Intern or residency doctor? Find out how a counselor can help you!
Programs that will assist internship-residency borrowers
Bases your payment on either 10%, 15%, or 20% of your income (after subtracting out 150% of the poverty line).
-Payment can be as low as $0.00 depending on your situation
-Often times on residency salary, will become affordable payment
-During first 3 years of IBR and Pay As You Earn, government pays interest on Subsidized loans not covered by principal
-Payments count towards PSLF
Your loans must be quite old to qualify for the Deferment;
In order to qualify for this deferment your loans must meet the following criteria:
Stafford and SLS Loans–Loans disbursed prior to 7/1/1993
PLUS Loans–Loans disbursed prior to 8/15/1983
Consolidation Loans-Never qualify
This deferment is good for a maximum of two years.
The Internship/Residency Forbearance is available for borrowers who have used the entire 24-month deferment or whose loans do not meet these disbursement date requirement. The forbearance can be granted in 12-month increments until the program is completed.
Here is the eligibility in terms of criteria for both the deferment and forbearance:
-Must have all FFELP and Direct Loans
-Must have been accepted into a medical or dental internship/residency program that is a supervised training program; in addition, it must require you to hold a Bachelor’s degree before acceptance into the program
-Medical or dental internship/residency program must either:
-Be required before you may be certified for professional practice or service
-Lead to a degree or certification from an institution of higher education, a hospital, or a health care facility that offers post graduate training
The forbearance may be a good idea if you qualify for nothing else, but remember interest accrues on all loans so it may hurt you more in the long term if you qualify for something with an interest subsidity
-If you make 120 qualifying payments will have remainder of loan forgiven after 10 years
-For doctors, this will only be relevant if salary stays on lower end of spectrum
Plan that you pay close to interest only then it goes up every two years (stair step plan)
This is great for people (perhaps like yourself) who expect to make a lot less now and a lot more later
Will have more interest than standard plan, but can still be paid off in 10 years!
Both Extended and Level available
25 years instead of 10 (up to 30 if consolidated)
Will lower payment but will significantly increase interest paid over the life of the loan!