thorg12

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Hey guys just quick question. mine and my fiance debt is about 290,000, all federal loans, no private. our IBR would be about 850-900 a month. Our plan is to buy a house next year or the year after. My question is, bc im not really financially savy, should i forbear for a year and save for a house then begin IBR a year later(does the money capitlize then bc im changing status), or just do IBR and do whatever i can to save for a downpayment? thanks a lot.
 

TMP-SMX

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Sub staffords capitalize after each year of forbearance because you have to reapply every year. The unsub staffords capitalize after the grace period and after each year of forbearance.

Financially, it's a better idea to stick with IBR while you can because you won't be eligible after residency. Plus that $290,000 debt is pretty significant.
 

thorg12

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Nov 18, 2005
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Sub staffords capitalize after each year of forbearance because you have to reapply every year. The unsub staffords capitalize after the grace period and after each year of forbearance.

Financially, it's a better idea to stick with IBR while you can because you won't be eligible after residency. Plus that $290,000 debt is pretty significant.

im was under the impression that furing forbearance u only capitalize after grace period and after residency because you only have a one "change of status" this presentation seems to say this
https://admin.na5.acrobat.com/_a719980293/updatedmed2010/
my rought calculations seem to be my payments (for my 200k share of debt)after residency would be 2900 (forbearance) vs 2500(with IBR). Im just trying to figure out if the 400 a month on attendings salary vs paying significant ~900/month on 2 residents salaries.
more thoughts? or help with my calculations
 
Aug 19, 2009
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IBR forgives the remaining debt after 10 or 25 years, depending. I'd say that's a significant advantage that overshadows the possibility of saving a few bucks on a mortgage vs. renting.
 

thorg12

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i really appreciate your guys input. So the scenario would be start IBR now with the hope of loan forgiveness. My fiance's will be doing 6 years total(peds fellowship). Im doing EM(3 years). once i start making attending salary my IBR payment will ~equal (or200-400 less) my 10yr payment option ( am i thinking about this correctly?). So for this to be worth it i need to work for a 501cs company which is usually academic and pays much less than community. And would not have built an equity in a house bc I would not have enough to put down and the increase per month for a morgtage. Would the money be better spent going towards an investment (ie a house) and just paying the IBR for her, which hopefully they'll give us a smaller payment if its just her in IBR(~400) and not me and save for our house and pay whatver leftover towards loans?
 

TMP-SMX

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You have to reapply for forbearance every year. So each year there is a change in status and therefore your loans capitalize. Take a look here for the AAMC to go through some different scenarios.