Announcement

Collapse
No announcement yet.

I think PAYE is my best bet, am I wrong?

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • I think PAYE is my best bet, am I wrong?

    Hi everyone, this is my first post on the forum. I've done a lot of reading on loan repayment and I think I've determined that PAYE is my best option. Please correct me if I'm wrong.

    I couples matched with my partner and we will both be starting residency this June. She intends to do a 3-year residency and maybe a short fellowship. I intend to do 7 years of training in total, including fellowship. I owe $300K, and she owes $200K. I think PAYE is my best option for a few reasons.

    1. To start, we will almost certainly get married in the next ~3 years. Once married, especially if she is an attending before me, my higher debt burden and lower income would work against me with REPAYE. With PAYE I would still get to file separately and pay <10% of my salary even when married without taking her salary into consideration.

    2. I want to do PSLF. PAYE is eligible for PSLF. My residency is a public university institution, as long as I do fellowship at a PSLF-eligible institution, that's 7 years of PSLF payments.

    3. Once I'm an attending, I would need to do 3 more years of PSLF, and PAYE would allow me to cap my payments at the standard repayment plan rather than paying (AGI-Poverty Threshold X 1.5) * 0.1 which would be considerably higher than the standard repayment plan amount.

    Is there anything that I'm not considering or overlooking? Any advice would be appreciated!

  • #2
    Sounds like a good plan to me. As far as I know though, you can switch between plans, so if REPAYE is better now, do that then switch to PAYE.

    Are there many pslf eligible jobs in your field?

    Comment


    • #3
      Originally posted by pierre View Post
      Sounds like a good plan to me. As far as I know though, you can switch between plans, so if REPAYE is better now, do that then switch to PAYE.

      Are there many pslf eligible jobs in your field?
      Interesting! Until we're married, there won't be a huge difference between the two - although perhaps REPAYE has a slight edge due to the interest subsidy. I'll look into that. My experience in applying to residency is that most residency positions are PSLF (including mine) excluding the very few that are owned by for-profit institutions, HCA, etc. Fellowships also generally seem to be at major academic centers that are almost always PSLF. What's up in the air is an attending job where I wouldn't be able to go into private practice immediately after and would have to find an eligible job for 3 years. As of now, the job market is good - but who knows.

      Comment

      Working...
      X