According to Education Data Initiative, the average medical school graduate owes around $241,000 in student loan debt. Refinancing your med school loans can make it possible to get lower payments or pay off your debt sooner. Lowering your payments or paying off your debt sooner can benefit your quality of life in a variety of ways.
1. Lowering your financial stress
Financial stress has been linked to difficulties sleeping, anxiety, and overall tiredness. Beyond student debt, you probably have a number of other expenses that can be stressful. Student loan refinancing can help you pay off your loans faster, which means you may be able to relieve some of your financial burdens and lower your financial stress.
A possible option with refinancing student loans is paying a higher monthly amount for a shorter term. Seeing yourself make significant progress to eliminate your debt can keep you motivated to pay it off faster.
2. Increasing your financial resources
Carrying high student loan debts might cause you to be cautious about spending on your other financial goals. It may keep you from investing in activities that might be good for your personal or professional development.
When you choose to lower your monthly payments through refinancing, you can free up financial resources for things you want or potentially get closer to big purchases, such as a new car or home, without adding even more debt.
3. Investing aggressively
As a recent grad with high earning potential, thinking about emergency funds or even retirement may not sound like things you want to focus on now. But keeping your long-term financial goals in mind can help you stay on track to make your income work harder – and smarter – for you over time.
Though your job may come with disability insurance, an emergency fund can still be a great source of financial security and peace of mind in the event of unexpected expenses. Getting a lower monthly payment and lower interest on your med school loan allows you to put more money where it matters: in your savings and investment accounts.
Refinancing med school loans can help you get closer to financial freedom and reaching your long-term goals. With the right plan, lowering your monthly payments and/or eliminating debt faster can help you reduce stress and enjoy an improved quality of life.
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