. To transfer your student loan, you generally need to take out a new loan with a new lender or servicer. The process of switching will be different depending on whether your student loans are private or federal, and it may involve consolidating the loan or refinancing.

If you’re thinking about a loan transfer, keep in mind that there’s no guarantee you’ll end up in a more favorable situation just by switching lenders. Here’s what you need to know about student loan transfers.

Key Points

•   Private student loans can be transferred to a new lender through student loan refinancing.

•   Federal student loans can be transferred to a new loan servicer through federal student loan consolidation or through private student loan refinancing.

•   Changing loan servicers by refinancing federal loans with a private lender results in loss of federal benefits.

•   The only way to transfer a Parent PLUS loan from a parent to a student is by refinancing the loan in the child’s name.

•   It’s possible, though generally not advisable, to transfer private student loan balances to a credit card with a 0% introductory rate, which might save a borrower interest, but only if the loans are paid off within the short promotional period.

How Do I Transfer Student Loans to Another Private Lender?

If you have private student loans, the main way to transfer your debt to another lender is to refinance your loans. This involves taking out a new loan with a different lender and using it to pay off your current student loans. Moving forward, you only make payments on your new loan to your new lender.

If you have multiple private student loans, refinancing can simplify repayment by giving you only one monthly payment to manage. And, if your financial picture has improved since you took out your original private student loans, you may be able to qualify for a lower interest rate. Another perk of refinancing is the ability to lengthen your repayment timeline to reduce your monthly payment amount. Keep in mind, though, that a longer repayment period will generally end up costing you more in the long run.

You’ll need to meet certain criteria to be eligible for private student loan transfer via student loan refinancing. Most lenders have a minimum income threshold as well as a minimum credit score (often in the upper 600s). If you don’t meet the income or credit requirements, you may be able to qualify by adding a cosigner.

Many lenders offer prequalification, which lets you see what type of rates and terms you may be able to qualify for without impacting your credit score. To find the loan with the best rate, it can be a good idea to shop around and compare lenders through prequalifying. Once you find a lender you want to work with, you’ll need to officially apply for the student loan refinance.

Can I Transfer My Sallie Mae Loans to Another Lender?

Currently, Sallie Mae only offers private student loans. Prior to 2014, however, the lender serviced federal student loans. If you want to refinance a Sallie Mae loan you took out before 2014, you’ll need to check whether it’s federal or private before moving forward.

If you took out a Sallie Mae loan after 2014, it’s a private student loan, and you can refinance the loan with another private lender. This might be a good idea if you can qualify for a lower interest rate.

What’s the Difference Between a Lender and a Loan Servicer?

While the terms lender and loan servicer are often used interchangeably, they are not the same thing. Here’s a look at how they differ.

Student Loan Lender

A lender is an institution or company that originates and funds the student loan. In other words, they’re the one lending you the money. For example, if you apply for a federal student loan, the federal government is your lender. If you apply for a private student loan, you can choose between a number of private lenders.

A Student Loan Servicer

A federal student loan servicer is the middleman between you and the federal government (the lender). Servicers handle your student loan billing and payments, and they keep track of whether you pay your loans on time. They will help you if you’re having trouble with your repayment plan or need to change your address or other personal information.

You do not get to pick your servicer. During the course of your federal student loan, your servicer might change a few times. For example, if you had a loan with Great Lakes, it was likely transferred to Nelnet some time between March 2022 and June 2023. You’ll typically get notified of a student loan transfer two two weeks prior to your transfer date.

If you have a federal student loan and you’re not sure who your servicer is, you can log in to your account on StudentAid.gov to find out.

Can I Change My Student Loan Servicer?

You can’t change your federal student loan servicer directly. However, if you’re willing to do some legwork, there are two main ways to move your federal student debt to a new servicer or lender.

If you want to keep your federal loan status but switch to a different loan servicer, you can transfer your loans by consolidating them into a Direct Consolidation Loan. If your main objective is to save on interest, you may want to look into refinancing your student loans with a private lender. Read below to learn more about each scenario.

What About Consolidating My Student Loans?

One way to switch loan servicers is to consolidate your federal student loan(s). This allows you to transfer the debt to a different servicer but keep your federal student loan status, since the lender will still be the federal government.

The consolidation process lets you combine several federal student loans into a single, easier-to-manage Direct Consolidation Loan. While it does not reduce your interest rate, it can lower your payment by extending the term. The downside is that the extended term will mean you pay more in interest over time.

Since not all federal loans have the same interest rate, the interest rate on a new Direct Consolidation Loan will be a weighted average based on your current loan amounts and interest rates. Any unpaid interest is added to your principal balance. The combined amount will be your new loan’s principal balance. You’ll then pay interest on the new principal balance.

Consolidation can be a good option if you are unhappy with your servicer or have several servicers and want to simplify your student debt by having only one payment.

If you have Federal Family Education Program or Parent PLUS loans, you need to consolidate to be eligible for income-driven repayment, public service loan forgiveness, and other relief programs.

You can complete a consolidation loan application at StudentAid.gov.

What About Student Loan Refinancing?

Another way to change your federal student loan servicer is to refinance your federal student loans with a private lender. If you also have private student loans, you can refinance them together with federal loans, giving you a single loan payment each month.

Generally, refinancing federal student loans may make sense if you can qualify for a lower interest rate. If you have higher-interest federal student loans, such as graduate PLUS loans or Direct Unsubsidized Loans, you may be able to get a lower rate by refinancing. To qualify for the best rates on a private student refinance, you generally need to have strong financials (or can recruit a cosigner who does).

It’s important to note that refinancing federal student loans with a private lender means losing federal protections, such as income-driven repayment plans, federal deferment and forbearance programs, and loan forgiveness options like Public Service Loan Forgiveness (PSLF).

If you’re interested in refinancing your federal loans, it’s a good idea to review offers from multiple lenders to find the best deal. Many private lenders will allow you to prequalify via a soft credit check so you can see your likely new interest rate without negatively impacting your credit score.

What About Transferring My Student Loan Balance to a Credit Card?

You generally can’t pay federal student loans with a credit card. If you have private loans, however, another option for student loan transfer is to move the balance onto a credit card and pay your monthly bills there. Some credit card issuers allow student transfers, but not all.

Generally speaking, this tactic only makes sense if you can qualify for a card with a 0% introductory rate and can pay off the entire balance before that promotional period expires (often between 12 and 21 months). Otherwise, you could be left paying even more in interest than you would with the original loan.

To see if you can manage this repayment schedule, simply divide your loan balance by the number of months you would need to pay it off before interest applies. Also check to make sure the credit card offers a high enough credit limit to accommodate your loan, and find out if there are any transfer fees.

If you decide it’s a good deal and are confident you can make it work, you would apply for the credit card and, once approved, give your credit card account details to your loan servicer. Your credit card issuer would then pay off your private student loan debt and move the balance to your credit card account. Moving forward, you only make payments to the credit card issuer.

Is It Possible to Transfer Student Loans From Parent to Student?

The federal government does not offer a way to transfer Parent PLUS loans to the child. However, if you’re looking to have your Parent PLUS loans transferred to your child, refinancing the loans with a private lender allows you to do that.

To make this type of loan transfer, you’ll first need to identify Parent PLUS refinance lenders that allow loan transfers. After that, your child may want to prequalify with a few of these lenders to see where they can get the best rate.

If your child meets the lender’s qualifications on their own, you can fully transfer the loan to them. If they don’t, you can serve as a cosigner on the refinanced loan and work with them to meet the lender’s cosigner release requirements. Many lenders allow cosigner release after a set number of successful payments.

The Takeaway

If you’re interested in transferring your student loans to a new servicer or lender, you have some options. If you have federal student loans, you can consolidate your loans to get a different servicer. If you have federal, private, or a mix of both types of student loans, another option for loan transfer is to refinance your loans with a private lender.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What happens if my student loans are transferred to a new servicer?

If your federal student loans are transferred to a new loan servicer, you will be notified at least two weeks in advance and provided with the new servicer’s name and contact information, according to the Education Department. The new servicer will take over the loan, and they should reach out to you when the loan transfer is complete. At that point, they will handle the billing, payments, and customer service for your student loans.

Can I stop my student loans from being transferred?

Generally, you cannot stop your federal loans from being transferred to a new loan servicer. Federal loans are owned by the Education Department, which assigns them to a servicer. If the contract with that servicer ends, your loans will be transferred to a new loan servicer.

Can a student loan transfer lower my payments?

Transferring your student loans might lower your monthly payments if you refinance the loans and qualify for a lower interest rate. You could also lower your payments by extending the payment term through refinancing — or with a federal Direct Consolidation Loan — but a longer loan term will cost you more in interest over the life of the loan. Be aware that refinancing federal student loans into private loans makes them ineligible for federal benefits like income-driven repayment and forgiveness.


SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Jan
05
2026
A smiling woman in a bright pink blazer speaks with a group of young men and women who are gathered around her.

A Look Into the Public Service Loan Forgiveness Program

By | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

If you work in public service for a government agency or nonprofit, you may be able to have the remaining balance on your federal student loan forgiven after a certain number of payments through the Public Service Loan Forgiveness Program (PSLF).

Created by the Education Department (ED) in 2007, PSLF is intended to help public-service professionals who may earn lower salaries and struggle to repay their federal student loans. In this context, many teachers, firefighters, and social workers qualify.

However, it’s important to be aware that on October 2025, acting on an executive order signed by President Trump, the ED announced a final rule to the PSLF program, which may exclude some borrowers starting on July 1, 2026.

Below is the latest information borrowers need to know about PSLF eligibility and student debt forgiveness.

Key Points

•   Under PSLF, federal Direct Loan balances are forgiven after 120 qualifying monthly payments and working for an eligible employer.

•   Eligibility requires working in public service for a qualified government or 501(c)(3) non-profit organization, including full-time AmeriCorps or Peace Corps volunteers.

•   Only full-time workers, meeting employer definitions or working at least 30 hours weekly, are eligible for the program.

•   Only federal Direct Loans, such as Stafford, Grad PLUS, and Direct Consolidation loans, qualify for PSLF.

•   Borrowers pursuing PSLF can enroll in an income-driven repayment plan to qualify for Public Service Loan Forgiveness.

What Is Public Service Loan Forgiveness?

The PSLF program provides professionals working full-time in public service with a way to ease the burden of their student loan debt. After making 120 qualifying monthly payments under an eligible repayment plan, such as income-driven repayment, and by working full-time for a qualifying employer, the remaining balance of a borrower’s federal Direct Loans will be forgiven.

What Are Public Service Loan Forgiveness Jobs?

Borrowers working as teachers, firefighters, first-responders, nurses, military members, and doctors may qualify for PSLF. But with this program, it is not only the type of job you have that determines if you can get forgiveness, but also the type of employer.

Currently, qualifying employers include federal, state, local, tribal government and non-profit organizations. (As noted above, the new final rule may affect which organizations qualify, starting July 1, 2026.)

To find out if your employer currently qualifies for PSLF, you can use the Federal Student Aid employer eligibility search tool.

Who Is Eligible for the Public Service Loan Forgiveness Program?

The way that PSLF works is that borrowers must meet certain eligibility criteria to qualify. These criteria include:

Work for a Qualified Employer

Part of PSLF eligibility requires working for a qualified government organization (municipal, state, federal, military, or tribal) or a qualified 501(c)(3) non-profit organization. Full-time AmeriCorps or Peace Corps volunteers are also currently eligible for PSLF.

Some other types of non-profits also qualify, but labor unions, political organizations, and many other non-profits that don’t have 501(c)(3) status do not qualify. Working for a government contractor doesn’t count; you have to work directly for the qualifying organization.

Only full-time workers are eligible — that is, workers who meet their employer’s definition of full-time or work a minimum of 30 hours per week. People employed at multiple qualifying organizations in a part-time capacity can be considered full-time as long as they’re working a combined 30 hours per week.

Having Eligible Loans

Only federal Direct loans, including Stafford loans, Grad PLUS loans (but not Parent PLUS loans), and Federal Direct Consolidation loans, are eligible for PSLF.

If you hold Federal Family Education Loans (FFEL) or Perkins loans, you need to first consolidate them into a Direct Consolidation Loan for them to be eligible for PSLF. Just be aware that unless your Direct Consolidation loan was disbursed on or before October 1, 2024, any payments you made on the FFEL Program loans or Perkins Loans before you consolidated will not count toward the 120 qualifying payments for PSLF.

Private student loans are not eligible for PSLF.

Recommended: Student Loan Forgiveness Guide

Applying for Public Service Loan Forgiveness

To apply for the PSLF program, you’ll need to take the following steps:

1. Consolidate FFEL Program and Perkins Loans

As noted above, borrowers with FFEL Program and Perkins Loans must consolidate them with a Direct Consolidation Loan to be eligible for PSLF.

However, as mentioned, payments on FFEL and Perkins loans included in a Direct Consolidation Loan that was disbursed on or after October 1, 2024, will not count toward PSLF. Your payment count on the new Direct Consolidation Loan will start at zero.

2. Sign Up for an Income-Driven Repayment Plan

There are now three available income-driven repayment plans to choose from — Pay As You Earn (PAYE), Income-Contingent Repayment (ICR), and Income-Based Repayment. These plans are designed to make student loan debt more manageable by giving you a monthly payment based on your discretionary income and family size. You must enroll in one of these plans to qualify for PSLF.

Note that any borrowers on the SAVE (Saving on a Valuable Education) plan have been placed in forbearance due to a court injunction; the time in forbearance does not count toward PSLF. Those who are eligible need to switch to one of the other three IDR plans to continue making qualifying PSLF payments.

3. Certify Your Employment

To certify your employment, use the PSLF Help Tool. You can either print out the form for you and your employer to sign and then send it in for approval, or you can sign the form electronically and the Education Department will email your employer and request their electronic signature.

4. Make 120 Qualifying Monthly Payments

You must make these qualifying payments while you’re employed by a qualified public service employer. If you switch employers you can still qualify as long as you continue to work for a qualifying organization — but you will have to certify your employment with your new employer.

5. Apply for Forgiveness

After you make your final payment toward PSLF, you will need to fill out and submit a PSLF form for forgiveness.

Current State of the Program

Because the program was created in 2007, the first borrowers to qualify for loan forgiveness applied in 2017. However, early estimates by the Government Accountability Office (GAO) reported the denial rate as more than 99%. At the same time, many borrowers weren’t even aware that the forgiveness program existed.

In 2022, the Biden administration worked to address these issues by introducing a “limited PSLF waiver,” which allowed student loan holders to receive credit for payments that previously didn’t qualify for PSLF. That was later followed by an IDR account adjustment program. In October 2024, the administration said that more than 1 million public servants had received debt relief through PSLF.

In March 2025, President Trump signed an executive order directing the Education Department to revise the PSLF program. In October 2025, the department announced the final rule to exclude organizations that have a “substantial illegal purpose.” Because the new rule changes the definition of a qualifying employer, it could restrict eligibility for PSLF. The rule is scheduled to go into effect on July 1, 2026, though legal challenges to the rule have been filed. For now, the PSLF program is not changing, and those enrolled in PSLF do not have to take any action, according to the ED.

Pros and Cons of the Public Service Loan Forgiveness Program

There are a number of advantages of the PSLF program, but there are some drawbacks as well. These are some of the benefits and disadvantages to consider.

Pros of PSLF

1.   The balance of your student loans is forgiven after a set period of time. This can result in significant debt relief for qualifying borrowers working in the public sector.

2.   The amount forgiven is typically tax-free when it comes to federal taxes. Because it generally isn’t considered taxable income, the amount forgiven under PSLF isn’t subject to federal taxes, unlike other loan forgiveness programs. (Some states may tax the amount, however.)

3.   By offering forgiveness, PSLF encourages professionals to work in public service roles. Professionals in qualifying jobs are making a difference, and your government appreciates it enough to give you a break on your federal student loans.

4.   Those pursuing PSLF may have lower monthly student loan payments than they would otherwise because they are on an income-driven repayment plan that bases their payments on their discretionary income and family size.

Cons of PSLF

1.   The rules regarding PSLF— including the types of loans, employers, and repayment plans that qualify — are strict.

2.   The time commitment is long-term. Borrowers in the program must be employed with a qualifying public service employer — potentially earning a lower salary than they would in the private sector — for at least 10 years.

3.   The process to enroll in PSLF and achieve forgiveness can be quite time-consuming and complex.

4.   There is some uncertainty regarding the program. The new final rule scheduled to be implemented by the Education Department on July 1, 2026 could restrict some public service organizations and their employees from PSLF.

Alternatives to the Public Service Loan Forgiveness Program

For borrowers looking for student loan debt relief, there are other options besides PSLF. For example, the Teacher Loan Forgiveness program is available to full-time teachers who have completed five consecutive years of teaching in a low-income school. And borrowers reaping their loans under an IDR plan are also eligible for forgiveness after 20 or 25 years.

These federal forgiveness programs do not apply to private student loans. If you are looking for ways to reduce your interest rate or lower your monthly payments for private student loans, refinancing your student loans with a private lender may be an option to explore. When you refinance, you replace your existing loans with a new loan that, ideally, has a lower interest rate, which could reduce your monthly payments potentially saving you money.

However, it is important to be aware that refinancing federal student loans with a private lender may make you ineligible for the Public Service Loan Forgiveness program as well as other federal benefits, such as income-driven repayment and student loan deferment.

The Takeaway

The Public Service Loan Forgiveness program is one way that eligible borrowers working in public service may be able to have their federal student loans forgiven. Although changes to the program are scheduled to take place in July 2026, for now, the program is proceeding as usual.

Borrowers whose student loans aren’t eligible for PSLF may want to consider different options, including other forgiveness programs or student loan refinancing.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Who qualifies for PSLF?

To qualify for PSLF, borrowers must have federal Direct loans and work full-time in public service for a qualifying non-profit or government agency. They must make 120 qualifying payments under an eligible repayment plan, such as income-driven repayment.

What types of loans are eligible for Public Service Loan Forgiveness?

Only federal Direct loans are eligible for PSLF. Other federal loans, such as Perkins Loans and Federal Family Education Loans (FFEL) must be consolidated into a federal Direct Consolidation Loan to be eligible.

What is the downside of Public Service Loan Forgiveness?

Some downsides of Public Service Loan Forgiveness include strict eligibility rules and a long-term commitment to working in public service — typically at least 10 years — before forgiveness may be achieved. Additionally, those employed in public service jobs may earn lower salaries than individuals employed in private sector jobs.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Dec
23
2025
A woman with a graduation gown draped over her shoulder and a cap in her hand walks toward a building on a college campus.

Understanding Average Graduate Student Loan Debt

By | Debt Payoff, Student Loans, student_loan | No Comments

Getting a graduate degree can help you move up the company ladder, boost your salary, or switch to a different career. But going back to school can be costly. On average, students rack up $106,129 in student debt to pay for graduate school, based on projections for 2025 by the Education Data Initiative. That average reflects debt for all advanced degrees beyond the bachelor’s level, including master’s and doctoral degrees.

Many students who borrow money to pay for grad school already have debt from undergraduate studies. Their debt from graduate school alone is $95,104.

Fortunately, there are ways to get a graduate degree without taking on a large amount of student loan debt. There are also a variety of payment plans that can make repaying grad school debt easier on your budget after you graduate. Here’s what you need to know about student loan debt for graduate school.

Key Points

•  The average graduate student loan debt is $95,104, and when combined with typical undergraduate debt, totals around $106,129.

•  Debt levels vary: Master’s graduates owe $81,870, while Ph.D. graduates owe $180,757 on average, with higher balances at private schools.

•  Federal options include Direct Unsubsidized Loans (up to $20,500/year, 7.94% rate) and Direct PLUS Loans (up to full cost of attendance, 8.94% rate).

•  To reduce borrowing, students can pursue scholarships, fellowships, tuition assistance, online or accelerated programs, and borrow only what’s needed.

•  Repayment can be managed through income-driven plans, PSLF eligibility, or refinancing (though refinancing federal loans removes federal protections).

What Is the Average Graduate Student Loan Debt?

If you’re thinking about applying to graduate school, you may be wondering how much you’ll need to borrow to cover your costs and whether or not it will be worth it.

On average, students leave graduate school with a student loan debt balance of $95,104 (from grad school alone). How much debt students rack up going to grad school, however, can vary significantly depending on the type of degree they pursue and the kind of school they attend. A doctoral degree generally costs more than a masters, for example, while attending a public, non-profit university is typically cheaper than going to a private, for-profit college.

Here’s a closer look at the average graduate school debt balance for different degrees obtained at different types of institutions.

•  Master’s degrees: The average total student loan debt balance is $81,870 ($64,440 is just from graduate school).

•  Master’s degrees from public schools: The average total student loan debt balance is $69,624 ($47,560 is just from graduate school).

•  Masters degrees from private schools: The average total student loan debt balance is $95,381($79,329 is just from graduate school).

•  Ph.D.s: The average total student debt balance is $77,331.

•  Ph.D.s from public schools: The average total student loan debt balance is $74,978 from graduate school alone.

•  Ph.D.s from private schools: The average total student loan debt balance is $74,977 from graduate school alone.

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Exploring Options to Finance Graduate School

Grad students can finance their education with federal student loans, private loans, or federal and private student loans. Here’s a closer look at the different types of loans available for graduate school.

Federal Loans

Graduate students can take out two different types of federal loans.

Direct Unsubsidized Loans

Currently, you can borrow up to $20,500 each year in Direct Unsubsidized Loans for graduate school, and eligibility is not based on financial need. The interest rate for Direct Unsubsidized Loans for graduate students for 2025-26 is 7.94%, plus an origination fee of 1.057%.

If you borrowed federal funds for your bachelor’s degree, you may be subject to a total federal funding limit of $138,000 in Direct Loans, including the amount of your undergraduate degree. Graduate PLUS (and Parent PLUS loans) are separate from this amount.

However, as part of the big domestic policy bill President Trump signed into law in the summer of 2025, for graduate student borrowers who take out new Direct Unsubsidized Loans on or after July 1, 2026, there will be a new aggregate limit for these loans of $100,000.

Direct PLUS Loans

If Direct Unsubsidized Loans aren’t enough to cover your attendance costs, you can currently turn to Direct PLUS Loans, which have a higher interest rate. You can borrow up to the full cost of attendance for each year, which is set by your university and includes expected living costs for the town or city you’ll be studying in.

Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify. The interest rate for 2025-26 is 8.94%, plus a 4.228% origination fee.

It’s important to note that Graduate PLUS loans will be eliminated for new borrowers as of July 1, 2026, as part of the domestic policy bill. Students who took out PLUS loans before that time may continue for the lesser of three additional academic years or until the borrower graduates.

Private Loans

Students can also take out private student loans for graduate school. Borrowers applying for grad school who already have a well-established credit history, may be able to get a lower interest rate from private lenders than from the federal government. This could save you a significant amount of money over time, and also potentially help you get out of debt faster.

You’ll want to keep in mind, however, that the government offers significant protections that can make federal student loan debt easier to manage, such as income-driven repayment plans and student loan forgiveness.

How to Minimize Graduate School Debt

If you are interested in attending graduate school but worried about being saddled with high debt payments after you graduate, here are some ways to make your advanced degree more affordable.

Tap Free Funding Options

Scholarships, fellowships, and grants are some of the best ways to pay for graduate school. You can ask your school about institutional awards and also search for professional organizations focused on the field you’re interested in to see if they offer graduate scholarships. In addition, some schools also offer tuition waivers or some monetary awards for students who serve as teaching assistants.

Ask Your Employer About Tuition Assistance

If you plan to continue working while attending graduate school part-time, it’s worth finding out if your employer offers a tuition assistance program. Some companies will cover all or a portion of their employees’ higher education expenses. There may, however, be some strings attached, such as staying in the company for a specific amount of time. Reach out to your HR department to find out whether your employer offers this benefit and, if so, what the requirements are.

Borrow Only What You Need

There are no subsidized loans for graduate school, which means you’ll need to pay for all the interest that accrues on your loans. With Graduate PLUS loans, you are currently able to borrow up to your school’s cost of attendance, which can include expenses like transportation and child care. However, that doesn’t mean you should access the maximum amount. It’s a good idea to tap savings and income before turning to loans to cover all of your costs. This can help minimize how much debt you have to repay after you get your degree.

Look Into Online or Accelerated Programs

Some schools charge the same tuition for online and on-campus programs, but others charge substantially less for online classes. Also, the faster you can get a degree, generally the less you will have to borrow to pay for it. A one-year MBA, for example, will typically cost significantly less than a two-year program.

Explore Your Repayment Options

Federal loans currently offer income-driven plans that can keep graduate loan payments manageable after you graduate if your income is low. If you pursue a career in public service or nonprofit, you may also qualify for Public Service Loan Forgiveness (PSLF).
[Compliance: The PSLF article is currently in the process of being updated.]

If you’re getting an advanced degree that will boost your earning power, keep in mind that you may be able to refinance your federal and private graduate school loans after you graduate at a lower rate. This could potentially translate to lower monthly payments and also save you money over the life of your loan. Refinancing can also allow you to remove a cosigner off of your student loans, if you have one.

If you are considering refinancing student loans, keep in mind that refinancing federal loans with a private lender means giving up federal student loan protections such as income-driven repayment plans and PSLF.

The Takeaway

Most graduate students in the U.S. leave school with upwards of $106,000 in graduate school debt. Depending on what type of degree you pursue and where you study, you could end up with less — or more — than the average amount of graduate student loan debt.

If you’re interested in grad school but concerned about debt, keep in mind that you may be able to lower the cost of your degree by getting fellowships and grants, becoming a teaching assistant, tapping your employer’s tuition assistance, and considering an online or accelerated program. You may also be able to refinance your grad school loans at a lower rate after you graduate, making them easier to manage.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How much debt is the average graduate student in?

The average graduate student has about $106,129 in student debt, based on projections for 2025 by the Education Data Initiative. While that also includes debt from their undergraduate degree, their debt from graduate school alone is $95,104.

The exact amount of student debt grad students carry can vary widely, depending on the type of program they were in and the school they attended, among other factors.

Is $100,000 a lot of student loan debt?

For graduate students, $100,000 is about the average amount of student loan debt they hold, which is approximately $106,129 in 2025, according to projections from the Education Data Initiative. By comparison, the average undergraduate student debt is $39,075.

What is the average student loan debt for a doctoral degree?

The average student loan debt for borrowers with a doctoral degree is $180,757, according to the Education Data Initiative. Debt for those with professional doctorates, such as doctors and lawyers, have the highest average student loan debt of $213,439.

About the author

Julia Califano

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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19
2025
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6 Reasons Your Student Loan Refinance Can Be Denied

By | Debt Payoff, Student Loans, student_loan | No Comments

If you’re struggling with student loan payments or looking for a way to manage your debt, refinancing your student loans could be an option worth considering. Unfortunately, not everyone who applies for student loan refinancing is successful.

If you’ve had your application for refinance denied, you may feel confused and disappointed. But getting a no isn’t the end of the road.

There are some common reasons why your loan may have been denied. By understanding those factors, you can take steps to correct any gaps or weak spots in your application and possibly improve your chances of refinancing in the future. Here’s what you need to know.

Key Points

•   Common reasons for rejection include low credit score, missed payments, insufficient income, high debt-to-income ratio, unstable job history, or financial black marks such as bankruptcy.

•   Ways to improve chances include applying with different lenders, building credit by making on-time payments, increasing income, or waiting to establish a stronger financial history.

•   Adding a creditworthy cosigner can improve approval odds but comes with shared financial responsibility.

•   Refinancing may secure lower interest rates but forfeits federal loan benefits like income-driven repayment plans and forgiveness programs.

•   Strengthening your financial profile before reapplying or considering alternative repayment strategies can help if refinancing is not an immediate option.

Common Reasons that Refinance Applications Are Rejected

If you’ve had your application for student loan refinance denied, the decision can feel like a mystery. The lender might not necessarily explain the reasons behind its actions, and you may be left feeling puzzled and stuck. As with a car loan rejection or mortgage modification rejection, a common thread is that the institution feels lending you money is too much of a risk. Read on to see if one of the scenarios below applies to you.

1. You Have a Low Credit Score

Lenders want to feel confident that borrowers will pay back the debt. One of the primary ways that they measure how risky you are as a borrower is by looking at your credit score. Many factors affect your credit score, including whether you’ve missed payments on credit cards or other bills, your credit history, and how much debt you’re carrying relative to your credit limits.

You can find out your current credit score through one of the three major credit bureaus: Experian, Equifax, and TransUnion. If your score isn’t up to par, that could be enough to have your loan denied.

2. You’ve Missed Payments in the Past

For some, it’s easy to let a student loan payment slip now and then. Perhaps you ran into financial difficulties and couldn’t afford to pay, or maybe you simply forgot amid the chaos of life.

Even though it’s understandable, lenders don’t look at a history of missed payments lightly. If you’ve failed to pay in the past, they may see this as a sign that you’ll skip payments with them as well. If your loan is delinquent or in default because you’ve missed too many payments, a potential lender may be even more concerned.

3. You Don’t Make Enough Money

When deciding whether they trust you as a borrower, financial institutions considering you for student loan refinancing want to feel confident that you can afford to repay the loan. If your salary is low compared to the monthly payment you would owe, lenders might make the call that you’re at risk of not being able to pay.

💡 Quick Tip: It might be beneficial to look for a refinancing lender that offers extras. SoFi members, for instance, can qualify for rate discounts and have access to financial advisors, networking events, and more — at no extra cost.

4. Your Debt-to-Income Ratio Is Too High

Even if you earn a decent salary, a private lender could deny your application if they think your debt-to-income ratio is too high. Your debt-to-income ratio is the ratio of your outstanding debt to how much you currently make. Debt in this case includes anything you owe, including a mortgage, a car loan, student loans, credit card balances, or medical bills.

If those liabilities are high compared to your salary, the lender can decide that giving you a loan is too risky because you may not be able to afford it with your existing financial obligations.

5. You Don’t Have a Solid Job History

Lenders aren’t just looking at your salary. Many also want to get a sense of how solid your job is by considering things like how long you’ve been in your current role, past gaps in employment, and how often you change jobs.

If you haven’t held onto a job long or had much work experience, a lender could fear that you are at risk of losing your current gig — and your income along with it.

6. You Have Other Financial Black Marks on Your Record

A lender is looking out for any sign that you may not be a trustworthy borrower. A significant negative financial event in your history such as a lien, judgment, foreclosure, or bankruptcy can be a red flag for the institution. There may have been a good reason for it, but the lender could decide that lending to you is too precarious.

How to Improve Your Chances

Just because you’ve been denied once doesn’t mean you can’t qualify for refinancing in the future. One or more of these strategies may help.

1. Try Other Lenders

If you’ve been denied by just one or two lenders, it may be worth shopping around more widely. Although they follow similar principles, lenders each have their own protocols for reviewing applications.

While one might give more weight to income, another may consider education history just as important. If one lender rejected your application to refinance your student loans due to low credit scores, you may find another lender that will approve your application but at a higher interest rate, which may mean paying more in the long run.

You never know whether a lender will see you as a trustworthy borrower until you try. If you’ve been denied by multiple institutions, however, you may need to take some other action to improve your prospects.

2. Build Your Credit

Because your credit score is so important to lenders, including with student loan refinancing, you can work on building it if it’s on the low side. There are many ways to potentially strengthen your credit. For example, if you have missed bills in the past, you can focus on consistently making your minimum payments on every loan, bill, and credit card you have (setting up auto-pay can help you stay on top of this).

3. Raise Your Income

If your income is relatively low, earning more money may help you qualify for refinancing. This is easier said than done, but you may have more options than you think.

Can you ask for a raise or request more hours at your current job? Can you look for a higher paying role with your employer or elsewhere? Does switching fields make sense? Can you take on another job or start up a side hustle? It’s not always possible, but increasing your earnings could make you a more appealing candidate for refinancing.

4. Give it Time

Sometimes, it can be good to wait. If you have a bankruptcy or missed payments in your past, it’ll take time for these to disappear from your credit history. (It takes seven to 10 years for a bankruptcy to be removed from your credit history.) Even if you’re making all your payments now, a lender usually wants to see that this good behavior is consistent.

Waiting until you’ve been in a new job for a couple of years can help convince lenders that your employment is solid. If these are some of the challenges you’re dealing with, time may be the best medicine. And for those struggling to make consistent payments on their student loans, it could be worth looking into income-driven repayment plans.

These are repayment plans for federal student loans that calculate monthly payments based on your discretionary income and family size. While an income-driven repayment plan might mean you’ll pay more interest over the life of the loan, it could also lower your monthly payments, thus making your student loan debt more manageable.

5. Get a Cosigner

If none of the above tactics are working, or if you don’t want to wait to refinance, you can try reapplying with a cosigner. If this person — perhaps a parent or family friend — has solid credit and employment history, that may help you get approved for a loan or qualify for better terms.

That’s because the cosigner, by essentially guaranteeing the loan, makes you much less of a risk for the lender. But keep in mind that the cosigner’s credit score could be affected by missed payments on the loan, and they may have to make payments on the loan if you’re unable to.

Take control of your student loans.
Ditch student loan debt for good.

Refinancing May Still Be Possible

You have lots of options for strengthening your refinancing application and reducing your riskiness as a borrower, from earning more to building your credit to getting a cosigner. If refinancing is a student loan debt solution you feel strongly about, consider implementing these action items before reapplying.

And remember that you’ll lose access to federal loan benefits when refinancing with a private lender. So refinancing may lower your interest rate or get you a more favorable loan term, but it will also disqualify you from taking advantage of federal programs like income-driven repayment plans and student loan forgiveness. If you think you might need these programs, refinancing likely isn’t right for you.

The Takeaway

Even if you’ve been denied in the past, that doesn’t mean you’ll never be able to refinance your student loans. Understanding the reasons that refinancing applications frequently get rejected can help you figure out where you have room to improve so you make the necessary changes.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Is it hard to get student loans refinanced?

Getting student loans refinanced depends on a borrower’s credit score, income, debt-to-income ratio, employment stability, and payment history, among other factors. Basically, the lender needs to feel that the borrower is creditworthy and that they will repay the debt.

Why does my refinance keep getting denied?

Reasons why a student loan refinance may keep getting denied include having a low credit score, a high debt-to-income ratio, insufficient income, or a history of missed payments. Whatever the reason, you can work on fixing it. For example, you could build your credit by consistently making on-time payments or improve your income by taking on a side hustle. You could also apply for a refinance with a creditworthy cosigner who could help you get approved.

Can I refinance student loans if my credit score is low?

It may be more difficult to refinance your student loans with a low credit score, but it is possible. You could look for a lender that considers other factors in addition to your credit score, such as your income and stable employment, for instance. You could also apply for a student loan refinance with a creditworthy cosigner who could help you get approved and even potentially help you secure a lower interest rate.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Dec
17
2025
A male medical student wearing scrubs, with a stethoscope around his neck, working on a tablet and sitting in front of a laptop.

Making Sense of the Rising Cost of Medical School

By | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

The cost of medical school is rising at an alarming rate. According to the Education Data Initiative (EDI), the cost of attending medical school rises by more than $1,500 each year.

Thirty-five years ago, medical students graduated with an average of $32,000 in student loan debt. Now, the average medical school debt for graduates is $216,659 according to EDI, with 70% of students graduating with debt.

The rising cost of medical school, plus the daunting number of years of education and training, is making some prospective medical students ask: Is an M.D. really worth it?

To gain a better understanding of how much medical school actually costs, we’ll take a look at the costs of an M.D., and some ways young doctors can get out of medical school debt faster after graduation.

Key Points

•   High demand, limited spots, increased educational expenses, and reduced state funding for public colleges are some of the factors driving the rising cost of medical school.

•   The average debt for medical school graduates is $216,659, with 70% of students incurring debt.

•   Income-driven repayment plans, making extra payments, and student loan refinancing are options to manage medical school debt.

•   Making payments during residency may help shorten the debt repayment timeline.

•   Despite high costs and debt, a career in medicine can be financially and personally rewarding, which may help justify the investment for some students.

How Much Does Medical School Cost?

The average medical school tuition varies depending on factors like whether the student is attending a public or private university.

The average total cost of in-state tuition for a student at a public university is $161,222. At a private school, the average total cost is $255,497.

But that’s only the cost of tuition, fees, and insurance — there’s also living costs to consider, which is why it’s useful to consider the entire cost of attendance (COA).

Each school publishes the estimated costs of attendance for their program, which typically not only include tuition and fees, but also costs like room and board, college textbooks and supplies, and travel.

Why Is Medical School More Expensive Than Ever?

The rising cost of medical school tuition is part of a larger trend. According to the College Board’s Trends in College Pricing 2025 report, the cost of college tuition and fees at private, nonprofit, four-year institutions in America is 4% higher for the 2025-2026 school year than for the 2024-2025 academic year.

In general, college tuition has increased dramatically in the past 30 years, while wages have grown at a much slower rate. So what’s behind the dramatic uptick in college prices?

One factor is the demand for a college education has dramatically risen over the last three decades. In addition, there is a high demand for getting into medical school and a limited number of spots available.

Another factor is the increasing expenses colleges pay for educating and housing students and for administration and maintenance, among other costs, according to research by the Lumina Foundation, a nonprofit that focuses on higher education.

And finally, there has been a decline in state funding for public colleges. According to a report by the National Education Association, 32 states spent less on public colleges and universities in 2020 than they did in 2008, which works out to an average of almost $1,500 less per student. That means students end up paying more for their education.

How Long Does Paying for Med School Take?

Many medical students apply for financial aid to cover their college price tag, which means they graduate with significant amounts of medical school debt.

How long it takes to pay back the debt depends on the student, the career path they take, and the medical loan repayments they make. However, the relatively low salaries young doctors earn during their residencies don’t typically allow for much opportunity to pay back loans until their first position after residency.

Let’s say, hypothetically, a borrower has federal Direct Loans and that they qualify for the Income-Based Repayment (IBR) plan, which is one of the income-driven repayment (IDR) plans.

In that situation, the monthly repayment would be capped at 10-15% of the borrower’s monthly discretionary income for a period of up to 25 years, after which time on the IBR plan, the remainder of their student loan debt is forgiven.

However, if after residency, the borrower in question gets a position with an income that’s too high to qualify for an IDR plan, they could currently switch to the 10-year Standard Repayment Plan for federal student loans and potentially pay off the loan more quickly.

It’s worth noting that student loan repayment plans will be changing in mid-2026 under President Trump’s big domestic policy bill that was signed into law. While the Standard Repayment Plan will continue to exist, there will be some changes to it. Starting on July 1, 2026, borrowers taking out new loans on this plan will have fixed payments over a term based on their loan amount. Borrowers with loans of less than $25,000 will have 10 years to repay what they owe, while those with loan amounts of $100,000 or more will have 25 years.

Also starting on July 1, 2026, there will only be one other repayment plan for borrowers to choose from: the Repayment Assistance Program (RAP), which is similar to an IDR plan. Payments on this plan may be 1% to 10% of a borrower’s discretionary income for a term of up to 30 years, after which time any remaining balance will be forgiven.

Is It Possible to Shorten the Medical Debt Payment Timeline?

Here are some tips for those medical school students and grads who are able to shorten their repayment timeline, which can lower the amount of student loan interest paid over the life of the loan and help them pay off their student loans faster.

Repaying Loans During Residency

It is possible to start paying down medical school debt in residency. While some students may be tempted to put their loans in student loan forbearance in their residency years, doing so can add quite a bit in accruing interest to the bill.

Instead, consider an income-driven repayment plan to start paying back federal loans with an affordable payment. Another option is to look into medical residency refinance options to compare which method is best for you. Keep in mind, though, that if you choose to refinance your federal student loans, you will no longer be eligible for federal benefits and protections, including income-driven repayment plans, deferment, and student loan forgiveness.

Making Extra Payments

Another tactic to help pay off student loans faster is by creating and sticking to a budget. After getting your first position post-residency, consider committing to living on a relatively tight budget for just a few more years. Putting as much salary toward extra student loan payments as possible could potentially help cut time — and interest payments — off the repayment timeline.

Speeding Up Med School Debt Repayment With Refinancing Student Loans

If you choose to refinance your medical student loans, it may be possible to secure a lower interest rate and/or a lower required monthly payment – depending on the terms you choose, your credit score, and other factors.

A lower interest rate through student loan refinancing could help reduce how much money is paid in interest over the life of the loan. Extending your loan term could mean a lower monthly payment – but keep in mind that you’ll most likely pay more in interest over the life of the loan.

While refinancing may help borrowers save money over the life of the loan, it does mean giving up the benefits that come with federal student loans, like income-driven repayment, deferment, and forbearance.

The Takeaway

The cost of medical school has risen in the past 30 years, and so has the amount of debt med students take on. But a career in medicine can be both lucrative and rewarding, making medical school worth the time, effort, and cost for many students.

Borrowers who are repaying student loans from medical school may consider strategies like income-driven repayment plans, making extra payments, or student loan refinancing to help them tackle their student loan debt.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Why has medical school gotten so expensive?

Medical school has gotten more expensive due to a number of factors, including an increased number of students applying to medical school and limited availability, which allows schools to charge more; the rising expenses colleges and universities pay for educating and housing students; and a decline in funding for state colleges.

What is the average cost of medical school today?

The average total cost of medical school today is $161,222 for an in-state student at a public university, and $255,497 for a student at a private college, according to the Education Data Initiative.

How do people afford medical school?

Many students afford medical school through a combination of sources, including financial aid, scholarships and grants, federal and/or private student loans, and financial help from parents. Some med school students also work part-time or use personal savings to help cover the cost.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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