Class of 2018, What's Your Number?
Started by Postictal Raiden
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Last I checked, in the $270K range (borrowed the full COA x 4 years, fortunate not to have previous education debt)
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50k from undergrad + med school + interests
What specialty did you pursue?
Neurology
Is this including residency interest?
With residency interest I'm looking at 380
My number is end-of-fourth year including interest. I don’t want to think about end-of-residency interest
No. My loans would accrue 27k/year during residency. Say I may 2k. Under RePaye, the gov't will cover 50% of my unpaid interests. Therefore, my debt will grow by 12.5k every year while I'm in residency/fellowship. Assuming 5 years of training, I'll have ~510k of student debt.
Not bad. Work residency hours in your first year as an attending, and you'll pay it all off.
Assuming you do RePAYE, your total indebtedness will still be below 300k after residency.
I'm more keen to pay it down to 280k then pay the minimum while using the rest of my money to buy multi-unit rental properties. Mathematically that's the breakpoint at which the loan will eventually be paid off without accruing interest greater than your payments can pay for at minimum payment levels via REPAYE
Does the RePaye option have a certain future?
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Got any job offers yet?
He hasn't even started residency yet? And taking those stipend type job offers is usually a poor decision.
I thought this was going to be about what is our # to retire and walk away from it all.
No one can say for certain. However, compared to PSLF, PAYE and its revised version have a much higher chance of surviving. Why? because they are a net positive for the feds. Let's run the numbers:
I graduate owing 455k. Finish residency owing 510k. Get a job that pays 275k/year. My RePAYE annual payment, assuming my salary doesn't increase for the remaining 20 years of the plan, is 25k/year. At the end, I'll pay income taxes on the forgiven amount. In this case, the forgiven amount is 500K+ since my annual payments barely covered the accruing interests. The tax bomb on the forgiven amount would be in the magnitude of 200k.
So, whatever I pay in residency (negligible) + annual payments for 20 years (500K) + tax bomb (200k) = 700K+. Therefore, you can see that even assuming that my salary doesn't increase a dollar over 20 years (historically doctor's salaries increased at a pace faster than inflation), the feds are still making nearly 300k profit on money I borrowed to attend school.
Perhaps a future radiologist could start a thread.
who the hell is putting 0 lol
Plenty of people have their school paid for in full or partially paid for by their parents. This is less likely the case at DO schools vs. MD, but it still applies. This is why we see skewed "averages" in the 100s - 150s. People usually have zero or in the 200-300s.
PSLF is the uncertain future, not REPAYE. PSLF is total loan forgiveness after 10 years with a nonprofit, REPAYE is a standard repayment program that forgives half of your interest over your minimum payment
My mom had an excellent divorce lawyer.
Some HPSP students can get out ahead actually if they live cheap
mummy and daddy dearest paid my tuition, and bought me a house to live in and a new BMW... nah that's (at least) 1 of my classmates
I'll be 300k deep after residency but it's doable
310K... 277k principal and 33k interest.
I was surprised to see it that high, but I usually take an extra 10-15k/year to maintain my lifestyle 😉. My school is somewhat cheap compared to what people are paying for med school now. I will be f... if I don't make 300k+ as a IM doc.
I was surprised to see it that high, but I usually take an extra 10-15k/year to maintain my lifestyle 😉. My school is somewhat cheap compared to what people are paying for med school now. I will be f... if I don't make 300k+ as a IM doc.
You don’t have rich parents and want to go to medical school and only get accepted to a private school.
You prefer this approach to the work like hell to pay it off in 3 years? Seems like it would be less that way.
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PM'ed you... in order not to derail the thread.
RePAYE + work-like-hell-to-pay-it-off-faster is allowed, right? Because my current plan was to do RePAYE during residency then pay it off as fast as possible as an attending to get it over with and to avoid the tax bomb.
Actually I have always preferred the latter. Do locum for 3 or so years (hopefully making 500K+), and payoff the debt. After that find a chill gig where I could enjoy quality of life. I figured that if my loans are paid, I won't need more than 200k to live very comfortably.
It's easy to buy into the idea of living big. The idea of having a secluded mini mansion with your own driveway and a couple Italian sport cars is very tempting. However, these things are the very reason doctors suffer burnout. Maintaining such a lifestyle requires a lot of dough which, in turn, requires more work and less free time.
How does RePAYE work during residency?
your monthly payments in a given year will add up to be 10% of your discretionary income of the previous year. Gov't pays 50% of your unpaid interests, so only half of your unpaid interests will be added to your loans. Under RePAYE, your loans never capitalize. Meaning, you never pay interests on the interests you accumulate. You only pay interests on the principle amount (aka the amount of loans you graduate with which include interests accrued during med school).
What, if any, are the downsides of RePAYE? Also what is this tax bomb people talk about?
I don't know enough yet to answer your first question but I can answer the second. Under RePAYE, if you still have a loan balance after 25 years, that balance is forgiven, BUT current IRS rules require you to pay taxes on that forgiven amount-- so 25 years from now you get hit with a tax bill taxing you for what could be significantly more than what your income actually was that year.
Aaaaahh i gotcha, thank you! So if you pay it off before that 25year mark you avoid that tax bomb correct?
Correct.
One way to address the taxbomb situation (specially for people with very high debt whose calculated payment won't be sufficient to make a dent in the principle) is to set a small amount monthly in a saving's account. By the time you need to pay the taxes, you have the money.
If you are not familiar with this site, here you go:
StudentLoans.gov
Contingent upon your particular situation, you may find the Paye or IBR for New Borrowers plans to have a lower aggregate payment amount and higher loan forgiveness. (These two plans have a shorter repayment duration than Repaye though.)
Scrubs, your only risk here is political risk. The Feds can change federal loan provisions in the future.
StudentLoans.gov
Contingent upon your particular situation, you may find the Paye or IBR for New Borrowers plans to have a lower aggregate payment amount and higher loan forgiveness. (These two plans have a shorter repayment duration than Repaye though.)
Scrubs, your only risk here is political risk. The Feds can change federal loan provisions in the future.
One downfall of RePAYE over the older version (PAYE) is that your calculated payment is not capped. The more you make, the higher your payment is. Honestly I don't see this as a downfall because the more you pay, the faster you finish!
making 500K +.....................
good luck with that lmao. that is nonexistent
What experience do you have in neurology that qualifies you to make such a statement?
Everyone mostly talks about RePAYE lately. Anyone have a good rundown of PAYE vs RePAYE?
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If I was going to do PAYE, I wouldn't sign up for it till the very last year of residency after doing REPAYE the whole time for the interest reduction.
$100k to say *)$& it and buy a ranch in South America. Or debt forgiveness, or get let go from the Army so I can flip pizzas at a climbing area. Ah well.
Hey guys, maybe I am misinterpreting things because it seems to me like PAYE is better than REPAYE (If eligible). Do y'all think that PAYE is the better option for someone who is single and didn't get a loan before 2007? Sorry I am new to the subject matter. Thanks!
To simplify things, RePAYE > PAYE during residency due to gov't subsidizing 50% of unpaid interests, but PAYE > RePAYE after residency due to a shorter repayment period (20 vs 25 years)
Thanks for the clarification! Im assuming you can switch over after residency? In your opinion do you believe PSLF will still be around in the next 5-10 years? or is it trending in the other direction?
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