As a doctor, it can be frustrating and actually confusing when it comes to paying off your student loan. One of the major mistakes made is to ignore the situation or maybe unknowingly forget. This could attract major penalties and increase your burden. In order to avoid this and also be planned, you need to consider refinancing options available. It is very important that you understand the options available and the most appropriate for you.
As a doctor, it can be challenging to keep up with the financial world and it is for this reason that I would strongly suggest that you hire a company to help you understand the options available and which will work best for you. A company like leverageRx is the best in the market dealing with solutions in student loan refinancing for doctors. Below are some of the tips to refinancing your student loans for doctors:
- Apply for a refinancing program. The first step you need to do is take the initiative of registering for the refinancing program. This is a program that allows you as a doctor to lender another loan to pay off the student loan and then start paying the new loan slowly without haste. The good thing about this option is that all the interest and previous high rates are done with. All you have to do is to pay the new loan at a low rate and then have a good grace period of doing so.
- Loan consolidation. This is another method of refinancing your student loan. Loan consolidation involves combining all your student loans or all the loans you took when you were a student, whether it’s from one lender or different lenders. Once the loans are combined, the amount reached is paid by a common rate that is calculated by finding an average of all the loans consolidated. This will ensure that you deal with all the student loans at once and you get to deal with a single lender.
- PAYE and REPAYE programs. These are efficient methods that are being used by the doctors to help them clear their student loans with ease. The pay as you earn program ensures that you pay constant deposit of about 10-15% of your salary monthly to help clear the student loan. The REPAYE program can extend up to 20 years with considerations on the family size and considers if you have difficulties in raising the amount. Both programs are income based and driven.
- Standard repayment program. This is an income based program that does not consider any external factors such as the family size or the difficulties. But it enrols you as a doctor in a plan that will ensure you get to pay off the loan in ten years by a consistent deposit of a calculated amount each month.
- Graduated repayment plan. This is another plan that is almost the same as the standard repayment plan. With the only difference being that the lower initial payment increases after every two years to ensure that all the loan is completely paid off with the interest within the 10 years.
You should be careful with which program you choose. Conduct a more detailed research on the topic to be more equipped.