If you are going for Public Service Loan Forgiveness (PSLF), it is not the optimal time to refinance your student loans. If you’re not sure, don’t refinance because you may qualify for PSLF. Never say never!
In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Jeff Wenger, a Certified Financial Planner (CFP®), about when is the optimal time to refinance your student loans.
- Refinance: Means getting new lender to pay off old loan to start new private loan
- Reasons not to refinance out of a federal student loan:
- COVID forbearance
- 20- or 25-year forgiveness programs
- Revised Pay As You Earn (REPAYE) interest subsidy
- Reasons to Refinance:
- To get a better interest rate and make progress on loans
- Pay the least amount out-of-pocket over time
- Locked-in Loans: What if you lose your PSLF-qualified or income-driven job?
- What if you start with private loans? With record-low interest rates, refinance now
- Personal Preference: Move on with life, refinance, pay it off ASAP if PSLF is out