Student Loans in Residency

[ophtholife12345]

I know finances are something not discussed in public, so would be curious what you guys say. I live in expensive city and despite living a modest lifestyle am still having trouble making my loan payments. Just curious how many may be in the same situation.

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[235009]

Are you doing income based repayment?


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[vm26]

I know finances are something not discussed in public, so would be curious what you guys say. I live in expensive city and despite living a modest lifestyle am still having trouble making my loan payments. Just curious how many may be in the same situation.

Out of training but during residency lived in an expensive city, made about $65-70K/year, rent was about $15-1600/month, loan repayments were about $900/month. My goal was to make 12 consecutive payments in order to get a decease in my interest rates, which I was able to do. Aside from that I think I only occasionally made repayments (in hindsight it would have been a bit tight but as a single person at that time, doable)

 

[InvestingDoc]

I had no interest in doing PSLF and I wanted to pay at least the interest on my loans while in residency. I refinanced and was able to pay more than interest accumulating every month and paid down some of my loan while in residency.

If you're having trouble making ends meet you have several options.

1. IBR
2. Choose to refinance and not be eligible for IBR plans
3. Forbearance as a last resort
4. Increase income by moonlighting or cut expenses by getting a roommate

As a side note, I was freaking out about paying 400-500 a month as an intern, figuring out how much this would effect my eventual debt wishing I could pay more. As an attending, I'm now throwing between 3-4k a month at the loans and could easily do more if I wasn't saving to buy a house. Don't freak out, the loans are manageable over time. Find a payment plan that helps you sleep at night while in residency while still trying to pay something towards the loans. Good luck!

 

[235009]

I had no interest in doing PSLF and I wanted to pay at least the interest on my loans while in residency. I refinanced and was able to pay more than interest accumulating every month and paid down some of my loan while in residency.

If you're having trouble making ends meet you have several options.

1. IBR
2. Choose to refinance and not be eligible for IBR plans
3. Forbearance as a last resort
4. Increase income by moonlighting or cut expenses by getting a roommate

As a side note, I was freaking out about paying 400-500 a month as an intern, figuring out how much this would effect my eventual debt wishing I could pay more. As an attending, I'm now throwing between 3-4k a month at the loans and could easily do more if I wasn't saving to buy a house. Don't freak out, the loans are manageable over time. Find a payment plan that helps you sleep at night while in residency while still trying to pay something towards the loans. Good luck!

I would recommend everyone should apply for IBR. You can always pay more than your IBR payment without penalty and it gives you a cushion if unexpected expenses come up one month and you can't put as much toward your loans whereas the alternative might be taking on high-interest consumer (credit card) debt. The only exception of course is if you're going to refinance for a lower rate though keep in mind those are adjustable rates and the fed is going to raise rates two more times this year.

 

[ophtholife12345]

It's nice to hear that it's less of a problem once you're making an attending salary. I have currently been in forebearance the past year after moving for residency and not having anything in savings after medical school. I considered refinancing to a private loan with a lower percentage but I was afraid of losing some of the benefits of the IBR program such as REPAYE 3 years out, where the government picks up your unpaid interest every month.

I have strongly considered refinancing as an attending. Doesn't make sense to pay 6.8% when you can pay %5.5 since none of the benefits of the IBR really necessary unless you go unemployed for a long period of time.