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Here is a preliminary calculation of borrowing, debt and repayment of debt. This calculation assumes that all debts can be paid off over 30 years and:
a) Med Students can borrow $8,500 per year under the subsidized Stafford loan at 6.5% and interest on the subsidized Staffords does not begin accruing until the end of residency;
b) Med Students can borrow $38,500 per year under the unsubsidized Stafford loan at 6.5% and interest on the subsidized Staffords begins accruing upon disbursal at the beginning of the school year; and
c) Grad Plus loans accrue interest at 8.5% per year upon disbursal.
With subsidized Stafford loans total indebtedness upon graduation from med school and residency would simply equal the sum of med school borrowings. Due to the non-accrual of interest in med school and residency the debt owed upon the end of residency would at the maximum be $34,000 and monthly payments over 30 years on that debt would be $214.90 or 2.53% of the annual borrowing of $8,500.
With unsubsidized Stafford loans total indebtedness upon graduation from med school would equal (assuming interest accruing at 6.5% and steady borrowing through med school) 4.69 times annual borrowings. Upon graduation from a five year residency program total debt would equal 6.43 times annual borrowings. If you borrowed $38,500 under the unsubsidized program you would owe $180,705 upon graduation from med school and $247,582 upon graduation from a five year residency. The monthly payment over 30 years would be $1,142 or 2.97% of the annual borrowing of $38,500.
With Grad Plus loans total indebtedness upon graduation from med school would equal (assuming interest accruing at 8.5% and steady borrowing through med school) 4.93 times annual borrowings. Upon graduation from a five year residency program total debt would equal 6.75 times annual borrowings. If you borrowed $20,000 under the Grad Plus program you would owe $98,507 upon graduation from med school and $134,964 upon graduation from a five year residency. The monthly payment over 30 years would be $757 or 3.79% of the annual borrowing of $20,000.
Please tell me if I am wrong about this. 😕
a) Med Students can borrow $8,500 per year under the subsidized Stafford loan at 6.5% and interest on the subsidized Staffords does not begin accruing until the end of residency;
b) Med Students can borrow $38,500 per year under the unsubsidized Stafford loan at 6.5% and interest on the subsidized Staffords begins accruing upon disbursal at the beginning of the school year; and
c) Grad Plus loans accrue interest at 8.5% per year upon disbursal.
With subsidized Stafford loans total indebtedness upon graduation from med school and residency would simply equal the sum of med school borrowings. Due to the non-accrual of interest in med school and residency the debt owed upon the end of residency would at the maximum be $34,000 and monthly payments over 30 years on that debt would be $214.90 or 2.53% of the annual borrowing of $8,500.
With unsubsidized Stafford loans total indebtedness upon graduation from med school would equal (assuming interest accruing at 6.5% and steady borrowing through med school) 4.69 times annual borrowings. Upon graduation from a five year residency program total debt would equal 6.43 times annual borrowings. If you borrowed $38,500 under the unsubsidized program you would owe $180,705 upon graduation from med school and $247,582 upon graduation from a five year residency. The monthly payment over 30 years would be $1,142 or 2.97% of the annual borrowing of $38,500.
With Grad Plus loans total indebtedness upon graduation from med school would equal (assuming interest accruing at 8.5% and steady borrowing through med school) 4.93 times annual borrowings. Upon graduation from a five year residency program total debt would equal 6.75 times annual borrowings. If you borrowed $20,000 under the Grad Plus program you would owe $98,507 upon graduation from med school and $134,964 upon graduation from a five year residency. The monthly payment over 30 years would be $757 or 3.79% of the annual borrowing of $20,000.
Please tell me if I am wrong about this. 😕
