Trying to run some numbers to see if I would benefit from student loan refinancing. Current 3rd year resident, still have 2 years of residency left plus 1 year of fellowship. Graduated med school with 190k in loans at 6.8%, which has now generated 30k in interest thus a current total of 220k.
Here is my question: if I refinance, will all of the current interest get capitalized? Whereas I currently am paying 6.8% on 190k, if I refinance will I be paying a lower interest rate on the full 220k, essentially negating the lower interest rate?
In the next few months I will be starting to throw some serious cash towards the loans (getting wife's loans paid off first), so I was thinking it may be better to first pay off the interest that has accumulated, then refinance the loans at a lower interest rate. Thoughts?
Here is my question: if I refinance, will all of the current interest get capitalized? Whereas I currently am paying 6.8% on 190k, if I refinance will I be paying a lower interest rate on the full 220k, essentially negating the lower interest rate?
In the next few months I will be starting to throw some serious cash towards the loans (getting wife's loans paid off first), so I was thinking it may be better to first pay off the interest that has accumulated, then refinance the loans at a lower interest rate. Thoughts?
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