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MCPHS Student Loans: Best Repayment Strategies for Students and Parents

Massachusetts College of Pharmacy and Health Sciences (MCPHS) was recently ranked the #1 University for Earning Power, making it a great place for healthcare professionals looking to secure high-paying careers after graduation.

MCPHS has over 100 undergraduate and advanced health sciences programs. It has three Massachusetts campuses in Boston, Worcester and Manchester, as well as online course offerings. But a MCPHS degree comes at a cost, especially for borrowers pursuing a pharmacy degree.

Whether you’re a student yourself or a parent who took out loans to finance their child’s higher education, you might be wondering what you should do with all of that debt. Keep reading for the most recent MCPHS student loan statistics, along with the best ways to pay off MCPHS student debt.

Mass. College of Pharmacy and Health Sciences (MCPHS) student loans by the numbers

According to the Department of Education College Scorecard, MCPHS has an 80% graduation rate for undergraduate students. It estimates the average annual cost for undergrads at $38,127 after accounting for grants and scholarships through federal financial aid.

Here are some additional key statistics related to its undergraduate student loan borrowers.

  • Students who received federal student loans: 69%
  • Median total debt after graduation: $25,000 to $30,250, depending on field of study
  • Typical monthly loan payment: $239 to $289 (based on standard 10-year repayment plan)

However, parents who took out loans to help cover the full cost of attendance at MCPHS have roughly double the debt. Here’s some information specific to Parent PLUS Loan borrowers at this university.

  • Students who had a parent take out a Parent PLUS Loan: 10% to 20%
  • Median total debt after graduation: $64,758
  • Typical monthly loan payment: $696 (based on standard 10-year repayment plan)

Based on data from the Wall Street Journal, MCPHS is one of the top schools for parent-based student debt.

Why does MCPHS have some of the highest Parent PLUS balances in the country? Well, MCPHS is a pharmacy and health sciences school with many students on track for advanced degrees. In which case, parents are often given the option to take out loans to help cover the cost of their child’s education.

How to pay off MCPHS student loans: Options for parents and students

If you have existing Mass. College of Pharmacy and Health Sciences student loans, there are a variety of repayment strategies that students and parents can use.

Note that these strategies can also be used to plan for future student debt if you’re considering attending MCPHS.

Here’s a general rule of thumb for MCPHS student loans:

  • If you have more than $150,000 of student debt, consider loan forgiveness options.
  • If you have less than $150,000 in student loans, refinancing might benefit you the most.

However, there’s no blanket solution for paying back student debt. You’ll need to weigh your options to find the best repayment strategy based on your financial situation and future goals.

Let’s explore some options for paying back your MCPHS student loans.

Enroll in an income-driven repayment plan if you want to limit your monthly payment

Federal student loan borrowers have access to flexible income-driven repayment (IDR) plans. These plans are designed to cap your monthly payment at 10% to 20% of your discretionary income. Thus, turning them into a pseudo tax with one huge additional benefit — loan forgiveness.

There are currently four IDR plans to choose from, including:

  • Pay As You Earn (PAYE). Based on 10% of your discretionary income and includes forgiveness after 20 years of payments.
  • Revised Pay As You Earn (REPAYE). Based on 10% of your discretionary income and includes forgiveness after 20 or 25 years of payments.
  • Income-Based Repayment (IBR). Based on 10% or 15% of your discretionary income and includes forgiveness after 20 or 25 years of payments.
  • Income-Contingent Repayment (ICR). Based on 20% of your discretionary income (or what you would pay on a fixed 12-year repayment plan) and includes forgiveness after 25 years of payments.

Here’s the catch: Parent PLUS Loan borrowers don’t qualify for IDR plans. However, you can become eligible for the ICR plan through Direct Loan Consolidation.

Additionally, parents can access remaining IDR plans using the Parent PLUS double consolidation loophole. This loophole allows parents to drop their payment from 20% on the ICR plan to 10% of their discretionary income. It can also shorten the payment window for loan forgiveness.

Use PSLF to your advantage if you work in the public sector

If you’re employed in the public or nonprofit sector, you might be eligible for the federal Public Service Loan Forgiveness (PSLF) program. If you qualify, PSLF wipes away your remaining MCPHS student loans tax-free after 120 qualifying payments — meaning you could be student-debt free in as little as 10 years.

This program dramatically reduces your overall debt repayment. But there are specific requirements to qualify for PSLF, such as being enrolled in an IDR plan.

Let’s look at how valuable PSLF can be for MCPHS students (and parents if you have consolidated your loans and work for an eligible employer).

Celeste has $200,000 worth of MCPHS student debt with an average 7% interest rate. She works in a hospital pharmacy setting with an adjusted gross income (AGI) of $110,000.

By enrolling in PAYE and pursuing PSLF, Celeste can limit her monthly student loan payment and maximize loan forgiveness.

As this example details, Celeste’s student loan payment on the PAYE plan would be $756 per month and change over time based on her income and family size. This is far less than the $2,322 a month she’d pay on the 10-year Standard Repayment Plan.

And because she’s eligible for PSLF, her entire remaining balance would be forgiven tax-free after 10 years of payments. This would save Celeste more than $142,000 over the life of her loans.

Use our PSLF Calculator to see how much you could save by pursuing PSLF.

Refinance to a lower interest rate if you plan to pay your loans in full

Depending on your student debt and income, you might benefit more from refinancing your MCPHS student loans.

Refinancing can be a great solution for borrowers who work in the private sector and for those who already have existing private student loans. In some cases, Parent PLUS borrowers might even be able to refinance and transfer loans into their child’s name.

However, if you have federal loans, you’ll need to consider the pros and cons of refinancing as you’ll lose access to all federal borrower benefits and protections. But if you plan to pay your student loans in full, you can refinance your MCPHS student loans to lower your interest rate or monthly payment.

Let’s look at Celeste’s student debt situation again, but we’ll take PSLF off the table because her job no longer qualifies.

Celeste has a few repayment options, including:

  • Staying on the PAYE plan with capped monthly payments.
  • Paying off her loans in full under the 10-year Standard Repayment Plan.
  • Refinancing her loans to save money on interest over time.

If Celeste stayed on the PAYE plan, her monthly payments would continue to be capped at 10% of her discretionary income, beginning at $756 a month. Although this could be beneficial depending on other financial factors, Celeste would end up paying considerably more primarily due to the loan forgiveness tax bomb.

If she kept her federal student loans on the Standard Repayment Plan, she’ll have a higher monthly payment at $2,322 and end up paying $278,660 when all things are said and done.

But if Celeste wants to tackle her debt in full over 10 years (same length of time as the standard plan), she could refinance her MCPHS student loans to a 3% interest rate. Her monthly payment would be lower than the standard plan at $1,931 a month. Plus, she’d save roughly $46,000 in interest.

Use our Refinancing Calculator to play with numbers unique to your situation. If you decide refinancing is the right path for you, we recommend shopping around with at least three lenders to get the best interest rate and terms. Be sure to also use our partner referral links to score $1,000+ in refinancing cash-back bonuses!

Get a custom repayment plan

Similar to Celeste’s situation, your best repayment route depends on your financial situation, and your personal and career goals. It can be overwhelming to figure out these types of long-term repayment strategies on your own.

Our team of student debt experts can create a customized debt plan and answer any questions you have about repaying your MCPHS student loans. Schedule a consultation today.

Not sure what to do with your student loans?

Take our 11 question quiz to get a personalized recommendation for 2024 on whether you should pursue PSLF, Biden’s New IDR plan, or refinancing (including the one lender we think could give you the best rate).

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