Splash Financial’s Resident and Fellow Refinancing
Splash Financial’s resident and fellow refinancing allows medical and dental trainees to lock in new interest rates while making reduced monthly payments—often as low as $100—during their training years. This specialized loan product bridges the gap between high student debt balances and limited residency incomes, offering a way to manage cash flow without delaying financial progress. Whether you are a resident comparing options or a family member helping a trainee navigate repayment, this guide clarifies when this choice makes sense and what to watch for.
Medical and dental training presents a unique financial paradox: high earning potential in the future coupled with significant debt and modest income in the present. Standard repayment plans often ignore this trajectory, leaving trainees with unmanageable monthly bills. Throughout this guide, you will learn exactly who is eligible for Splash’s program, how the reduced payment structure works, the specific interest rates available, and the critical trade-offs regarding federal protections. By the end, you will have a clear framework to decide if refinancing during residency is the right strategic move for your financial future.
Context: why resident and fellow refinancing exists
The demand for specialized refinancing products arises from the disconnect between medical school debt and training salaries. As of 2024, the median medical school debt exceeds $200,000, yet residents and fellows typically earn between $60,000 and $70,000 annually during their training years. Under standard refinancing guidelines, lenders evaluate borrowers based on their current debt-to-income ratio. For a resident, this ratio is often disqualifying, or it results in interest rates that are not competitive because the borrower appears “risky” on paper.
Splash Financial and similar lenders address this market inefficiency by underwriting loans based on future earning potential rather than just current salary. They recognize that a resident’s income will likely triple or quadruple upon becoming an attending physician. This allows them to offer competitive rates and, crucially, structured repayment terms that align with a trainee’s cash flow. However, this option requires a careful evaluation of trade-offs, particularly the decision to leave the federal student loan system. Moving federal loans to a private lender is irreversible, meaning borrowers lose access to Public Service Loan Forgiveness (PSLF) and income-driven repayment plans.
Why this matters
- Near-term cash flow: Reducing payments to a fixed low amount (e.g., $100/month) protects the monthly budget during tight training years.
- Long-term cost: Locking in a lower interest rate now can save thousands over the life of the loan compared to accruing interest at higher federal Grad PLUS rates.
- Credit protection: Manageable payments help maintain a strong on-time payment history without stretching family finances to the breaking point.
- Family considerations: For families assisting with expenses, lower loan payments can reduce the need for parental financial support during residency.
Decision guide: is Splash resident refinancing right for you?
Before diving into the application details, it is essential to determine if refinancing fits your specific career and financial profile. Refinancing is a powerful tool, but it is not the correct strategy for every medical or dental trainee. Use the checklist below to assess your situation quickly.
- Are you pursuing Public Service Loan Forgiveness (PSLF)?
If YES: Do NOT refinance federal loans. You will lose eligibility for tax-free forgiveness. Stick to federal income-driven plans.
- Do you have existing private student loans?
If YES: You should likely compare rates. Private loans have no federal protections to lose, so refinancing for a lower rate is usually a smart financial move.
- Is your credit score 700 or higher?
If YES: You have a strong chance of qualifying for Splash’s program on your own. If not, you may need a creditworthy cosigner.
- Are you planning to enter private practice?
If YES: Since private practice jobs often don’t qualify for PSLF, aggressive refinancing to lower your interest rate may save you more money than federal repayment plans.
- Do you have less than 12 months until you become an attending?
If YES: You might consider waiting. Once your income jumps, you may qualify for even lower “standard” refinancing rates without the need for a residency-specific program.
| Feature | Splash Resident Refinancing | Standard Refinancing |
|---|---|---|
| Monthly Payment | Reduced (e.g., $100/month) during training | Full principal & interest immediately |
| Underwriting Focus | Future earning potential + degree | Current debt-to-income ratio |
| Best For | Trainees with limited cash flow | Attending physicians or high-earners |
Source: College Finance analysis of general refinancing structures.
If this checklist suggests refinancing is a viable path, the next step is confirming you meet the specific technical requirements for the program.
Eligibility requirements for Splash resident and fellow refinancing
Splash Financial acts as a marketplace that connects borrowers with lenders, and the specific eligibility criteria for resident and fellow refinancing are stricter than for general student loans. To qualify, applicants must generally be graduates of a Title IV accredited medical or dental school and be actively enrolled in a residency or fellowship program.
The program is specifically designed for high-income potential medical professionals. As of May 2025, eligible degrees typically include:
- Medical: Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO)
- Dental: Doctor of Dental Surgery (DDS), Doctor of Dental Medicine (DMD)
- Other Specialties: Some lenders on the Splash platform may accept Podiatry (DPM), Pharmacy (PharmD), or Optometry (OD) residents, though this varies by specific lender partner.
While Splash evaluates future income, current credit health still matters. Applicants typically need a minimum credit score in the mid-to-high 600s, with many partners looking for scores of 670 or higher. The debt-to-income ratio requirement is relaxed compared to standard loans, but you must still demonstrate a clear path to an attending physician’s salary.
Citizenship is another key factor. Borrowers generally must be U.S. citizens or permanent residents. Some lender partners may work with visa holders, but this often requires a creditworthy cosigner who is a U.S. citizen or permanent resident.
For residents with limited credit history or lower scores, a cosigner can be instrumental. According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” While medical residents are more likely to qualify independently than undergraduates due to their degrees, a cosigner can still help secure a lower interest rate or ensure approval if your credit file is thin.
Loan types eligible for Splash resident refinancing
Understanding which loans can be moved into a Splash resident refinancing plan is crucial for building your repayment strategy. Generally, Splash allows borrowers to refinance a wide range of education debt, consolidating multiple loans into a single new private loan.
Most federal student loans are eligible for refinancing. This includes:
- Direct Subsidized and Unsubsidized Loans: The most common loans for medical students.
- Direct PLUS Loans: Including Grad PLUS loans, which often carry the highest interest rates in the federal portfolio.
- Perkins Loans: Older federal loans that are no longer issued but may still be held by borrowers.
For more information on these loan types, review our guide to federal student loans.
You can also refinance existing private student loans. This is often the most financially sound move, as private loans lack federal protections anyway. Additionally, institutional loans such as Health Professions Student Loans (HPSL), Loans for Disadvantaged Students (LDS), and Primary Care Loans (PCL) are typically eligible for refinancing.
There are important exclusions. Parent PLUS loans generally cannot be refinanced into the student’s name through a standard resident application; they must usually be refinanced by the parent borrower, though some lenders offer options to transfer this debt. Furthermore, loans that are currently in default are not eligible. Regarding loan limits, Splash typically supports refinancing for balances ranging from $5,000 up to the total cost of attendance, which is helpful for medical residents who often carry balances exceeding $200,000.
Splash resident refinancing program features and benefits
The primary appeal of Splash’s resident and fellow refinancing program is the structural flexibility it offers during the lean years of training. Unlike standard loans that demand full repayment immediately, these products are engineered to accommodate the temporary income constraints of residency.
The hallmark feature of this program is the ability to make reduced payments while in residency and fellowship. Borrowers can often pay a fixed nominal amount—commonly $100 per month—throughout the duration of their training program. This “token” payment prevents the loan from entering a negative status while keeping monthly obligations manageable. Alternatively, some borrowers may choose an interest-only repayment plan, which covers the accruing interest without touching the principal, preventing the balance from growing.
These programs typically offer deferment periods that cover the length of the residency and fellowship, plus a grace period (often 6 months) after training ends. Once this period concludes and the borrower transitions to an attending role, the loan converts to a standard repayment term with full principal and interest payments. This automatic increase aligns with the significant jump in salary that physicians experience.
Splash Financial aggregates offers from multiple lenders, which increases the chances of finding competitive terms. According to Splash Financial, most partners offer an autopay discount, typically reducing the interest rate by 0.25% if automatic payments are set up. Crucially, there are no origination fees to process the new loan, and there are no prepayment penalties. This means if a resident moonlights or receives a bonus, they can pay down the principal early without a fee.
| Feature | Resident Refinancing | Standard Refinancing |
|---|---|---|
| Training Payments | Fixed low payment (e.g., $100/mo) | Full P&I Payment |
| Max Deferment | Residency + Fellowship + 6 months | Usually none (immediate repayment) |
| Underwriting | Projected Income | Current Income |
Source: Splash Financial program features (as of May 2025).
Interest rates and terms for resident and fellow borrowers
Interest rates for resident refinancing are determined by the borrower’s credit profile, the loan term selected, and current market conditions. Because medical residents are viewed as high-quality borrowers with low default risks, lenders often offer competitive rates despite the lower current income.
According to Splash Financial as of May 2025, both fixed and variable interest rates are available for resident refinancing.
- Fixed Rates: Splash offers fixed rates of 1.99% - 6.25% APR (with autopay). These rates remain constant for the life of the loan, providing stability.
- Variable Rates: Splash offers variable rates of 1.74% - 6.52% APR (with autopay). These rates can fluctuate with market indices like SOFR, meaning payments could increase over time.
It is important to note that the lowest advertised rates are reserved for borrowers with excellent credit and shorter repayment terms. According to Jason Delisle, higher education policy fellow, “The private market can and does innovate — offering options federal loans don’t, such as variable rates or targeted underwriting.” This innovation allows residents to potentially secure rates lower than the federal Grad PLUS rate, which can exceed 8% or 9% in high-rate environments.
Borrowers can typically choose loan terms of 5, 7, 10, 15, or 20 years. Shorter terms generally carry lower interest rates but higher monthly payments once the full repayment period begins. Longer terms reduce the monthly burden but increase the total interest paid over the life of the loan.
Regarding debt-to-income (DTI) ratios, Splash’s partners use specialized underwriting that allows for a much higher DTI during residency than would be acceptable for a mortgage or personal loan. This acknowledges that a resident’s $200,000 debt is an investment in a career that will likely yield a top-tier salary.
Application process for Splash resident and fellow refinancing
Applying for refinancing with Splash is a digital-first process designed to be quick and transparent. Since Splash is a marketplace, one application allows you to see offers from multiple potential lenders.
- Check Your Rate: You begin by entering basic information (degree, school, income, loan balance) to check your rate. This involves a soft credit pull, which does not impact your credit score.
- Review Offers: If eligible, you will receive preliminary offers showing interest rates, terms, and monthly payment options. You can compare these side-by-side to choose the best fit.
- Select and Upload Docs: Once you select a lender, you proceed to the full application. You will need to upload documentation, including a government-issued ID, loan statements for the loans you are refinancing, and proof of income.
- Verification: For residents, specific proof of training is required. This typically includes your residency or fellowship contract, a “match” letter, or a letter from your program director verifying your enrollment and expected graduation date.
- Approval and Payoff: After a hard credit inquiry and final approval, the new lender pays off your old loans directly. You then begin making payments to the new lender.
The timeline from application to funding can take anywhere from a few days to two weeks, depending on how quickly documentation is provided and verified.
Key trade-offs: what you give up when refinancing federal loans
While the potential for lower rates and simplified payments is attractive, refinancing federal loans into a private loan is a major decision that fundamentally changes your debt structure. It is vital to approach this with eyes wide open regarding what you are sacrificing.
When you refinance, your federal loans are paid off and replaced by a private contract. This means you permanently lose access to:
- Public Service Loan Forgiveness (PSLF): This is the most significant trade-off. As outlined by StudentAid.gov, PSLF can forgive your remaining balance tax-free after 10 years of qualifying payments while working for a non-profit hospital or academic center. Private loans are never eligible for PSLF.
- Income-Driven Repayment (IDR) Plans: Plans like SAVE or IBR cap payments based on your discretionary income. Private lenders do not offer income-based caps; you owe the fixed amount regardless of your financial situation.
- Federal Forbearance and Discharge: Federal loans offer generous deferment options for economic hardship and discharge provisions for death or total disability. While some private lenders offer compassionate discharge, it is not guaranteed by federal law.
If you are certain you will work in private practice (for-profit) or have a debt load small enough that you will pay it off in under 10 years, the loss of PSLF may not matter. In these cases, the math of a lower interest rate often wins. However, if your career path is uncertain, maintaining federal loans keeps your options open. For a deeper dive into these considerations, review our guide to PSLF and income-driven repayment options.
Frequently asked questions
Yes, many residents qualify for Splash refinancing without a cosigner because the underwriting model considers your future earning potential. However, if your credit score is below the lender’s threshold (typically mid-600s) or you have a thin credit history, a cosigner may be required to get approved or to secure the lowest possible interest rate.
When your training period ends (plus any applicable grace period), your loan converts from the reduced “in-training” payment to full principal and interest payments. The monthly amount will be based on the loan term you selected (e.g., 10 or 15 years) and the interest rate locked in at origination.
Yes, you can consolidate both federal and private loans into a single new private loan. Many borrowers choose to refinance only their existing private loans while leaving federal loans alone to preserve government protections, but you have the option to combine them if you choose.
No. Checking your preliminary rates with Splash uses a soft credit inquiry, which is visible only to you and does not lower your credit score. A hard credit inquiry, which may temporarily impact your score by a few points, only occurs if you accept an offer and proceed with the full application.
Absolutely. There are no prepayment penalties with Splash’s lender partners. If you have extra cash flow, making payments above the mandatory minimum helps reduce the accruing interest and lowers your total cost of borrowing.
If your training timeline changes, you should contact your lender immediately. Lenders generally have maximum deferment periods (e.g., typically up to 5-7 years total for training). You will need to verify if your new timeline fits within the lender’s maximum allowable in-training period.
Refinancing student loans during residency is a strategic financial move that can save thousands of dollars and simplify your financial life, but it requires careful consideration of your career trajectory. Splash Financial offers a robust solution for medical and dental trainees who need payment relief now but want to tackle their debt aggressively.
- Specialized Design: Splash’s program allows for low payments (e.g., $100/mo) during training, respecting your current budget while locking in rates based on your future income.
- Target Audience: This option is best for trainees with existing private loans or those who are certain they will not pursue Public Service Loan Forgiveness (PSLF).
- Eligibility: You generally need to be an active medical or dental resident/fellow with a credit score in the mid-600s or higher.
- Risk-Free Comparison: You can check your eligibility and rates with a soft credit pull, allowing you to compare offers without harming your credit score.
- Trade-Offs: Always weigh the interest rate savings against the loss of federal protections like IDR and PSLF before refinancing federal loans.
Ultimately, refinancing is a tool, not a universal fix. If the math works in your favor and your career plans align with private repayment, locking in a lower rate today can provide peace of mind and significant long-term savings.
Many or all of the products presented on this page are from sponsors or partners who pay us. This compensation may influence which products we include, as well as how, where, and in what order a product appears on the page.
References and resources
- Splash Financial: Resident and Fellow Refinancing Information
- Federal Student Aid: StudentAid.gov (Official source for federal loan rates and PSLF info)
- College Finance Guide: Complete Guide to Student Loan Refinancing
- College Finance Guide: Public Service Loan Forgiveness (PSLF) Explained
- College Finance Guide: Federal vs. Private Student Loans: What You Need to Know
- College Finance Guide: Income-Driven Repayment Plans Guide
