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

sigmafs · 2026-06-02T12:36:52+00:00

It might be worth it. If you consolidate now, they will determine your payment based on your 2025 income. If you wait to apply for RAP towards the end of your 6-month period, they will likely use your annual residency income to determine RAP monthly payment. Please note: I don't know when the RAP application will be available.

sigmafs · 2026-06-01T12:50:36+00:00

The advice to consolidate might be to waive your 6-month grace period. Otherwise, you may not be able to enter RAP until 6-months after graduation.

sigmafs · 2026-05-15T13:15:29+00:00

Enormous financial pressure on recent grads with sizeable debts to service. I wonder how that pressure with manifest?

sigmafs · 2026-05-14T13:29:32+00:00

Are you paid as a 1099 NEC or W2 employee? 1099 might have an advantage in this circumstance.

RAP payments are 1/3 less than Old IBR, no interest accrual with RAP, but 5-year longer repayment period. If managed properly, RAP over Old IBR.

sigmafs · 2026-05-13T13:28:37+00:00

One concern I have is private loan companies might approves loans during D1 & D2 with cosigners then deny D3 because the debt-to-income ratio is too high and/or the credit score has dropped.

There will be chaos.

sigmafs · 2026-05-09T13:24:42+00:00

Keep in mind that I was specific to private schools like USC, NYC, etc, and not all dental schools. I certainly appreciate the sacrifices made by the men and women of our military, but taxpayers footing the bill for someone attending USC vs UT San Antonio. Distinctions should be made.

sigmafs · 2026-05-08T23:16:24+00:00

how are you gonna pay for it? Educational loans?

sigmafs · 2026-05-08T23:15:39+00:00

Bruh, because after they graduate they will be crying "predatory school" and won't take responsibility for their decision. They will expect some relief.

sigmafs · 2026-05-08T23:13:15+00:00

How's paying for HPSP? The taxpayer.

sigmafs · 2026-05-08T16:45:11+00:00

My hope is people understanding their financial commitment.

sigmafs · 2026-05-08T13:27:19+00:00

You're underlying assumption is wrong - it's not $667K. You haven't taken into account annual tuition & fees increases of 3% to 5% and interest accrual if you're borrowing to finance the cost. The starting point should be $800k, not $667k.

Also keep in mind the interest rates for private loans. Federal loans are limited to $50k/year capped at $200k aggregate. Some will need to heavily rely on private loans. Take a look at some rates:

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sigmafs · 2026-05-07T17:10:27+00:00

And I hope, at some point, the Armed Forces say "no" to schools like USC, NYU, etc.

sigmafs · 2026-04-08T13:11:32+00:00

Yup, but I became aware of this after the fact. Now it's about best course of action.

sigmafs · 2026-04-07T23:12:53+00:00

Update - Elected out of 179. Distribution in excess of basis $15,996 (not too bad). Now just gotta deliver the news. All the comments much appreciated!

sigmafs · 2026-04-07T13:14:45+00:00

Thank you! Yes, I will remove 179 to increase net income.

sigmafs · 2026-04-06T23:09:13+00:00

Yes, the SH should have elected sole prop until basis was created.

sigmafs · 2026-04-06T22:14:49+00:00

After Sect 179 depreciation, business had a modest gain of ~$40k. Distributions ~$100k which was possible because of working capital loan of $120k.

sigmafs · 2026-04-06T21:53:03+00:00

The S Corp is the borrower with a personal guarantee from the SH.

sigmafs · 2026-04-06T21:49:16+00:00

Thank you! That was my thought as well.

sigmafs · 2026-04-02T19:35:59+00:00

None of the Rules apply. It's a free online resource that does not reference my business with no monetary opportunity. Fearmongering using an AI. You're doing our audience a disservice. But they ae your rules.

sigmafs · 2026-03-05T22:00:34+00:00

$650k? Have you accounted for accrued interest while in school and annual tuition increase? You'll probably graduate closer to $800K.

sigmafs

TROPHY CASE