A career in medicine can be rewarding, but the high cost of medical school means many students take on additional student debt on top of their existing undergraduate student loans.
Some students defer student loan payments while they’re in medical school, and others choose to refinance their student debt. The right choice for you depends on a number of factors, such as whether you have federal or private student loans. Here’s what to know about refinancing student loans during medical school.
Table of Contents
Key Points
• Many medical students have undergraduate debt in addition to loans taken to cover the high cost of medical school.
• Student loan refinancing involves combining your private and federal loans into a new private loan, which may have a different loan term and interest rate.
• With refinancing, you can choose to extend your loan term and lower your monthly payments.
• Extending the loan term may result in paying more interest over the life of the loan.
• Refinancing federal student loans requires careful consideration, as you’ll lose federal benefits and protections.
What You Can Expect to Pay
Going to medical school is expensive: The average cost of medical school for 2025 graduates was $255,497 for four years at a private institution and $161,222 at a public institution, according to the Education Data Initiative.
Many students need loans to cover the high cost of medical school tuition and other educational expenses. In fact, 70% of medical school students graduating in 2025 used loans specifically to help pay for medical school (separate from any undergraduate debt). The average medical school graduate owes $246,659 in total student loan debt, which includes undergraduate debt.
If you don’t have the option of in-school deferment for your undergraduate loans while you’re enrolled in medical school, refinancing those loans might be worthwhile and could help lower your loan payments while you’re in medical school. Here’s what you need to know to decide whether refinancing loans as a medical student is right for you.
Can You Refinance Student Loans During Medical School?
Whether you have federal or private student debt, you can technically refinance your student loans at any time along your journey toward becoming a physician.
Through refinancing, you can combine multiple student loans of any type — federal or private — into one new refinanced loan. This new loan is from a private lender and comes with its own interest rate and loan term.
The lender will repay the original loans you included in the refinancing process. You’ll then repay the lender, based on the details of your refinance loan agreement, in incremental monthly payments.
Another Option for Federal Student Loans During Medical School
It’s important to know that if you have federal student loans, refinancing them will remove you from the federal student loan program.
Keeping your federal student loans within the Department of Education’s loan system gives you access to benefits and protections that can be useful while you’re in medical school, such as extended deferment or forbearance.
Generally, student loan deferment is applied automatically to federal Direct Loans of borrowers who are enrolled at least half-time at an eligible school. If your federal student loans from your undergrad program weren’t placed on in-school deferment, reach out to your school and ask them to report your enrollment status.
This student loan refinancing alternative can postpone your monthly payment requirement until after you leave school. However, if you borrowed through Direct Unsubsidized Loans or Direct PLUS Loans, you’re responsible for repaying interest that accrues during this time.
Pros of Refinancing During Medical School
A student loan refinance during medical school can offer benefits.
You Could Extend Your Loan Term.
Generally, once you’ve signed your student loan agreement, you’ve committed to a specific repayment term. For example, if your private student loan has a 5-year term, you’ll need to repay the loan’s balance, plus interest, in that time period.
However, repaying your loan balance while attending medical school might be difficult. With student loan refinancing, you can choose to stretch your repayment timeline over a longer term, such as 10 or 15 years.
You Could Secure Lower Monthly Payments.
When you extend your student loan refinance term, your monthly installment payments will often become smaller, since they’re stretched over a longer period. Prolonging your loan term can result in paying more interest over the life of the loan, but the likelihood of a lower monthly payment means you could have more funds in your budget to meet the day-to-day costs of medical school.
Some Refinancing Lenders Offer Deferment.
Some refinancing lenders offer borrowers the option to defer their student loan refinance payments while in medical school. Generally, you’ll need to meet the lender’s minimum enrollment status and possibly other requirements.
This benefit, however, isn’t offered by all lenders, so always confirm with the lender before finalizing any student loan refinance offer.
Recommended: A Guide to Refinancing Student Loans
Cons of Refinancing During Medical School
Although there are benefits to refinancing your student loans, there are downsides to this repayment strategy as well.
You Could Pay More Interest Over Time.
Extending your loan term can cause you to pay more interest over the life of the loan, assuming you don’t make extra monthly payments. This means that you’ll ultimately pay more overall for your undergraduate degree.
You’ll Lose Access to Loan Forgiveness.
If you refinance federal student loans, you’ll lose access to federal benefits and protections. Physicians who expect to work in the government or nonprofit sector might be eligible for loan forgiveness under the Public Service Loan Forgiveness (PSLF) program.
To be eligible for forgiveness, you must have eligible Direct Loans and have made 120 qualifying payments toward your federal loan debt while working for a qualifying employer. After you meet PSLF requirements, the program forgives the remainder of your eligible federal loan balance.
You’ll lose access to this significant benefit if you refinance federal loans into a private loan.
Should You Refinance Your Student Loans?
Student loan refinancing is a strategy that can be advantageous for certain borrowers in specific circumstances. For instance, it might be a good option for borrowers who already have a private undergraduate loan and simply want to lower their interest rate to save money.
The option to extend your term can also make refinancing a helpful strategy if your main goal is to lower your monthly undergraduate loan payments. Borrowers who have adequate savings, have a reliable income while in medical school, and are confident that they won’t participate in programs such as PSLF might benefit most.
Assess your current financial situation, and talk to your loan servicer or undergraduate loan lender to get a full understanding of your repayment options during medical school.
Refinancing Student Loans With SoFi
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.
FAQ
Can you refinance student loans during residency?
Yes, you can refinance student loans while in residency. However, if you refinance federal loans, that portion of your student debt will become ineligible for federal loan forgiveness in the future.
Do doctors ever pay off their student loans?
Yes, many doctors pay off their student loans, though how they do so can vary. Some start making small payments during residency or apply for an income-driven repayment plan, while others may refinance or pursue loan forgiveness programs.
When should I refinance my medical student loans?
You can explore private student loan refinancing at any time, especially if your income is stable and your credit has improved since you first took out the loan. If you have federal student loan debt, consider whether you’ll pursue loan forgiveness at any point along your career journey. If you might, you’ll need to keep your student loans within the federal loan program to be eligible for forgiveness.
Photo credit: iStock/Edwin Tan
SoFi Student Loan Refinance SoFi Loan Products
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 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.
SOSLR-Q126-034