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

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

    • 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.



  • #2
    In bad news, REPAYE requires you to use a married couple's combined AGI even if they are filing as Married Filing Separately.