HELP IBR vs Forbearance!!

[lunallena]

Hey guys:
first off, Hope everyone's doing good! Thank you in advance for your replies

My situation is the following:
I'm about to begin my 3 yr FP residency program. I have about 157k debt from my stafford loans including the interest that's accrued so far during medical school (34k subsidized, the rest unsub). I am trying to decide which of the two repayment options would be best for me.
I will be making 40k during residency (a bit higher during 2/3rd yr), i am single and live with my parents whom i'll be sharing mortgage and house payments with during residency. After residency i intend to practice in the public sector if i find a good opportunity (community clinic, etc)
I was looking into the IBR, but i'm very confused by what will happen after residency when my income goes up? will i be forced to pay off my loan in 10 year standard repayment? what if i no longer qualify for IBR?
i'll be doing my residency at a private hospital which i think will not count towards the 10 yr public service. then would it make any sense for me to do the IBR even if i don't get a public service job after residency?
thanks guys, i'm just very undecided and confused

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[smq123]

Moving to Financial Aid.

 

[mx_599]

Hey guys:
first off, Hope everyone's doing good! Thank you in advance for your replies

My situation is the following:
I'm about to begin my 3 yr FP residency program. I have about 157k debt from my stafford loans including the interest that's accrued so far during medical school (34k subsidized, the rest unsub). I am trying to decide which of the two repayment options would be best for me.
I will be making 40k during residency (a bit higher during 2/3rd yr), i am single and live with my parents whom i'll be sharing mortgage and house payments with during residency. After residency i intend to practice in the public sector if i find a good opportunity (community clinic, etc)
I was looking into the IBR, but i'm very confused by what will happen after residency when my income goes up? will i be forced to pay off my loan in 10 year standard repayment? what if i no longer qualify for IBR?
i'll be doing my residency at a private hospital which i think will not count towards the 10 yr public service. then would it make any sense for me to do the IBR even if i don't get a public service job after residency?
thanks guys, i'm just very undecided and confused

I am concerned with it becoming a form of indentured servitude under the rule of King Obama

 

[lunallena]

after making some calls and reading a lot about this, it seems like i might go the IBR route after doing federal loan consolidation. They also offer a 0.25% discount if you enroll in autopay.

Thanks all and keep comments coming

lol to that Obama comment

 

[UserNameNeeded]

I think your residency employer (hospital) should count toward public service. It doesn't matter if the hospital is private or public, so long as it's not for profit (from what I understand).

 

[patho]

I went through the same thought process as you did. I'm IM with over $200k in student loans. I'm going to consolidate with Federal Direct near the end of my grace period and go into IBR, simply because the gov't pays the interest for 3 years on my subsidized stafford loan (~$1,600/year). Plus, that reduction in the interest for automatic payments always helps. I follow Dave Ramsey and I have to agree with his simple philosophy... The only way out of debt is to pay off the debt. Whatever you don't pay now, you'll end up paying later plus some. Hence, another reason I'm going onto IBR.

As far as the PSLF, it's not bad to line yourself up for it, but I would browse the forums about it. There seem to be a lot of loopholes in it and can change at a moment's notice. I wouldn't count on it being there in 10 years, so you should do what's best for you and not rely on a temporary gov't program.

 

[illegallysmooth]

As far as PSLF, when you have job options in front of you, you should compare which route will put you in the lead financially. Unless you'd have to take a very low-paying job, it will likely be profitable to work for a non-profit. Any government agency, nonprofit hospital or university hospital would count.

I expect PSLF to stick around. The healthcare bill made positive changes to PSLF and it cannot be changed except to pass a bill.

When your income goes up, you will never pay more per month than you would under standard 10 year plan. Your payments would still be calculated by the formula that you likely already saw during research.

 

[aDObo]

Hey Patho,

Hello. I have a question for you about your post. Why would you go into IBR just because "they" say "they'll" pay for the interest for the first 3 years? Would you actually be saving? The payment your making through IBR is so minimal that wouldn't your be accumulating more debt because of the negative amortization? Are in IBR now?