I just got locked in the PAYE (Pay As You Earn Repayment Program) before I start dental school. My monthly payments are set at $0 since I didn't work (file taxes) last year. I'm wondering if I should decline deferment while I'm in dental school, since I won't work and my $10,000 unsubsidized direct loan (6.8%) won't accrue interest (government subsidizes interest).
Q17
If I return to school and qualify for an in-school deferment on my Direct Loans that are in repayment, can I decline the deferment and make qualifying PSLF payments while I am in school?
A17
Yes. You may decline an in-school deferment on your loans that are in repayment status and make payments on those loans while you are in school. If you decline your in-school deferment, any qualifying payments you make will count toward the 120 required payments for PSLF. Remember, you must be employed full-time by a public service organization while you attend school for your payments to qualify for PSLF.
The option of declining an in-school deferment also applies to any new Direct PLUS Loans for graduate or professional degree students you receive when you return to school. Direct PLUS Loans for graduate or professional degree students enter repayment after they are fully disbursed (while you are still in school), but are eligible for an in-school deferment while you are enrolled in school at least half time.
If you receive new Direct Subsidized Loans or Direct Unsubsidized Loans when you return to school, you will not be able to make qualifying PSLF payments on those loans while you are in school. Any new Direct Subsidized Loans and Direct Unsubsidized Loans you receive will not enter repayment until the end of the six-month grace period that begins the day after you cease to be enrolled in school on at least a half-time basis. You cannot make payments under a PSLF-eligible repayment plan until a loan has entered repayment status. Although you could voluntarily make payments on your new Direct Subsidized Loans and Direct Unsubsidized Loans while you are in school or during your grace period, those payments would not count as PSLF-qualifying payments.
Next concern, I'm planning to specialize in ortho and I'm wondering if there are any qualified PSLF (Public Service Loan Forgiveness) non-profit organizations I could work for after getting my ortho license. In fact, would it be possible to set up and my own private non-profit practice and hire dentists seeking PSLF for 10 years? If graduating dentists with $400k+ direct loan debt could get their loans forgiven in ten years, there will be demand for these non-profit positions in the future.
Q27
If I am repaying my Direct Loans under the IBR or Pay As You Earn Plan, what will happen if I am determined to no longer have a partial financial hardship and therefore no longer have a payment that is based on my income? Will my monthly payments continue to count for PSLF?
A27
Yes. Although you must have a partial financial hardship to initially qualify for IBR and Pay As You Earn, you may remain in the IBR or Pay As You Earn Plan even if you are later determined to no longer have a partial financial hardship. However, your monthly payment will be adjusted and will no longer be based on your income. As long as you remain in the IBR or Pay As You Earn Plan, your monthly payments will count toward the required 120 payments for PSLF.
http://studentaid.ed.gov/sites/default/files/public-service-loan-forgiveness-common-questions.pdf
The underlying problem with dentistry is that tuition is outrageously expensive and we have to search these concealed ways to pay it off.
Q17
If I return to school and qualify for an in-school deferment on my Direct Loans that are in repayment, can I decline the deferment and make qualifying PSLF payments while I am in school?
A17
Yes. You may decline an in-school deferment on your loans that are in repayment status and make payments on those loans while you are in school. If you decline your in-school deferment, any qualifying payments you make will count toward the 120 required payments for PSLF. Remember, you must be employed full-time by a public service organization while you attend school for your payments to qualify for PSLF.
The option of declining an in-school deferment also applies to any new Direct PLUS Loans for graduate or professional degree students you receive when you return to school. Direct PLUS Loans for graduate or professional degree students enter repayment after they are fully disbursed (while you are still in school), but are eligible for an in-school deferment while you are enrolled in school at least half time.
If you receive new Direct Subsidized Loans or Direct Unsubsidized Loans when you return to school, you will not be able to make qualifying PSLF payments on those loans while you are in school. Any new Direct Subsidized Loans and Direct Unsubsidized Loans you receive will not enter repayment until the end of the six-month grace period that begins the day after you cease to be enrolled in school on at least a half-time basis. You cannot make payments under a PSLF-eligible repayment plan until a loan has entered repayment status. Although you could voluntarily make payments on your new Direct Subsidized Loans and Direct Unsubsidized Loans while you are in school or during your grace period, those payments would not count as PSLF-qualifying payments.
Next concern, I'm planning to specialize in ortho and I'm wondering if there are any qualified PSLF (Public Service Loan Forgiveness) non-profit organizations I could work for after getting my ortho license. In fact, would it be possible to set up and my own private non-profit practice and hire dentists seeking PSLF for 10 years? If graduating dentists with $400k+ direct loan debt could get their loans forgiven in ten years, there will be demand for these non-profit positions in the future.
Q27
If I am repaying my Direct Loans under the IBR or Pay As You Earn Plan, what will happen if I am determined to no longer have a partial financial hardship and therefore no longer have a payment that is based on my income? Will my monthly payments continue to count for PSLF?
A27
Yes. Although you must have a partial financial hardship to initially qualify for IBR and Pay As You Earn, you may remain in the IBR or Pay As You Earn Plan even if you are later determined to no longer have a partial financial hardship. However, your monthly payment will be adjusted and will no longer be based on your income. As long as you remain in the IBR or Pay As You Earn Plan, your monthly payments will count toward the required 120 payments for PSLF.
http://studentaid.ed.gov/sites/default/files/public-service-loan-forgiveness-common-questions.pdf
The underlying problem with dentistry is that tuition is outrageously expensive and we have to search these concealed ways to pay it off.
