Placing student loans on forbearance may pause the repayment process but planning is key to ensuring there are no surprises when the time allotted expires.
(PRWEB) June 26, 2015
For the graduating class of 2015 the future seems exciting right now. Particularly for medical school graduates who are busy starting their residency or going on to more specialized education. Although most graduates will use the forbearance option on their loans during residency, MedicalSchoolInUSA.com urges all graduates to begin planning for what will happen after forbearance.
The first step to managing any debt is to get organized. “It’s important to keep track of who you owe, how much you owe, and if the debt ever changes hand,” says Medical School in the USA spokesperson Stephan Trumball. Even while loans are on forbearance the original lender can sell the debt to another financial institution. Trumball suggests keeping all correspondence related to loan debt, even if payments aren’t being made yet.
Forbearance is not automatic and usually requires an application. All graduates should check with each lender for the forbearance requirements. Placing student loans on forbearance may pause the repayment process but planning is key to ensuring there are no surprises when the time allotted expires.
A report release by the Association of American Medical Colleges estimated that the median debt for 2014 graduates was $180,000. Taking into account forbearance during residency and several types of repayment structures, it is projected to take those graduates anywhere from 13-28 years to pay off their debt. Depending on the interest rate for each plan, the original debt can go from $180,000 to between $328,000-$483,000. The amount of years projected in this report depends on a post-residency salary of $170,000.
“Those numbers can seem overwhelming. What they really say is plan for your debt before it begins to take effect. Stay organized, save what you can during forbearance and look into all your options along the way,” adds Trumball.
The more knowledgeable a graduate is about their debt options, the easier the post-graduate experience can be. From loan consolidation to loan forgiveness, all options should be considered. For the class of 2015, this summer is the optimal time to start planning.
To view information on medical schools in the U.S., visit MedicalSchoolsInUSA.com.