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Include subsidized loan when consolidating for REPAYE?

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  • Include subsidized loan when consolidating for REPAYE?

    The background: I'm an M4 graduating in May, planning to use REPAYE during residency and refinance privately as an attending (low fed loan balance). I am going to consolidate and forgo the grace period as soon as I graduate to start taking advantage of the interest subsidy. I have mostly direct unsubsidized loans from med school, but I have one direct subsidized Stafford loan from undergrad, which will get 100% interest covered for the first 3 years of REPAYE.

    The question: When picking which loans to consolidate, should I include the subsidized loan? Will it lose it's "subsidized" status if I consolidate it with the others? If I don't consolidate it, how does that work with the REPAYE program- i.e. will I have two REPAYE payments, one for the consolidated unsubsidized loans, and one for the subsidized loan? Or is the REPAYE payment just distributed across the board whether I have one consolidated loan or two separate loans?


  • #2
    I'm also in the same situation and would appreciate an answer. I have subsidized loans from undergrad with no interest on them.


    • #3
      So I think I just found the answer on
      Under the REPAYE Plan, if your calculated monthly payment doesn’t cover all of the interest that accrues, the government will pay
      • all of the remaining interest that is due on your subsidized loans (including the subsidized portion of a consolidation loan) for up to three consecutive years from the date you begin repaying your loans under the REPAYE Plan, and half of the remaining interest on your subsidized loans following this three-year period
      To me this sounds like a subsidized loan will retain its status even when consolidating, and thus will have 100% of the interest covered under REPAYE.