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Debt Management

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.

Financial Wellness Heading link

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.

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 www.annualcreditreport.com. The free reports are part of a national program to help consumers protect their identity and personal information.

Student Loan Repayment Information Heading link

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.) https://studentaid.gov/manage-loans/repayment/plans/income-driven

Loan Forgiveness Programs:

Some service programs will repay your student loans on your behalf in exchange for a service commitment.

Sample Loan Repayment Scenarios Heading link

To give you a rough idea of what repayment of your student loans might look like, here is a loan repayment sample using the assumption that all loans are Direct Stafford Loans at a 6.8% fixed interest rate. The following chart shows monthly payment amounts for different aggregate loan totals and under different repayment plans.
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