How much are you paying per month on student loans?

[IJL]

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I make the typical resident salary ~50k and my wife makes a similar amount. I have 220k in student loans. I looked at my options for the lowest monthly payments and it's around $1200 / month. Is this a typical amount?

 

[BoardingDoc]

I make the typical resident salary ~50k and my wife makes a similar amount. I have 220k in student loans. I looked at my options for the lowest monthly payments and it's around $1200 / month. Is this a typical amount?

No, that is what you would pay on a standard repayment plan which doesn't make sense for most residents. Go to Google and lookup PAYE and IBR repayment options. Assuming you have government loans and not private ones, you should qualify for one or both options. If you can get into PAYE, do that. Not everyone qualifies though, so if you don't qualify just do IBR. You can find tons of information on both of those repayment plans online so I won't bother going into the details here.

If all of your loans are private, then you may be SOL.

 

[IJL]

What is the typical monthly amount then? This was as low as I could get it for a combined family income of $90,000. I have government loans.

 

[link2swim06]

A lot of people will pay $0/month with PAYE for the first two years of residency. Do you are your wife file your taxes separately?

Technically, your income should be updated so you should be paying a few hundred dollars per month but it seems the loan companies only care about the last tax return you filled.

 

[IJL]

A lot of people will pay $0/month with PAYE for the first two years of residency. Do you are your wife file your taxes separately?

Technically, your income should be updated so you should be paying a few hundred dollars per month but it seems the loan companies only care about the last tax return you filled.

I started borrowing for undergrad in 2005, so I don't think I qualify for PAYE. We file our taxes jointly.

 

[link2swim06]

I started borrowing for undergrad in 2005, so I don't think I qualify for PAYE. We file our taxes jointly.

Your IRB payment per month is $1200? That's hard to believe but I guess possible.

 

[koikisi]

Your IRB payment per month is $1200? That's hard to believe but I guess possible.

I think OP may be talking about standard repayment.

 

[metalgirl14]

I'm not technically paying anything yet, but when I have to start paying, my payment will be about 340/mo during residency for 300k using the IBR repayment plan (with only one resident income).

 

[IJL]

I think OP may be talking about standard repayment.

No, by "as low as I could get it" I am talking about IBR. Again, this is with a combined income of about 90k.

Nobody is throwing out numbers. What are you guys paying?

 

[shoal]

Ur payment is based off prior yr tax return... Y didnt make anything last yr, nxt yr u will only have 6 months of income

Sent from my LG-D801 using Tapatalk

 

[Doctor Bob]

I've got about 50k in loans (COL through medschool). I pay about 300 a month and have done so through residency, after residency, and during fellowship.

 

[gators21]

You need to ask your program if they have a financial advisor that can help you with this. 1200 a month is completely unreasonable to expect a resident to pay/mo

 

[maxxor]

I make the typical resident salary ~50k and my wife makes a similar amount. I have 220k in student loans. I looked at my options for the lowest monthly payments and it's around $1200 / month. Is this a typical amount?

Did you use this calculator? You should enter all your loans (and all your spouses loans), then enter your incomes, and then see what it spits out. Since you have undergrad debt, the best case scenario for you is IBR. Please come back to us with more information so we can help you better.

https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action

 

[maxxor]

A lot of people will pay $0/month with PAYE for the first two years of residency. Do you are your wife file your taxes separately?

Technically, your income should be updated so you should be paying a few hundred dollars per month but it seems the loan companies only care about the last tax return you filled.

This is so variable it's not even funny. The wording on the IBR/PAYE application now says :

SECTION 5: ALTERNATIVE DOCUMENTATION OF INCOME
To be completed if (1) you did not file a federal income tax return for the two most recently completed tax years,
(2) your AGI from your most recently filed federal income tax return does not reasonably reflect your current income (due to circumstances such as the loss of or change in employment), or
(3) your loan holder(s) informed you that alternative documentation of income is required.

and on the instructions sheet that follows the application

IMPORTANT INFORMATION ABOUT ALTERNATIVE DOCUMENTATION OF INCOME
YOU ARE REQUIRED to provide alternative documentation of your income if:
o You did not file a federal tax return for the either of the two most recently completed tax years; or
o You have been notified by your loan holder(s) that alternative documentation of your income is required.
o YOU MAY provide alternative documentation of your income if your Adjusted Gross Income (AGI), as reported on your most recently filed federal tax return, does not reasonably reflect your current income, because, for example, of a loss of or change in employment by you or your spouse.
o YOU ARE NOT REQUIRED to provide alternative documentation of your income if you can provide a copy of your most recently filed federal tax return or an IRS tax return transcript from either of the two most recently completed tax years; and that documentation reasonably reflects your current income.

I'm a PGY-1 turning into PGY-2 in July. When I applied for IBR 10/2014, Navient, Great Lakes, and MyFedLoan all initially denied my IBR applications unless I provided documentation of income. I couldn't skate by the with next-to-zero income from medical school. YMMV, but don't expect a $0 payment for the first 18 months.

 

[sazerac]

Back of the envelope calculation:
$90,000 joint income
Minus 1.5 x poverty line for 2 ($16,000)
Equals $66,000 discretionary income.

Times the IBR rate of 0.15
Equals $9,900 per year.

Divided by 12
Equals $825 per month.

Your payments ought to be $800-$900/mo. Not sure where the $1,200 IBR payment is coming from. Seems a little high, but not enormously so. $1,200 sounds more like the old ICR plan, or maybe Extended Graduated.

FYI the standard 10 year plan would have you paying $2,500 a month... yikes!!

 

[link2swim06]

I'm a PGY-1 turning into PGY-2 in July. When I applied for IBR 10/2014, Navient, Great Lakes, and MyFedLoan all initially denied my IBR applications unless I provided documentation of income. I couldn't skate by the with next-to-zero income from medical school. YMMV, but don't expect a $0 payment for the first 18 months.

I am also a PGY-1 turning PGY-2.

Great lakes didn't care about my current income. All they wanted was my last tax return, aka proof of income (which was zero dollars for the prior year). This was even after taking to their phone agent!

I paid $0/mo for the last 12-months with them and will continue to pay $0/mo on the loan that I still have with them. The government pays 100% of my interest on my stafford subsidized loans (with PAYE) while the rest of my loans are sitting in a much lower interest rate with DRB.

DRB charges me $100/mo during residency.

In net by doing this:

Uncle sam will give me a few thousands dollars in interest (with PAYE and first two years of residency)

-and-

I will save about $20,000 in interest the government was going overcharge me (by switching to a private loan at a lower rate).

 

[CardiacIntensivist]

I earn about 65k pre tax as a pgy4 and my IBR payment is about 500 a month.

 

[Mass Effect]

I will start paying about $450 a month on my loans starting in the fall.

 

[IJL]

I am also a PGY-1 turning PGY-2.

Great lakes didn't care about my current income. All they wanted was my last tax return, aka proof of income (which was zero dollars for the prior year). This was even after taking to their phone agent!

I paid $0/mo for the last 12-months with them and will continue to pay $0/mo on the loan that I still have with them. The government pays 100% of my interest on my stafford subsidized loans (with PAYE) while the rest of my loans are sitting in a much lower interest rate with DRB.

DRB charges me $100/mo during residency.

In net by doing this:

Uncle sam will give me a few thousands dollars in interest (with PAYE and first two years of residency)

-and-

I will save about $20,000 in interest the government was going overcharge me (by switching to a private loan at a lower rate).

I would like to do PAYE, but I'm guessing you didn't take out loans during undergrad? It seems that I won't quality since I used federal student loans before 2008.


Also, my loans are through 2 different services. FedLoan and also ACS.

The FedLoan is around ~$800. The ACS is ~$300.

 

[hamstergang]

1200 a month is completely unreasonable to expect a resident to pay/mo

I've been paying $1400/month (just doing standard repayments, not any IBR or the like) and make it work. Not really sure how, though.

 

[doc05]

I make the typical resident salary ~50k and my wife makes a similar amount. I have 220k in student loans. I looked at my options for the lowest monthly payments and it's around $1200 / month. Is this a typical amount?

1200 a month on a combined income of 100k is not unreasonable.... why can't you afford this?

 

[DrBowtie]

If your goal is to minimize payments during residency at the expense of higher overall cost, file taxes seperately. The decreased tax return is far offset by the reduced payments.

 

[LaydeeDoc]

Talk to your financial advisor about refinancing to the consolidated direct student loan. You may qualify for PAYE after that. He/she should be able to tell you if you will qualify prior to you applying for the loan. I'm awaiting my loan documents as we speak so I'm not sure about how much the payment will be.