My Loan Repayment Plan

Alrighty, here's the breakdown I spent a while doing tonight. I know it's not perfect, so any feedback is appreciated I want to make sure I am not missing anything big

I currently have 32K in undergraduate loans, at 6.8% interest (mostly subsidized)

My program will cost 79K. Will be completely covered by Stafford Loans, unsubsidized, 6.8% interest

Cost of living will be about 45K (roughly 15K a year). My girlfriend is coming with me (we plan to get engaged after I graduate, she graduated with a business degree and is looking for an entry-level job) is able to get a good job, maybe this can be trimmed down to about 35K. This will be paid with gradPLUS loans, at 7.9% interest.

That leaves me with a grand total of $156,000 in debt.

I used financial aid calculators to calculate that if I want to pay this off in 5 years, I will need to pay about $3100 per month. To pay it off in 10 years, I will need to pay about $1800 per month. To pay it off in 20 years, I would have to pay about $1100 per month.

I will most likely get a job in a SNF (seemingly highest paying area of PT outside of traveling, I did a lot of observation in SNF and enjoyed it) and make about 70K. With PRN jobs on some weekends, I can probably realistically make a grand total of $80K per year.

Assuming I live in a state with roughly 5% income tax, and assuming 401K employer max matching at 6% of my income, I used a payroll calculator to calculate that my take home pay will be about $51K a year, or $4,250 per month.

If I pay $1800 per month in student loans, that leaves me with $2450 per month. I realize that isnt a ton, but it is equivalent to grossing 43K per year (subtracting federal tax, state tax, and 6% taken out for retirement)

This, added with my (eventual) wife's salary, I think we will be okay Might have to wait a while to buy a house, but I am okay with that.

So your employer pays some of your student loans? How much?

If you don't mind me asking, how much do you make at your regular job, and how much doing PRN work? I am very curious because I live in south dakota right now, about 10 min from the Nebraska border. I wouldn't mind at all working and living in a rural setting after I graduate

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trichic said:

The max amount of Stafford loans a graduate student can borrow per year is $20,500. So, your entire tuition will not be covered with the Stafford loan and you'll have to borrow the rest with the Grad Plus loan at the 7.9% interest rate.

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Sorry I should have clarified, because I thought that exact same thing at first. My school's financial aid office explained to me that for them, 2 semesters are an "academic year". 8 semesters, ~80K total, so each semester is about 10K. 20.5K split into two semesters, so tuition is covered by the Stafford Loans.

I am not sure how it works or how we are able to get the full 20.5K for two semesters, but I am very happy it works that way!