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ID doc getting married: what are my best loan repayment options?

Home Student Loan Management ID doc getting married: what are my best loan repayment options?

  • Avatar matt_1234 
    Participant
    Status: Physician
    Posts: 6
    Joined: 07/02/2019

    Hi everyone,

    I’m an academic ID doc just out of a clinical/research fellowship and I’m trying to make the most of an academic salary. I will now be making about $150k after moonlighting, have $235K of direct student loans, have made close to 6 years of REPAYE (not eligible for PAYE) payments eligible for PSLF, and may soon collect NIH LRP (35k/year x 2 years with possible renewal). I had planned on waiting for PSLF by making REPAYE payments for the next 4 years. However, I’ll be getting married in a few months (fiancé makes 100k/year with 0 debt) and I’m trying to figure out my best repayment option moving forward. Using the payment calculators, by getting married my payment would increase from about $1000/month (REPAYE single) to $1500/month (IBR married filing separately), putting me at a net loss of about $24k in extra payments over 4 years just for getting married (assuming PSLF pays out). This loss could potentially increase if I eventually no longer qualify for IBR in the future. Hoping to get some helpful thoughts/advice from others. Thank you!

     

     

     

    #227216 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7748
    Joined: 01/09/2016

    Calling Sergio Estavillo!

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #227252 Reply
    Avatar matt_1234 
    Participant
    Status: Physician
    Posts: 6
    Joined: 07/02/2019

    Thanks! Appreciate any input. We could postpone getting legally married if it is going to cost us 6-10k/year without other financial benefits. Not sure if that is needed, though.

    #228770 Reply
    q-school q-school 
    Participant
    Status: Physician
    Posts: 2492
    Joined: 05/07/2017

    congrats!  no input for you but didn’t want to let the important part go unrecognized.

     

    #228771 Reply
    Avatar matt_1234 
    Participant
    Status: Physician
    Posts: 6
    Joined: 07/02/2019

    Thank you!

    #228782 Reply
    Avatar Anne 
    Participant
    Status: Physician
    Posts: 1051
    Joined: 11/07/2017

    I am answering partially to bump because I don’t know much about these repayment programs but also to say that while I think you should figure out the best way to file etc to minimize the financial loss I don’t think you should worry about 6-10k/yr when making the decision of whether or not to get married.  At least one person on here disagrees with me strongly about this, but being married *once you find the right person to marry* is awesome.  I drug my feet for a year on getting married because our tax bill was going to go up by a 5 figure amount after we got married (this improved with the more recent tax brackets).  After we got married and we paid that giant tax bill the first few years I really didn’t care.  Some people will say that the legality of marriage doesn’t matter, and I was in that camp for many years, and I can’t tell you in a tangible way why I think being married is worth it even if it’s a financial loss for a few years…but I think if you want to get married you should, finances aside.

    #228826 Reply
    Avatar matt_1234 
    Participant
    Status: Physician
    Posts: 6
    Joined: 07/02/2019

    This is a great point and I hope we don’t need to delay the legal marriage. I would’t even entertain the idea if my fiancé wasn’t thinking the same thing. Unfortunately, I don’t anticipate my salary to grow significantly, so that 6-10k/year would be a great help to us while saving for a home. Hoping someone has a few tricks up their sleeve.

    #228956 Reply
    Liked by Anne
    Avatar matt_1234 
    Participant
    Status: Physician
    Posts: 6
    Joined: 07/02/2019

    Just bumping to see if anyone would recommend a consultation with a financial advisor. Any recommendations on someone who would be equipped to give good advice on this topic? It is likely a bit more niche than could be addressed by a typical advisor.

    #230658 Reply
    Avatar Anne 
    Participant
    Status: Physician
    Posts: 1051
    Joined: 11/07/2017

    I am bumping again for you because I think what you need is a student loan specialist and I have heard there are good ones out there but I don’t know any names–have you looked on the WCI recommendation page for people he endorses?

    #230695 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7748
    Joined: 01/09/2016

    WCI recommended student loan advisors

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #230851 Reply
    Avatar matt_1234 
    Participant
    Status: Physician
    Posts: 6
    Joined: 07/02/2019

    Thanks! May be worth paying for a consultation.

    #230962 Reply

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