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Hey all,
My other thread was a text-based summary of the traditional dental school repayment option (direct stafford loan + Grad PLUS and typical repayments), the PhD route, and the HPSP / military route.
The idea behind this thread is to be a summary statistical glance at the main financial options based on research I'm doing for my own financial options. I figure, why should future predents have to reinvent the wheel if all of the data can be compiled into one thread on this excellent resource (the studentdoc forums). I'll try to make all updates to this first post based on any comments (like the last thread) so that future readers can easily find the good information everyone is bound to share.
All Excel sheets are attached and have been improved thanks to other posters' great comments and suggestions. Thanks everyone!
Eligible loan types:
Eligible loan types:
My other thread was a text-based summary of the traditional dental school repayment option (direct stafford loan + Grad PLUS and typical repayments), the PhD route, and the HPSP / military route.
The idea behind this thread is to be a summary statistical glance at the main financial options based on research I'm doing for my own financial options. I figure, why should future predents have to reinvent the wheel if all of the data can be compiled into one thread on this excellent resource (the studentdoc forums). I'll try to make all updates to this first post based on any comments (like the last thread) so that future readers can easily find the good information everyone is bound to share.
All Excel sheets are attached and have been improved thanks to other posters' great comments and suggestions. Thanks everyone!
******************************************IBR******************************************
Eligible loan types:
- Everything except for Grad PLUS loans to parents, private loans, or consolidation loans.
- Only 15% of your discretionary income must be paid towards the loans.
- During the first three years, if your payments don't cover the interest then the government makes up the difference. That means your loan won't go up during the first three years.
- Having more kids means that you reduce your monthly payment slightly (approximately $74 per child).
- You will never pay more than the 10 year standard repayment option.
- Paying only 15% is going to leave you way behind your growing interest for any loans despite the first three years of government assistance in keeping the principal loan from increasing.
- The repayment period is 25 years, which is longer than the 20 years of PAYE or the 10 year standard loan repayment option.
- 1 kid @ 3 years out of d-school, 2 kids @ 5 years out, and 3 kids @ 7 years.
- Salary of $100k from years 1-3, $110k from 4-5, $120k from 6-7, $130k @ 8, $140k @ 9, $150k from 10-12, $160k from 13-14, $170k from 15-16, $180k @ 17, $190k @ 18, $200k from 19-20, $210k from 21-22, $220k from 23-24 and $230k @ 25 years.
- Three scenarios: $200,000, $300,000, and $400,000 loans.
- Making ONLY minimum 15% payments.
- I calculated all statistics at 6.8% (I know they are lower right now, but I also didn't account for the 7.9% Grad PLUS rate so it should hopefully balance out a bit).
- Your final loan amount at 25 years is: $38,591
- The total interest you'll pay is: $239,793
- Your estimated tax liability at 25 years: $106,362
- The total cost of your loan is: $439,793
- Your final loan amount at 25 years is: $443,620
- The total interest you'll pay is: $726,753
- Your estimated tax liability at 25 years: $266,753
- The total cost of your loan is: $1,026,753
- Your final loan amount at 25 years is: $803,973
- The total interest you'll pay is: $1,147,807
- Your estimated tax liability at 25 years:$409,453
- The total cost of your loan is: $1,647,807
****************************PAYE****************************
Eligible loan types:
- Direct Subsidized Loans (undergraduates only)
- Direct Unsubsidized Loans
- Direct PLUS Loans made to graduate or professional students
- Direct Consolidation Loans without underlying PLUS loans made to parents
- Only 10% of your discretionary income must be paid towards your student loans.
- The repayment period is only 20 years instead of IBR's 25 years.
- You will never pay more than the 10 year standard repayment rate.
- Based on family size, so having more kids reduces the amount you must payback each month (by about $50 per child).
- The same interest benefit which applies to IBR also applies to PAYE. Your principal loan will not increase your first three years out of school because the government makes up the difference if your interest exceeds the total payment amount.
- 1 kid @ 3 years out of d-school, 2 kids @ 5 years out, and 3 kids @ 7 years.
- Salary of $100k from years 1-3, $110k from 4-5, $120k from 6-7, $130k @ 8, $140k @ 9, $150k from 10-12, $160k from 13-14, $170k from 15-16, $180k @ 17, $190k @ 18, $200k from 19-20
- Three scenarios: $200,000, $300,000, and $400,000 loans.
- Making ONLY minimum 10% payments.
- I calculated all statistics at 6.8% (I know they are lower right now, but I also didn't account for the 7.9% Grad PLUS rate so it should hopefully balance out a bit).
- Your final loan amount at 20 years is: $245,967
- The total interest you'll pay is: $337,740
- Your estimated tax liability at 20 years: $176,602
- The total cost of your loan is: $537,749
- Your final loan amount at 20 years is: $552,179
- The total interest you'll pay is: $686,753
- Your estimated tax liability at 20 years: $297,863
- The total cost of your loan is: $986,753
- Your final loan amount at 20 years is: $821,457
- The total interest you'll pay is: $980,664
- Your estimated tax liability at 20 years: $404,497
- The total cost of your loan is: $1,380,664
- To change the principal loan amount you need only enter the amount into cell B2 and let Excel take care of the rest.
- If you plan to borrow less than $224,000 you should change the interest rate in columns C2->C21 (PAYE) or C2->C26 (IBR) to 0.0541 to reflect the current 5.41% interest rate on direct subsidized loans.
- If you want to adjust the number of children you have then you can do so on column N. Remember that your kids count as children for 18 years!
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