If you are a doctor or medical student with outstanding loans, medical school loan consolidation can ease the burden of repayment.  Student loans are available both privately and through the federal government.  Most students who borrow money to cover the cost of medical school avail themselves of both types of loans to cover the cost.  Consolidation loans may be used to refinance either private or federally owned debt.  Before considering whether consolidating loans is for you, compile a list of all outstanding loan balances and the interest charged on each amount.  It is also possible to consolidate to change the life of the loan, extending the payment schedule in cases of financial hardship.

One of the best times for medical student loan consolidation is after a job is secured and a good credit history is built.  Interest rates for student loans are calculated based on projected earning potential and interest rates may be higher due to the fact that most students have little or bad credit when applying.  If you have secured a job with a salary higher than the median, or if you have built your credit through the purchase of a home or an improvement in the timeliness of payments, you may qualify for better terms on consolidation loans.  Often, the result of consolidated loans is a single monthly payment in a lower amount than the sum of current payments to all existing lenders.  The length of the loan may be shortened, or a loan may be found that will not penalize the borrower for early repayment.

The process for consolidation federal and privately held loans is substantially different.  Loans backed by the federal government are considered secured loans, which offer low interest rates and favorable terms.  These loans may be consolidated through programs offered by various federal agencies.  They should not be paid with monies from a private lending institution, as these terms will often be less favorable and fewer protections are offered if there is difficulty down the road with repayment.  If the interest rate offered by the government has changed since your loan was taken out, refinancing federal student loans can result in substantial savings.

For loans held by private lenders, consult a company that specializes in student loan consolidations.  They are often willing to act not simply as new lenders, but also in an advisory capacity, counseling the debt holder about all possible options.  Now is a good time to consolidate a medical school loan with flexible interest rates, as interest rates for low risk borrowers are extremely low.  In addition to medical school, student loans consolidation can be expanded to cover the cost of undergraduate and other graduate education as well.  Consolidating all sources of outstanding student debt with one lender will cut the number of monthly payments, yield better interest rates, and make ultimately paying off the total amount due far easier.

There are a number of reasons why now is a great time for medical school loan consolidation.  To discuss your situation, talk to a representative of a company that works in this area about how consolidating debt can save you time and money.