When to refinance loans?

[HopHunter86]

Graduating EM resident in June here. Planning on refinancing my loans and I have already signed my job contract for next year. When should I begin the application process?

Planning on going with a 5 year loan but I obviously cannot afford the payments on this until the attending salary kicks in. However, I would obviously like to refinance as soon as possible.

Any advice/experiences appreciated.  Thanks.

[Craigy]

Short answer:  when you're certain you're not pursuing forgiveness, and when you can get a better rate than you have.

When does your job start?  Next year i.e. 2019??

And what do you mean, cannot afford the payments?  Would it be a stretch or an actual impossibility?  How much cushion do you have?

There can be some lag time between when a loan is approved and when it funds. However, I'd be wary of signing up for loan payments that you literally will be unable to make, even if only for a period of months.  I believe there are some programs which will let you delay making your payments until you start your job, might be worth looking into that.

IMO I would not put myself in a bind over half a percentage point, etc.  Rates are going up but it shouldn't be dramatic.

 

[The Physician Philosopher]

Disagree with above.  There are companies that let you refinance to your attending rate in your last year of residency when you have a contract in hand.  Commonbond is a great example of that.  And you don't have any payments until 30-45 days after your attending gig starts, though you can (and I would encourage) make payments prior to your starting payments.

LinkCapital also does this, but I think the rates you'd get with Commonbond will be better for contracted residents.

Check 'em out, get some rates. Make a decision

[I do agree with above that this all assumes you are not proceeding with PSLF...if you aren't sure whether you are or not, you've already made that decision and should refinance as above].