Student Loan Repayment

[ToothDMD]

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Hello,

I wanted to hear other new grad's experiences/strategies in terms of student loan repayment. I have about $450k in student loan debt and will be in residency making about $55k a year. Is everyone that is going into residency going into the new RAP plan?

 

[Pablo Sanchez]

I graduated in 2022 and my strategy was to live at home with my parents and pay it down aggressively. Paid off the entire $250k balance in just over a year. This was definitely the move for me and has freed me up a ton financially.

 

[SuxDrugs&Rocuronium]

I personally would avoid RAP and go into forbearance during residency. You’re monthly payment will be low during residency on RAP but then as your income grows during practice your RAP payments (10% of income) can be pretty high depending on your income. For example my standard payment will be about $2500/month but if I signed up for RAP I’d be paying closer to $6,000 per month. Yeah I’d pay them off faster but I can do that with a standard plan if I want. And the forgiveness aspect is moot because with a higher monthly payment you’ll pay them off before you hit the 30 year period.

 

[ToothDMD]

I personally would avoid RAP and go into forbearance during residency. You’re monthly payment will be low during residency on RAP but then as your income grows during practice your RAP payments (10% of income) can be pretty high depending on your income. For example my standard payment will be about $2500/month but if I signed up for RAP I’d be paying closer to $6,000 per month. Yeah I’d pay them off faster but I can do that with a standard plan if I want. And the forgiveness aspect is moot because with a higher monthly payment you’ll pay them off before you hit the 30 year period.

Can I just go on RAP for residency then switch to standard repayment once I'm done?

 

[mangler]

I personally would avoid RAP and go into forbearance during residency. You’re monthly payment will be low during residency on RAP but then as your income grows during practice your RAP payments (10% of income) can be pretty high depending on your income. For example my standard payment will be about $2500/month but if I signed up for RAP I’d be paying closer to $6,000 per month. Yeah I’d pay them off faster but I can do that with a standard plan if I want. And the forgiveness aspect is moot because with a higher monthly payment you’ll pay them off before you hit the 30 year period.

Why not just change plans when you graduate then? If you do RAP in residency you can prevent interest from accumulating for a low monthly fee. Not sure why you would even do anything else. Interest will always accumulate otherwise AFAIK even during forbearance.

 

[ToothDMD]

Why not just change plans when you graduate then? If you do RAP in residency you can prevent interest from accumulating for a low monthly fee. Not sure why you would even do anything else. Interest will always accumulate otherwise AFAIK even during forbearance.

Thats what I was thinking. Go on to RAP plan during residency, then switch to standard repayment and making extra payments.

 

[gorilla3]

marry a rich spouse. be stay at home trophy spouse. 🙂

 

[SigmaFS]

Hello,

I wanted to hear other new grad's experiences/strategies in terms of student loan repayment. I have about $450k in student loan debt and will be in residency making about $55k a year. Is everyone that is going into residency going into the new RAP plan?

Yes, RAP provides an interest subsidy if your payments are insufficient to cover the interest due, which will be the case while in residency. After residency, you then decide how to proceed.

 

[jva94]

I thought once you sign up for RAP you are stuck in it and cannot switch out

 

[SuxDrugs&Rocuronium]

Thats what I was thinking. Go on to RAP plan during residency, then switch to standard repayment and making extra payments.

If that’s a possibility by all means do it if it means you’ll accrue less interest than just being in forbearance. Just make sure you can switch to standard repayment after residency

 

[SuxDrugs&Rocuronium]

Thats what I was thinking. Go on to RAP plan during residency, then switch to standard repayment and making extra payments.

If that’s a possibility by all means do it if it means you’ll accrue less interest than just being in forbearance.

 

[TanMan]

marry a rich spouse. be stay at home trophy spouse. 🙂

Or just find a sugardaddy/sugarmomma to pay for everything + allowance. It's easier and less messy 😆. I know a couple of people who did that (not for dental school, but for other types of schooling. Then when you graduate and if/when you want to exit the lifestyle, you're free of debt obligations, with all the other things that you got out of your agreement/arrangement such as a car, house, or connections you developed during that time. Although TBH, a lot of dental students don't have the look and attitude to pull it off.

Edit: Looks aren't everything (or what we think is considered beautiful). You'll be surprised that there are some less than conventional things that guys are looking for. Some guys like really thick girls, some want to get punched in the junk, and so on... lots of stories abound hahaha.

 

[SigmaFS]

I thought once you sign up for RAP you are stuck in it and cannot switch out

Once in RAP, you can't move into another IDR plan. You can refinance with a private lender, accelerate payments, amortize over a short term, etc.

 

[AlbinoPolarBear]

Or just find a sugardaddy/sugarmomma to pay for everything + allowance. It's easier and less messy 😆. I know a couple of people who did that (not for dental school, but for other types of schooling. Then when you graduate and if/when you want to exit the lifestyle, you're free of debt obligations, with all the other things that you got out of your agreement/arrangement such as a car, house, or connections you developed during that time. Although TBH, a lot of dental students don't have the look and attitude to pull it off.

Edit: Looks aren't everything (or what we think is considered beautiful). You'll be surprised that there are some less than conventional things that guys are looking for. Some guys like really thick girls, some want to get punched in the junk, and so on... lots of stories abound hahaha.

I dated a rich girl when I was in undergrad. She was an international student from Korea. She really liked me, and wanted to introduce me to her parents. Her parents had a lot of properties in Korea, multi-millionaires. She wanted to marry me, and I could have been a stay at home husband. But I thought I was too young to fully commit,, and I broke it off. I wanted to find true love.

It's 15 years, and every time I go to work and take out teeth for money, I think about that girl that got away. Also, I haven't found true love yet either.

 

[TanMan]

I dated a rich girl when I was in undergrad. She was an international student from Korea. She really liked me, and wanted to introduce me to her parents. Her parents had a lot of properties in Korea, multi-millionaires. She wanted to marry me, and I could have been a stay at home husband. But I thought I was too young to fully commit,, and I broke it off. I wanted to find true love.

It's 15 years, and every time I go to work and take out teeth for money, I think about that girl that got away. Also, I haven't found true love yet either.

Yeah, I'm not talking about true love, lol. Marriage changes people, and more often than not, for the worse. If you're marrying for money, the power dynamic changes a bit unless you plan to divorce and walk away with a bunch of money then you suck it up until you do. Also, certain cultures look down upon men (assuming you are a guy) who are stay at home husbands.

I'm glad I never got married. Most of my friends regret getting married. Seems like I dodged a few bullet(s)

 

[JacquesVallee]

Yeah, I'm not talking about true love, lol. Marriage changes people, and more often than not, for the worse. If you're marrying for money, the power dynamic changes a bit unless you plan to divorce and walk away with a bunch of money then you suck it up until you do. Also, certain cultures look down upon men (assuming you are a guy) who are stay at home husbands.

I'm glad I never got married. Most of my friends regret getting married. Seems like I dodged a few bullet(s)

This is a depressing perspective.

 

[TanMan]

This is a depressing perspective.

It is, but what's worse is the lengths that people go to fake and project a happy life and relationship when both parties are usually not happy, with one or both leading their own secret lives.