Debt Management
Repayment Plan Options and Projections
The Association of American Medical Colleges (AAMC) has a variety of financial information and resources for medical students. The COM OSFA strongly recommends that you use the MedLoans Organizer and Calculator (MLOC) to track your loans and project repayment scenarios. Below are additional helpful resources for managing student loan debt.
- Video instructions on how to use the MedLoans Organizer and Calculator (MLOC)
- Complete the Exit Counseling when you drop below half-time enrollment, Graduate, or Leave school
- AAMC: A Medical Student's Guide to Money Management and Student Loans
- Find your Federal Student Loan Servicer
- Public Service Loan Forgiveness (PSLF)
Budgeting and Debt Management
Financial Wellness
To minimize student loan debt and to successfully repay your student loans, you must be able to budget your monthly expenses effectively. Our Office encourages best student loan borrowing practices. The AAMC FIRST (Financial Information, Resources, Services, and Tools) program provides free resources to help you make wise financial decisions.
- The Association of American Medical Colleges (AAMC) personal finances includes budgeting basics and a fillable Monthly Budget Worksheet.
- With the Financial Wellness program, account holders will have free access to financial calculators, articles, and videos to create a budget, track spending, create financial goals, and enhance your knowledge about credit, financial planning, money management, and more.
- New webinars and videos can be found on FIRST’s webpage at www.aamc.org/videowebinars and FIRST’s YouTube channel. If you have any questions, reach out to first@aamc.org.
Credit History Awareness
You should monitor your credit, as your credit history can affect your ability to own a home and get a job. Request a free credit report annually from each of the three major credit bureaus. Request your credit report at Annual Credit Report webiste. The free reports are part of a national program to help consumers protect their identity and personal information.
Student Loan Repayment Information
In order to repay your loans, you must know what loans you have. Organize your student loans and keep your records in order so that you can make more informed decisions about managing your debt. There are many tools available to assist you with this process, including the following:
- AAMC’s Medloans Organizer and Calculator. It’s a great tool to track your loans now and to project repayment scenarios in the future, both during and after residency.
- Federal Student Aid Repayment Estimator. This tool also allows you to estimate your federal student loan payments under each repayment plan.
Know Your Loans
All Stafford loans at UIC are Direct Loans. You borrow directly from the federal government. You may have borrowed Stafford Loans from private lenders and/or Federal Family Education Loans (FFEL) in the past.
Know Where to Locate Your Federal Loan History
Federal Student Aid is the Department of Education’s central database for federal student aid. You can access all your federal student loan history online at the Federal Student Aid website. You will need to login or create an account.
Know What Is Expected of You Before You Graduate
Before you graduate, plan to attend the AAMC M4 Loan Repayment Live Webinar which is held during the spring semester of your M4 year. This presentation will provide you with detailed information about your federal student loan repayment obligations and options.
Know What Is Expected of You After You Graduate
After you graduate, leave school, or drop below half-time enrollment, you will go into repayment on your student loans. For Stafford Loans, you have a grace period of six months. Graduate PLUS loans have a deferment period of six months. Consolidated loans do not have a grace or auto deferment period, and will go into repayment immediately after you graduate, leave school, or drop below half-time enrollment. Any type of unsubsidized loans (including Graduate PLUS), accrue interest during grace and deferment periods. Unpaid interest is capitalized at the end of these periods for Graduate Plus Loans. Any subsidized loans do not accrue interest during grace or deferment periods. Click here to learn more about what to expect after graduation.
Know the Repayment Plans Under the Direct Loan Program
- Traditional Plans:
- STANDARD REPAYMENT PLAN – Under this plan you will pay a fixed monthly amount for up to 10 years and up to 30 years for consolidated loans. If you do not select a repayment plan by the time repayment begins, your loan(s) will be placed in the Standard 10-year Repayment Plan. For most borrowers, this plan results in the lowest total interest paid because the repayment period is shorter than it would be under the other plans. This plan qualifies for Public Service Loan Forgiveness (PSLF).
- EXTENDED REPAYMENT PLAN – Under this plan you will pay a fixed or graduated amount monthly for up to 25 years, depending on the total amount you owe. Selection of this plan will result in a lower monthly payment; however, total interest paid will be higher than the total interest paid with Standard Repayment Plan due to the longer repayment term.
- GRADUATED REPAYMENT PLAN – With the Graduated Repayment Plan, your payments start low and increase every two years. The repayment period for your loan can be up to 10 years, and up to 30 years for consolidated loans. Generally, the amount you’ll repay over the term of your loan will be higher under the Graduated Repayment Plan than under the Standard and Extended Repayment Plans. However, if your income is low when you leave school but is likely to increase steadily, this might be a plan to consider.
- Income Driven Repayment Plans:
- SAVING on a VALUABLE EDUCATION PLAN (SAVE) – This plan replaces the REPAYE Plan as of August 2023. Your monthly payment will be based on 5% to 10% of your discretionary income. Interest not covered by your monthly payment will be eliminated. Payment amounts are recalculated each year based on your Adjusted Gross Income (AGI) on your federal tax return, family size, and state of residence. The maximum repayment period is 25 years if any of the loans you’re repaying under the plan were received for graduate or professional study or 20 years. Any remaining balance at the end of the repayment period will be forgiven if your federal student loans are not fully repaid at that time. This plan qualifies for Public Service Loan Forgiveness (PSLF).
- PAY AS YOU EARN PLAN (PAYE) – Note: This plan will no longer be available as of July 1, 2024. The PAYE Plan is similar to the IBR Plan but is only available to new borrowers on or after Oct. 1, 2007 that have received a disbursement of a Direct Loan on or after Oct. 1, 2011. It sets monthly payment amounts at 10% of your discretionary income, but never more than the 10-year Standard Repayment Plan amount. Payment amounts are recalculated each year based on your Adjusted Gross Income (AGI) on your federal tax return, family size and state of residence. The maximum repayment period is 20 years under this plan. Any remaining balance at the end of the repayment period will be forgiven if your federal student loans are not fully repaid at that time. This plan qualifies for Public Service Loan Forgiveness (PSLF).
- INCOME CONTINGENT REPAYMENT PLAN (ICR PLAN) – The Income Contingent Repayment Plan (ICR) is designed to give borrowers the flexibility to meet their student loan obligations without causing undue financial hardship. The monthly payment will be calculated based on the lesser of 20% of your discretionary income what you would pay on a repayment plan with a fixed payment over the course of 12 years, adjusted according to your income. Payment amounts are recalculated each year based on your Adjusted Gross Income (AGI) on your federal tax return, family size and state of residence. The maximum repayment period is 25 years under this plan. Any remaining balance at the end of the repayment period will be forgiven if your federal student loans are not fully repaid at that time. This plan qualifies for Public Service Loan Forgiveness (PSLF).
- INCOME BASED REPAYMENT PLAN (IBR PLAN) – The IBR Plan is similar to the ICR Plan but might be a better option for many medical students. Your monthly payment is based on 10% of your discretionary income if you’re a new borrower on or after July 1, 2014*, but never more than the 10-year Standard Repayment Plan amount. It sets monthly payment amounts at 15% of your discretionary income if you’re not a new borrower on or after July 1, 2014, but never more than the 10-year Standard Repayment Plan amount. Payment amounts are recalculated each year based on your Adjusted Gross Income (AGI) on your federal tax return, family size and state of residence. The maximum repayment period is either 20 to 25 years under this plan. Any remaining balance at the end of the repayment period will be forgiven if your federal student loans are not fully repaid at that time. This plan qualifies for Public Service Loan Forgiveness (PSLF).
- REPAYE PLAN – This plan has been replaced by the SAVE Plan as of August 2023. Students who are currently in the REPAYE Plan will be transferred to the SAVE Plan.
* For the IBR Plan, you’re considered a new borrower on or after July 1, 2014, if you had no outstanding balance on a William D. Ford Federal Direct Loan (Direct Loan) Program loan or Federal Family Education Loan (FFEL) Program loan when you received a Direct Loan on or after July 1, 2014. (Because no new FFEL Program loans have been made since June 30, 2010, only Direct Loan borrowers can qualify as new borrowers on or after July 1, 2014.) See Student Aid website for more information.
Loan Forgiveness Programs:
Some service programs will repay your student loans on your behalf in exchange for a service commitment.
Sample Loan Repayment Schedules
| Monthly Payment Amounts for Various Loan Totals | $100,000 | $150,000 | $250,000 |
|---|---|---|---|
| Standard | $1,150 | $1,726 | $2,301 |
| Extended | $694 | $1,041 | $1,388 |
| Graduated | $790 – $1,726 | $1,185 – $2,589 | $1,580 – $3,452 |
Budgeting and Debt Management
The following is a breakdown of each COA component and are for you to allocate and budget based upon your needs. Please note this is not an all-inclusive breakdown of all itemized expenses. We encourage all students to create a budget prior to starting your M1 year using the Association of American Medical Colleges (AAMC) Budget Worksheet for Students which can help you determine the amount of student loans you may need to borrow. We also encourage all students to keep track of their student loan borrowing by using the AAMC MedLoans Organizer and Calculator.
- Housing and Food Expenses (this is determined by annual surveys and in collaboration with UIC System):
- Groceries
- Eating out
- Rent/Mortgage
- Books and Supplies (related to the curriculum)
- Text books (tip: many books can be checked out as e-books from the library)
- Computer and/or tablet
- Any office supplies to do your study/work
- Supplemental study materials
- Some of these items are heavily used by medical students and will have additional costs on top of required/free resources. Some of these resources are monthly fees or annual fees. Costs range from $100-$500 a year.
- We strongly recommend talking with your mentors and academic skills team about selecting the appropriate resources for study.
- Transportation Expenses
- Fuel
- Regular vehicle maintenance (i.e. oil changes)
- Car insurance
- Parking
- Public transportation costs (if applicable and available)
- Personal Expenses
- Medical expenses
- Wellness needs: Haircuts, prescriptions
- Utilities/mobile phone bill/cable bills
- Loan Fees: Designated to help offset the Department of Education loan origination fees.
An averaged federal loan fee will be added to your COA for those that borrow a Federal Direct Loan ($400) and a Federal Grad Plus Loan ($1,200). The amount of the loan fee(s) added will depend on the type of loans borrowed. - Budgeting Resources
- Association of American Medical Colleges (AAMC) Budget Worksheet for Students
- AAMC MedLoans Organizer and Calculator
- Budgeting Tips
- Financial Literacy Webinars:We host a variety of financial literacy experts to present to our students on financial literacy, debt management and financial aid topics throughout the year. Keep an eye out for announcements of events on SLACK and student listserves.
- Overall Medical School Budgeting Tips:
- Consider getting a roommate to lower costs
- Look for housing that includes some utility expenses
- Consider purchasing a reliable used vehicle vs. a new vehicle
- Stay up to date on maintenance of vehicle-it will save money in the long run
- Talk to your academic skills team (advisor/learning specialist/peer educator/faculty) about how to select supplemental study resources. They can help find deals and help with the prevention of resource overload.
- Eat out less and look for sales when shopping
- Create a personal monthly budget sheet
M1-M4
| Item | Estimated Cost | Considered Cost of Attendance? |
|---|---|---|
| M1 Year | ||
| Credit Card Debt | Varies by Student | No |
| Immunizations/Titers | Varies by Student/Insurance Coverage | No |
| Relocation to school costs - Fuel, moving trucks, cost of new furniture, security deposit to housing, etc. | Varies by student and location | No |
| Vehicle purchase/payments-Needed throughout your medical school education | Varies by student | No |
| Credit check for grad plus loans? | No Fee | No |
| M2 Year Additional Cost Considerations | ||
| Step 1 Scheduling Permit | $670 (See Fees) |
Yes Only in the M2 year will you see this added in COA. |
| Step 1 preparations courses or additional study tools | Independent study resources averages between $100-$500 | No |
| Cost to reschedule Step 1 exam less than 30 days prior to test date (only exception is Rockford Prometric Center) | Depends on timing, but ranges $75-645 | No |
| Cost to re-take Step 1 Exam | $670 | No |
| Cost to extend study resources (including UWorld provided from the school) | Varies | No |
| M3 Year Additional Cost Considerations | ||
| Increased travel expenses (traveling to clinical sites in addition to campus) | Varies by location | Possibly- check with OSFA |
| Rural clinical rotation that may require relocating for part of the time. | Varies and some costs may be covered by the program | Possibly- check with OSFA |
| M4 Year Additional Cost Considerations | ||
| Step 2 Scheduling Permit | $670 (See Fees) |
Yes Only in the M3 year will you see this added in COA. |
| Step 2 preparations courses or additional study tools |
Independent study resources averages between $100-$500 Live or Interactive Study Programs: $12000-$9000 |
No |
| Cost to reschedule Step 2 exam less than 30 days prior to test date (only exception is Rockford Prometric Center) | Depends on timing, but ranges $75-645. | No |
| Cost to re-take Step 2 Exam | $670 | No |
| Cost to extend study resources (including UWorld provided from the school) | Varies | No |
| Cost to apply to residency | ERAS Fees, NRMP Fees, Travel cost: Varies on location and method of travel | No |
| Cost to participate in away rotations |
Housing costs: varies based on location Additional fees for meals and living expenses Technology needs (if virtual) |
No |
| Cost to Interview for Residency |
Interview supplies/attire Travel to Interviews (Ubers, cabs, fuel cost, plane tickets, hotel stays): |
Possibly- Use the Interviewing Budget Request Form to request additional funds up to $3000 for residency interview travel costs. |