Residency and Paying Student Loans

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Hi there! I was just wondering is there any way to defer your student loans if you are doing a residency? I am an older non-tradition who is going back to school for pharmacy. I have been a technician for over 5 years and see how many students are not doing a residency because they say they can't afford their student loan payment on the salary/stipend that a resident makes. I wouldn't have a wait time and would start paying immediately because of my undergrad degree from 2007. I want to learn more about what one can do to prepare themselves for it if they really want to do a residency down the road. Thoughts or suggestions? Thank you!

if you have federal loans, yes...the process is easy, log on to your servicer's website and into your account, there should be forms there you can fill out. some types of deferments/forbearances require proof, others are no questions asked.

As for private loans...i have no knowledge of those, check with your lender.

Repayment shouldn't begin until about December of your residency year anyway.

Originally Posted by confettiflyer

if you have federal loans, yes...the process is easy, log on to your servicer's website and into your account, there should be forms there you can fill out. some types of deferments/forbearances require proof, others are no questions asked.

As for private loans...i have no knowledge of those, check with your lender.

Repayment shouldn't begin until about December of your residency year anyway.

True, but PLUS loans (if you took any) begin repayment immediately after school ends. No grace period on those as I understand it.

Had federal loan, did IBR + little extra that we could afford. They ask for the previous year's tax return for payment calculation, so the required amount is easily managable. Might as well get it counted if you are planning on going for the loan forgiveness route.

Co-residents who tried to defer had massive issues. I am on IBR and it was fine. Just beware of snowballing interest. Yet another reason not to defer. You can prolly afford the 200 something dollar IBR payment.

Related question. Can you start IBR with the grad PLUS loan which starts immediately then consolidate with your fed loans in Dec while still continuing on IBR

Originally Posted by bananaface

Co-residents who tried to defer had massive issues. I am on IBR and it was fine. Just beware of snowballing interest. Yet another reason not to defer. You can prolly afford the 200 something dollar IBR payment.

Shouldn't be an issue for federal loans at an accredited program. You will very likely only be able to get forbearance, not deferment.

In addition to the above, if you're considering enrolling in the public service loan forgiveness program (I think only applies to fed loans, not private), it may be actually worthwhile paying your loans during residency. http://studentaid.ed.gov/PORTALSWebA...nglish/PSF.jsp

I personally don't have any experience with it, but from my understanding, depending on how much loan you have, your monthly payment will be based on your resident salary (during the time while you're pursuing a residency; 50-50 the subsequent year; then full pharmacist salary thereafter), and those payments will count toward the 120 payment quota.

I know of people who are enrolled in the loan forgiveness program and pay ~$100-150 toward their loans every month during residency. Then again, this may/may not be easy depending on the cost of living in your area.

Originally Posted by Protongenic

I know of people who are enrolled in the loan forgiveness program and pay ~$100-150 toward their loans every month during residency. Then again, this may/may not be easy depending on the cost of living in your area.

Isn't IBR/PSLF like 10-15% of your salary? That would amount to about 400-500 bucks for me. How am I going to afford that as a resident?

I guess it's really a personal choice and it would really depend on COL in your area, but I know of several individuals who have opted that route.

I'm not exactly sure how the repayment plan is determined but if I recall correctly, it's not a flat 10% of your income? It's tiered based on how far away you are from the poverty level? Maybe someone on this board could provide more information? Otherwise, I'd call and ask to speak with whomever is servicing your loans directly.



Source: http://studentaid.ed.gov/PORTALSWebA...sh/IBRPlan.jsp

Originally Posted by bacillus1

Isn't IBR/PSLF like 10-15% of your salary? That would amount to about 400-500 bucks for me. How am I going to afford that as a resident?

I believe someone mentioned they use the information on your 2011 tax returns.

If you made $50,000 as a P4 intern, then I'm very impressed

too lazy to find the exact wording, but it's like 15% of your discretionary income. So it's not 10-15% of your income, it's 10-15% of your income above the 150% above the federal poverty line.

or something like that. for simplicity we just say 10-15% of your income.

EDIT: n/m the wording is right in that chart, haha

Originally Posted by confettiflyer

I believe someone mentioned they use the information on your 2011 tax returns.

If you made $50,000 as a P4 intern, then I'm very impressed

A little late. Just wanted to see if anyone has further information about this. It seems as if you have to submit paperwork if your income "substantially" changes. Since I'll be starting a residency with an income of $38000 I'd like for them to base it off the 2011 tax return where I made basically nothing.

Anyone have an experience like this and know how they calculate it?

Originally Posted by DrWrong

A little late. Just wanted to see if anyone has further information about this. It seems as if you have to submit paperwork if your income "substantially" changes. Since I'll be starting a residency with an income of $38000 I'd like for them to base it off the 2011 tax return where I made basically nothing.

Anyone have an experience like this and know how they calculate it?

For the first year they make you submit pay stubs cause they know that your previous return isn't accurate.