I have tried to research this topic myself, but overall I cannot quite understand the entire the situation and what I should do from here. I hope some of you will take the time to read through my entire post and give me advice or at least point me to places that I can read more about options. I thank you in advance.
My situation. I am 25 years old and a 4th year medical student about to graduate and head to residency. I will be 26 years old when I graduate and have accumulated quite a bit of debt. By the time I graduate I will have the following break down for student loan debt. $50,000 subsidized federal loans. $160,000 of unsubsidized federal student loans. When I graduate those two will be sitting at 6.8% interest. I also have a loan from Wells Fargo for $23,0000 at 9% interest (this was a huge mistake, but we all learn from them). I still have to take out another $10,000 from somewhere to pay back the credit card debt and the funds my parents put up to allow me to interview for my residency. This will also cover my relocation expenses for residency and a much needed vacation between Medical School and Residency.
My first question is what would be a good option to take out additional loans (I could apply for student loans) from an independent loan source to fund the last $10,000? I no longer can apply for federal student loans. I made the mistake of taking out a terrible loan from Wells Fargo and have had to pay the interest throughout school and do not want to make that mistake again.
My next questions are multi-factorial. First I am heading into a 3 year residency. For those that do not know I will make around $50,000/year during those 3 years. After that I will make considerably more money, but need to get through those 3 years. I generally live very cheap and plan to during residency, but I do not see it to be feasible to keep up with the interest on my loans and be able to put towards retirement, make an emergency funds, and have at least a little money to spend on some hobbies. My thoughts were to do the income based repayment (IBR) at least during residency.
My questions are the following.
Is there a other programs I should look into to start paying back my loans? I am going into Emergency Medicine so I do not meet the requirements to get any of the federal primary care repayments that they offer.
Past that I am confused on how IBR works. From my understanding once you enter IBR federal loans get consolidated into one loan that you start paying on. My question is what happens to the independent loans? For me that would be the $23,000 from Wells Fargo and the $10,000 that I still need to borrow. Do those become consolidated with the rest or do I need to pay those independently?
Sorry for the long post but after spending 8 years in school I really have not had to deal with this problem until now. I appreciate any advice or places that I can read more to understand this process. Thank you!!
My situation. I am 25 years old and a 4th year medical student about to graduate and head to residency. I will be 26 years old when I graduate and have accumulated quite a bit of debt. By the time I graduate I will have the following break down for student loan debt. $50,000 subsidized federal loans. $160,000 of unsubsidized federal student loans. When I graduate those two will be sitting at 6.8% interest. I also have a loan from Wells Fargo for $23,0000 at 9% interest (this was a huge mistake, but we all learn from them). I still have to take out another $10,000 from somewhere to pay back the credit card debt and the funds my parents put up to allow me to interview for my residency. This will also cover my relocation expenses for residency and a much needed vacation between Medical School and Residency.
My first question is what would be a good option to take out additional loans (I could apply for student loans) from an independent loan source to fund the last $10,000? I no longer can apply for federal student loans. I made the mistake of taking out a terrible loan from Wells Fargo and have had to pay the interest throughout school and do not want to make that mistake again.
My next questions are multi-factorial. First I am heading into a 3 year residency. For those that do not know I will make around $50,000/year during those 3 years. After that I will make considerably more money, but need to get through those 3 years. I generally live very cheap and plan to during residency, but I do not see it to be feasible to keep up with the interest on my loans and be able to put towards retirement, make an emergency funds, and have at least a little money to spend on some hobbies. My thoughts were to do the income based repayment (IBR) at least during residency.
My questions are the following.
Is there a other programs I should look into to start paying back my loans? I am going into Emergency Medicine so I do not meet the requirements to get any of the federal primary care repayments that they offer.
Past that I am confused on how IBR works. From my understanding once you enter IBR federal loans get consolidated into one loan that you start paying on. My question is what happens to the independent loans? For me that would be the $23,000 from Wells Fargo and the $10,000 that I still need to borrow. Do those become consolidated with the rest or do I need to pay those independently?
Sorry for the long post but after spending 8 years in school I really have not had to deal with this problem until now. I appreciate any advice or places that I can read more to understand this process. Thank you!!
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