Overview of Refinancing Medical School Loans

Rebecca SafierUpdated March 21, 2025

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

With four years of medical school costing an average of $238,420, nearly three in four medical students have to take out student loans to cover the cost. According to the Association of American Medical Colleges, the median debt among medical school graduates who borrow is a whopping $200,000.Refinancing medical school loans is one strategy for taking control of your debt. Through refinancing, you may be able to lower your interest rate, which could result in significant savings over the years. You don’t have to wait until you’re a full-fledged doctor or other healthcare professional, either. Some graduates choose to refinance their student loans in residency to take advantage of better rates. Let’s take a closer look at medical school loan refinance, including when you can refinance your medical school debt and the steps to take to refinance your medical school loans.

What Is Student Loan Refinancing?

Student loan refinancing involves exchanging one or more of your current student loans for a new one, ideally at a better interest rate. This can help borrowers reduce monthly payments, lower overall interest costs, or change repayment terms.Getting a lower interest rate could result in a lowering of your student loan payments. You can also choose to shorten or extend your loan term. Shortening it will help you pay less in interest overall, while lengthening your loan term will give you lower monthly payments, but you’ll most likely pay more in interest over the life of the loan.All that said, here’s a major word of caution around refinancing federal student loans with a private lender: If you refinance federal loans, you lose access to federal programs and protections, including student loan deferment, income-driven repayment, and Public Service Loan Forgiveness. Recommended: How Does Student Loan Refinancing Work?

Can You Refinance Medical School Loans?

You can refinance medical student loans — both private and federal — as long as you meet a lender’s refinancing criteria. Most lenders look for good credit and a stable source of income. If you don’t have good credit, you may still be able to qualify by applying with a creditworthy student loan cosigner. It’s up to you whether you want to refinance a single loan, multiple loans, or all your student loans. As mentioned, refinancing federal loans means forfeiting access to federal programs and repayment plans, which you may not want to do. You might also choose to refinance only select private loans if some of yours already have a low interest rate. It often makes sense to cherry-pick which student loans you want to refinance (and which ones you don’t) to get the greatest financial benefit.

When to Refinance Medical School Loans

Most lenders let you refinance medical school loans during or after residency once you’ve become a physician or other healthcare professional. Some may also let you refinance while still in school, but you may need to be in your final year or close to graduation. You’ll also need to meet a lender’s underwriting requirements (or apply with a cosigner). If you don’t have good credit, it may make sense to spend some time building your credit before you apply for refinancing. Refinancing student loans isn’t a one-time deal, either. Even if you’ve already refinanced, you can refinance again if it would save you money.

Refinancing Medical Student Loans During Residency

You can refinance medical school loans during residency, but the process differs from traditional refinancing. Many lenders offer resident-specific refinancing programs that allow medical residents to lower their monthly payments while still in training. These programs often provide interest-only or deferred payment options, making it easier to manage debt on a limited resident salary. Recommended: Do Doctors Get Paid During Residency?

Refinancing Medical Student Loans After Residency

If you don’t refinance your medical school loans during residency, you could consider refinancing them afterwards. Waiting to refinance could give you time to work on your credit and land a job with a higher salary. Lenders tend to assign the lowest rates to the most creditworthy candidates, so taking time to build your credit could help you get a better offer.

Refinancing Medical School Loans

If you have been using student loans to pay for medical school and are interested in refinancing them, here are the steps you’ll need to take:

1. Make Sure Refinancing Is for You

First, make sure you’ve considered the pros and cons of refinancing. Qualifying for a lower rate could reduce your interest charges, especially if you have a large balance. But refinancing federal loans would make them ineligible for federal income-driven repayment (IDR) plans and Public Service Loan Forgiveness.Make sure that a medical student loan refinance is right for you, as you can’t reverse the process once it’s done. As mentioned, you don’t have to refinance all your student loans, but rather can pick and choose which ones would benefit from refinancing and which ones would be better left alone.

2. Check Your Qualifications

Every lender sets its own refinancing requirements, but most look for strong credit and a source of income. Some also let you apply with a cosigner. It’s worth exploring the requirements from a few different lenders, as well as checking out your credit.You can order a free copy of your credit report from AnnualCreditReport.com to get a bird’s-eye view of your accounts. While this credit report won’t reveal your credit score, you can find your score with a credit monitoring service online. Some credit card companies also let you check your score. If you see room for improvement, take steps to build your credit, such as paying down debt and making on-time payments on your loans.

3. Check for Lenders

Many refinancing lenders let you check your rates online with no impact on your credit score. Since there’s no damage done (and no obligation), it’s worth shopping around with a few different lenders to see which makes you the best offer. All you need to do is enter a few basic pieces of personal information. Then, a lender will run a soft credit check and show you your offers. You might also use a student loan refinancing calculator to compare offers and make sure refinancing would make sense for you.

4. Apply to Refinance Your Student Loans

If you see an offer you like, you can move forward with a full application. You’ll provide personal details, as well as supporting documentation, such as pay stubs and student loan statements. At this point, a lender will run a hard credit inquiry, which could ding your score by a few points. However, it should bounce back soon as long as you make on-time payments on your debts. Once a lender approves your application, it will send funds to your existing lender(s) to pay off the loans you indicated. Then, it will issue your new, refinanced student loan and set you up on your new payment plan. Note that you can always pay off your student loans early without penalty. If your income increases over the years, it could be a good idea to make extra payments and get out of debt faster.Recommended: Steps to Refinance Student Loans

Student Loan Refinancing With Lantern

Lantern can help you shop for refinancing offers on your medical school loans without harming your credit score. To kick off the process, check out how Lantern can help you find and compare student loan refinance rates.

Frequently Asked Questions

Who should refinance medical school loans?

When can you refinance medical school loans?

Can you refinance while you are in residency?

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About the Author

Rebecca Safier

Rebecca Safier has nearly a decade of experience writing about personal finance. Formerly a senior writer with LendingTree and Student Loan Hero, she specializes in student loans, financial aid, and personal loans. She is certified as a student loan counselor with the National Association of Certified Credit Counselors (NACCC).

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