How to refinance law school loans

Law school graduates can potentially save thousands of dollars in interest by refinancing, but the decision depends heavily on your specific career path, income trajectory, and whether federal protections like Public Service Loan Forgiveness (PSLF) apply to you. If a family member cosigned your original loans, refinancing can also release them from financial liability, protecting their credit and retirement plans while you secure a lower rate.

For many legal professionals, the transition from law student to practicing attorney involves managing significant financial obligations alongside a demanding new career. This guide covers when refinancing makes sense for your specific legal track, how to qualify based on associate salaries, and strategies to protect your financial future. You will learn how to time your application around the bar exam and career milestones to maximize your savings.

Law school debt: understanding your starting point

Before making decisions about refinancing, it is essential to understand how law school debt differs from other types of graduate borrowing. The cost of a Juris Doctor (JD) degree creates a unique financial profile that requires a specialized approach to management.

According to the American Bar Association (ABA), as of 2024, the average cumulative student loan debt for law school graduates ranges between $130,000 and $180,000. This figure often includes a mix of Direct Unsubsidized Loans and Grad PLUS Loans. Unlike medical school graduates who face long residency periods with low pay, or MBA graduates who often enter the workforce immediately, law graduates face a specific hurdle: the bar exam period, which often requires months of study with limited or no income.

The composition of this debt is also distinct. Grad PLUS loans, which many law students rely on to cover living expenses and tuition gaps, carry the highest interest rates among federal options. This high-interest debt is often the primary target for refinancing. Understanding your debt-to-income ratio is critical here; while according to NALP, a BigLaw associate starting at $225,000 as of 2024 has a favorable ratio, a public defender earning $60,000 faces a much heavier relative burden.

Source: American Bar Association and National Center for Education Statistics, as of 2024.

Recognizing where your debt stands relative to your income and career trajectory is the first step in determining if managing your student loans requires a federal strategy or a private refinancing solution.

Career path decision framework: who should (and shouldn’t) refinance

In the legal profession, your employer determines your loan strategy more than almost any other factor. Because refinancing federal loans into private loans is irreversible, you must ensure your career path aligns with the loss of federal protections.

Use this framework to identify where you fall:

• BigLaw / Large Firm Associates: Strong Candidates. If you have a high starting salary (often $225,000+ as of 2025) and plan to pay off loans aggressively, you likely will not benefit from income-driven forgiveness. Refinancing to a lower rate can save substantial money.
• Public Interest / Government Attorneys: Avoid Refinancing. If you work for a 501(c)(3) nonprofit or government entity, you are likely eligible for Public Service Loan Forgiveness (PSLF). Stick with federal loans and an income-driven repayment plan.
• Solo Practitioners / Small Firm Attorneys: Proceed with Caution. Income can be variable. While you may not qualify for PSLF, the safety net of federal deferment or income-based payments might be worth keeping until your practice is established.
• Clerks: Wait. If you are clerking, your income is temporarily lower. If you plan to move to BigLaw post-clerkship, wait to refinance until you secure that position. If you plan to move to government work, keep your federal loans.

According to Betsy Mayotte, President of The Institute of Student Loan Advisors, “In general, federal loans should be your first stop, but private loans can be appropriate when you’ve maxed out your federal eligibility.” For law graduates, this logic extends to refinancing: once you are certain you won’t need federal safety nets, private refinancing becomes a strategic tool to reduce costs.

Before proceeding, review our comprehensive guide to PSLF to ensure you aren’t leaving free money on the table. If you are certain your career is in the private sector, you can proceed to evaluate the timing of your refinance.

Timing your refinance: bar exam, grace periods, and career milestones

Timing is everything when refinancing law school loans. Doing it too early can result in a denial or a higher interest rate, while waiting too long can mean paying unnecessary interest. You need to balance the need for savings with the reality of your career progression.

Most lenders require proof of employment or a binding offer letter to refinance. Consequently, the period immediately following graduation—while studying for the bar exam—is rarely the right time to refinance. During this time, you often have little to no income, and your federal loans are likely in their six-month grace period. If you refinance immediately upon graduation, you typically forfeit the remainder of that grace period and must begin repayment within 30 to 45 days.

The ideal window for many private sector associates opens 3 to 6 months after starting employment. By this time, you have passed the bar, secured admission, and have a few pay stubs demonstrating your high income. This stability signals to lenders that you are a low-risk borrower, which often translates to better interest rate offers.

For associates in firms that pay lockstep bonuses, timing your refinance around your first bonus can be strategic. While lenders primarily look at base salary, having a year-end bonus in your bank account provides a cash reserve. This liquidity allows you to potentially choose a shorter loan term (which carries lower interest rates) because you have a safety net for monthly payments.

If you are completing a judicial clerkship, you are likely earning a fraction of your future private practice salary. Refinancing during your clerkship may lock you into a rate based on your lower government salary. It is generally financially advantageous to wait until you have started your associate position to apply, ensuring your debt-to-income ratio reflects your true earning power.

Qualification requirements for law school loan refinancing

Lawyers are generally attractive borrowers to private lenders, but you still must meet specific underwriting criteria. Understanding how lenders view legal income and debt can help you prepare a stronger application.

While general refinancing requirements often cite a minimum income of $40,000 to $50,000, competitive rates for law school balances usually require significantly higher earnings. Lenders look at your Debt-to-Income (DTI) ratio—your total monthly debt payments divided by your gross monthly income. Because law school debt is high ($130,000+), you need a commensurate salary to keep this ratio healthy. Fortunately, many lenders understand the “high debt, high income” profile of attorneys and have specific underwriting models that account for this.

Your credit score is the single biggest factor influencing your interest rate. As of 2025, a score of 680 is typically the floor for approval, but scores of 740 or higher are necessary to secure the lowest advertised rates. If you have been studying and living on loans, ensure you haven’t missed any credit card payments, as recent delinquencies are deal-breakers.

Some lenders specifically require proof of bar admission, while others focus solely on employment verification. If you are working in a JD-advantage role that doesn’t require bar passage, or if you are waiting on bar results but are already employed, check the specific eligibility criteria of the lender. For general refinancing requirements, proof of graduation is standard.

A common friction point for BigLaw associates is how bonuses are calculated. Some lenders will not count bonus income as part of your “gross monthly income” because it is not guaranteed, while others will average it over two years. If your DTI is tight based solely on your base salary, look for lenders that explicitly state they consider projected or historical bonus income for legal professionals.

Fixed vs. variable rates for lawyers: choosing your rate type

Once you qualify, you will face a choice between fixed and variable interest rates. For lawyers, this decision should align with your repayment aggression and career stability.

Fixed rates provide certainty. Your interest rate and monthly payment will never change, regardless of market conditions. This is the safest option for most borrowers, particularly if you plan to take 10 or more years to repay your loan. It protects you against economic volatility and allows for precise long-term budgeting. If you are a solo practitioner or in a role where income might fluctuate, a fixed rate offers necessary stability.

Variable rates often start lower than fixed rates but can fluctuate monthly or quarterly based on market benchmarks (like the SOFR). This option is a calculated risk that often suits BigLaw associates who plan to pay off their loans incredibly fast—within 2 to 4 years. If you plan to throw your entire year-end bonus at your principal balance, you might pay off the loan before interest rates have a chance to rise significantly.

Source: Market analysis of major private lenders as of May 2025.

Before choosing, compare current refinance rates to see if the spread between fixed and variable justifies the risk. In a high-interest-rate environment, the discount on variable rates is often too small to be worth the gamble.

Lenders serving legal professionals

While many banks offer student loan refinancing, some have specialized programs or features specifically designed for the legal market. When comparing offers, look beyond just the interest rate to the features that support your career and family goals.

• Cosigner Release: If your parents or a spouse cosigned your original Grad PLUS or private loans, refinancing is the primary way to remove their legal obligation. Look for lenders that offer clear terms for cosigner release, or simply refinance the loan entirely in your own name. According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.”
• Career Support: Some lenders offer networking events, career coaching, or financial planning services specifically for their JD clients.
• Hardship Protections: While private loans don’t offer the same safety net as federal loans, some top-tier lenders offer unemployment protection, allowing you to pause payments for a few months if you are between firms.

You should never apply with just one lender. Most online lenders allow you to check your rate with a “soft credit pull,” which does not impact your credit score. You can enter your income and debt information to see estimated rates from multiple providers side-by-side.

When you are ready to see what you qualify for, you can compare rates from 8+ lenders to find the best terms for your specific financial situation. Be sure to check lender reviews to understand their customer service track record.

Tax implications and financial planning considerations

As a high-income professional, your tax situation changes significantly, and this impacts the value of the student loan interest deduction. Understanding these rules prevents you from overestimating your tax savings.

According to the IRS, borrowers can deduct up to $2,500 in student loan interest paid per year. However, this deduction is subject to income limits that many lawyers quickly exceed. As reported by IRS Publication 970 for the 2024 tax year (filed in 2025), the phase-out for this deduction begins at a Modified Adjusted Gross Income (MAGI) of $80,000 for single filers and is completely eliminated at $95,000.

Source: IRS Publication 970, for tax year 2024.

For a first-year associate in a major market earning $225,000, the student loan interest deduction is $0. Therefore, you should not keep a higher-interest federal loan solely for tax benefits, as you likely won’t qualify for them anyway. Your financial planning should focus on the raw interest savings from refinancing rather than tax maneuvering. For more details on education tax benefits, review our guide on student loan tax deductions.

Protecting against job loss and career changes

Refinancing federal loans into private loans means giving up federal protections like mandatory forbearance and income-driven repayment. For lawyers, whose careers can be volatile due to firm restructuring or burnout, building your own safety net is non-negotiable.

• Build an Emergency Fund: Before aggressively paying down refinanced debt, ensure you have 3 to 6 months of living expenses in a liquid savings account. This is your personal insurance policy against layoffs.
• Understand Forbearance Policies: Read the fine print. Many private lenders offer 12 to 24 months of forbearance over the life of the loan for economic hardship, but it is discretionary, not guaranteed by law.
• Consider Disability Insurance: Federal loans offer Total and Permanent Disability (TPD) discharge. Private loans vary. As a high earner, securing your own long-term disability insurance policy ensures your debts can be covered if you can no longer practice law.

If you anticipate leaving private practice for a public service role in the future, remember that refinanced loans cannot be reversed back to federal loans to qualify for PSLF. If a career pivot is a possibility, maintaining your federal borrower protections might be worth the higher interest rate.

Frequently asked questions

It is difficult. Most lenders require proof of employment or a binding job offer with a start date within 90 days. You typically get better rates by waiting until you have started working and have received your first few paychecks.

They are permanently lost. You will no longer be eligible for Public Service Loan Forgiveness (PSLF), income-driven repayment plans (like SAVE or IBR), or federal forbearance options. This is why refinancing is generally recommended only for private sector attorneys with stable incomes.

Yes. A smart strategy is to refinance only your highest-interest loans, such as Grad PLUS loans (which often have rates above 8% or 9%), while keeping your Direct Unsubsidized loans federal. This allows you to hedge your risk.

Usually not, provided you have started your job. With a typical associate salary and good credit, most law graduates can qualify for refinancing on their own. In fact, refinancing is often used to remove a cosigner from original law school loans.

Refinancing law school loans is a powerful tool, but it is not a one-size-fits-all solution. For private sector attorneys with high interest rates and no plans to pursue public service loan forgiveness, it offers a clear path to becoming debt-free faster. However, it requires a strategic approach to ensure you don’t sacrifice valuable protections for a slightly lower rate.

Key takeaways:

• Career determines strategy: If PSLF is an option, do not refinance. If you are in BigLaw, refinancing can save you thousands.
• Timing is key: Wait until you have passed the bar and have proof of income to secure the best rates.
• Protect yourself: Build an emergency fund to replace the federal safety nets you are giving up.
• Shop around: Rates vary significantly between lenders for the same borrower profile.

If you are ready to see how much you could save, compare personalized refinancing rates from 8+ trusted lenders—see your options in minutes without affecting your credit score. Trusted by over 50,000 students and families.

References and resources

• StudentAid.gov – Official source for federal loan types, interest rates, and PSLF information.
• American Bar Association (ABA) – Data on law school costs, bar passage, and graduate debt loads.
• NALP (National Association for Law Placement) – Statistics on legal salaries and employment trends.
• IRS Publication 970 – Detailed information on tax benefits for education, including interest deductions.