MSIV... may not qualify for hardship deferment

[j_sde]

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i started looking around consolidation/deferment issues... and learned that I may not be able to qualify for hardship deferement. heres the deal:

I have the max $38,500 each yr/ x 4 yrs = $154,000 in stafford loans. But...

If i end up in one of the higher paying internships such as in nyc or boston which pay $45-47k, I will NOT pass the eligibility for hardship deferment according to T.H.E.'s online site.

http://www.northstar.org/hardshipcalc.aspx?typ=Consolidation#results

that really really sucks.... cuz... i've basically taken max out loans, but will not qualify for deferment??

anyone have tips/help on this manner? thanks,

 

[OSUdoc08]

i started looking around consolidation/deferment issues... and learned that I may not be able to qualify for hardship deferement. heres the deal:

I have the max $38,500 each yr/ x 4 yrs = $154,000 in stafford loans. But...

If i end up in one of the higher paying internships such as in nyc or boston which pay $45-47k, I will NOT pass the eligibility for hardship deferment according to T.H.E.'s online site.

http://www.northstar.org/hardshipcalc.aspx?typ=Consolidation#results

that really really sucks.... cuz... i've basically taken max out loans, but will not qualify for deferment??

anyone have tips/help on this manner? thanks,

Just sign up for the 30-year payment plan, so your monthly payments will be divided by three (as opposed to the usual 10-year plan.)

 

[j_sde]

Just sign up for the 30-year payment plan, so your monthly payments will be divided by three (as opposed to the usual 10-year plan.)

not true... i believe the deferement criteria are already based on a 10 yr monthy repayment plan. its their policy already and set.

yes, i could sign up for a 30 yr plan so i could pay less per month. but i still wouldnt be able to get deferement.

my question is, can /how can i get deferment? can i add my undergrad loans (roughly 20k)... can i twist the numbers someway... etc?

 

[j_sde]

appreciate you trying to help man... but again, a 'deferment' is something you do when you are a student OR when you a resident and able to claim economic hardship based on your monthy salary vs total loan vs national poverty level criteria.

so as a resident, i would be able to claim deferement as long as i meet that criteria. and yes, i know that a 30yr plan is an alternative if i dont... but my question is can I get that deferement based on my 150K plus loan amount and $45k up yr salary?

any residents or MSIV with experience?
thanks

 

[NinerNiner999]

It sounds like you will need a forbearance, which will get you through residency without payment, but accumulate interest on both your subsidized and unsubsidized portions of your loan (as opposed to only the unsub when in economic deferrment). If I were you, I would consolidate for 30+ years (some do up to 40 years) ASAP while rates are low and drop your required monthly payment. Lock the rate in now and ride out three years of forbearance with interest. If you do that math, that comes out to $4500 per year in interest, or about $375 per month if you want to pay it to keep it down. My advice is go with the forbearance and ride it out - an extra $13500 when you get out of residency is worth the hassle of making payments and stretching your already thin salary. Besides - it won't be much more (maybe $30 per month) added onto your consolidated payment when you get out... That's what I'm going to do.

 

[mpp]

Don't know if you used the calculator incorrectly or what, but if you make $45K per year and have $154,000 in loans at today's rates, then you qualify for hardship deferment.

 

[NinerNiner999]

By my math I don't think he can earn more than $45,700. How did you calculate this?

 

[j_sde]

i dont think i miscaculated it... i just plugged in the numbers on the T.H.E. calculator. ..

nyc and boston programs have pgy1 salary of roughly $47k. ex. BU, st.lukes roosevelt prelim..

any other tips?

 

[surg4me]

If I sign up for a 30-year payment plan, can I pay off the loan ealier (within 15 years) if I make larger payments (hopefully when I enter practice)? Is there a penalty for paying off my loans early?

If I could pay off a 30 year loan in 15 years, shouldn't I try to sign up for a 40 year payment plan to make my monthly payments small while in residency...then start paying off huge chunks when I enter practice?

Any advice on how to choose a consolidation provider? Which company is good? What questions should I be asking?

 

[mpp]

I think a good start would be to ask the consolidation lender the same questions you just asked us. But also ask about options for deferment during residency. Deferment is based on monthly payment. Have a low monthly payment may make you ineligible for deferment.

 

[Homunculus]

you should be able to get at least one year of economic hardship fairly easily. you can use the income you made as an MSIV as your income when applying for your first year of hardship. if you read the definition of monthly income used for hardship calculation it is either your monthly salary as an intern *or* the previous years adjusted gross yarly income divided by 12.

this is what i did as a military intern (making around 60k this year) and was approved for my first year.

next year will be a challenge to qualify for though, lol. we'll see what happens.

--your friendly neighborhood saving his money caveman