IBR if you have around 100k in debt?

[anthroguy]

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Hey guys,

I'll be graduating in May with a little less than 100k in debt and was wondering what my options were. As a single resident earning around 50k my IBR payment is around $420/month (according to the gov IBR calculator). If I pay my loans back on a 10 year (6.8%) repayment cycle, my payment comes out to around $1100/month. With a take home salary around $3k/month I can make the larger payment.

Does IBR give me any advantage? According to my knowledge (which could totally be off), if I finish residency and choose to do a fellowship taking 6 years total. I'll make enough in years 7-10 so that I would not be eligible for the loan forgiveness that PSLF entails after 10 years.

Also, has anyone consolidated their student loans at less than 6.8% over the past year or two? I

Thanks for any help.

 

[TMP-SMX]

It lost my post I spent a while figuring out but you do get your sub loan interest waived if your monthly payments do not cover it. Problem is I'm not sure how they figure whether or not it is covered since monthly payments of roughly $280 on a lowly resident salary of 50,000 and a three person family amounts to $3360 per year while $2312 is the amount of sub interest per year at $193 per month.

You may become ineligible for IBR after year 7 if you make more than $210,000 on a $200,000 loan balance for a family of three. You can always make higher payments than necessary losing the unknown benefit of the sub interest waiver. Also remember that the small amount you pay on a resident salary will cause your loan balance to rise thousands every year.

There is a small benefit to making 12 monthly payments on time with your interest rate.