Dismiss Notice

Interview Feedback: Visit Interview Feedback to view and submit interview information.

Interviewing Masterclass: Free masterclass on interviewing from SDN and Medical College of Georgia

New way To pay off Student Loans

Discussion in 'Pre-Veterinary' started by cheathac, Aug 19, 2015.

  1. cheathac

    cheathac Purdue c/o 2021!!!
    2+ Year Member

    Joined:
    Apr 19, 2015
    Messages:
    1,006
    Likes Received:
    829
    Status:
    Pre-Veterinary
  2. WildZoo

    WildZoo Illegal in all 50, Unlynchable Wolf
    Gold Donor Classifieds Approved 5+ Year Member

    Joined:
    Apr 18, 2013
    Messages:
    38,550
    Likes Received:
    54,295
    Status:
    Veterinary Student
    To me this doesn't sound too different from a loan that you are paying via IBR but maybe I'm misunderstanding.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  3. cheathac

    cheathac Purdue c/o 2021!!!
    2+ Year Member

    Joined:
    Apr 19, 2015
    Messages:
    1,006
    Likes Received:
    829
    Status:
    Pre-Veterinary
    Well I believe that no interest accumulates. It's adjusted with income as well.. I'm not sure what the IBR is. Can you enlighten me?
     
  4. WildZoo

    WildZoo Illegal in all 50, Unlynchable Wolf
    Gold Donor Classifieds Approved 5+ Year Member

    Joined:
    Apr 18, 2013
    Messages:
    38,550
    Likes Received:
    54,295
    Status:
    Veterinary Student
    Ah that's what i missed. The no interest part would be nice.

    IBR is income based repayment, so a similar thing, your monthly minimum payments are adjusted based on your income. After 20 (or 25? I always forget) years whatever is left is forgiven but you have to pay income tax on that amount. So this new plan sounds like they take a certain amount of your income until the full amount is paid off. Since it doesn't accumulate interest that might actually work out well. But i don't know, I'm not that financially savvy (yet).
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
    psuforever390 likes this.
  5. cheathac

    cheathac Purdue c/o 2021!!!
    2+ Year Member

    Joined:
    Apr 19, 2015
    Messages:
    1,006
    Likes Received:
    829
    Status:
    Pre-Veterinary
    Me neither.. I know many have shown their displeasure. but to me it's appealing. There are caps I believe, your payments can't exceed 15% if on the shorter plan.. I can't remember the longer plan cap. And if you earn less than 18,000 a year you don't pay the investors at all? Seems interesting to look into. Especially since specializing and doing a residency is what I would love to do.
     
  6. Gwenevre

    Gwenevre Research Pig Chick
    2+ Year Member

    Joined:
    Feb 17, 2014
    Messages:
    5,477
    Likes Received:
    5,749
    Status:
    Non-Student
    I think the longer term cap is around 7%. I saw this on my feed as well. I think it's a good option for students who know that they will be entering low-income jobs immediately post-graduation, but if I knew that my field averaged 60k post-undergrad, I would not be a fan of only paying %15 if I could feasibly pay a larger amount of loans in a shorter amount of time.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...

Share This Page