$0 payments with REPAYE still possible intern year?

[CingulateGyro]

Hey,

Like many other interns, my loans are about to enter repayment.

Unfortunately I did learn of the consolidating right after graduation so you can truthfully declare $0 income trick until it was too late.

I filed taxes last year and my AGI is $0. When I go through with the IBR application, it asks if our income has significantly increased or decreased now. I called my servicer and unfortunately they have to estimate it from my paystub and gave me an estimate of $400/month payments (higher than average income due to being in an extremely high COL area)

Anyone else in a similar position? Anyone checking if their income has not significantly changed? I’ve searched and there doesn’t seem to be a clear consensus.

The $400/month will make my life living hell but if it will avoid capitalization I may have to do it.

---

Members don't see this ad.

 

[RangerBob]

I and everyone else faced the same situation-unless you consolidate or lie that your income is no different, then you will not be able to get $0 payments. Early on people got $0 payments, but those days are gone. There’s even a threatening enforcement statement on the application warning not to lie (I’m not sure if that’s actually enforced and/or who does it-but why lie just to save $400/month for one year?)

I think there’s a pretty clear consensus that you income definitely changes from making nothing in MS4 to 50k/yr in PGY1. There is less consensus on what constitutes a significant income difference after that (5k raise? 10k?)

However, your interest will capitalize regardless of what you do. It either capitalizes is if you consolidate, or it capitalized when you start repayment (ie. In six months when your grace period ends).

It’s not the worst thing to get used to making those payments now-you’re going to have to pay $400/month for all of residency, assuming you plan to make payments (you could defer and let interest rack up). Some folks claim their income is the same when they certify in PGY2 and get lower payments (because you only make half a years salary in that first tax year), but that’s not considered kosher either.