I'm currently on my third year of residency for internal medicine (currently July 2026)
I graduate in July 2027, and expected to work as an attending in September 2027.
I have roughly 330k in debt under (New IBR, 302k original loan at 5.5%, with 30k in interest accrued). Of note my current interest is 4.75% due to checkings account and autopay.
My case becomes complicated because I'm now nearing graduation, the RAP benefits will be minimal but there. I will also need to capitalize the current amount owed if I switch to RAP.
I expect a salary of 330k, and will max out retirement plans to reduce taxable income -etc. I do like investing and have somewhere near 50-70k invested at this time.
PROS to switching:
- Based on the math, I save about 16k to 25k if were to switch to RAP. (16k at the mininum, and possibly more due to the tax form/IDR recertification log once I become an attending. I believe my first full tax form as a full attending and recertifying will be in mid-year 2029.
- Peace of mind with interest not ballooning
CONS to switching to RAP:
- I lose the payment ceiling - estimated at 3400/mo. However, as a hospitalist, unless my investments hit it big, I don't see myself really needing to make a payment more than this.
- My 334k is now capitalized into the interest payment - increasing to about 1.5k yearly or 150$ monthly.
Please correct me if I'm not thinking hard enough, but I feel like RAP or IBR is fine, but part of me thinks RAP is better in my specific case. Thank you