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Resident on REPAYE aiming for PSLF, about to start my first attending job soon

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  • Resident on REPAYE aiming for PSLF, about to start my first attending job soon

    Hi all,

    I've read conflicting accounts on what is possible, and what isn't, so was hoping for advice.

    I'm on the REPAYE plan (everything through FedLoans, have been sending regular non-profit employment cerftification) for about $140,000 in loans at 6.5% interest rate. I have accapted an academic job at a non-profit, and expect PSLF forgiveness in four years (after a 6-year residency that will end June 2020).

    So by next year, my REPAYE amount will skyrocket since REPAYE doesn't have the income cap that IBR does.

    Can I switch to IBR as a long-term solution? Or will I get kicked out of IBR (like this example: https://www.studentloanplanner.com/f...eople-off-ibr/)?

    I also thought about switching to Standard Plan (still within the Income-Drive Repayment options so it qualifies for PSLF), but this may come with its own high monthly payments, since it'll count a 10-year monthly payment from the original consolidation 5 years ago (source:https://www.financialrounds.com/thin...f-think-again/), meaning all 140,000 has to be paid off in 4 years, negating any benefit to PSLF.

    Has anyone had any luck with this?

    Thank you,
    D4L

  • #2
    Can I switch to IBR as a long-term solution?
    Yes, assuming you can prove you qualify for hardship (in other words, do it before you get an attending paycheck). The other question is do you want PAYE or IBR - similar, but PAYE is generally the default between the two (depends on the dates of borrowing).

    Or will I get kicked out of IBR?
    Nope, once you prove you qualify, you can't be kicked out.

    I also thought about switching to Standard Plan (still within the Income-Drive Repayment options so it qualifies for PSLF)​​​​​​​
    Purposely in all caps - NOOOOOO! A main qualifier for getting PSLF forgiveness is being on an IDR - Standard Plan is NOT an IDR. Now - what you might be confusing is the fact that on IBR/Paye, the amount of your payment reverts to and caps at whatever the 10-standard plan payment would be, but I want to emphasize that it is not the same as 'switching to Standard Plan'.

    Has anyone had any luck with this?​​​​​​​
    Yep, this is a well beaten path and we've done this for my wife's loans.

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