Repaying Medical School Loans

[becool5]

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Hello,
I am a new medical student starting this Fall and like many students I am freaking out about loans. I am particulary concerned with the new Deferrent Law that goes into effect this summer. Are there ways to avoid drowning in debt or living in poverty? I mean I know most residents live like they are poor now, but if you have a $200,000 loan I can't imagine you would be able to make payments and survive on a typical resident's salary. Is it possible to stretch the loan to 25 years and if so is this difficult to do?

Also, is it still possible to enter into a graduated payment schedule where you pay less as a resident and more afterwards and again this is diffiicult to obtain?

I believe it is still possible to enter into forebearance, can someone explain the difference between forebearance and deferment. I am sorry if these seem like stupid questions, but I am just so overwhelmed. I tried googling the answers, but I didn't have much luck so I am coming here. Thanks so much!

 

[Sol Rosenberg]

Hello,
I am a new medical student starting this Fall and like many students I am freaking out about loans. I am particulary concerned with the new Deferrent Law that goes into effect this summer. Are there ways to avoid drowning in debt or living in poverty? I mean I know most residents live like they are poor now, but if you have a $200,000 loan I can't imagine you would be able to make payments and survive on a typical resident's salary. Is it possible to stretch the loan to 25 years and if so is this difficult to do?

Also, is it still possible to enter into a graduated payment schedule where you pay less as a resident and more afterwards and again this is diffiicult to obtain?

I believe it is still possible to enter into forebearance, can someone explain the difference between forebearance and deferment. I am sorry if these seem like stupid questions, but I am just so overwhelmed. I tried googling the answers, but I didn't have much luck so I am coming here. Thanks so much!

Deferment = You don't need to pay, interest does not accrue
Forbearance = You don't need to pay, interest accrues

 

[TMP-SMX]

Deferment = You don't need to pay, interest does not accrue
Forbearance = You don't need to pay, interest accrues

Just an added note: Interest is still building during deferment but it hasn't capitalized yet which means that it hasn't accrued being added to the principal (the amount you take out). Another note is that during deferment, interest does not even build on subsidized Stafford loans unlike unsubsidized Stafford loans.

If you want to know more about the changes in residency deferment read up. Yes a 25 year payment plan is possible and yes it can be affordable under the new plan.