HOW TO BEAT INTEREST

HOW TO BEAT INTEREST I don't get it, Dr. Turner! My Loans Current Balance $0.04 Outstanding Principal: $0.04 Accrued Interest: $0.00 Last Payment Received: $301.15 (Oct 25, 2023) How am I supposed to focus on residency when my student loan burden just keeps increasing. It's so stressful. Let me guess, your financial aid office just told you to enroll in income based repayment your student loan balance skyrocket? Well what else am I supposed to do? Print my own money? Nope. But you can use the Repayment Assistance Plan The Repayment Assistance Plan (RAP) is a new income-driven repayment (IDR) plan for federal student loans that will be available on July 1, 2025. This will be the only IDR plan available for Direct Student Loan borrowers after July 1, 2026. Includes direct student loan repayment plans get a major modified with this new set on July 1, 2025. Has been modified with this new set on July 1, 2025. What it means is for borrowers who are on income-driven plans, including haven't paid off their monthly payments. What is the Repayment Assistance Plan? The Repayment Assistance Plan (RAP) is a new income-driven repayment (IDR) plan for federal student loans. Unlike other IDR plans, it allows borrowers to repay their student loans with monthly payments that are determined by their income. The RAP is available for all federal student loans, including Direct Consolidation Loans, PLUS Plan, Income-Contingent Repayment (ICR) Plan, and Income-Based Repayment (IBR) Plan. Interest Rate Monthly Payment Total Payments 1% $87.60 $10,512.49 2% $92.01 $11,041.61 3% $96.56 $11,587.29 4% $101.25 $12,149.42 5% $106.07 $12,727.86 6% $111.02 $13,322.46 7% $116.11 $13,933.02 8% $121.33 $14,559.31 9% $126.68 $15,201.09 10% $132.15 $15,858.09 Okay, that sounds like some fake loophole you found on Reddit or something. No, no, no. Let me explain. When you enroll in certain payment programs like income based repayment after your student loan payments made the interest will just continue to accrue and it'll grow quite a bit. Awesome. Love that for me. Right but with the Repayment Assistance Plan Repayment Assistance Plan Income Brackets Adjusted Gross Income Minimum annual payment or percent of AGI you must pay annually $30,000 or less $2.20 More than $15,000 - $25,000 1% More than $25,000 - $35,000 2% More than $35,000 - $45,000 3% More than $45,000 - $55,000 4% More than $55,000 - $65,000 5% More than $65,000 - $75,000 6% More than $75,000 - $85,000 7% More than $85,000 - $95,000 8% More than $95,000 - $105,000 9% More than $105,000 10% after you make your low monthly payment any interest that you don't pay is waved by the government, so the number that you finish training with is actually not larger and often is smaller than the one you started with. Wait... so you're saying that my student loan interest will just disappear? Exactly. So, instead of that $200,000 of student loans increasing to $300,000 during your five year residency your balance will actually stay at the $200,000 or less by the time you finish. All while making reasonable monthly payments. This is crazy, why don't they teach this stuff in medical school? Because knowing the mitochondria is the powerhouse of the cell is more important.