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Budgeting for Residency

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  • #46
    Originally posted by VentAlarm View Post

    That’s fine and well, but you are the exception.
    I have three little ones, two currently in diapers. I don’t shop at Aldi, but that’s shocking. Go to Amazon, a months supply of Amazon brand diapers is $40. Plus, one of my kids soaked through every outfit unless we put him in pampers, so we had to do pampers.

    Hand me downs and showers are great, but no one is buying you 9 month PJs. They all buy the cute newborn stuff. Yes, you’re right that soap is cheap, but you missed the point. There are dozens of <$10 things you have to buy and they add up if you’re on a resident budget. And my daughter just figured out how to get out of her PJs if they are two piece or snaps then take off her diaper, so we had to go out and buy her a whole new set of PJs that have zippers on them and put them on backwards.

    Like I said, I think you’re missing the point. I’m not saying it’s impossible to only spend $75, but it’s highly improbable. You will be at target getting stuff and realize you left the paci at home and your kid is screaming so loud you can’t think - you will open a $7 pack of pacis (because that’s the only one your kid won’t spit out) and eat the cost.
    Sorry to derail but we used to be able to get diapers through our hospital at their cost and always used pampers for the same reason. We are no longer able to do so and we found that the target brand diapers are almost the same and half the cost.


    • #47
      Thank you so much everyone. I am still weighing the pros/cons of PSLF vs REPAYE... any comments on that?


      • #48
        Originally posted by Eggs_a_Plenty View Post
        Thank you so much everyone. I am still weighing the pros/cons of PSLF vs REPAYE... any comments on that?
        The good news is that it doesn't have to be either or. You can select a federal repayment plan like REPAYE and then also choose to do PSLF on top of that. You can certify your employment each year to make sure that your qualifying payments are being appropriately tracked.


        • #49
          If you don't want to do PSLF, then just look at REPAYE as paying a small monthly payment to save you a ton of interest accrual. Your payments first year should be very small if not 0 depending on how and when you consolidate, and you're effectively halving your interest rate. For you that's like saving 10k per year in interest accrual. Doing REPAYE while in residency and then re-financing once an attending is the best move for vast majority of people if they don't want to pursue forgiveness and don't have a high earning spouse etc.

          Your REPAYE payments are going to be pretty small when not 0, like a couple hundred/month. While it may be tight, saving 10k of interest per year is huge.

          REPAYE is a PSLF qualifying plan so I'm not sure what you mean, do you mean working for forgiveness via PSLF at a non-profit versus the REPAYE 25 year intrinsic forgiveness?


          • #50
            Originally posted by Eggs_a_Plenty View Post
            Thank you so much everyone. I am still weighing the pros/cons of PSLF vs REPAYE... any comments on that?
            Sorry, gong !
            Forgiveness denied!! These are not mutually exclusive. Two separate choices but with prerequisites.

            You failed the exam on your student loan plan. That is a REAL risk with loan forgiveness plans. One mistake and you get denied. Example, 110 qualifying payments due to an error not your fault. Boom goes the dynamite. You have be persistent and get the documentation to get it fixed.

            Your mistake was PSLF vs REPAYE. Repayment options are basically Income based repayment options. IBR. Choice of options. Each IBR has terms and conditions and restrictions and some flexibility. You need to understand. You get a notice, no longer qualify for this “hardship”. Wrong answer to change. You can keep it and just pay the capped amount.

            Repaye is IBR option.
            PSLF is a final payoff. Different completely.

            “When you start as an attending, you choose to continue for PSLF or refinance to a lower rate and pay it off quickly as possible”

            You can’t do PSLF if you refinanced. A prerequisite failure. Your attending paycheck has to be from a non-profit. That means employer can’t be PP or 1099. The risk is you pay higher government loan interest and don’t qualify for forgiveness.

            Study some more. You need to ace the test.
            No expert here. You will get better.

            I wish someone had a decision flowchart. You might try mapping one out. Glad you are planning the loan options.


            • #51
              Thanks again everyone - I am slowly learning. It is criminal that there isn’t an entire course dedicated to this each year if med school.


              • #52
                That's how the student loan consultants make a living! Good luck prosecuting. Law school might have been a better suited vocation. You need to be aware of the success rate.
                Be special, top 1% is you choose PSLF.



                • #53
                  Agree with the previous poster who mentioned considering driving for Uber to pay off credit card debt. I'm a fourth-year medical student who signed up for both Uber and Lyft. I've done about 500 trips over the past three months. At the start of each week, I see what promotions Uber or Lyft is offering in my region. Some recent examples. Two weeks ago, Lyft offered me an additional $300 to complete 10 trips. that's it, no strings attached. so I made $400 in 3 hours that day. last week Lyft offered $15 extra for every three consecutive trips, made $250 in 7ish hours. Got a $100 tip on top of the $60 fare for driving someone from my town to the airport an hour away three weeks ago.

                  Sign up for both apps, wait for good promotions and do it whenever you're bored from now until starting residency to pay off credit card debt, cars, etc.