Loan Repayment Options

[Gut Shot]

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A query for those already in residency:

Now that I'm $130,422 in the hole, and the last disbursement has been made, it's time to consolidate! I have been leaning towards the income contingent repayment plan, but I'd like to get the opinions of those who have gone before me.

I'm unmarried with no dependents and will have no income aside from residency (and eventually perhaps some moonlighting).

Thanks!

 

[Doctor B.]

I consolidated using the federal government and chose the 30 year option. It gives you the lowest monthly payments but there is no pre-pay penalty meaning you can pay as much as you want over the minimum each month. I don't recall what the income contingent repayment plan was...

 

[xanthines]

Conslidate your loans to lock in a low interest rate (probably the lowest you'll ever see in your lifetime). See if you can defer payments while you're still a resident, if you want. The interest still racks up, but theoretically you should be able to handle it once you're an attending. You can try making payments as a resident, but it depends on your lifestyle, living conditions, etc etc. Your choice on that. If you're interested in research (and as a pathologist, you have many opportunities), try going for the NIH loan repayment programs. They will pay up to $80K, I think, if your research is within their specified fields. You have enough debt to qualify, so go do some researchin'!

-X

A query for those already in residency:

Now that I'm $130,422 in the hole, and the last disbursement has been made, it's time to consolidate! I have been leaning towards the income contingent repayment plan, but I'd like to get the opinions of those who have gone before me.

I'm unmarried with no dependents and will have no income aside from residency (and eventually perhaps some moonlighting).

Thanks!

 

[LADoc00]

Dont count on moonlighting, see other thread. I have known residents to totally screw themselves over a crap moonlighting gig too. Its just not worth it for path.

I basically did that for my loans as well. Get locked in interests rate now.

For those worrying about loans:
Consolidating 180K in loans at the current fixed interest rate would only come out to around 1500/month or less. Assuming a solid job after taxes you are taking home over 8K, take out expenses and loans, and you can still make 4K month home payments!

Yes, not as good as stripping where you can make 3K/week, have no loans and pay no income tax (and be 18), but its decent. 😡

 

[yaah]

Have you studied this stripping thing? Rather interesting. I was always under the impression that strippers didn't get a ton of money unless they considered themselves to be more than just a stripper (if you know what I mean). Do they really make 3K per week? That seems excessive. I mean, I saw Showgirls and she wasn't really making tons of money. Of course, she wasn't that hot.

 

[joedogma]

I just heard about a story in California (where else?) where a guest speaker was talking to a bunch of jr. high kids about career goals and such and brought up the stripping industry as a possibility to make a ton of money and live a "happy" life. I predict very soon in California learning how to "work" the pole will be a requirement for phys-ed.

btw...I don't think that stripper is a very pc term...I think they like to be called "self employed models."

EDIT: Haha...just found LADOC's message under moonlighting. We must read the same news...

 

[LADoc00]

Speaker Touts Stripping to 8th Graders

Fri Jan 14, 9:39 AM ET Strange News - AP


By BILEN MESFIN, Associated Press Writer

SAN FRANCISCO - The principal of a Palo Alto middle school may not invite a popular speaker back to an annual career day after he told girls they could earn a good living as strippers.



Management consultant William Fried told eighth-graders at Jane Lathrop Stanford Middle School on Tuesday that stripping and exotic dancing can pay $250,000 or more per year, depending on their bust size.


"It's sick, but it's true," Fried said in an interview later. "The truth of the matter is you can earn a tremendous amount of money as an exotic dancer, if that's your desire."


Fried has given a popular 55-minute presentation, "The Secret of a Happy Life," at the school's career day the past three years. He counsels students to experiment with a variety of interests until they discover something they love and excel in.


Not sure if the 250K/year would entail obscene use of fruits and vegetables or not, but they are still making more than me working at night and sleeping in everyday. So what if occasionally you have rub your head against some big fat guys hairy smelly belly?? Ive done far worse in path.

If you ever check out craigslist, women can get free housing in almost any major city if they provide "favors." I think this arrangement is even legal. That could shave some of those nasty loans off as well.

 

[chayne]

The new interest rates take effect every July 1 but you know what they're going to be by June 1. So, here we are advised to wait until June 1 and see if the rates are going down even further the next year. If so, consolidating is delayed another year until you see that year's interest rate. You do get a better rate if you consolidate before entering repayment, so you'll have to weigh that in as well. Either way ... automatic payment! Saves another fraction of a percent.

 

[Gut Shot]

The new interest rates take effect every July 1 but you know what they're going to be by June 1. So, here we are advised to wait until June 1 and see if the rates are going down even further the next year.

Our financial aid office sent us this info (I've condensed it somewhat):

"Your loans are issued as variable rate loans. Each year on July 1,
a new rate goes into effect and that rate is based on the 91 day T bill
auction rate from the last Monday in May. All variable rate loans float to
the new rate effective that date. Consolidation fixes (makes permanent)
your interest rate for the lifetime of the loan.

I keep a close watch on the 91 day T bill rate. In previous years,
it was trending low and I advised students to wait for the new rate to
choose a consolidation point. This year, it has been on a steady climb
due to the continued economic recovery. In fact, if the rate was
calculated today, it would be just over 4%. If you want to wait it out,
you are doing no harm, unless you are an M4. If you'd like to watch the T
bill rate yourself, the site I use is www.publicdebt.treas.gov."

I think it's pretty safe to say that the current rate of 2.88% is the lowest we're going to have for the forseeable future.

 

[RyMcQ]

automatic payment! Saves another fraction of a percent.

You might want to check around to see which consolidators offer the best automatic payment discount. I consolidated with a state institution (Utah Higher Educational Assistance Authority) which is available for anybody who has ever attended school in Utah at any level. They offer a 1.25% discount for automatic payment, plus an additional 1 percent when 48 consecutive payments have been made. (And, of course, since I'm making automatic payments, I'll automatically get that discount in 4 years.)

Practically free money.

 

[cytoborg]

Consolidating 180K in loans at the current fixed interest rate would only come out to around 1500/month or less.

Holy ****e, $1500/mo? I guess that's if you defer repayment until after residency and hopefully bringing home the bling?

Someone said on the financial aid forum that you can't simply opt to defer loans anymore...you have to qualify for economic hardship or something. What do y'all know about this?

 

[LADoc00]

Holy ****e, $1500/mo? I guess that's if you defer repayment until after residency and hopefully bringing home the bling?

Someone said on the financial aid forum that you can't simply opt to defer loans anymore...you have to qualify for economic hardship or something. What do y'all know about this?

Yes if your loans are after 1985, no more residency deferment, stupid. I guess there were some residents making the 'bling' on moonlighting and not paying off their loans so we all got screwed.

1500/month is nothing, now throw on a 4K mortgage and your talking serious money.

 

[RyMcQ]

Someone said on the financial aid forum that you can't simply opt to defer loans anymore...you have to qualify for economic hardship or something. What do y'all know about this?

When I was looking into deferment, $80,000 debt on a $40k salary was considered economic hardship. Even without economic hardship, you can choose a payment plan with graduated payments.

 

[cytoborg]

I guess there were some residents making the 'bling' on moonlighting and not paying off their loans so we all got screwed.

Damn, so I can't put off paying my loans and strip on the side to finance that new Corvette?! 😡

RyMcQ, that's encouraginag. Perhaps I'll qualify after all.