.

[deleted1016078]

.

---

Members don't see this ad.

 

[BiggiePow]

In four years post-residency, if you do not make any payments, 320k will accrue to about 440k if your annual interest rate is 8% on your student loans. You would need to pay over 2k a month just to pay interest and keep your debt at a stable 320k. Also note that your balance is charged interest while in med school. So maybe you will have more than 320k at graduation. I am in the same boat. Also I disclaimer, I am not a financial expert of any kind lol. This may not be accurate.


Sent from my iPhone using SDN

 

[RangerBob]

It’s fairly simple math, since while you’re in school it’s simple interest that doesn’t compound.

Divide your total loan amount by 8, since your loans are dispersed twice yearly, for 8 instances total.

Then take that number and multiple by your interest and 4yrs. Then add that number time interest and 3.5yrs, then 3yrs, and so on.

 

[BiggiePow]

It’s fairly simple math, since while you’re in school it’s simple interest that doesn’t compound.

Divide your total loan amount by 8, since your loans are dispersed twice yearly, for 8 instances total.

Then take that number and multiple by your interest and 4yrs. Then add that number time interest and 3.5yrs, then 3yrs, and so on.

I assumed that interest was calculated monthly, meh


Sent from my iPhone using SDN

 

[BiggiePow]

Okay, so I did a rough estimate and it looks like my loans will be at about 370k by the start of residency (-_-). If I'm doing this right, then that means I have to pay about 24k each year of residency just to keep it at 370k. Is this number worrisome? I also am unsure if I would even be able to keep off further accrual with a residents salary. It just seems very intimidating a number.

You should read the white coat investor. Also repaye and pslf are what I am hoping for for repayment options.


Sent from my iPhone using SDN

 

[RangerBob]

Okay, so I did a rough estimate and it looks like my loans will be at about 370k by the start of residency (-_-). If I'm doing this right, then that means I have to pay about 24k each year of residency just to keep it at 370k. Is this number worrisome? I also am unsure if I would even be able to keep off further accrual with a residents salary. It just seems very intimidating a number.

That sounds about right. I think I had accrued $50k in interest while I was in med school.

First off, you will probably do REPAYE as a resident. It covers half your unpaid interest. So if your calculated monthly payment is $300 but you’re accruing $2,000 in interest per month, Uncle Sam chips in (2000-300)/2=$850. So after subsidy and monthly payment, your loans grow by about $850 per month. That’s a lot, but not as bad as $2k.
Mine grew by about that much per month in residency. It sucked. It’s a lot of money, and my recommendation is minimize what you need to borrow (only borrow the full amount if you really need it), and try to pay off some of it in residency.

In hindsight, it wouldn’t have been too much a struggle to borrow at least $5k less per year, and put an extra $5k towards the loans in residency. My loan balance would’ve been $40k smaller, which is all the more significant when you’re looking at over $300k in loans.

Of course, if you go into ortho, it won’t be an issue at all to pay it off...

 

[SigmaFS]

OP - Are you asking about interest accrual after 4 years of residency? Or, asking about interest accrual after 4 years of medical school plus a 4 year residency. If it's 4 +4 with $320k original principal after MS, then interest accrual after 8 years ~ $150k. REPAYE to mitigate interest accrual while in residency. Also, did you account for annual increases in tuition?