Search found 5 matches

by JasonS
Wed May 04, 2011 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Med School Loan Interest in Forbearance vs. Roth IRA
Replies: 26
Views: 3258

Here's some more food for thought. The ICR payment of about $585/mo does not cover all of the interest. Basically this payment helps chip away at it and it reduces the rate to 6.75% for all of them across the board. With the average rate calculated by relentless as 7.367, this is a reduction of 0.61...
by JasonS
Wed May 04, 2011 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Med School Loan Interest in Forbearance vs. Roth IRA
Replies: 26
Views: 3258

So I looked into federal consolidation on the income contingent repayment (ICR) plan. Doing that would get me a 7% rate. If I did auto-debit, it would reduce the rate to 6.75%. Payment would be $585/mo (each) based on PGY1 salary and the payment on interest is tax deductible. I think we're going to ...
by JasonS
Wed May 04, 2011 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Med School Loan Interest in Forbearance vs. Roth IRA
Replies: 26
Views: 3258

We will have good health ins as well as life/short and long term disability while in residency. We also have the option to consolidate all of our loans with the fed govt at a rate of 7% and we could start income-based repayment. If we consolidate, we have to start repayment. I'll have to look at wha...
by JasonS
Wed May 04, 2011 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Med School Loan Interest in Forbearance vs. Roth IRA
Replies: 26
Views: 3258

Thanks! Very good advice. Any thoughts on establishing an emergency fund? Or would the money be better spent paying down the debt? We would like to eventually buy a house when out of residency, so we were going to use our emergency fund for a down payment when the time came. Any thoughts?
by JasonS
Wed May 04, 2011 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Med School Loan Interest in Forbearance vs. Roth IRA
Replies: 26
Views: 3258

Med School Loan Interest in Forbearance vs. Roth IRA

My wife and I are both about to graduate med school and start our residencies this July. We are working on a financial plan/budget and have hit a few snags. We will each have about $240k in loan debt and plan on going into forbearance (subsidized/unsubsidized Staffords at 6.8% make up about 2/3, PLU...