Finance and valuation
Student loan refinancing
Student loan refinancing means replacing existing student loans with a new private loan, usually to change the interest rate or term, and it can end federal loan protections.
The Consumer Financial Protection Bureau explains that refinancing existing private student loans can get a borrower into a new private loan at a lower interest rate, especially when rates are low. It also warns that if you refinance a federal loan with a new private student loan, you will no longer be eligible for federal loan forgiveness programs. This tradeoff matters to many dentists with dental school debt. Federal loans carry benefits that private loans may not offer. Borrowers should compare total cost, the rate type and what they would give up, and may want a financial adviser's help. Debt levels also affect a practice loan application.