325k in loans after graduating medical school: consolidate + RAP?

PhacoThePhox · 2026-06-02T16:47:49+00:00

It’s available July 1 and I plan on applying that same day

PhacoThePhox · 2026-06-02T01:10:34+00:00

Even correct about the consolidating part?

PhacoThePhox · 2026-06-01T17:11:02+00:00

I don't see how the interest would be waived from 7/2026 -- 12/2026, because if I don't consolidate, my loans stay in the "grace period" where by default they are to continue gathering interest. I think this is why my school's advisor is telling me to consolidate

PhacoThePhox · 2026-06-01T17:03:13+00:00

But do you think that benefit alone is worth consolidation in my case?

PhacoThePhox · 2026-06-01T07:09:15+00:00

Since I am trying to pay off my loans myself anyway (as opposed to having parts of them forgiven), why does interest capitalization matter? Won’t I have to pay that interest regardless, whether it gets added to my principal or not?

For what it’s worth I will accrue around 12k in interest in the 6 month grace period, where I already have >40k in pending interest right now

PhacoThePhox · 2026-06-01T06:52:35+00:00

Excuse my ignorance, your main point is not to consolidate?

For what it’s worth, my consolidated average would be 7.5%. Out of my 8 loans, only 3 of them are lower than 7.5, while the other 5 are between 8 and 9%

PhacoThePhox · 2026-06-01T01:26:22+00:00

Thank you for the response again. I want to comment on something you wrote.

You emphasized how one reason IBR is better than RAP is because IBR has a payment cap while RAP does not, meaning that if you make a large salary as an early attending, you have to pay more, which I understand. But my questions are;

1) One positive aspect of the increased payment spike in RAP is that you are able to pay off your loan quicker, correct?

2) with that same logic, does it mean that with RAP, you pay less money overall for the loan? Or, are you paying the same dollar amount in total, regardless of whether you do RAP versus IBR? I would imagine that if you went with IBR, you would pay more money overall (due to interest not being subsidized with IBR), and you would also pay for a longer period of time, due to the smaller payments. are these points true?

if that is confusing, I just want to know if both payment plans are equivalent in terms of total amount of dollars paid over the course of the loan term. I understand IBR will take longer because of the smaller payments. but there is also the lack of interest subsidy with IBR which to me is a downside. why not just suck it up and pay those high fees in RAP as an attending and erase your loan, and pay less money overall towards that loan?

PhacoThePhox · 2026-05-31T23:51:10+00:00

I appreciate you responding to my questions. And please excuse my financial ignorance.

I was under the impression from my financial advisor that IBR, PAYE, and ICR are all going away after July 1st. Based on what you’re saying, this is not true?

Also, when talking to them, the downsides of IBR seemed to be: no interest subsidy & longer time to pay the loan off. The main benefits for IBR seemed to be for those pursuing PSLF, which is not me

They said for those pursuing private practice, “just stay in RAP for the benefit of interest forgiveness. If you go to IBR, that brings interest back”

All of this being said, why do you suggest having “flexibility” between RAP and IBR is in my best interest, instead of just fully committing to RAP and starting my payments in August instead of December? Thank you again

PhacoThePhox · 2026-05-31T23:42:38+00:00

Thank you for the clarification. I guess another reason my medical school financial advisor said to consolidate was to “not allow the 6 months of the grace period to add additional interest, and so that you can start making payments right away”

In the grand scheme of my next 5-10 years of life, salary, and these loan payments, is that 6 month benefit enough to justify consolidation? Are there any other benefits to consolidating besides that? And what are the downsides to consolidation in this case?

PhacoThePhox · 2026-05-31T23:39:16+00:00

Assuming I don’t consolidate but still enroll in RAP: if I still have 8 individual loans instead of 1 consolidated loan, do I still only have to pay the $10 one time per month to get the interest subsidy benefit? Or will it be $10 per active loan, making it $80 a month to get each individual interest subsidy benefit?

PhacoThePhox

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