An accountant who needs help.

[AccountantwithaResident]

Hi everyone! Want to thank you first off for reading this and offering your thoughts.

I am an accountant making $140K and am engaged to 1st year internal medicine resident (her/she) at a non-profit hospital system. My fiance's total federal loans total to $375k (3% - 7% interest) while I have none. My plan is to consolidate her federal loans and apply for PSLF and PAYE since the payments will be limited her income. We aren't sure when we are getting married yet so that's an unknown. I think this is the best route assuming that she sticks with internal medicine and stays non-profit/501c3.

My question are...
1. Is there any reason why we should consider REPAYE or do you think this would be the best route?
2. Is there anything else I need to take into consideration before doing this?

Many thanks to you all!

[Tangler]

Hi everyone! Want to thank you first off for reading this and offering your thoughts.

I am an accountant making $140K and am engaged to 1st year internal medicine resident (her/she) at a non-profit hospital system. My fiance's total federal loans total to $375k (3% - 7% interest) while I have none. My plan is to consolidate her federal loans and apply for PSLF and PAYE since the payments will be limited her income. We aren't sure when we are getting married yet so that's an unknown. I think this is the best route assuming that she sticks with internal medicine and stays non-profit/501c3.

My question are...
1. Is there any reason why we should consider REPAYE or do you think this would be the best route?
2. Is there anything else I need to take into consideration before doing this?

Many thanks to you all!

PSLF and PAYE and all that stuff happened well after i paid off my loans. I think you are smart to ask the forum and I also think it would be wise to pay a specific advisor (fee only) who specializes in student loans (wci has some he recommends).
I don’t know what you need to do, but think you are smart to ask.
Also, I know you are engaged and trying to help but officially until you are married this is legally her problem, and she needs to be asking these questions and working on a plan. Nothing wrong with helping but make sure she is involved.
I think this is the link:

https://studentloanadvice.com

[8arclay]

Could be wrong about this, but Im not sure you can refinance/consolidate and still be eligible for PSLF. That said, a lot has changed since I was in the thick of it re: student loans

[wa2106]

She should consolidate to direct loans ASAP if she's actually going for PSLF (planned academic or non-profit job after residency).

PAYE vs. REPAYE becomes complicated with high-earning spouse. That's going to be worth paying for an hour or two of time with a knowledgeable student loan advisor.

[Nysoz]

Consolidate and do REPAYE while not married. Gets slightly more complicated which one to choose once married.

https://www.nerdwallet.com/article/loans/student-loans/paye-vs-repaye

https://www.bankrate.com/loans/student-loans/paye-vs-repaye/

[East coast]

I'm not sure consolidation matters at this point. Are folks still automatically put into grace period following graduation or did that get nixed for this period because of 0%/no payments? I actually don't know that.

But assuming she is still in grace period - the benefit of consolidating is probably already passed over these past 6 months.

Otherwise, it's probably fine to just be in REPAYE while not married and switch to PAYE either when it makes sense marriage-wise or before you start attending job - whichever comes first.

[Tim]

Congrats on a first post and on the engagement. Two things professionally and personally that YOU will benefit from AND she may benefit from.
I do not have a clue about what you actually do for a living. The fact that you ask the question indicates that you are ready to learn, some things tax wise and just personal financial planning are different. Read up on the blog and in this forum and other places as much as you can. Things from student loans, own occupation long term disability insurance, taxes. retirement plans and even preconceived notions of personal/family budgeting are different. Even when to get married, have kids, buy a house all have different impacts on a physician in training or in practice than most any other occupation. Both you and her will benefit by changing "you don't know what you don't know" into flexible knowledge that you have realistic and mutual expectations. DIY is one option and you will know when you need to outsource solutions or issues.

However, your role is as an "adviser" only, until you are married. Don't mix money and decision making authority until you are married. 90% of the benefits take 10% of the work.

https://www.whitecoatinvestor.com/financial-waterfalls-for-new-residents-and-attendings/

Time and life energy is so mucn easier if you and her take care of the big rocks and make reasonable plans. What you bring to the table is actionable advice for her to make decisions. It takes work to gain financial literacy, you can both benefit by avoiding big mistakes or assumptions.
Welcome to the forum.

[jfoxcpacfp]

Not sure if you are in private or public (suspect private) but message me if you ever need a shoulder to cry on or want another accountant to provide some perspective. Welcome to the forum!

[Andrew StudentLoanAdvice]

Welcome to the forum.

1.There's a couple of considerations and earlier commenters have covered this quite well. Until you're married I'd have her on REPAYE. It's going to help keep the overall interest charge down while in training AND payments count towards PSLF. When you marry, you'll definitely want her to be on PAYE. Make sure she is in PAYE prior to completing her training. When you marry you'll need to consider if MFS ends up saving you more money than MFJ. Since you're a high earner as well, MFS is probably going to be a good move for you once married. All of this is assuming she ends up working at a 501(c)(3) or non-profit.


2. Is she offered match if she contributes to her residency retirement plan? If so, contribute to it and it'll drop your taxes now and student loan payments. Is she offered an HSA? Contributing there could also reduce your student loan payments.