New repayment plan for residents: "Revised Pay As You Earn (REPAYE)"

[Ryan]

• Extremely good: 100% to 1/2 of interest payments are covered by the government in excess of your monthly payment


• Same as PAYE: Minimal monthly payment is 10% discretionary income, just like pay as you earn


• Very good for older loans: Most public loans are eligible


• Worse than PAYE: Grad loans repaid by government after 25 years instead of 20 (I think this is a taxable event)


• You can leave the plan whenever you want, but if you stay in as an attending, the total dues are 10% x discretionary income and not capped at whatever your 10-year standard repayment would be

 

Basically, switch to this plan if you can't pay off 100% of your interest each month.

 

 

[corplawyer]

In bad news, REPAYE requires you to use a married couple's combined AGI even if they are filing as Married Filing Separately.