Are most of us even going to qualify for PSLF/IBR lol?

[Knocked Up]

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Ok, well let's just "pretend" for a moment that Congress doesn't wipe the program away once they realize that "wealthy" physicians and lawyers (and Wall streeters) are benefitting from this.

So we all do residency for 3-8+ years. We make ~$50k. Hence, we all qualify for IBR. So, yes, in theory, we are all on track for PSLF and life is great!

Now what happens to those of us who complete residency in x number of years and move on to a non-profit making too much money to qualify any longer for IBR. What is the cut-off in salary for IBR anyway? Is it 200k, 300k, 400k, 10bil?

What happens then if we no longer qualify for IBR? Are we moved to the 10 year repayment schedule and paying upwards of 10,000 dollars a month. At that rate we can't even utilize PSLF. There is no incentive to do so.

Notice that if you use the AAMC calculator and IBR it uses a 20+ year repayment schedule. Ie: for someone in residency for 7 years and moving on to a job that then pays 350k a year you would pay:

Residency (per month): ~300 for 84 months
Attending: ~3,000 for 36 months (you would continue to pay this per month up to 20 years, but PSLF would allow you to stop paying after 3...too good to be true)
PSLF forgiveness (on a ~300,000 med school loan): ~340,000

BUT HOW IN THE WORLD IS SOMEONE MAKING 350,000 DOLLARS A YEAR GOING TO CONTINUE TO QUALIFY FOR IBR...WHY WOULDN'T THE GOV SWITCH YOU TO 10 YEARS REPAYMENT AT THAT POINT THUS NULLIFYING THE BENEFITS OF PSLF?

What is the salary cap on these IBR plans when we become attendings? Is the IBR calculator on AAMC website even correct?

Sorry for any grammar mistakes, I'm half asleep right now.

 

[Anastomoses]

Your post put me to sleep too.

 

[dyspareunia]

Ok, well let's just "pretend" for a moment that Congress doesn't wipe the program away once they realize that "wealthy" physicians and lawyers (and Wall streeters) are benefitting from this.

So we all do residency for 3-8+ years. We make ~$50k. Hence, we all qualify for IBR. So, yes, in theory, we are all on track for PSLF and life is great!

Now what happens to those of us who complete residency in x number of years and move on to a non-profit making too much money to qualify any longer for IBR. What is the cut-off in salary for IBR anyway? Is it 200k, 300k, 400k, 10bil?

What happens then if we no longer qualify for IBR? Are we moved to the 10 year repayment schedule and paying upwards of 10,000 dollars a month. At that rate we can't even utilize PSLF. There is no incentive to do so.

Notice that if you use the AAMC calculator and IBR it uses a 20+ year repayment schedule. Ie: for someone in residency for 7 years and moving on to a job that then pays 350k a year you would pay:

Residency (per month): ~300 for 84 months
Attending: ~3,000 for 36 months (you would continue to pay this per month up to 20 years, but PSLF would allow you to stop paying after 3...too good to be true)
PSLF forgiveness (on a ~300,000 med school loan): ~340,000

BUT HOW IN THE WORLD IS SOMEONE MAKING 350,000 DOLLARS A YEAR GOING TO CONTINUE TO QUALIFY FOR IBR...WHY WOULDN'T THE GOV SWITCH YOU TO 10 YEARS REPAYMENT AT THAT POINT THUS NULLIFYING THE BENEFITS OF PSLF?

What is the salary cap on these IBR plans when we become attendings? Is the IBR calculator on AAMC website even correct?

Sorry for any grammar mistakes, I'm half asleep right now.

I guess I'm dumb because I thought everyone was qualified for IBR.

 

[Postictal Raiden]

There's a lot of valuable information on the Financial Aid thread, so I highly suggest you read through it.

To qualify for IBR/PSLF/PAYE 10% of your annual discretionary (your annual income - 150% of the calculated poverty line of your household) must not exceed your calculated annual repayment amount under the 10-year standard repayment plan.

For example, if you owe 300K, your annual repayment amount should you choose the standard 10-year plan is ~40k. Therefore, your disposable income shouldn't exceed 400k/year. In other word, your total income shouldn't exceed ~430k.

 

[JJMrK]

PSLF and IBR/PAYE are two different programs. PSLF will likely go away or be capped. See http://educatedrisk.org/analysis/of...ed-budget-pslf-caps-paye-benefits-limitations

 

[Knocked Up]

Your post put me to sleep too.

It's ok, I wish you the best on your Family Medicine match. Don't ever fall asleep on your patients as a PCP though...

I guess I'm dumb because I thought everyone was qualified for IBR.

Yes, I did too. You have to make a certain salary in order to do so. See below.

There's a lot of valuable information on the Financial Aid thread, so I highly suggest you read through it.

To qualify for IBR/PSLF/PAYE 10% of your annual discretionary (your annual income - 150% of the calculated poverty line of your household) must not exceed your calculated annual repayment amount under the 10-year standard repayment plan.

For example, if you owe 300K, your annual repayment amount should you choose the standard 10-year plan is ~40k. Therefore, your disposable income shouldn't exceed 400k/year. In other word, your total income shouldn't exceed ~430k.

Thank you very much for making it clear. This was actually very helpful.

PSLF and IBR/PAYE are two different programs. PSLF will likely go away or be capped. See http://educatedrisk.org/analysis/of...ed-budget-pslf-caps-paye-benefits-limitations

Oh, I understand. It's just that IBR and PSLF on their own aren't very good at all. Pair them together and they are absolutely wonderful! I was just confused how they would work together when we started making real money.