can someone explain me this?

[Postictal Raiden]

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I still two years away from getting into med school, but I am totally worried about finance because I have a wife and a kid. I've learned about the IBR program, and that residents can choose to pay 150% of the difference between their income and the calculated poverty line income. However, I was wondering what happens after residency? do they keep making repayments based on their income? I am asking this because I've read somewhere that to qualify for this program the household income shouldn't exceed 100K/year.

 

[pem8erly]

I think you've answered your own question. Once you make more than 100K a year you no longer qualify for IBR. Of course no one has started IBR yet and who knows what the government could change in the next few years.

 

[Octagonecology]

I think you've answered your own question. Once you make more than 100K a year you no longer qualify for IBR. Of course no one has started IBR yet and who knows what the government could change in the next few years.

I have researched this extensively and have never seen anything about a 100K cap for IBR eligibility? Where did you get this info?

 

[Postictal Raiden]

I have researched this extensively and have never seen anything about a 100K cap for IBR eligibility? Where did you get this info?

here
http://www.finaid.org/loans/ibr.phtml

 

[Octagonecology]

here
http://www.finaid.org/loans/ibr.phtml

I'm sorry I have read that thing three times and still do not see where exactly you are excluded from this program if you make more than 100K.

 

[pem8erly]

Is this what you were referring to for the 100K limit?

"Most borrowers will have a monthly payment under income-based repayment that is less than 10% of gross income. This includes single borrowers with less than $50,000 in income and married borrowers with two children who have less than $100,000 in income."

I think it just means that if you are married with 2 kids and makes more than 100,000 then it's likely that your payments will be more than 10% of gross income. Not that you don't qualify for IBR at all.
try here for more information: www.ibrinfo.org

 

[Postictal Raiden]

I'm sorry I have read that thing three times and still do not see where exactly you are excluded from this program if you make more than 100K.

I quote this from the third paragraph:

"Most borrowers will have a monthly payment under income-based repayment that is less than 10% of gross income. This includes single borrowers with less than $50,000 in income and married borrowers with two children who have less than $100,000 in income."

 

[Octagonecology]

I quote this from the third paragraph:

"Most borrowers will have a monthly payment under income-based repayment that is less than 10% of gross income. This includes single borrowers with less than $50,000 in income and married borrowers with two children who have less than $100,000 in income."

I saw that too and totally see what you guys are saying, but I just don't read it as you would be completely excluded if you do haveover 100K. The above sentence seems to be just an example of who would be included at the IBR less than 10% of gross income....

 

[Octagonecology]

I just clicked on the link that pem8erly gave and played around with the calculator. It seems as though this would only be really beneficial to those who make very low money...less that 80K.

I plugged in 260K for debt and 160K for income and the payment w/ IBR is actually more than it would be if I just did a 30 year fixed rate federal consolidation. w/ IBR it gave me 1700/mo. vs. about 1500 w/ consolidation.

I'm wondering if we wont see some sort of improved loan repayment assistance program during Obama's presidency for those that go into primary care. Like a 25K tax credit or subtantial forgiveness incentives to go into PC.

I mean a 1500/mo. payment is a drop in the bucket for a 350K/year anesthesiologist or 250K/year EM doc...but if your slugging it out as an FP making very low six figures, it is a real burden.