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Refinancing and Consolidating Medical School Loans

Citizens Bank

Citizens Bank can assist you in determining whether consolidation of loans, private and federal, is a viable option for your particular circumstances and future plans. They have a special education refinance loan offer just for MMS members. PIAM has partnered with Citizens because of their understanding of and commitment to physicians’ unique needs.

Benefits of Refinancing and Consolidating Medical School Student Loans

According to the Association of American Medical Colleges, the average amount of debt medical school graduates had in 2014 was $183,000. Over the past 14 years, Massachusetts' medical schools have seen consistent increases in annual tuition. So it is likely that as the cost of medical school continues to rise, the amount of student loan debt will rise as well.

school_tuition_chart Chart does not include fees. The tuition history for Tufts University is not represented here. Of note it is one of the most expensive schools in the US.

For those who have completed their medical studies, carrying that large amount of debt can postpone progress toward important life milestones like starting a family or buying a house. Citizens Bank offers options that may help graduates manage their student debt and realize their financial goals.

Whether you want to refinance student loans individually or consolidate multiple loans, student loan refinance may help make your monthly payments more manageable, and may even be able to reduce your interest rate or overall debt. With the Citizens Bank Education Refinance Loan® you have the option of consolidating federal and private student loans together, which could allow you to make just one easy payment a month.

Reduce medical school student loan payments by refinancing

Refinancing allows you to adjust the terms of your individual student loans and may provide you access to a lower interest rate, or an extended repayment period, thereby reducing your student loan payments. This may make your monthly payments more manageable, and allow you to allocate any freed-up funds to the principal so you could pay down the loan faster – which could improve your credit score. If you’re focused on lowering your debt-to-income ratio – especially as you prepare to make a large purchase like a home – the credit benefits of refinancing may help you meet your goals.

There are important factors to consider when refinancing your federal student loans specifically, as those loans offer a unique set of repayment benefits, which would be negated by refinancing to a private loan. Some graduates choose to only refinance their private student loans while keeping their federal loans separate. This allows them to take advantage of income based repayment or student loan forgiveness programs offered through the federal government. Check out ‘Is Refinancing Right For Me?’ for more information on the factors to consider before refinancing student loans.

Simplify student loan obligations with consolidation

Federal student loan consolidation simply combines your outstanding loans into one loan – the interest rate is based on the weighted average of the rates on the loans you consolidate. While this simplifies repayment, it may not help in reducing student loan payments.

When you choose student loan consolidation with a private lender, you may be eligible for a lower rate based on your credit score, plus receive the benefit of combining your loans into one, easy-to-manage monthly payment. You could even combine federal and private student loans into your new loan, as long as you’re comfortable exchanging the benefits of the existing loans. If you’re interested in seeing how the benefits of consolidating student loans could apply to you, and what your new loan may look like, use our Loan Estimator tool.

Refinance for a lower variable rate or lock in a fixed rate

Interest rates are based on credit scores with most private lenders, and the variable rate you receive may be lower than the rate on your current loans. However, it is possible for that variable rate to go up or down each month. If the rate goes up, your monthly payments will go up, too.

If your current student loan has a variable interest rate, your monthly payment can change as the rate changes. If you refinance into a fixed rate loan, you’ll have the certainty of a constant monthly payment. However, the fixed rate you get today will likely be higher than the variable rate you have right now. Your new monthly payment may be more than your current monthly payment, but your payment will never increase.

To ensure that borrowers fully understand the terms of our loans, we include a thorough review of your options at the front end of the application process. To learn more about the Citizens Bank Education Refinance Loan, call 1-888-411-0266 and speak with one of our Student Lending Specialists today.

All accounts, loans and services subject to individual approval. Member FDIC. © 2016 Citizens Financial Group, Inc. All rights reserved. Citizens Bank is a brand name of Citizens Bank, N.A. and Citizens Bank of Pennsylvania.

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