All Branch Topic (ABT) HPSP Recipient With Loans From Before Med School - Options?

[AvrgPreMedKid]

I apologize if this has been covered. I did a brief search and didn't find what I was looking for. Anyways...

I have debt from a graduate/post-bacc program I did after undergrad (>$40k). My goal has been to pay it off during residency since we get a decent pay raise upon graduation from med school. However, I was wondering if the military offered something I could take advantage of. I've heard of some options that might increase my ADSO. I'm interested in hearing about any options.

Thanks in advance.

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[deleted707454]

$16,000 or so will come to you in way of signing bonus during the fall of your first semester. You'll likely get an additional 2,000 kickback on tax return in the spring. Depending on where you go to school, in a low cost of living, you could pay a couple hundred or so a month. I get $2200 monthly, but live in a relatively high rent area. Each summer has ADTs where you make O-1 base pay for a period of 6 weeks. You can activate SCRA benefits on that loan and maybe get some interest refunded, and pay a lower rate for each ADT. You could potentially pay half of that >40K off no sweat within a year.

Generally speaking. Private school tuition + primary care salary, HPSP is financially ideal. Most other specialties, or if a state school, you might be at a financial disadvantage overall. Its difficult to predict what specialty you'll end up landing (whether it be academic limit or personal desire). If you think you'll pursue a high salary as an attending, really crunch the numbers to see if HPSP would be worth it to you. 5 year residency in the military + 5 year payback at a military physician salary is likely to be much much lower overall value than what you could make as a civilian attending (even with $500k debt).

 

[AvrgPreMedKid]

$16,000 or so will come to you in way of signing bonus during the fall of your first semester. You'll likely get an additional 2,000 kickback on tax return in the spring. Depending on where you go to school, in a low cost of living, you could pay a couple hundred or so a month. I get $2200 monthly, but live in a relatively high rent area. Each summer has ADTs where you make O-1 base pay for a period of 6 weeks. You can activate SCRA benefits on that loan and maybe get some interest refunded, and pay a lower rate for each ADT. You could potentially pay half of that >40K off no sweat within a year.

Generally speaking. Private school tuition + primary care salary, HPSP is financially ideal. Most other specialties, or if a state school, you might be at a financial disadvantage overall. Its difficult to predict what specialty you'll end up landing (whether it be academic limit or personal desire). If you think you'll pursue a high salary as an attending, really crunch the numbers to see if HPSP would be worth it to you. 5 year residency in the military + 5 year payback at a military physician salary is likely to be much much lower overall value than what you could make as a civilian attending (even with $500k debt).

Sorry I should have clarified that I am already well into the HPSP program lol. Already used some of the money I have received to pay down some debt, but I don't see myself getting it below $40k before graduation. Wondering about programs the military has outside of HPSP for prior loans.

 

[deleted707454]

Sorry I should have clarified that I am already well into the HPSP program lol. Already used some of the money I have received to pay down some debt, but I don't see myself getting it below $40k before graduation. Wondering about programs the military has outside of HPSP for prior loans.

Oh ahha yep this changes everything!! Out of my knowledge to help you there... I would definitely look into the SCRA benefits though. USAA does better than the federally required 6% min and will give you 4% on any accrued loans prior to service. Not sure what your other loan's interest is at, but might help out.

 

[WernickeDO]

You can forego residency and go active, which will garner you a 15k bonus annually (taxed). Of course that idea is ludicrous.

Best bet is to chip away at it during residency and be aggressive when you become an attending. Have you read the White Coat Investor’s book?

I think you’re asking about military bonus programs and I’m only aware of the aforementioned.


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[AvrgPreMedKid]

You can forego residency and go active, which will garner you a 15k bonus annually (taxed). Of course that idea is ludicrous.

Best bet is to chip away at it during residency and be aggressive when you become an attending. Have you read the White Coat Investor’s book?

I think you’re asking about military bonus programs and I’m only aware of the aforementioned.


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I have perused the White Coat Investor's website, and I do plan to read his book in the near future! I'll probably just go with my original plan, maybe consider refinancing?

 

[militaryPHYS]

What about public service loan forgiveness? If you are HPSP then you will have active duty residency and active duty payback time. How long have you been paying the minimum payments? Are they federal loans? If you haven't missed any payments and you will hit 10 years (120 minimum payments) before you are done with your military time then you should qualify. Make sure you rule this out first before you refinance because refinancing negates eligibility for PSLF.

That being said, 44k is not a ton compared to most. You will have a good and steady paycheck with the military and can aggressively pay them off with an active duty resident salary, not to mention attending salary when you get there.

 

[militaryPHYS]

I haven't vetted this website yet but it seems to have a large list of different options. Whether or not they apply to you is another question. I will try to go through it as time allows. Let us know what you find out

https://studentloanhero.com/featured/military-student-loan-forgiveness-repayment/

 

[AvrgPreMedKid]

I haven't vetted this website yet but it seems to have a large list of different options. Whether or not they apply to you is another question. I will try to go through it as time allows. Let us know what you find out

https://studentloanhero.com/featured/military-student-loan-forgiveness-repayment/

Thank you, and to answer the previous questions, they are federal loans but I have not been making regular payments as I am using the school deferment currently. I have been paying down the interest when I can, but that is all.

 

[HighPriest]

I had about that same amount when I finished med school. I deferred during school. This was before any sort of bonus payment for HPSP, and at the time the stipend wasn't even enough to cover my rent (so I actually had to take out some small loans DURING med school....a lot of this changed about 2 years after I joined).

In any case, I paid off all of my loans during residency. It really wasn't that hard. I just didn't live lavishly. Now, I also didn't have any kids. So that makes a difference.