Splash Financial, based in Cleveland, Ohio, is relatively new to student loan refinancing. The financial services firm started with the goal of offering medical residents and fellows a low-cost way to pay their student loans until they became attending physicians.

In March 2018, Splash Financial expanded its operations, offering refinancing for any qualified borrowers. Now, the company offers two options for student loan refinancing: for doctors and for all other student loan borrowers.

How to Get a Loan Through Splash Financial

To obtain a Splash Financial refinancing loan, you must be a U.S. citizen and must be the borrower on at least one outstanding student loan. Applicants must have a bachelor’s degree or higher and must provide proof of income. Applicants must also meet the borrower credit requirements, as discussed below.

For the medical school loan program, you must be employed in a medical residency or fellowship program and live in one of 40 eligible states. You must also have good credit, with a credit score of 700 or higher.

For the student loan program, you must have good credit, with a score of at least 670 if you are applying with a co-signer, and the co-signer must have a credit score of at least 720. If you are applying without a co-signer, you must have a credit score of at least 700. You also must earn enough to afford your expenses, with an annual income of at least $25,000 with a co-signer and $42,000 without a co-signer. You also must have graduated from an eligible school. 

The Costs of Refinancing Through Splash Financial

Splash Financial offers fixed-rate or variable loans ranging from $7,500 to $300,000, with 5- to 15-year loan terms.

Fixed-rate loan terms have an annual percentage rate (APR) that ranges from 3.25% to 7.03%. Variable interest rate loans are tied to the LIBOR rate and have APRs that range from 2.72% to 7.46%.  As of July 2, 2018, the one-month interest rate was 2.10%.

There are no application or origination fees for Splash Financial loans, and no prepayment penalties. However, there is a late fee of 5 percent or $10, whichever is less, whenever the payment is more than 15 days late for medical school loans. For other student loans, there is a late fee of 20 percent of the interest portion of the monthly payment after the payment is 5 days late. The minimum late fee is $5 and the maximum fee is $25.

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Splash Financial Perks

The biggest perks for Splash Financial student loan refinancing comes with its medical school loan program. While borrowers are in residency or fellowship, they have the option of paying just $1 per month for up to seven years. They can also forbear their student loans during fellowship or for a period of hardship. Borrowers who refer Splash Financial can also receive a $500 bonus for each person they successfully refer.

For other student loans, Splash Financial has less generous perks. However, it does offer the option of forbearance on a case-by-case basis. It also provides the same $500 bonus for successful referrals.

Things to Consider

One important consideration for doctors considering Splash Financial’s medical school loan program is that interest will continue to accrue during their residency and fellowship if they choose to pay $1 per month. That means that for up to seven years, interest will be accusing on your refinanced student loans, and then added to the principal at the end of each month. This will leave you with substantially higher student loans by the time that you have completed your training than you otherwise would have. 

For other student loans, you may also consider other refinancing companies that may offer lower interest rates. While Splash Financial’s interest rates are comparable to many other lenders, these loans require much higher credit scores. Plus, will only loans for borrowers who graduated from certain schools are approved.

Making a Decision

Splash Financial offers generous terms for doctors in residency programs and fellowships to help them ease any financial hardship. They have recently expanded to included refinancing for other student loans as well. This lender may be a good choice for borrowers who:

  • Have excellent credit
  • Are in residency or a fellowship and cannot afford their student loan payments
  • Want to refinance their student loans

Of course, borrowers should compare all their options to ensure Splash Financial’s products are an ideal match.