If you have a Medical Residency Refinance loan with Earnest, your grace period is a cushion between finishing your residency and starting full loan repayment. Here's what you need to know.
What Is the Grace Period?
Once you complete your residency or fellowship, your loan will not enter full repayment immediately. You will have a 9-month grace period during which you keep paying the same low, fixed $100 monthly payment amount you paid during residency.
Think of it as extra breathing room to get settled into your new role, whether that means starting a new job, negotiating your first full salary, or simply adjusting to life after residency, before your full loan payment starts.
Interest will continue to accrue during the grace period, but it will not be added to your principal balance.
How Does My Loan Move Into Grace?
We use the residency or fellowship information and documentation you provided in your original application to determine when your program ends and your grace period begins. You don't need to do anything to trigger it. It will happen automatically based on your program's timeline.
We will also send you a letter when your loan enters the grace period, so you'll know exactly where you stand.
What Happens When Grace Ends?
After your 9-month grace period, your loan will move into full principal-and-interest repayment. We'll send you a billing statement in advance so you know what to expect and are not caught off guard by the new payment amount.
Because interest is capitalized, you will only be paying down the interest that has accrued. Your new payment will be higher than the fixed $100 a month set during your residency, but it reflects your actual loan terms, not extra interest tacked on along the way.
Can I Make Extra Payments During Grace?
Yes! You're always welcome to pay more than the $100 minimum at any point. If you'd like help setting up a higher recurring payment, just reach out to our Client Happiness team. Please note that payments are always applied to accrued interest first, then to the principal balance.
What if My Residency Timeline Changes?
If your residency or fellowship program changes or is extended, we're unable to modify the terms of an existing loan. You'd need to apply for a new Medical Residency Refinance loan that reflects your updated timeline.