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Seeking advice on student loan refinancing

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  • Seeking advice on student loan refinancing

    I’m an endodontist associate, one year out of residency, looking to refinance my student loans. My expected gross income for 2021 is 480-500k (1099/s-Corp) with a similar amount of student loan burden (480k). My question is about proving income to refinancing companies. If I were to refinance today, would they base my interest rate off my 2020 income (~200k) in which I only worked for 5 months? Is it a better idea to wait until I receive my 1099 for 2021 to refinance to secure a better rate as my income is anticipated to be 2.5 times higher than it was in 2020? Any feedback would be greatly appreciated. Thanks!

  • #2
    I think it depends. I'm pretty sure they ask for your annual salary and want proof of income so uploading your contract might also be good/required. Honestly, what is going to hinder you more in getting a good rate will be the size of your loans. Higher loan amounts seem to have higher interest rates. Likely, you'll refinance multiple times. If you have private loans, you might as well get started. If you have federal loans currently, just keep hammering away and enjoy the free interest.


    • #3
      When you switch to refinancing with private lenders, there is not cost. You would refinance the first time and then do it again when your income goes up. The problem is going to be 1099 income. Typically they want two years of tax returns. If your contract has a guarantee, that is the key. They will accept a confirmed guarantee, 1099 or w-2.