What is the best repayment plan for dental school?

[ShneekyBiznaz]

If you have a 400k student loan and are making on average $200k per year, what is the best repayment option (standard 10-year, extended graduated, or income-based repayment)?

Also, keep in mind that with income-based repayment (IBR), after paying for 25 years, you get the rest of the loan forgiven plus ~35% tax on the amount forgiven. In the IBR plan you only pay 15% of your disposable income per year. So with a 400K student loan, what salary would you have to have to make it beneficial to have a IBR plan.

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[mmmsteakdinners]

Too much debt IMO

 

[suarez 7]

If you have a 400k student loan and are making on average $200k per year, what is the best repayment option (standard 10-year, extended graduated, or income-based repayment)?

Also, keep in mind that with income-based repayment (IBR), after paying for 25 years, you get the rest of the loan forgiven plus ~35% tax on the amount forgiven. In the IBR plan you only pay 15% of your disposable income per year. So with a 400K student loan, what salary would you have to have to make it beneficial to have a IBR plan.

Is it only 35% tax on the forgiven amount after 25 years? I thought after 25 years, the rest of the amount left in your loan balance is taxed?

 

[cwoodds]

Is it only 35% tax on the forgiven amount after 25 years? I thought after 25 years, the rest of the amount left in your loan balance is taxed?

I think he means the entire forgiven amount is taxed, at whatever your tax rate is (estimated at ~35%).

 

[Hailtothevictor]

d

 

[HupHolland]

If you have a 400k student loan and are making on average $200k per year, what is the best repayment option (standard 10-year, extended graduated, or income-based repayment)?

Also, keep in mind that with income-based repayment (IBR), after paying for 25 years, you get the rest of the loan forgiven plus ~35% tax on the amount forgiven. In the IBR plan you only pay 15% of your disposable income per year. So with a 400K student loan, what salary would you have to have to make it beneficial to have a IBR plan.

If you're honestly thinking about IBR because you want your unpaid loans to be forgiven by taxpayers, then you should be ashamed of yourself.

IBR is intended to help you make minimum payments when you can otherwise not make payments for the 10 or 20 yr schedule. For example, lets say you just get out of residency and you only found a job 3 days/week. As a dentist with an assumed high income after a few years, it doesn't financially make sense to to IBR.

The best repayment option is to pay it off as fast as possible. Live like a student for 6-8 more years and pay your darn loan off. I had $250k after school and I will be debt free in 3.5 years. At that point you can make some serious life decisions regarding a practice and home.

Just my strong opinion,
Hup