Deferment/Forbearance?

[Ginnybeen]

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How does deferment/forbearance during residency work? First I heard that you get to forbearance for three years and no more. Then I heard the same thing but that after the three years you can defer after than and just let the interest accumulate? I've also heard that after the three years you can only defer/forbear if you have economic hardship (and I don't know what that involves). Now more recently I've heard that there isn't even economic hardship after the three years?

Obviously this is only pertinant to those with a residency of more than three years.

Can anyone offer any help here? Thanks in advance!

(Also I may be using forbearance and deferment incorrectly/opposite)

 

[Poitiers2]

You've got 3 years of forebearance for federal loans. During this time, interest will be accumulating on your loans. After those three years are up, that's it. That includes fellowship, I should add.

The days of deferring your 2.9% interest loans during residency and having the government pick up the tab on the interest are long gone, I'm afraid.

Loan payments are set up for residents in the following way:

[your residency salary - 150% of the poverty rate] * 15%

For the average single resident making $45,000 per year, this translates into a monthly payment of about $365. That won't even be paying off the interest for most of us, unfortunately, yet it still adds up to quite a bit of money on a resident's salary.

 

[Ginnybeen]

And if your married and your spouse earns an income does that factor in?

 

[Ginnybeen]

.

 

[akpete]

And if your married and your spouse earns an income does that factor in?

yes

 

[docjolly]

You've got 3 years of forebearance for federal loans. During this time, interest will be accumulating on your loans. After those three years are up, that's it. That includes fellowship, I should add.

The days of deferring your 2.9% interest loans during residency and having the government pick up the tab on the interest are long gone, I'm afraid.

Loan payments are set up for residents in the following way:

[your residency salary - 150% of the poverty rate] * 15%

For the average single resident making $45,000 per year, this translates into a monthly payment of about $365. That won't even be paying off the interest for most of us, unfortunately, yet it still adds up to quite a bit of money on a resident's salary.

I have a question about this, for Poitiers, or anyone else who can answer:

I'm in the process of figuring out my loan repayment amount, and according to the formula above (which is also present on www.aamc.org/stloan), I'd be paying rougly somewhere close to $500.00/month

That is somewhere equivalent to what my studio rent will be. I won't be able to live off of paying that amount/month in student loans. Is there any way to get that amount decreased?

 

[docjolly]

You've got 3 years of forebearance for federal loans. During this time, interest will be accumulating on your loans. After those three years are up, that's it. That includes fellowship, I should add.

The days of deferring your 2.9% interest loans during residency and having the government pick up the tab on the interest are long gone, I'm afraid.

Loan payments are set up for residents in the following way:

[your residency salary - 150% of the poverty rate] * 15%

For the average single resident making $45,000 per year, this translates into a monthly payment of about $365. That won't even be paying off the interest for most of us, unfortunately, yet it still adds up to quite a bit of money on a resident's salary.

I have a question about this, for Poitiers, or anyone else who can answer:

I'm in the process of figuring out my loan repayment amount, and according to the formula above (which is also present on www.aamc.org/stloan), I'd be paying rougly somewhere close to $500.00/month

That is somewhere equivalent to what my studio rent will be. I won't be able to live off of paying that amount/month in student loans. Is there any way to get that amount decreased?

 

[docjolly]

You've got 3 years of forebearance for federal loans. During this time, interest will be accumulating on your loans. After those three years are up, that's it. That includes fellowship, I should add.

The days of deferring your 2.9% interest loans during residency and having the government pick up the tab on the interest are long gone, I'm afraid.

Loan payments are set up for residents in the following way:

[your residency salary - 150% of the poverty rate] * 15%

For the average single resident making $45,000 per year, this translates into a monthly payment of about $365. That won't even be paying off the interest for most of us, unfortunately, yet it still adds up to quite a bit of money on a resident's salary.

I have a question about this, for Poitiers, or anyone else who can answer:

I'm in the process of figuring out my loan repayment amount, and according to the formula above (which is also present on www.aamc.org/stloan), I'd be paying rougly somewhere close to $500.00/month

That is somewhere equivalent to what my studio rent will be. I won't be able to live off of paying that amount/month in student loans. Is there any way to get that amount decreased?

 

[Dancer1986]

Just wondering where you got the figure of $365/month on a salary of $45,000/yr? I used one of those online calculators for the Income Contingent Plan and got $500/month based on a $40,000 salary. Also was wondering if you are allowed to switch from an income based to another payment plan after your residency? Thanks.

 

[TMP-SMX]

Yes you can switch plans at any time by letting your lender/the feds know you want to switch. It all varies based on your income, the interest rate, and how long you want to pay it off. I'm also seeing $367 based on this calculator.