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Sticky med school loan situation

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  • Sticky med school loan situation

    Hi everyone, appreciate input in advance, just looking for some pointers on what to do in my sticky situation.

    Long story somewhat short, I now have about 400k in loans (med school and then masters). Late last year, I discovered most of the loans had gone into default during a very health-related difficult year for my family which involved a lot of moving for all parties involved. My servicer letters didn’t get to me as they should have, and I thought I was on an auto pay but didn’t really pay attention.

    Currently, I’m in the rehabilitation program which will end in July. Currently cannot do PSLF at my institution. After this mess, I just want to be out of debt. My questions are:

    - Should I drop the largest amount possible to rid the loans with largest interest?
    - Once the loans get sent to a servicer again, how should I proceed with those?
    - I love the idea of pslf and may move (in a couple years) to an institution with pslf but now have an aversion to this a debt hanging over me.

    I understand this was a massive mistake, and I beat myself up every day for it. But during the time when I missed the payments, was potentially the lowest point of my life and ultimately I should be thankful I am where I am.
    I hope people can give me some good pointers, thank you all.

  • #2
    Andrew StudentLoanAdvice is known to float around these parts from time to time…


    • #3
      You undertook a masters degree after med school instead of a residency? Why?


      • #4
        Originally posted by Hank
        You undertook a masters degree after med school instead of a residency? Why?
        I'll give you three guesses and the first two don't count.

        With more medical school students than available residency positions, Match Day won't be happy for all. Here's what to do if you don't match.
        Helping those who wear the white coat get a fair shake on Wall Street since 2011


        • #5
          Are you going to be able to pay off the loans with the interest accruing?

          Otherwise PSLF if you can find an appropriate job that allows it. If not, income based repayment and get forgiveness that way. With the IBR one watch out for the tax bomb which may or may not be dismissible if considered insolvent.


          • #6
            What's your debt to income? Can you pay these off? Aka, live like a resident for a couple of years?

            If you have a very high debt to income, 2x or more then i'd look to do PSLF.

            After loans are with a servicer again, i would enroll into IDR if they are federal. This will give you time to make plan to either pay them down through refinancing or do loan forgiveness via PSLF.
            Helping student loan borrowers manage their student loans. [email protected]


            • #7
              WCICON24 EarlyBird
              Are you a resident or post residency?
              Are all 400k federal loans?