Loans for Disadvantage Students (LDS); Reconsolidate?

Discussion in 'Financial Aid' started by Juan Solo, Apr 18, 2017 at 7:17 PM.

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  1. Juan Solo

    Juan Solo 7+ Year Member

    Oct 12, 2009
    Los Angeles, CA

    Does anyone have any experience with Loans for Disadvantage Students (LDS)?

    I have 110K in LDS (which is subsidized throughout med school, residency and fellowship and fixed at 5%). I also have 24K in Perkins and about 20K in Direct unsubsidized.

    I recently meet with my FAO counselor and their advice for me was to NOT reconsolidate all of my loans with hopes of getting PSLF in 10 years. They stated that keeping my LDS as is and in deferment until I am done with fellowship and then begin making payments once I am an attending.

    They did mention to reconsolidate the 24K Perkins with the 20K Direct unsubsidized into a Direct Consolidation Loan and make payments while I am training.

    Any thoughts on LDS and or this scenario would be helpful. There is not a lot of info out there on LDS.

    Thanks Team!
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  3. RangerBob

    RangerBob Not a real ranger... 2+ Year Member

    Sep 16, 2012
    I've never heard of LDS. However, If you only owe ~$150k, you're going to be able to pay that off very quickly once you're an attending unless you take a very low job. You should be able to pay that off easily in 2-5 years depending on your specialty and how much lifestyle hit you're willing to take. I don't think it's worth aiming for PSLF since for one thing, we have no idea if it's going to stick around.

    Even if you do decide to consolidate, there's not point to doing that until you graduate if your interest is all subsidized while in-school.
  4. Juan Solo

    Juan Solo 7+ Year Member

    Oct 12, 2009
    Los Angeles, CA
    Thank you for thoughts! Yeah it is not exactly clear which way I should go but so far the consensus is to keep that 110K in the LDS format until I am done with residency/fellowship since it will be subsidized.
  5. fetorius


    Jul 27, 2016
    I think there are two aspects to think about here. If you consolidate the LDS, you will lose the subsidy but your payments will start counting toward PSLF right away.

    If you don't consolidate, which means no repayment plan (e.g., PAYE, REPAYE), your time in residency/fellowship won't count towards PSLF. So, you would have to wait until after fellowship to consolidate and will need to make 10 years worth of payments to qualify for PSLF on the 110K. Personally, with such a small amount, I say leave it alone so that the subsidy is covered and then just pay it all off once you finish fellowship.

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