MED123 said:
Wow Adapt, great job.
Thanks MED. Just to be thorough, the following is how I calculated the numbers...
This is if you borrow 32K in unsusidized, and 8.5K in subsidized. The subsidized doesn't accrue through your 4 years so it will be 34K in total.
The unsubsidized total will be 132K before interest. Using the following accrued interest calculator, at a 5% rate after 54 months of borrowing 132K (48 plus 6 extra months because you are given a 6 month grace period), it will accrue plus interest to be $161,700.
http://salliemae.wiredscholar.com/financing/lt_financial_planning/ltfp_accint.jsp
Then you would file for econonmic hardship deferment for 3 years and you will qualify, your subsidized won't accrue during this but your unsubsidized will. It will reach up to $181,500 using the calculator again (with 38 as the number of months without paying the loans which is 3 years of residency).
Now if you add the the 34K from the subsidized portion that will give you about 215K after 3 years of residency. If the interest rate was at 4%, you would have owed less than 215K especially when interest rates are this low.
In my previous post I said you would owe 220K but again that was an estimate and more likely if the interest rate reached 6% to 7%.
As for paying some off during residency it is possible but difficult. A resident makes about 40K a year which after taxes is 24K net a year or about 2K a month to live off of.
Unless you can raise a family with just 2K a month most residents end up doing the economic deferment so they don't have to pay their loans off till after residency.
