1.       Doctors are the least likely to default on their loans. Low risk lending.
Doctors are an honest hard working bunch. The default rate of debt/liability of doctors is a fraction of that the average population. Low risk lending. This is proven by the success and mutually beneficial set up of physician mortgage. If Banks are willing to lend doctors upwards 1 million with 0% down and no PMI simply because they are doctors and dentists, why not make a win-win out of student loan refinancing.
Doctors of my era suffer from federal student loan at 6.8%, so if the private banks step up and offer a slightly lower rate, it will be win-win for the borrowing doctors and the private banks.


2.       Early branding.
Doctors are loyal customers. If you help them out with their high interest rate student loans, they will likely do other banking business with you in large ticket items such as large personal loans, professional business loans, and or mortgage, not to mention putting their massive retirement savings with your brokerage.


3.       Lucrative lending.
Guaranteed 4%or 5% return is pretty darn good in this turbulent global stock market. It’s quite lucrative to be able to borrow 0.25% from the feds and turn around and charge doctors 4% for refinancing their 7% federal student loans.


4.       Few competitors at the moment. Fortune favors the brave.
Right now, there are only banks, DRB and LinkCapitol refinancing PGY’s (residents and fellows.) How can the other banks just sit and watch theses 2 banks monopolize such a lucrative low risk market? DRB originally was offering variable rate at 1.9%, now charging as 4-5% variable. It’s getting so much business and so many eager PGY applications, that it’s increasing its lending costs drastically. If you are a competitor bank, would you want to get a share of this market too?


This is shout out to all you solid lenders such as SoFi with lots of funding and great banking services for attending physicians. Refinance (soon-to-be) attending doctors today, your business will profit and grow with the physicians’ paycheck and net worth. Don’t pass up this opportunity.
Make it win-win since so many PGY’s are agonizing over the high interest rate of their federal student loans during their long, arduous, low pay training years. Lend a helping hand now; banks, you will be rewarded generously by these loyal, honest borrowers.


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4 Reasons More Banks Should Refinance PGY’s

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