Hey everyone,

I'm an MS4 who just finished interviews, and I'm now solidifying my financial plans for the coming years (ofc, assuming I match in ~6 weeks). Been fortunate to have been a longtime WCI reader. Hoping to get some kind souls to look over my plan as it stands now, and see if there are any other avenues I may be overlooking. Thanks in advance for reading!

About me: Current MS4, applying to orthopaedics. Currently have $9k in the bank to last me until first residency paycheck, but looking to get a low-key job during Spring quarter for some extra vacation money.

My loans: Total of $139k at time of graduation.

- Perkins: $9k @ 5% fixed

- Fed Direct: $63k @ 5.63% effective (range 3.4 - 6.21%) fixed

- Loans for Disadvantaged Students (LDS): $47k @ 5% fixed

- Sallie Mae Relocation Loan: $20k @ 5.5% + 1 month LIBOR = 7.125% currently, variable

My strategy:

1) Consolidate the Perkins in with the Fed Direct and enter REPAYE on the $72k total. Required payments will be ~$3k annually, while interest is ~$3.9k annually. I'll save 50% of unpaid interest in a savings account (or another easily accessed account with no/minimal fees?), while the other 50% is subsidized per REPAYE terms. That will give me a pool of money to cover the interest generated prior to capitalization, which I will pay off just prior to leaving REPAYE to refinance as an attending.

2) Float the LDS loans until I can consolidate with the aforementioned REPAYE amount and refinance as an attending. LDS loans are subsidized throughout residency and fellowship, so that's 6 years of interest free on the $47k.

3) Payoff the relocation loan ASAP, possibly refinance if I can find someone to do it.

4) Refinance all loans as an attending at the lowest rate possible, and accelerate payoff schedule (by my calculations, I could pay off in as little as 2 years).

I'll be making sure to save up an emergency fund, max retirement accounts, purchase the appropriate insurances, rent vs buy (based on NYT calculator and trying to get that 5% home buyers grant), etc. Gf and I are looking to tie the knot in the next 1-2 years, kids 1-2 years after that. She'll graduate with teaching credential (high school level) this summer with about $3k of debt. I know that her income (~$50k from what I've seen) will be factored into REPAYE payments, pushing them up and potentially negating any interest subsidy; however, if we can live off her income, I can put more of mine towards an early payoff.

I thought about getting a medical residency forebearance on the Direct+Perkins loans and just saving the equivalent of the interest payments; the advantage there being that I won't have any required payments and freeing up cash flow during residency. But the REPAYE interest subsidy is too good to pass up. I'm not going for PSLF even though my plan is to work in academics, as I think my income will still be too high to realize any forgiveness.

This all seems solid to me after running a few different scenarios, but is there anything else I need to consider?

Thanks again everyone!

K

I'm an MS4 who just finished interviews, and I'm now solidifying my financial plans for the coming years (ofc, assuming I match in ~6 weeks). Been fortunate to have been a longtime WCI reader. Hoping to get some kind souls to look over my plan as it stands now, and see if there are any other avenues I may be overlooking. Thanks in advance for reading!

About me: Current MS4, applying to orthopaedics. Currently have $9k in the bank to last me until first residency paycheck, but looking to get a low-key job during Spring quarter for some extra vacation money.

My loans: Total of $139k at time of graduation.

- Perkins: $9k @ 5% fixed

- Fed Direct: $63k @ 5.63% effective (range 3.4 - 6.21%) fixed

- Loans for Disadvantaged Students (LDS): $47k @ 5% fixed

- Sallie Mae Relocation Loan: $20k @ 5.5% + 1 month LIBOR = 7.125% currently, variable

My strategy:

1) Consolidate the Perkins in with the Fed Direct and enter REPAYE on the $72k total. Required payments will be ~$3k annually, while interest is ~$3.9k annually. I'll save 50% of unpaid interest in a savings account (or another easily accessed account with no/minimal fees?), while the other 50% is subsidized per REPAYE terms. That will give me a pool of money to cover the interest generated prior to capitalization, which I will pay off just prior to leaving REPAYE to refinance as an attending.

2) Float the LDS loans until I can consolidate with the aforementioned REPAYE amount and refinance as an attending. LDS loans are subsidized throughout residency and fellowship, so that's 6 years of interest free on the $47k.

3) Payoff the relocation loan ASAP, possibly refinance if I can find someone to do it.

4) Refinance all loans as an attending at the lowest rate possible, and accelerate payoff schedule (by my calculations, I could pay off in as little as 2 years).

I'll be making sure to save up an emergency fund, max retirement accounts, purchase the appropriate insurances, rent vs buy (based on NYT calculator and trying to get that 5% home buyers grant), etc. Gf and I are looking to tie the knot in the next 1-2 years, kids 1-2 years after that. She'll graduate with teaching credential (high school level) this summer with about $3k of debt. I know that her income (~$50k from what I've seen) will be factored into REPAYE payments, pushing them up and potentially negating any interest subsidy; however, if we can live off her income, I can put more of mine towards an early payoff.

I thought about getting a medical residency forebearance on the Direct+Perkins loans and just saving the equivalent of the interest payments; the advantage there being that I won't have any required payments and freeing up cash flow during residency. But the REPAYE interest subsidy is too good to pass up. I'm not going for PSLF even though my plan is to work in academics, as I think my income will still be too high to realize any forgiveness.

This all seems solid to me after running a few different scenarios, but is there anything else I need to consider?

Thanks again everyone!

K

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