Hello,
It’s Mark Johnson from StudentLoansRx.
Happy Memorial Day Weekend!
If you are on your way to dental residency or know someone who is (pass this along to them), you need to spend ten minutes and read the article below. It could save you thousands!!
And make sure you listen to my interview on the popular dental podcast, The Raving Patients with Dr. Len Tau, the link is towards the bottom of this communication.
In this communication:
- Entering Residency? Consider Revised Pay As You Earn-REPAYE!
- The Raving Patients Podcast Interview.
- Commonly asked student loan repayment questions from those close to graduation.
To schedule your FREE consult with one of our licensed and experienced advisors, please click FREE CONSULT.
StudentLoansRx-2021 Graduation
“What You Need to Know” Series,
Tip #6-Entering Residency? Consider Revised Pay As You Earn-REPAYE, an Income-Driven Repayment Plan.
If you are on your way to residency, you need to spend ten minutes and read this article. It could save you thousands!!
Unfortunately, hundreds of 2021 dental graduates will enter residency without receiving proper advice on their student loan repayment strategy and it will cost them thousands in unnecessary interest accrual!
I hope you are not one of them!
To schedule your FREE CONSULT with one of our licensed and experienced advisors and learn how to avoid costly student loan repayment mistakes, please click FREE CONSULT.
Revised Pay As You Earn-REPAYE
A Powerful Strategy for Residents: The average dental student will graduate this year with just over $300,000 in student loans. Many will graduate with between $400K-$500K!
Let’s say a single dental student is graduating with $300,000 in federal student loan debt with an average interest rate of 6% (assuming interest gets turned back on Oct.1, 2021). They earned little or no income in their final year in dental school and completed a 2020 tax return showing income under $15,000. Is this you?
Assume they graduate dental school and enter a two-year residency program, July 2021-June 2023, 24 months. Interest does not start to accrue until October 2021. In this situation, they will have 21 months of interest accrual during residency.
Am I losing your attention? Stick with me for a few more minutes for the potential thousands in savings I am going to articulate below.
SIMPLE Math: $300,000 (student loan balance) X 6% (interest rate)/12 months x 21 months (# months of interest accrual in residency)=$31,500.
$31,500 of interest, that needs to be paid back some day, will be added to federal student loan balance while in residency. That is a nice car!
What if this dental professional could graduate from residency with only $15,000 of interest being added to their student loan balance, no student loan payments in the first year of residency and less than a $100 a month student loan payment in their second year of residency?
Wouldn’t that be a much better plan than deferring loans during residency and graduating with a student loan balance $31,000 higher than the day they graduated dental school?
There is a very, very powerful repayment strategy we use with our clients entering residency called, Revised Pay As You Earn.
Revised Pay As You Earn-REPAYE is one of the two primary Income-Driven Repayment-IDR options offered through the federal student loan program.
REPAYE is however unique compared to the other IDR option, Pay As You Earn-PAYE, in that REPAYE provides a very significant interest subsidy or interest benefit to qualified borrowers, up to a 50% reduction in interest accrual under certain circumstances!
To schedule your FREE CONSULT with one of our licensed and experienced advisors, to learn more about the POWERFUL STRATEGY for RESIDENTS, please click FREE CONSULT.
I really enjoyed my recent discussion with Dr. Len Tau on The Raving Patients Podcast.
If you are an emerging dental professional or you have been practicing for years, I highly encourage you to sign-up for The Raving Patients Podcast.
To access the podcast click HERE.
To schedule your FREE consult with one of our licensed and experienced advisors, please click FREE CONSULT.
Most frequently asked questions during our FREE 30-minute consults:
- Which repayment method is best if I wish to start or purchase a practice?
- Should I enroll in an income-driven plan?
- If so, should I choose Pay As You Earn-PAYE or Revised Pay As You Earn-REPAYE?
- When do I enroll in repayment if I will be on PSLF?
- What is my work/life situation changes? Can I change repayment plans? What are the consequences of changing plans?
- Should I refinance with a private lender? If so, which lender and when?
- How aggressive should I be in repaying student loan debt when I have other financial priorities as well?
To schedule your FREE consult with one of our licensed and experienced advisors, please click FREE CONSULT.
If you have any questions related to student loan repayment planning or any of the other financial or investment planning services we offer, please feel free to email us at StudentLoansRx@RBFAdvisors.net.
