Just want to add that I think the posters in this thread have the right idea. Consolidate loans to enter REPAYE ASAP for the benefits below:
Enter REPAYE ASAP to 1) Decrease capitalization of additional interest from June-November, 2) Increase benefit of interest subsidy by applying it to additional months when you are a low income intern, 3) Start the clock on PSLF payments 4-5 months earlier.
Additional thoughts: They calculate your intern year REPAYE payments on 10% of your discretionary income of your projected monthly salary as you must answer yes to significant income change when going through the consolidation process ($0/mo -> $4200/mo). Make sure you will be able to make the REPAYE payments intern year if you pursue this consolidation –> early REPAYE strategy.
I chose to answer no, specifically to avoid the $4200/month calculation. My income at the time of application (and currently) is still zero, so I felt comfortable putting that down. Time will tell though if it is going to cause any problems.
When I was talking to the myfedloan rep today she said that you had to put the projected intern salary, but you could always not and see what happens. Mamead, I'd be interested if you'd report your experience with putting $0 and see if they approve that.
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