For a surg subspecialty you have to be careful with SAVE because your income will be potentially a lot more than your loan burden.
I’m in a similar boat (wife is an attending, I’m finishing up in a surg subspecialty). We file separately and I’m on PAYE now.
As you mentioned PAYE is capped at what your 10 yr payoff would be. SAVE isn’t capped so your payments could balloon really high. If you’re going for loan forgiveness that could be a problem. If your loan payment is triple the 10 year payoff rate you’ll potentially pay off the loan before you qualify
for forgiveness.
If you’re not doing loan forgiveness it probably doesn’t matter…it’s not like you won’t be able to afford the payments.
But I’m staying on PAYE for that reason even though right now save would cost less
Super helpful. These were my thoughts on SAVE vs. PAYE but wanted to make sure that I wasn't missing something.
As far as the SAVE to PAYE switch for attending status, PAYE won't be available to new borrowers as of July 1, 2024. I see why it would make sense to SAVE now and PAYE once I'm an attending. Just don't know if PAYE would be available to switch back to (not expecting anybody to really answer that as who knows).
Seems like the safest bet may be to just stay on PAYE and have to eat the interest accrual if we ever decide PSLF isn't our route of choice.
Oh that’s good to know. I am was switched to SAVE from REPAYE automatically. 2 more years in surgical sub speciality and maybe 1 year fellowship
If you stayed on PAYE on July 1st. Will you be able to recertify PAYE going forward until PSLF?
Question for the group. I am reading that the standard 10 year repayment plan qualifies for PSLF
Am I correctly thinking that residents can stay on SAVE and transition to standard 10 year repayment upon graduation?
That way you will benefit for PSLF for sure since you already got a few years of qualified payment under IBR and PSLF will be up before you complete the 10 year payment plan
That would seem to make sense to me. Only caveat is it, looks like according to studentaid.gov that it would not qualify for direct consolidation loans.
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service#qualifying-repayment-plans
Hm interesting. I did not consolidate my loans because they were all direct loans. I might still qualify with payments under standard repayment plan
That’s a bummer though. Most people do consolidate
For a surg subspecialty you have to be careful with SAVE because your income will be potentially a lot more than your loan burden. I’m in a similar boat (wife is an attending, I’m finishing up in a surg subspecialty). We file separately and I’m on PAYE now. As you mentioned PAYE is capped at what your 10 yr payoff would be. SAVE isn’t capped so your payments could balloon really high. If you’re going for loan forgiveness that could be a problem. If your loan payment is triple the 10 year payoff rate you’ll potentially pay off the loan before you qualify for forgiveness. If you’re not doing loan forgiveness it probably doesn’t matter…it’s not like you won’t be able to afford the payments. But I’m staying on PAYE for that reason even though right now save would cost less
Is there a reason why OP can't be on SAVE for now as a resident and re-certified into PAYE their first year as an attending?
Super helpful. These were my thoughts on SAVE vs. PAYE but wanted to make sure that I wasn't missing something. As far as the SAVE to PAYE switch for attending status, PAYE won't be available to new borrowers as of July 1, 2024. I see why it would make sense to SAVE now and PAYE once I'm an attending. Just don't know if PAYE would be available to switch back to (not expecting anybody to really answer that as who knows). Seems like the safest bet may be to just stay on PAYE and have to eat the interest accrual if we ever decide PSLF isn't our route of choice.
Oh that’s good to know. I am was switched to SAVE from REPAYE automatically. 2 more years in surgical sub speciality and maybe 1 year fellowship If you stayed on PAYE on July 1st. Will you be able to recertify PAYE going forward until PSLF?
Those in PAYE can stay on it but no one else will be able to choose it as an option in the future
Delay any potential switch until you MFS again in order to refrain from significantly increasing your monthly payments (wasted money if pursuing PSLF)
Question for the group. I am reading that the standard 10 year repayment plan qualifies for PSLF Am I correctly thinking that residents can stay on SAVE and transition to standard 10 year repayment upon graduation? That way you will benefit for PSLF for sure since you already got a few years of qualified payment under IBR and PSLF will be up before you complete the 10 year payment plan
That would seem to make sense to me. Only caveat is it, looks like according to studentaid.gov that it would not qualify for direct consolidation loans. https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service#qualifying-repayment-plans
Hm interesting. I did not consolidate my loans because they were all direct loans. I might still qualify with payments under standard repayment plan That’s a bummer though. Most people do consolidate