Refinance Student Loans With SoFi
Taking good care of finances is extremely important to most dentists today. According to the American Dental Education Association (ADEA), the average debt per graduating senior is $247,227 (1). For some dentists, this doesn’t even include the cost of undergraduate education. In order to achieve your financial goals, you need to efficiently pay off your debt and make the most of the income you’re bringing in.
That’s why the Washington State Dental Association has partnered with SoFi to provide members with a student loan refinancing benefit to help them tackle these issues. Through this partnership with SoFi, WSDA members, friends and family receive a 0.125% rate discount* upon refinancing through SoFi.com/WSDA. To date, WSDA members have already refinanced over $1.7 million of student loans with SoFi.
Just like refinancing a mortgage, student loans can also be refinanced at a lower interest rate. Interest rates for graduate and professional school have been higher than prevailing rates for a number of years, which means it can be possible for dental school grads to get a lower rate through refinancing.
Refinancing can have big benefits like lower monthly payments or a reduced payment term, and can save you a significant amount of interest over the remaining life of the loan. You can also consolidate more than one student loan through refinancing, which saves you the time and hassle of multiple monthly payments.
Need the hard numbers? Let’s say you have $250,000 in student loans at a 6.8% weighted average interest rate and 10-year term (6.8% was the going rate for federal unsubsidized loans from 2006 to 2013). Your monthly loan payment would be about $2,875 per month, and you’d pay about $95,000 in interest over the life of the loan. If you can reduce that rate by even 1 percentage point to 5.8%, your monthly payment goes down by about $125, and you save about $15,000 in total interest.
Cut your rates further, and you can save even more. SoFi dental borrowers save around $49,000 (2) on average when they refinance their student loans.
To qualify for a lower rate through refinancing, lenders will often look at just your financial data, such as credit score. SoFi, on the other hand, uses a non-traditional underwriting approach. SoFi considers a number of holistic factors such as your track record of paying bills, employment history and income relative to your outstanding debt. Typically, the stronger your financial picture, the lower the rate you can qualify for.
Once you qualify to refinance, you can choose from a number of options such as payment term and variable vs. fixed interest rate. Each of these options can affect your monthly payment and total interest amount. It’s also important to note that federal student loan benefits like income-based repayment and loan forgiveness don’t transfer to private lenders, so before refinancing federal loans you should check to see if any of these programs apply to you.
More and more WSDA members are choosing student loan refinancing solutions with SoFi. The WSDA is committed to helping you make the best decision for your individual situation. You can find out more by visiting The Source.
SoFi, WSDA's endorsed student loan refinancing and consolidation company, is a modern finance company that's fueling the shift to a bankless world. Our radical approach delivers unprecedented services for lending and wealth management. We evaluate applicants based on a holistic view of their financial well-being rather than a three-digit score. Whether our members are looking to refinance their student loans, buy their dream home, or simply seek advice as they ascend in their careers, SoFi provides the best products and tools to match their ambitions and propel them to new levels of financial greatness. To date, SoFi has originated over $8 billion of loans for over 130,000 borrowers.
*If you apply and are approved, the interest rate shown in the Final Disclosure Statement will include an additional rate discount because of your organization’s SoFi partnership at the time of loan origination. Offer good for new customers only.