Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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I received a response to a personal finance question last week stating I may want to look into refinancing my student loans with Darien Rowayton Bank. I tried to search on here to see if others have had any experience with it, but I only saw a couple of posters talking about it. Has anyone used DRB to refinance student loans before? It looks like they have pretty good variable rates. Any negatives I should be aware of? Thanks in advance.
This is a huge topic on my blog. I just had a chat with someone on the student doctor network about it too. The main downsides are refinanced loans aren't eligible for IBR/PSLF and that they are assessed against your estate if you die. There are also the usual risks of going from a fixed to a variable loan, but DRB does offer fixed loans as well that are lower than most medical/graduate student loan rates.newbinvestor wrote:I received a response to a personal finance question last week stating I may want to look into refinancing my student loans with Darien Rowayton Bank. I tried to search on here to see if others have had any experience with it, but I only saw a couple of posters talking about it. Has anyone used DRB to refinance student loans before? It looks like they have pretty good variable rates. Any negatives I should be aware of? Thanks in advance.
Here's the post on my blog about it:
http://whitecoatinvestor.com/refinance- ... ower-rate/
Disclosure: DRB is a paid advertiser on my blog. Even if they weren't, I'm pretty darn happy to see DRB and their competitors like SOFI FINALLY offering refinancing options for docs. There were about 6 years there where docs were just stuck with high federal rates.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
I am in the process of refinancing/consolidating with them now. I was initially concerned about those reports as well but overall I have had very good luck with them and there have been phone calls both ways to get things finalized. Because my loans are "relatively" low, I went with a 15 year variable rate because I could likely pay them off in a year or two if needed without much difficulty. I was awarded the lowest rate 2.99% and will get another 0.25% off if I use autowithdrawal from their checking account to bring me down to 2.74%. Because of my "tier" likely my good credit and good debt/income ratio I was awarded the 9% cap for free. The variable rate loans normally cap at 18% (doubt they would ever get there) but even if you don't get the free cap you can increase your rate by 0.25% to get a 9% cap for piece of mind or if you will not be able to pay your loans off quickly if needed. As I said, I am not yet done with the process but so far it hasn't been too bad and they have been pretty responsive, actually they have been contacting me regularly to get my appropriate stuff in ( I know some posts said they never heard from them and couldn't talk to anyone). My fellow resident is also doing this and his biggest snag has been getting the 30 day payoff amounts from his current lender Sally Mae I believe and not from the DR Bank side. Hope this helps a little. I'm hoping this ends up being a good thing for me, I've tried to do a lot of research on it.