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My wife is currently finishing up her first year of residency in Internal Medicine. Her plan is to finish in 2 more years and then seek a fellowship in Rheumatology, which will be an additional 2 years. Following, she is almost certain that she will go into private practice, so the 10 year forgiveness option is really out of the picture.
I handle all of our finances because I am in the field myself with my job (banking) and my wife really would rather have me handle it all. So, that being said as our background, I have questions regarding refinancing my wife's med school loans. I have read all that I could find on WCI regarding the topic, but as most still feel somewhat confused on our best plan. We would like to continue to pay on the overall debt at a pretty good clip, without breaking the monthly bank account (we currently have 1 baby - 19 months and another coming in September).
So, all that being said, I am about to start the process of reaching out to lenders about refinancing the debt currently owed, which is about $187,000. As I have read, there are I think only two companies that refinance residents (DRB and Link Capital), but I think we can expand from just those 2 as I would provide a guarantee on the loan also.
Currently, my wife makes around $50,000/annually, but has very little left over as she contributes the max to state retirement (13% I believe) and she generally covers most all of our expenses for the baby, including childcare. Additionally she pays her own health insurance as it is cheaper through her employer than adding her to my bank policy.
I make $77,000 annually; however should be receiving a pay bump to $100,000 within the next few months. I pay all our monthly expenses including mortgage, utilities, etc.
As stated above, she currently has around $187,000 in total loans, of which 5 of the 6 loans are priced at 6.8% and the last one is 5.41%. We currently pay $992/month, which I think is based on the graduated extended program (?). At this point, I would say around $1,000-$1,500 is where we need to keep our payment. Obviously, the lower the payment the better and I could pay the difference in additional principal every month.
I apologize for the long post, but I appreciate any insight from someone who has "been there, done that". I wanted to make sure to have my bearings somewhat straight before I start the refinance talk with various lenders.
Thanks!
I handle all of our finances because I am in the field myself with my job (banking) and my wife really would rather have me handle it all. So, that being said as our background, I have questions regarding refinancing my wife's med school loans. I have read all that I could find on WCI regarding the topic, but as most still feel somewhat confused on our best plan. We would like to continue to pay on the overall debt at a pretty good clip, without breaking the monthly bank account (we currently have 1 baby - 19 months and another coming in September).
So, all that being said, I am about to start the process of reaching out to lenders about refinancing the debt currently owed, which is about $187,000. As I have read, there are I think only two companies that refinance residents (DRB and Link Capital), but I think we can expand from just those 2 as I would provide a guarantee on the loan also.
Currently, my wife makes around $50,000/annually, but has very little left over as she contributes the max to state retirement (13% I believe) and she generally covers most all of our expenses for the baby, including childcare. Additionally she pays her own health insurance as it is cheaper through her employer than adding her to my bank policy.
I make $77,000 annually; however should be receiving a pay bump to $100,000 within the next few months. I pay all our monthly expenses including mortgage, utilities, etc.
As stated above, she currently has around $187,000 in total loans, of which 5 of the 6 loans are priced at 6.8% and the last one is 5.41%. We currently pay $992/month, which I think is based on the graduated extended program (?). At this point, I would say around $1,000-$1,500 is where we need to keep our payment. Obviously, the lower the payment the better and I could pay the difference in additional principal every month.
I apologize for the long post, but I appreciate any insight from someone who has "been there, done that". I wanted to make sure to have my bearings somewhat straight before I start the refinance talk with various lenders.
Thanks!
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