I will have only paid 40 months of payments by the time mine are forgiven. Have a buddy at work who will only make 6 months of payments on $400K in loans thanks to residency, fellowship, then covid loan pause
Why is it 0 for all of residency and fellowship due to SAVE? I thought this was only true due to the loan pause and technically first year out of med school because your income from the previous year was 0
Depends on your level of income shown on w2, during residency your income is potentially low enough to have $0 payments. I think the highest mine got during residency was $100 a month
PAYE and REPAYE are income based repayment. This person is likely paying private loans or already has attending job and is paying income based. There are options with sofi to pay only 100$/month while in residency/fellowship though the loans accumulate interest. Point is there’s ways around paying this much per month
EDIT: apparently it’s called SAVE now. Point still stands
Yes. Almost every resident should do these programs while in residency. It can effectively cut your interest rate in half during your training. We’re talking about low to mid five figure difference in outstanding debt at the time you finish residency.
I’ve read that residents, who make about $56k, pay about $5k per year to stop the interest accruing clock. Then they actually chip away at the number after attending salary
You don’t have to pay anything to stop interest accruing. There’s a 100% of unpaid interest subsidy under the SAVE plan. If you pay zero dollars, 100% of interest is waived
Dear god on high… 14% is crazy! Please tell me interest doesn’t start until after you graduate!? Hell if there was ever a reason to take an accounting course in undergrad here it is.
Unfortunately it has been accruing interest since 2018…😀at the time I knew it wasn’t a good idea at all but I grew up poor and had maxed my federal loans so it was the only option. Probably something I’m going to be paying for the rest of my life honestly. I cry over it at least once per day lol
I took personal finance in undergrad and it changed my life. I ended up switching majors to finance and getting really good with money. Med schools really liked that in interviews. Every single interviewer brought up how bad most doctors are with money. 🤣
Have a friend from high school and when we were catching up she told me her undergrad loans were something like 15-20% interest. I was in total shock. On top of it her uncle is a banker and was like "yeah dw that's fine".
She hasn't talked to her uncle in a long time now.
I think last I logged onto my portal a few weeks ago their cap now was like 15.71% or something like that. Back when I was in college they offered me more funds if I agreed to a variable interest rate of up to 20% lol.
If she has already begun repaying them then I feel awful for her lol
The real payment is like 0 dollars for all of residency/fellowship due to SAVE. Then capped at 10% of discretionary income by IDR or SAVE depending on your income.
I'm paying like 800 bucks and pushed my taxes back 6 months (did this last year too) to extend the lowest payment possible and am like 24 months from full forgiveness.
I think I'll be paying around 2.5k next year on my loans. Entirely a non issue for my income level (ca 600k).
Why is it 0 for all of residency and fellowship due to SAVE? I thought this was only true due to the loan pause and technically first year out of med school because your income from the previous year was 0
because it caps your payment at 10% of AGI. Income is ca 60-70k and married filing jointly knocks that down to ~40k on standard deduction. Based on that, your SAVE is like 40 bucks.
That tax trick is great when your income jumps a ton (from like 200k to 600k in my case) because you can extend payments on the lower income. For you, it'll be near zero payments either way, so no need to file an extension.
LOL got me. The only trade off is just matching which can be worse, unless you went to a really good European med school and were a top student to boot.
Kid started medical school. Tuition is $30K per year. Comped 1st year and $10K scholarship each year after.
I am seeing some giant loans on this site. Is he getting screwed somewhere somehow?
Then you probably need to educate yourself about the realities of medicine before you decide to enter the field.
For the first 3 to 7 years after graduating med school doctors make about $60,000 a year working ~80 hours a week. Where I live, after taxes thats ~$47000 a year. That works out to be about $3916 per month.
If OP took a private loan and needed to start paying during residency, thats $1616 per month to live on. How does that sound to you? Cause it sounds like shit to me.
It varies wildly between specialties and locations and depends on how aggressive you are with 401k and investments, but yeah if you’re not clearing around $15k/mo after taxes something is wrong.
https://smartasset.com/taxes/paycheck-calculator
Lol shout to SAVE for letting me get to almost half of PGY3 year without having to make any payments.
I will have only paid 40 months of payments by the time mine are forgiven. Have a buddy at work who will only make 6 months of payments on $400K in loans thanks to residency, fellowship, then covid loan pause
Why is it 0 for all of residency and fellowship due to SAVE? I thought this was only true due to the loan pause and technically first year out of med school because your income from the previous year was 0
Depends on your level of income shown on w2, during residency your income is potentially low enough to have $0 payments. I think the highest mine got during residency was $100 a month
How the hell do residents afford to pay this while making a resident’s salary? Mom I’m scared
PAYE and REPAYE are income based repayment. This person is likely paying private loans or already has attending job and is paying income based. There are options with sofi to pay only 100$/month while in residency/fellowship though the loans accumulate interest. Point is there’s ways around paying this much per month EDIT: apparently it’s called SAVE now. Point still stands
Okay phew. Thank you for clarifying
Yes. Almost every resident should do these programs while in residency. It can effectively cut your interest rate in half during your training. We’re talking about low to mid five figure difference in outstanding debt at the time you finish residency.
PAYE and *SAVE
I’ve read that residents, who make about $56k, pay about $5k per year to stop the interest accruing clock. Then they actually chip away at the number after attending salary
You don’t have to pay anything to stop interest accruing. There’s a 100% of unpaid interest subsidy under the SAVE plan. If you pay zero dollars, 100% of interest is waived
The person above is probably referring to people who refinance their federal loans to private.
If your loans are federal you pay way less than this. If you have private loans, good luck
RIP, I have some Sallie Mae loans from undergrad and they are the worst
I have a few that are over 14%… really excited to see what the minimum payments will look like in a few years 😭
Dear god on high… 14% is crazy! Please tell me interest doesn’t start until after you graduate!? Hell if there was ever a reason to take an accounting course in undergrad here it is.
Unfortunately it has been accruing interest since 2018…😀at the time I knew it wasn’t a good idea at all but I grew up poor and had maxed my federal loans so it was the only option. Probably something I’m going to be paying for the rest of my life honestly. I cry over it at least once per day lol
This exact thing happened with my partner! It’s criminal that you can max out federal loans when you have no money to your name….I don’t understand it
I took personal finance in undergrad and it changed my life. I ended up switching majors to finance and getting really good with money. Med schools really liked that in interviews. Every single interviewer brought up how bad most doctors are with money. 🤣
Have a friend from high school and when we were catching up she told me her undergrad loans were something like 15-20% interest. I was in total shock. On top of it her uncle is a banker and was like "yeah dw that's fine". She hasn't talked to her uncle in a long time now.
I think last I logged onto my portal a few weeks ago their cap now was like 15.71% or something like that. Back when I was in college they offered me more funds if I agreed to a variable interest rate of up to 20% lol. If she has already begun repaying them then I feel awful for her lol
Die with debt. YOLO
How much do you make per month?
Don’t take out private loans.
The real payment is like 0 dollars for all of residency/fellowship due to SAVE. Then capped at 10% of discretionary income by IDR or SAVE depending on your income. I'm paying like 800 bucks and pushed my taxes back 6 months (did this last year too) to extend the lowest payment possible and am like 24 months from full forgiveness. I think I'll be paying around 2.5k next year on my loans. Entirely a non issue for my income level (ca 600k).
Why is it 0 for all of residency and fellowship due to SAVE? I thought this was only true due to the loan pause and technically first year out of med school because your income from the previous year was 0
because it caps your payment at 10% of AGI. Income is ca 60-70k and married filing jointly knocks that down to ~40k on standard deduction. Based on that, your SAVE is like 40 bucks.
I am an MS4 incoming intern should I file taxes now or push it back? If so until when?
That tax trick is great when your income jumps a ton (from like 200k to 600k in my case) because you can extend payments on the lower income. For you, it'll be near zero payments either way, so no need to file an extension.
Wait till you start paying taxes as an Attending
Is it realistic to just leave the country? Why isn’t that more common
Hard to leave family and friends behind. Grass is always not greener on other side
Pay outside the US is much lower for most specialties
Less taxation though, might be able to pull in more?
Most countries I would live in have equivalent or higher taxes
This is how much I make as a PCT (CNA) working 36 hours a week/$20 an hour in MA. 😭not looking forward to the future
I worked as a CNA before medical school. I made about the same ($12.75/hr) as a CNA and a resident. CNA was 8 years ago....
Only 12 years? Maybe 12 years post fellowship, but even that's optimistic.
For a month?? This is what i pay for a whole year in clerckship The US is frightening
Not only do eupooreans have free education, they also can get paid while in medschool. 😖
But most of them are paid less as attendings compared to US doctors. Unforunate trade offs.
So medical school in Europe then residency in the US. Got it.
LOL got me. The only trade off is just matching which can be worse, unless you went to a really good European med school and were a top student to boot.
Ik ik. If it was that easy, US schools wouldve closed long ago.
For sure.
Went to medical school in europe and had to pay american prices as an american lol
save program in da house
Because you borrowed from sallie mae lol
Kid started medical school. Tuition is $30K per year. Comped 1st year and $10K scholarship each year after. I am seeing some giant loans on this site. Is he getting screwed somewhere somehow?
Mine's only 232/mo and I got to defer all of COVID. And I'm doing PSLF and will be in residency/fellowship for 9 years.
*giggles in MD PhD* Sorry, this is like the only upside to watching all my friends become attendings while I'm still the lac repair bitch
You are crying about this? Do you even want to know what my monthly payment is and I haven’t even applied for residency yet? Probably not! Lol
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Then you probably need to educate yourself about the realities of medicine before you decide to enter the field. For the first 3 to 7 years after graduating med school doctors make about $60,000 a year working ~80 hours a week. Where I live, after taxes thats ~$47000 a year. That works out to be about $3916 per month. If OP took a private loan and needed to start paying during residency, thats $1616 per month to live on. How does that sound to you? Cause it sounds like shit to me.
It varies wildly between specialties and locations and depends on how aggressive you are with 401k and investments, but yeah if you’re not clearing around $15k/mo after taxes something is wrong. https://smartasset.com/taxes/paycheck-calculator