Student loans: Refinancing vs PSLF

[Lawrence Moore]

Hello all, I'm a new graduate and eager to begin my real estate endeavor but first I am considering how to handle my $120,000 student loan debt, which is currently financed through direct federal loans at 6.8%. I will be working for a non-profit hospital which qualifies me to be eligible for the government's Public Service Loan Forgiveness (PSLF) which would forgive the rest of my direct federal loan balance after 10 years of public service (assuming the program is still available in 10 years). However, this program does not allow me to refinance my loans to a lower percent of say 4% for example because then they would not be direct federal loans anymore, which is the only type of loans eligible for forgiveness. With either route, I plan to invest in buy and hold rental properties to cover the student loan payments.

So my dilemma is, is it smarter to refinance my loans at around 4% or take the gamble that the PSLF program will be around for the next 10 years and make the minimum payments at 6.8%?

The way I see it currently, 4% would leave a bigger margin for profitable investments but sticking with the possibility of loan forgiveness at 6.8% after 10 years may be better long term? Is there anything else I should consider? Any input is appreciated. Thanks!