All types of working professionals refinance their student loans, but we tend to see one type frequently – lawyers. The average law school graduate may have a good job waiting for them but they also have a mountain of debt to pay off. Law school is notoriously expensive with the price tag averaging $97K. For this post, we focus on several reasons why refinancing can work well for law school loans.
Lawyers tend to save the most money by refinancing because the savings is more pronounced with large loan amounts. On average, the typical law school grad has $140,000 in student debt which includes undergraduate debt and loans used for living expenses. Besides the obvious benefits of saving money over the life of your loans, refinancing will also simplify the multiple loans that many students have to take out for law school. It can be difficult to manage all those monthly payments and consolidating is a practical benefit of refinancing. Purefy will provide you with student loan savings and simplicity!
Many lawyers cannot take advantage of federal benefits because the programs are focused on borrowers who don’t have a steady paycheck or work in the public sector. Also, if you practice law in the private sector, you won’t qualify for federal forgiveness programs. Because lawyers often find employment through a firm or independent practice after graduation, refinancing is a good fit because it can lower the interest rate on federal and private loans. If you have Federal Direct Loans and are an employee of the federal, state or local government or work for a 501(c)3 nonprofit, you can qualify for student loan forgiveness. But because law school costs are so high, many have to take out private law school loans to finance their education in addition to federal funds. Remember, with refinancing you can pick and choose which loans you want to refinance and you can choose to refinance only your private loans.
It’s no secret that lawyers have a high earning potential with a median starting salary of $135,000. While it does depend on the type of law you practice, where you live and the firm you join, many lawyers can afford higher monthly payments because of their salary. This is one of the best ways to drastically increase the savings over the life of your loan. Refinancing can get you out of debt faster by shortening your term.
A dilemma that many professionals face is making a career choice based on how much debt they have and the jobs they will need to take to pay their loans. This is especially true for lawyers since their education is so costly and many accept offers strongly influenced by the amount of debt they carry. Refinancing can save you money and help you get out of debt faster so you can get back to chasing your dreams and focusing on what’s important to you.
Law school is hard work and a career as a lawyer can be very rewarding. Don’t let student loans hang over your head any longer. Try out Purefy’s student loan calculator to see how much you could save by refinancing your student loans.
Student Loan Refinancing Calculator Link: https://www.purefy.com/student-loan-rate