I have what is turning out to be a rather complex financial picture and was hoping the experts here might be able to offer some help.
I am an M4 planning on going into family medicine. I have about 350k in federal student loans average rate is probably around 6%
My fiancé (wife in 2 months) is a pharmacist. She is currently working and will continue to work. I estimate her gross will be in the 140 range. Likely a little higher this year but when we move for residency I expect it to go back down to 140. She has 13k in federal student loans at 3.5% and 80k refinanced with SOFI at 5%.
I am going to train in a rural area and will with all likelihood remain in the same rural state and practice in a rural location (This is by choice - not desperation/financial reasons). Many of the jobs I see are likely to be PSLF eligible if it remains. My plan during residency (estimated combined gross of 190k) is to aggressively pay down her SOFI debt than start piling up cash in the event that I do not go down a PSLF track. I know I am losing some potential interest savings by not paying down (modest) principle and that I will also have negative amortization during this time on my loans.
The problem I am running into is I don't know what is the optimum repayment and tax strategy for our situation. I could go on REPAY but her income will drive up my payment and the 1500/month in payments to SOFI as far as I understand will not be taken into account when it comes to determining 10% discretional for REPAYE. I could go on IBR (I am not PAYE eligible) and we could file separately - but we lose the tax benefits of married filing jointly (not a whole lot in our current financial situation but will grow as our income/family grows) and I am on the hook for 15% still significantly less since it only accounts for my resident salary. The chief problem with this plan as I see it is if I do not go down a PSLF I have gotten murdered on negative amortization in IBR since I've been paying less and not getting any interest subsidy. I would likely end up switching from IBR to Repaye as I transition to practice as the tax implications are more significant, and the 10% vs 15% makes a big difference as I become the greater earner.
Sorry for the text wall - hoping for input on this and any advice. I've done the math - I know either way we do well in the long term but man is this debt keeping me up at night.
N.B.: I have considered just not getting married - but for a myriad of reasons I don't think that is an option for us.
I am an M4 planning on going into family medicine. I have about 350k in federal student loans average rate is probably around 6%
My fiancé (wife in 2 months) is a pharmacist. She is currently working and will continue to work. I estimate her gross will be in the 140 range. Likely a little higher this year but when we move for residency I expect it to go back down to 140. She has 13k in federal student loans at 3.5% and 80k refinanced with SOFI at 5%.
I am going to train in a rural area and will with all likelihood remain in the same rural state and practice in a rural location (This is by choice - not desperation/financial reasons). Many of the jobs I see are likely to be PSLF eligible if it remains. My plan during residency (estimated combined gross of 190k) is to aggressively pay down her SOFI debt than start piling up cash in the event that I do not go down a PSLF track. I know I am losing some potential interest savings by not paying down (modest) principle and that I will also have negative amortization during this time on my loans.
The problem I am running into is I don't know what is the optimum repayment and tax strategy for our situation. I could go on REPAY but her income will drive up my payment and the 1500/month in payments to SOFI as far as I understand will not be taken into account when it comes to determining 10% discretional for REPAYE. I could go on IBR (I am not PAYE eligible) and we could file separately - but we lose the tax benefits of married filing jointly (not a whole lot in our current financial situation but will grow as our income/family grows) and I am on the hook for 15% still significantly less since it only accounts for my resident salary. The chief problem with this plan as I see it is if I do not go down a PSLF I have gotten murdered on negative amortization in IBR since I've been paying less and not getting any interest subsidy. I would likely end up switching from IBR to Repaye as I transition to practice as the tax implications are more significant, and the 10% vs 15% makes a big difference as I become the greater earner.
Sorry for the text wall - hoping for input on this and any advice. I've done the math - I know either way we do well in the long term but man is this debt keeping me up at night.
N.B.: I have considered just not getting married - but for a myriad of reasons I don't think that is an option for us.
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