REPAYE interest subsidy

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zybandozi

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7+ Year Member
Question about REPAYE interest subsidy. I couldn't easily find an answer so maybe someone out there knows. I have 4 unsubsidized stafford loans from medical school and plan on utilizing the REPAYE interest subsidy during residency. If I pay the minimum on 3 loans and dump any extra money into making extra payments on my 4th loan, what happens to the interest subsidy? Will uncle sam subsidize interest on my other 3 loans?

How often is the subsidy calculated? per month? per year?
 
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A monthly subsidy credit is applied based on the amount due, not the borrower's actual payment made. This presumes accrued interest on loan #4. If, at some point, you're paying down the principal, you may not be accruing interest on loan #4.
 
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