Best Approach for Existing Undergrad Loans Before Starting Med School?
Starting medical school this July and trying to understand how the new federal loan rules affect existing undergraduate loans.
Current situation:
~$13k undergraduate federal loans currently on IBR
- Starting med school after July 1 and will need new federal loans plus some private loans for living expenses
My questions:
- If new borrowing requires RAP, would my existing undergraduate loans also move from IBR to RAP?
- Would that transition trigger interest capitalization?
- Since I’ll be back in school full-time, is it generally better to place undergrad loans into in-school deferment or continue making payments during med school?
I’m trying to understand the mechanics before borrowing further. Thanks for any guidance.
EDIT: After reaching out to my loan servicer and FSA, it seems as though they are considering this situation a "transfer," so the switch from IBR to RAP won't trigger a capitalization event. My question then becomes, is it better to pay the $10/month on RAP through med school, or not worry about it and just enter the in-school deferrment? Does it truly make a difference?