Student Loans and the 2020 Election

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PEMdoc
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Student Loans and the 2020 Election

Post by PEMdoc » Mon Dec 02, 2019 2:01 pm

Hi Bogles, quick student loan question. I'm a newly minted attending physician about 1.5 years into practice. Current income is ~180k/year with small chance of increases up to maybe 220/year over the next couple of years. I also have ~150k in student loan debt at an average interest rate of 6.57%. I know I need to refinance the loans to lower my interest rate, but I've been hesitating a bit with the upcoming election. With one party seeming to make some sort of loan forgiveness a common talking point, I'm wondering what y'all think about waiting until the election to go ahead and refinance them. My concern is that if I refinance them now, and some sort of forgiveness program does materialize, I won't be eligible for it since I refinanced to a private institution. On the other hand, it seems like quite a while to wait for what's probably a pretty low chance of loan forgiveness actually happening and I'll be accruing interest at this rate in the meantime. Thoughts? Thanks in advance!

*Obviously this post is not for any discussion of the merits of a forgiveness program or the political aspect of this topic*

Grt2bOutdoors
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Re: Student Loans and the 2020 Election

Post by Grt2bOutdoors » Mon Dec 02, 2019 2:04 pm

How much lower is the new rate if you do refinance?
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Topic Author
PEMdoc
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Joined: Sun Mar 05, 2017 7:53 am

Re: Student Loans and the 2020 Election

Post by PEMdoc » Mon Dec 02, 2019 2:06 pm

Grt2bOutdoors wrote:
Mon Dec 02, 2019 2:04 pm
How much lower is the new rate if you do refinance?
Variable refinance rates typically between 2-3.5%, fixed rates more like 3-4%.

pharmermummles
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Re: Student Loans and the 2020 Election

Post by pharmermummles » Mon Dec 02, 2019 2:08 pm

Obviously none of us can speculate on future laws, and doing so is actually likely to get this thread locked. I will say, however, that there is merit to holding off on refinancing. There are protections federal loans offer that are not granted to private loan holders. Income driven repayment plans can help you make your payments if you experience job loss or underemployment. If you have a solid income and stable job, this may not be as big of a concern, and refinancing may be a good choice. Another thing to consider: are you eligible for PSLF? I am a pharmacist at a nonprofit hospital, so that has been my route so far. You only qualify with direct federal loans. Any refinancing makes you ineligible.

oldfatguy
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Re: Student Loans and the 2020 Election

Post by oldfatguy » Mon Dec 02, 2019 2:08 pm

I vote to refinance now.

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Re: Student Loans and the 2020 Election

Post by oldcomputerguy » Mon Dec 02, 2019 2:16 pm

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