Extended Repayment Plans<\/strong><\/p>\n\n\n\nExtended repayment plans can either come in standard or graduated forms, but instead of a 10-year repayment schedule, the period will be increased to 25 years. This will lead to an increased amount of interest but can cause less financial pressure in the short term.<\/p>\n\n\n\n
Income-Based Repayment Plans for Medical School Loans<\/h3>\n\n\n\n Because basic student loan repayments are not eligible for PSLF programs, many people wisely opt to choose income-based repayment plans for their medical school loans. With these income-based plans, your monthly payment is based on your income and reevaluated each year, so you are never stuck committed to paying more than you can afford. Additionally, these loans can be forgiven after a certain amount of time or if a certain career path is pursued.<\/p>\n\n\n\n
Revised Pay As You Earn (REPAYE) Plans<\/strong><\/p>\n\n\n\nThe REPAYE plans are structured based on your Adjusted Gross Income (AGI) as it compares to federal poverty guidelines, with your state of residence and size of household taken into consideration. These repayment plans are typically structured in 20-year increments for undergraduate loans and 25-year increments for graduate and medical school loans. The REPAYE plan is most notable because it is the only income-driven repayment option that the government will pay towards the interest on the subsidized and unsubsidized loans.<\/p>\n\n\n\n
Pay As You Earn (PAYE) Plans<\/strong><\/p>\n\n\n\nThe PAYE plan is a popular option due to the length of the repayment period and the relatively low monthly commitment. The PAYE plan payments are 10% of your discretionary income, which is the difference between your AGI and the poverty guidelines from your state after retirement and HSA contributions are taken into account. This is a great option for people with a high debt-to-income ratio because your monthly amount is recalculated every year so the payments reflect an accurate percentage. Under the PAYE plans, after 20 years of payments, the remaining loan balance is completely forgiven.<\/p>\n\n\n\n
Income-Based Repayment (IBR) Plan <\/strong><\/p>\n\n\n\nIBR plans calculate your monthly payment based on your income, and your spouse\u2019s income is only taken into consideration if you are filing joint taxes. The payment will be 10-15% of your discretionary income, and you will have a 20 or 25-year period to repay your loans.<\/p>\n\n\n\n
Income-Contingent Repayment (ICR) Plan<\/strong><\/p>\n\n\n\nThe ICR plan is quite similar to the IBR plan, but the difference is that under the ICR plan, the payment is 20% of your discretionary income. Alternatively, the payment can also be based on the amount you would pay on a repayment plan over 12 years (adjusted to your current income) so there are more options for repayment available to you. <\/p>\n\n\n\n
If you are working to pay off medical school debt and aren\u2019t sure which option is right for you, a financial advisor can be a tremendous asset. <\/em>Contact us today<\/em> to learn more about your options and how we can help you save for your future while paying down the debt from your past. This material is for information purposes only, Guardian and its subsidiaries do not issue or advise with regard to student loans.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"When you\u2019re pursuing your education, the medical school loans you are accruing are a thought for the distant future\u2014but once graduation rolls around and you begin to compare job offers and consider what your salary will be, they become a much more pressing reality. With the average medical school debt racking up at well over $200,000, […]<\/p>\n","protected":false},"author":1,"featured_media":1735,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[15],"yoast_head":"\n
REPAYMENT OPTIONS FOR MEDICAL SCHOOL LOANS - Bluewater Dental Advisors<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n