Splash Financial Student Loan Refinancing Review
- November 7, 2018
- Posted by: Jeff Gitlen
- Category: Student Loans
Splash Financial is a student loan refinance lender that is focused on undergraduate students, graduate students, medical professionals doing residencies or fellowships, as well as fully qualified and practicing doctors. The company was started in 2013 by people who had friends in the medical field who were struggling with student loan debt. Seeing how their friends were suffering, they wanted to help by refinancing solution to make life easier for undergraduate and graduate students, as well as medical residents and doctors, and reduce the burden their student loans often place on them.
How Do Medical Professionals Benefit From Refinancing?
Many medical professionals have a significant amount of student loan debt - much more than the average student. In fact, the average student loan debt for doctors in 2015 was $183,000, according to the Association of American Medical Colleges. That’s a lot of debt and while doctors can make significant amounts of money once they start practicing, medical careers have different trajectories than careers in other professions. Graduating from medical school isn’t the end of a doctor’s training. They have to spend a number of years working as residents or doing fellowships in order to become qualified in their area or sub-specialty. If a medical professional decides they want to become a surgeon or do a surgery sub-speciality, their residency period could last well over10 years depending on how specialized their work is.
One challenges for many doctors is that they have to start repaying their enormous loans during their residency, but they often aren’t bringing in a significant paycheck. For that reason, they can struggle to make ends meet. Student loan refinancing can help them save money by reducing the interest rate they’re being charged on their loans and extending their loan terms over longer periods of time to reduce their monthly payments.
The Benefits of Splash Student Loan Refinancing
Splash’s student loan refinance offerings allow medical residents to pay just $1 per month during their residency and fellowship training. This flexibility makes it much easier for those medical professionals to stay on top their loans and not feel stressed about having to repay their debt right away. Their student loan financing essentially allows medical professionals to pay off all of their federal or private student loans so that they only have one loan.
Splash Financial has low fixed interest rates and a repayment term of 10 to 17 years after your residency or fellowship period ends. That means that if you currently have another three years of residency and you choose a 10 year term when you refinance, then you would have 13 years before you would have to completely repay your debt.
Their fixed rates start at 5.29% and only go as high as 5.44% APR. The benefit of having such low fixed rates is that they’ll never go up over the life of your loan. What you pay will depend on your personal financial and credit situation, as well as things like the repayment term you choose. There is no origination fee involved.
Another advantage of Splash Financial loans is that you can refinance between $25,001 and $350,000 in debt - which is a lot more than a lot of other student loan refinance lenders allow. While you don’t need a co-signer, you can use one to enhance your application. Another unique benefit that they offer is that they have a 90-day grace period after the end of your residency or if fellowship before you have to start making full payments on your loans.
Finally, applying for a Splash loan is easy - you just have to answer a few questions online and then forward copies of various documents including your residency or fellowship verification if you're a resident, or your medical license if you are a doctor.
The Downsides of Splash Financial Refinance Loans
One of the downsides of Splash loans is that they do not extend loans to international students. Another downside is that they encourage residents to only pay $1 per month on their loan during the residency. (Note: This option is available only to residents and fellows, not for undergraduate and graduate school borrowers). If you are not making payments, then the interest on your student debt adds up which could make your loan much more difficult to repay later on and could mean that you'll pay significantly more in interest overall.
However, Splash has no prepayment fees so you could make larger payments on your loan while you are doing a residency. Splash Financial will still give you greater flexibility when it comes to your repayment allowing you to just pay your interest or pay as much as you can according to what you can afford each month.
Author: Jeff Gitlen
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