Anonymous User wrote:When refinancing loans after a clerkship, does anybody know if it's better (a) to first use the clerkship bonus to pay down loans and then refinance or (b) to refinance and then use the bonus to make a big payment? (i.e., does the order matter at all?) just wondering if having the extra bonus cash on hand would lead to a better refinancing rate, even if it means there's more to refinance. Thanks in advance!
Ask the loan officer you are working with, though it may not make a difference whichever you choose (if it does, my guess would be the higher liquidity would be more beneficial unless the lower balance puts you below some threshold on the underwriting guidelines of the lender).
And if your refi rate is low enough, it also may not be worth it to throw the bonus into your loans since you can get a better return elsewhere.