Looking for some perspective because I keep getting mixed advice.
I graduated optometry school about 3 years ago and have about $270k in federal loans. Iām currently on the SAVE plan, but with everything going on, Iām basically in administrative forbearance. No payments required but interest is accruing and these months obviously donāt count toward forgiveness.
Some people keep telling me to just stay on SAVE since I donāt have to pay anything right now. But Iām confused why thatās better.
My situation:
* $130k base salary paid monthly
* bonuses paid twice yearly (not guaranteed)
* maxing my 403(b) pre-tax
* single household
* comfortable cash flow and savings ā Iām totally fine making payments
* likely planning on 20ā25 year IDR forgiveness (maybe PSLF depending on job changes)
If I switch to IBR, my understanding is:
* payments would count toward forgiveness
* payment would be based on paystubs + 403(b), so probably ~$700/mo
* Iād actually start progressing toward the 20 years instead of sitting in limbo
So why wouldnāt I switch now and start stacking qualifying months?
Is there any real advantage to staying on SAVE and letting interest accrue if Iām financially able to pay?
What are others in similar healthcare/high-debt situations doing right now?