Student Loan Repayment for Veterinary Internships and Residencies
Conventional wisdom and reflex in the medical training community often says to defer your loans while pursuing internships and/or residencies. However, income-driven repayment (IDR) is often a much better option for veterinarians with federal student debt pursuing advanced education.
Income-driven repayment (IDR) calculates your monthly payment using your taxable income. After making payments for a specified number of years (20 or 25 depending on the plan), your remaining balance can be forgiven, triggering a tax on the amount forgiven. IDR can also lead to Public Service Loan Forgiveness (PSLF) which is a non-taxable benefit with specific requirements, including making payments to your federal Direct loans using an IDR plan while working for a qualifying organization for at least 10 years. The most beneficial IDR plans include Pay as you Earn (PAYE), Revised Pay as you Earn (REPAYE), or Income-Based Repayment (IBR).
If you need help understanding your loan types, go to studentaid.gov, download your federal student aid data file, and upload your file to the VIN Foundation My Student Loans tool. This tool will organize your student loans by type and loan servicer, and you can see your potential IDR plans with the “Income-Driven Repayment Eligibility” function.