With large lump sum payment do I still need to make monthly payments?

[skijumpbump]

I will be graduating in May with $160k in student debt all at 6.8% interest. Based on the fact that I am married IRB payments for me during residency (~1.5k/month) would be similar to a 10 year repayment plan (1.8k/month), so I will be making a graduated payment schedule, from 1k/month then ramping up to 3k/month for years 9 and 10 when I am an attending by that time.

My question is that I have a friend who has a lump of cash sitting in a low yield account, she is offering to loan me $40k at 3.75% (simple interest) for 3 years. With repayments to her either quarterly or yearly. My thoughts would be to take this lump sum and make one large payment, however if I did this would I still have to make my monthly payments, and thus defeating the purpose of taking out this personal loan at a favorable rate?

Any thoughts on the idea in general or my repayment would also be really appreciated.

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[Igor4sugry]

So you are trading 160k @ 6.8%. for 120k @ 6.8% & 40k @ 3.75%.

Your payment (assuming the loan company re-calculates based on your lower balance) will be: (1300 (for 120k for 10yrs) & 1176 for 40K high bc its 3yrs). For total of $2476/mo.

Your resident salary will probably be after taxes: ~3k/mo.
-you are increasing your monthly payments considerably.

I don't see much advantage in doing this. There are more disadvantages.

Borrowing from friends and family isn't ideal. The deal your friend gave you already sounds strange; why at 3.75%? why for 3yrs? Trust me, owning money to a bank is one thing and owning 40k to a friend is another. It will not work out in your favor in the long run.

Just stick with your bank and pay off the money. Whatever you save in interest is not worth the hassle you will likely encounter.