What would happen if one decides to switch to standard payment, or the government ceases the IBR, after a number of years in residency? Would the borrower be responsible for the accrued interests?
For example, someone graduates med school owing 350K is going accrue ~25k of interests annually. Using IBR during residency, he/she will pay only 5k/year. After 5 years of residency, 100k of accrued interests+ the compounded interests on those interests + 350k principle will result in a compounded total balance of 450K+. Would that be how much that person will owe if he/she switches to standard repayment plan after five years residency? or will he/she still owe only the initial principle amount of 350K?