Thank you! I think i get it now: if you want to do residency at any time while you still have AD to payback, then you must either do a mil. residency or apply for a deferment to do a civilian residency, then come back after that to finish your AD payback. That brings up the following questions: I know that you accrue more payback if you do the mil. residency, but what about the latter option (civilian res.)? Do you accrue any more payback time, or you still just owe when you complete your res. and return to the navy whatever you had left "on the clock" when you deferred? Also, you still owe 4 years of reserve status, yes? (or 8 years minus however long your AD ended up being?) What is that commitment like while you are in residency? If you get called back up, will that be an issue as far as picking up where you left off/still having a slot at your resident hospital? Thanks again to you and the other veteran docs on this forum for taking time to answer questions; in making a major life decision like this its great to be able to so easily talk to people on the other end of it.