- Joined
- Mar 19, 2014
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My financial aid office is probably giving me at least partially incorrect advice (like you can waive your grace period which isn't true), but I was hoping to get some help clearing up my confusion.
I am single and owe about 165000 total (6000 in perkins, rest direct)
Are these points correct?
1) The whole point of consolidation is to waive off the grace period if I plan to pursue PSLF and get a head start on my payment. Although the interest will be higher the head start of a few months makes it worth the higher interest.
2) My payment between PAYE and REPAYE is the same, however if I expect to be an attending with salary at least 25000 by year 7, PAYE seems to make more sense because the payment is capped at 10% of the original principle whereas REPAYE is uncapped. Seems like REPAYE is the way to go if you plan to refinance after becoming an attending, but if I plan on staying academic (want to specialize in internal medicine so there is a high likelihood) and pursuing PSLF I don't see why it would be advantageous in this scenario. I've used the AAMC calculator and it seems going through PSLF I actually pay less and get more forgiven through PAYE.
3) If points 1 or 2 are correct, I am failing to see why REPAYE is so popular despite the 50% interest subsidy because the AAMC calculator shows that I actually end up saving more with PAYE for PSLF if we factor in my attending salary, and especially if I do get married over the next 10 years since REPAYE penalizes you for that.
I am single and owe about 165000 total (6000 in perkins, rest direct)
Are these points correct?
1) The whole point of consolidation is to waive off the grace period if I plan to pursue PSLF and get a head start on my payment. Although the interest will be higher the head start of a few months makes it worth the higher interest.
2) My payment between PAYE and REPAYE is the same, however if I expect to be an attending with salary at least 25000 by year 7, PAYE seems to make more sense because the payment is capped at 10% of the original principle whereas REPAYE is uncapped. Seems like REPAYE is the way to go if you plan to refinance after becoming an attending, but if I plan on staying academic (want to specialize in internal medicine so there is a high likelihood) and pursuing PSLF I don't see why it would be advantageous in this scenario. I've used the AAMC calculator and it seems going through PSLF I actually pay less and get more forgiven through PAYE.
3) If points 1 or 2 are correct, I am failing to see why REPAYE is so popular despite the 50% interest subsidy because the AAMC calculator shows that I actually end up saving more with PAYE for PSLF if we factor in my attending salary, and especially if I do get married over the next 10 years since REPAYE penalizes you for that.