Hoping for some help in what I think is not an easy calculation here . . .
Current direct fed loan standings 6 years out of med school (5.5 of them completed at a non profit with repayment counting towards PSLF, graduating fellowship going to be attending next year):
Current Principal $227k
Current Interest $17k
Total $244k
Rate of interest 6.8%
So here is where the question comes in, got married 1.5 years ago and filed taxes jointly this time around so I previously had IBR that was $450 per month, however because of increased joint income this IBR payment is going to jump to $1,040 monthly. Was discussing with Fed Loan Servicing that I could switch to "revised pay as earn" payment plan which would decreased my payments to $740 per month, however would have to consolidate interest into principal to do this, thus changing all of my current loans into principal. Note: starting 14 months from now when Fed loans calculate my attending salary I will have to pay $2,200/month from June 2018 until January 2022 when I hopefully will be forgiven (I think that is 3.5 years of full $2,200 payments).
Is this worth it? Please and thank you!
Current direct fed loan standings 6 years out of med school (5.5 of them completed at a non profit with repayment counting towards PSLF, graduating fellowship going to be attending next year):
Current Principal $227k
Current Interest $17k
Total $244k
Rate of interest 6.8%
So here is where the question comes in, got married 1.5 years ago and filed taxes jointly this time around so I previously had IBR that was $450 per month, however because of increased joint income this IBR payment is going to jump to $1,040 monthly. Was discussing with Fed Loan Servicing that I could switch to "revised pay as earn" payment plan which would decreased my payments to $740 per month, however would have to consolidate interest into principal to do this, thus changing all of my current loans into principal. Note: starting 14 months from now when Fed loans calculate my attending salary I will have to pay $2,200/month from June 2018 until January 2022 when I hopefully will be forgiven (I think that is 3.5 years of full $2,200 payments).
Is this worth it? Please and thank you!
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