Pgy-2 anesthesia resident here. I have $318,000 in student loans at about 6.5% interest rate. I’m single and anticipating making at least $450,000 as an attending. My residency program qualifies for PSLF. Is RAP the best option? Is the PSLF struggle worth it?
IBR vs RAP? Is PSLF worth taking a possibly lower salary as an attending?
byu/RevolutionaryPath178 inStudentLoans
Posted by RevolutionaryPath178
1 Comment
If you aren’t paying the standard 10 year repayment plan through your intern/residency/fellowship( if you do one) and are on an IDR plan for that time, you were paying less than you should have for years and will be behind coming out of your residency. You’re going to have to play catch up to pay off your loans in 10 years or extend the repayment out. Whether its worth it to you depends on your financial situation and where you get a job when you finish your residency. If you end up at a non-profit hospital, might as well do PSLF for the remaining few years.
Some considerations: RAP caps at 10% of your AGI, not 10% of your discretionary income unlike PAYE. Also unlike PAYE, there is no cap, meaning that your payments under RAP could exceed what you’d owe under the standard 10 year plan. If you are not going for PSLF and your monthly payments under RAP exceed the 10 year, it might not make sense to be in it.