First, an apology. The last email sent to you about the AGD fellowship exam was an error. Moving to a new domain name and building a new website lead to an oversight and that email unintentionally found its way into your inbox. Sorry about that.
Let’s get back to personal finance and student loans. Many students will be matriculating from dental schools and residencies over the next 2 months, and student loans will be on their minds. Developing a strategy to repay (or at least manage) your loans early is extremely important.
If you want to calculated what your monthly payment will be under PAYE or REPAYE, use the following formula to calculate your discretionary income:
Discretionary income = DI
Adjusted gross income = AGI
Federal poverty level = FPL
DI = AGI – (150%)(FPL)
You can get your FPL using your family size and the table bellow if you live in any state except Alaska or Hawaii (their FPLs are different).
From your 2018 returns, you can get your AGI on:
- Line 4 if you filed a Form 1040EZ.
- Line 21 if you filed a Form 1040A.
- Line 37 if you filed a Form 1040.
Once you have calculated your discretionary income, use the following formula to cacluate you monthly payment:
(10%)(DI)/12 = monthly payment under both PAYE and REPAYE.
If these formulas are new to you, or you are confused about income driven repayment plans, I built a course to get young dentists up to speed while earning 3 hours of AGD PACE approved CE credits. You can find the course on Embrasure Space here: https://embrasurespace.com/product/understanding-managing-and-repaying-student-loans-for-dentists/
As a friend of this blog, the first 100 people who use the coupon code debt-free-dentist will save $25. The coupon code expires on May 31st.