I am a PGY 1 EM resident principal 354,000 and interest 4,000. I am in the REPAYE option.I chose this due to the 50% interest subsidy. I figured I would stay ahead of the interest by paying a large amount above my monthly payment each month. What I am finding is that it decreases the amount the government subsidizes. I do not plan to do PSLF with most EM groups being private any way.

My question is if I refinance after I am finished with residency will the interest that has been subsidized each month with the 50% subsidy through Repaye be capitalized on to the principle? Essentially this money the government is paying as interest, will I eventually owe it if I refinance after residency?

Also if my monthly payment is more than the interest each month, will the government continue to subsidize the interest? Would it be beneficial for me to stay in Repaye if I plan to pay it off as soon as possible or refinance?

I essentially would like to know if I should refinance now if all this "subsidized interest" will be capitalized eventually anyway.

Thank you in advance. I have been trying to find this answer.

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