Forgiveness program
is not all that forgiving.
- 4 year college: –$28,400
- 4 year medical school: –$170,000
- Net student debt at graduation: -$198,000
I added 181,671 additional un-subsidized loan @ 6.8% to my current loan balance of 16k, which brings me to the average graduating medical student debt quoted above.
| Repayment Plan | Repayment Period | Monthly Payment
Initial to Final Amounts
|
Projected LoanForgiveness  |
Total InterestPaid |
Total Amount Paid |
|---|---|---|---|---|---|
|
Standard
|
120 months |
$2,275
to
$2,275
|
$0 | $74,960 | $272,960 |
|
Graduated
|
120 months |
$1,312
to
$3,935
|
$0 | $95,598 | $293,598 |
|
Extended Fixed
|
300 months |
$1,369
to
$1,369
|
$0 | $212,828 | $410,828 |
|
Extended Graduated
|
300 months |
$1,116
to
$1,961
|
$0 | $247,100 | $445,100 |
|
Income-Based Repayment (IBR)
|
300 months |
$406
to
$1,644
|
$260,866 | $271,822 | $271,822 |
|
IBR for New Borrowers
|
240 months |
$271
to
$832
|
$343,624 | $122,126 | $122,126 |
|
Pay As You Earn
|
240 months |
$271
to
$832
|
$343,624 | $122,126 | $122,126 |
|
Income-Contingent Repayment (ICR)
|
300 months |
$639
to
$2,357
|
$152,856 | $335,765 | $400,710 |
If you go for IBR or PAYE, the real loan balance at the end of 240 months is total amount paid + projected loan forgiveness.
The -$198,000 a graduating medical student had, would have grown to $122,126 + $343,624, a grand total of $465,750— a handsome sum that could buy mansions (where cost of living is reasonable.)
But only sad thing is, the VECTOR of this magnitude is in the wrong direction! It is not half a million positive net worth that you can utilize in many amazing ways, it is the exact opposite. It is half a million negative net worth. It’s like carrying a mortgage without a house when it is paid off.
Is your education worth
half a million (at least) to you?
Learn to manage your debt so that you can go for higher education and won’t regret doing so!