What did you do with your loans?

[RUcereus]

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Well, the thread title says it all. To defer or do IBR. I'm sitting with about $185K in debt. Initially, I was going to do IBR and after 10 years have it forgiven, however, once you make attending pay (>$200,000 or so) you know longer qualify for IBR so, therefore do we no longer qualify for the public service loan forgiveness? I am tempted to just defer and worry about it later. What are you doing/did you do?

Peace, love and radiation.

 

[drugfactscont]

IBR is the smartest thing to do. You will always qualify for IBR, even at attending base salaries. Your monthly payments will go up, thats all.

There are 2 options in terms of income base repayment: IBR and pay as you earn. As of right now, pay as you earn is the best option. Some of the perks are: for 3 years, the stafford loans will continue to be subsidized. Just google Pay-as-you-earn and you'll learn plenty.

In terms of the public service loans, as long as you are IBR, working at a "non-profit" hospital for at least 10 years, you will have the ability to get your loans forgiven. Most academic hospitals and most community hospitals are non profit.

The biggest question is, will this public service forgiveness still exist in 10 years. This was implemented in 2007, meaning that the first round of physicians' loans won't be forgiven until 2017. Who knows if the government will get rid of this by then since most physicians will qualify under this requirement (because again, most hospitals are non-profit)?

So bottom line, it's is always the smartest thing to start making payments on your loans.

 

[ar2388]

you can only do pay as you earn if you have no loans before 2007. If you do, you no longer qualify for pay as oyu earn even if those loans are repaid.

 

[RUcereus]

PAYE looks pretty good, Im guessing thats what most do?

 

[Deceptacon]

i'm doing pay as you earn, but i was lucky (i guess?) to not have any federal loans prior to 2007. but having graduated high school in 2004, i'm sure plenty of people in our year (c/o 2013) do have federal loans from 04-07 who will have to do ibr instead of paye.

 

[Doctor D]

If you have loans before 2007 you can consolidate your loans and then qualify for pay as you earn. You will forget your 6 month grace period however.

 

[ar2388]

If you have loans before 2007 you can consolidate your loans and then qualify for pay as you earn. You will forget your 6 month grace period however.

no even if you consolidate, you do not qualify. I have my fiancnial aid counselor look into this

 

[badasshairday]

I'm finishing up PGY-1 and have been on IBR for the past 6 months.

Can I switch to PAYE when it is time to update my servicer in 6 more months for renewal of IBR?

I had undergrad loans prior to 2007, but they have all been paid off. My only educational loans are medschool from 2008-2012.

 

[DrBowtie]

IBR during residency then planning to pay them off completely within 5 years.

 

[ar2388]

I'm finishing up PGY-1 and have been on IBR for the past 6 months.

Can I switch to PAYE when it is time to update my servicer in 6 more months for renewal of IBR?

I had undergrad loans prior to 2007, but they have all been paid off. My only educational loans are medschool from 2008-2012.

No. after extensive talks with my financial aid advisor, the conclusion was that the ONLY people who can do PAYE are those who have NO loans prior to 2007. even if they are paid off, it doesnt count.. any loans, paid or not, that were started before october (i think?) 2007 make you ineligible

 

[projectlogic]

no. After extensive talks with my financial aid advisor, the conclusion was that the only people who can do paye are those who have no loans prior to 2007. Even if they are paid off, it doesnt count.. Any loans, paid or not, that were started before october (i think?) 2007 make you ineligible

damn it!

 

[ar2388]

damn it!

yea i know 🙁

 

[badasshairday]

yea i know 🙁

Stinks. I wish we could still defer loans like residents did in the past. Such bs. Nobody has the crushing debt to income ratio like resident physicians.

 

[RUcereus]

Stinks. I wish we could still defer loans like residents did in the past. Such bs. Nobody has the crushing debt to income ratio like resident physicians.

Wha? I was told I could still defer if, I just needed to fill out some paperwork.

Second question, If you do PAYE can you defer or forbear later?

 

[ar2388]

i thought we could forbear... is that not something we want to do?

 

[TheWeeIceMan]

It's my understanding (as a pre-med) that you can no longer defer loans through residency (no interest accumulating during this time). You can forbear, but interest will continue to stack up.

 

[Phlame217]

Defer was where your loans were frozen and you picked up where you left off upon graduating residency.

Forbear is where the interest continues to stack up and ultimately compounds yearly (if I remember right).

Both options you make no payments

 

[Lolscan]

Defer was where your loans were frozen and you picked up where you left off upon graduating residency.

Forbear is where the interest continues to stack up and ultimately compounds yearly (if I remember right).

Both options you make no payments

Go with pay as you earn. Just do the minimum and invest your money elsewhere during residency. With IBR and pay as your earn, the interest does not capitalize during "partial financial hardship". Basically during your residency, the interest does not capitalize and once you become an attending only 10% of the interest capitalize. So your loans are not a real loan in which they grow exponentially. Therefore if you saved any money during residency, you should invest it in something (house, foreign currency are both pretty hot right now).