I am worried about $302,000 of debt

[Saleemrodman1]

I have started Medical School, and took out the federal unsubsidized loan and part of the GradPlus loan. I budgeted as much as I could and am paying $600 in rent and living frugally in terms of food and fuel.

However, I will still end up racking up $302,000 of debt (without interest) at the end of Medical School. Adding interest to this, will I be able to pay this debt off? How many years will it be? Could I possibly do it in three years after residency? Four? What do you think?

I'm really freaking out right now.

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[Goro]

It will take awhile, but yes, you can pay it back.

 

[Allosteopath]

It also will depend on how motivated you are to pay it back. If you pay $600/month in rent as an attending, you will have more than enough earning power to tackle it quickly.

 

[Splenda88]

Become an EM doc, make 400k+/yr and wipe out your debt in <3 years. It can be done.

 

[samac]

You’ll have over 20k in interest when it’s the end of your 4th year. That was painful to see.

Most of us have an extremely high amount of debt. We get out of it. It’ll be fine. Take a job in an underserved area with great pay and great loan repayment options.

 

[Schwifty]

Well good move only paying $600 for rent, I know people in my class are paying over $1,200 and I'm only paying about $580. But ya, paying it off in 3-4 years is totally possible, it just depends on how aggressive with paying it back you want to be (and your income of course).

 

[Saleemrodman1]

One of the specialties I am very interested in is Hematology. I don't know how hard it is to get into Hematology, but it seems that if I can get into that specialty, this will be a lot easier.

My school is really pushing for Primary Care, but I don't know how a PCP is supposed to pay this debt off really quickly.

I plan on living like a resident even after residency, because my primary goal is to completely wipe that debt, so I can go on to practicing Medicine without having to stress about this financial burden.

It's just really hard to focus when I'm thinking about how much I'm going to owe.

 

[Saleemrodman1]

You’ll have over 20k in interest when it’s the end of your 4th year. That was painful to see.

Most of us have an extremely high amount of debt. We get out of it. It’ll be fine. Take a job in an underserved area with great pay and great loan repayment options.

By taking a job in an underserved area, you mean after residency, correct?

 

[JimBone905]

Lots of pcp make enough to pay back their debt in ~5 years. Depends on where you work as an attending and lifestyle.

Heme from what i have read up on is a reasonable goal and very attainable as long as u have no red flags, decent step scores, and land into a decent IM program.

 

[LebronManning]

I wouldn't be. Just make a lot of money for a few years and you'll be fine. Can be done in any specialty

 

[madiso30]

I'm too lazy to link anything more than the website but white coat investor might be worth checking out to ease your mind.

When I was shadowing I talked to a couple of young attendings (and residents who planned to do this) who "lived like residents" in order to pay off debt quickly. Right out of residency focus on paying off the debt and dont go out buying expensive cars or an expensive house.

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[AMEHigh]

It does suck and definitely affects life decisions going forward until it’s paid off, but it’s certainly not the end of the world.

I’ve personally decided to continue to responsibly enjoy my life (I go on international vacations a few times per year, but I am in a relationship with someone who makes more money than me), instead of saving every single last penny towards my loans. The balance has been good for me.

You will eventually be able to pay it off, just be responsible along the way.

 

[Hippocrates II]

My school is really pushing for Primary Care, but I don't know how a PCP is supposed to pay this debt off really quickly.

I'm not sure why the idea that primary care providers live like starving artists is so widely promulgated on here, but it's largely nonsense. FM/IM can pretty reasonably expect to earn mid-200k salaries and up, as long as you don't have unreasonable demands of hours/location/etc. If someone can't imagine paying off a few hundred grand while earning upwards of 20 grand a month (pre-tax, of course), they need to re-evaluate their finances. Medical school is expensive for many of us, but the job payoff often far exceeds that initial cost.

Here is just a mock budget that I came up with in 5 minutes. Not saying it's perfect or all-encompassing, but I'll use it to illustrate a point.

Salary: 240,000/year

Net monthly income in my random state: ~$14,000

Mortgage/taxes/insurance on a ~300k home: $1,500

House maintenance fund: $250 (1% of house value/year)

Utilities: $300

Car loan: $400

Insurance (health/car): $250

Groceries/dining out: $1,000 (generous, IMO)

Household items: $100

Cell/internet: $150

Clothing: $50


I'm sure I'm forgetting other common things, but that is the gist of it. That budget, which I think is probably overly generous as you do not need to spend a grand a month on food, buy a new car, or live in a 300k house right out of residency, would leave you with around $10,000 a month to allocate towards debt, retirement, and whatever else you choose. So, I have to respectfully disagree with others when they say primary care salaries are difficult to manage.

 

[FutureDoctor5000]

I'm not sure why the idea that primary care providers live like starving artists is so widely promulgated on here, but it's largely nonsense. FM/IM can pretty reasonably expect to earn mid-200k salaries and up, as long as you don't have unreasonable demands of hours/location/etc. If someone can't imagine paying off a few hundred grand while earning upwards of 20 grand a month (pre-tax, of course), they need to re-evaluate their finances. Medical school is expensive for many of us, but the job payoff often far exceeds that initial cost.

Here is just a mock budget that I came up with in 5 minutes. Not saying it's perfect or all-encompassing, but I'll use it to illustrate a point.

Salary: 240,000/year

Net monthly income in my random state: ~$14,000

Mortgage/taxes/insurance on a ~300k home: $1,500

House maintenance fund: $250 (1% of house value/year)

Utilities: $300

Car loan: $400

Insurance (health/car): $250

Groceries/dining out: $1,000 (generous, IMO)

Household items: $100

Cell/internet: $150

Clothing: $50


I'm sure I'm forgetting other common things, but that is the gist of it. That budget, which I think is probably overly generous as you do not need to spend a grand a month on food, buy a new car, or live in a 300k house right out of residency, would leave you with around $10,000 a month to allocate towards debt, retirement, and whatever else you choose. So, I have to respectfully disagree with others when they say primary care salaries are difficult to manage.

Agree with above, this is also not accounting for having a potential spouse bring in any money etc, And also the fact that if you go into anything other than primary care say(EM, Gas, Psych and Gen Surg, Rads, OBGYN, IM fellowship etc) you can make much more than 240k so you will be fine OP!

 

[samac]

By taking a job in an underserved area, you mean after residency, correct?

Correct.

 

[IntheClouds4ever]

I'm not sure why the idea that primary care providers live like starving artists is so widely promulgated on here, but it's largely nonsense. FM/IM can pretty reasonably expect to earn mid-200k salaries and up, as long as you don't have unreasonable demands of hours/location/etc. If someone can't imagine paying off a few hundred grand while earning upwards of 20 grand a month (pre-tax, of course), they need to re-evaluate their finances. Medical school is expensive for many of us, but the job payoff often far exceeds that initial cost.

Here is just a mock budget that I came up with in 5 minutes. Not saying it's perfect or all-encompassing, but I'll use it to illustrate a point.

Salary: 240,000/year

Net monthly income in my random state: ~$14,000

Mortgage/taxes/insurance on a ~300k home: $1,500

House maintenance fund: $250 (1% of house value/year)

Utilities: $300

Car loan: $400

Insurance (health/car): $250

Groceries/dining out: $1,000 (generous, IMO)

Household items: $100

Cell/internet: $150

Clothing: $50


I'm sure I'm forgetting other common things, but that is the gist of it. That budget, which I think is probably overly generous as you do not need to spend a grand a month on food, buy a new car, or live in a 300k house right out of residency, would leave you with around $10,000 a month to allocate towards debt, retirement, and whatever else you choose. So, I have to respectfully disagree with others when they say primary care salaries are difficult to manage.

Don't forget sign on bonuses, resident stipends for signing with future employer, and state loan forgiveness programs for rural/underserved areas of medicine.. most stipends are 1000-2000/month as a resident for 2 years (~40K) plus your sign on bonus (~20K+) puts a huge dent in the process early on. A few docs Ive talked with negotiated 20K per year towards student loans in their contract and still make average salaries for their specialties.. I completely agree that paying off the debt in primary care land is not difficult at all.

 

[Sardonix]

I'm not sure why the idea that primary care providers live like starving artists is so widely promulgated on here, but it's largely nonsense. FM/IM can pretty reasonably expect to earn mid-200k salaries and up, as long as you don't have unreasonable demands of hours/location/etc. If someone can't imagine paying off a few hundred grand while earning upwards of 20 grand a month (pre-tax, of course), they need to re-evaluate their finances. Medical school is expensive for many of us, but the job payoff often far exceeds that initial cost.

Here is just a mock budget that I came up with in 5 minutes. Not saying it's perfect or all-encompassing, but I'll use it to illustrate a point.

Salary: 240,000/year

Net monthly income in my random state: ~$14,000

Mortgage/taxes/insurance on a ~300k home: $1,500

House maintenance fund: $250 (1% of house value/year)

Utilities: $300

Car loan: $400

Insurance (health/car): $250

Groceries/dining out: $1,000 (generous, IMO)

Household items: $100

Cell/internet: $150

Clothing: $50


I'm sure I'm forgetting other common things, but that is the gist of it. That budget, which I think is probably overly generous as you do not need to spend a grand a month on food, buy a new car, or live in a 300k house right out of residency, would leave you with around $10,000 a month to allocate towards debt, retirement, and whatever else you choose. So, I have to respectfully disagree with others when they say primary care salaries are difficult to manage.

What's even worse is when they say something like "FM docs make ONLY $200,000." So dang tone deaf.

 

[AnatomyGrey12]

Adding interest to this, will I be able to pay this debt off?

No. Ever doctor ever is still saddled with their enormous debt.

/s

Could I possibly do it in three years after residency? Four? What do you think?

Depends on your specialty but yes.

It's just really hard to focus when I'm thinking about how much I'm going to owe.

Lol wut? If your so worried about it then guess what? Don't go to medical school. It's not a secret what the debt load is like.

"FM docs make ONLY $200,000. So dang tone deaf.

Which is hilarious when people say this because not only is it tone deaf, it's also factually incorrect.

 

[BorntobeDO?]

I'm not sure why the idea that primary care providers live like starving artists is so widely promulgated on here, but it's largely nonsense. FM/IM can pretty reasonably expect to earn mid-200k salaries and up, as long as you don't have unreasonable demands of hours/location/etc. If someone can't imagine paying off a few hundred grand while earning upwards of 20 grand a month (pre-tax, of course), they need to re-evaluate their finances. Medical school is expensive for many of us, but the job payoff often far exceeds that initial cost.

Here is just a mock budget that I came up with in 5 minutes. Not saying it's perfect or all-encompassing, but I'll use it to illustrate a point.

Salary: 240,000/year

Net monthly income in my random state: ~$14,000

Mortgage/taxes/insurance on a ~300k home: $1,500

House maintenance fund: $250 (1% of house value/year)

Utilities: $300

Car loan: $400

Insurance (health/car): $250

Groceries/dining out: $1,000 (generous, IMO)

Household items: $100

Cell/internet: $150

Clothing: $50


I'm sure I'm forgetting other common things, but that is the gist of it. That budget, which I think is probably overly generous as you do not need to spend a grand a month on food, buy a new car, or live in a 300k house right out of residency, would leave you with around $10,000 a month to allocate towards debt, retirement, and whatever else you choose. So, I have to respectfully disagree with others when they say primary care salaries are difficult to manage.

For a single person this budget is generous, but for a family its really tight. And chances are, that most people will have a family by the end of residency. With that in mind your budget underestimated several key components. If your employer offers health insurance there will be a garbage plan for $400 for your family or the decent one will be like $800. If you buy it on your own cause 1099 or some similar setup, more like 1400+ a month. Car insurance for 2 vehicles (even with low liability) is minimum $100 a month. You don't want 50k liability as a physician, so expect that to be more. So I would put insurance for car and yourself at near $1000 a month. And that doesn't include, life or disability, which throw on a couple hundred depending on your choices.

Also groceries? $1000 will mean eating at home only, with maybe a pizza twice a month. You may think its generous, but its barebones for a family. I track my families (2 adults 2 kids) spending religiously and even right now, during school, we are at $2300 a month for all expenses excluding rent. Over 3k with it. And I don't pay for health insurance right now.

Also mortgage, insurance, and taxes on $300k will be a bit higher than $1500. $1500 would probably cover the P&I and maybe taxes in a low tax state, but not actual homeowners insurance.

I agree with your point overall, and I am not here to beat you up. I think it is possible to live decently on 6k a month with a family, but 4k is living like a popper.

 

[Hippocrates II]

For a single person this budget is generous, but for a family its really tight. And chances are, that most people will have a family by the end of residency. With that in mind your budget underestimated several key components. If your employer offers health insurance there will be a garbage plan for $400 for your family or the decent one will be like $800. If you buy it on your own cause 1099 or some similar setup, more like 1400+ a month. Car insurance for 2 vehicles (even with low liability) is minimum $100 a month. You don't want 50k liability as a physician, so expect that to be more. So I would put insurance for car and yourself at near $1000 a month. And that doesn't include, life or disability, which throw on a couple hundred depending on your choices.

Also groceries? $1000 will mean eating at home only, with maybe a pizza twice a month. You may think its generous, but its barebones for a family. I track my families (2 adults 2 kids) spending religiously and even right now, during school, we are at $2300 a month excluding rent. Over 3k with it. And I don't pay for health insurance right now.

Also mortgage, insurance, and taxes on $300k will be a bit higher than $1500. $1500 would probably cover the P&I and maybe taxes in a low tax state, but not actual homeowners insurance.

I agree with your point overall, and I am not here to beat you up. I think it is possible to live decently on 6k a month with a family, but 4k is living like a popper.

I will agree that my budget underestimates or ignores some things, but it was really only meant to be an example. I have kids/wife and the numbers I posted are pretty close to ours (except the salary, haha). Our only real outlier is that we have super cheap health insurance through my wife's job. Our last house before moving for school was >~300k and my mortgage (PITI) was just about $1,500. As for groceries, we go out to eat once/week and then cook the rest of the month. We pretty much only buy quality stuff and our food budget is <1k/mo. All comes down to how well you shop and if you can cook IMO. When I was single I spent over $500/mo on food because I ate out a lot and was wasteful when I shopped. I do disagree that it takes 6k/mo to live decently, though, but I guess that depends on what your definition of decent means. The majority of people cannot afford to spend 4k/mo on living (that would require a salary probably in excess of 60k/year before putting a penny away), but I wouldn't say the majority of people live like a pauper. I would wager that most people are pretty poor at budgeting and accounting for money spent, and could live on a lot less without much change to their quality of life. My $0.02.

 

[nimbus]

Beware of home ownership. One sewer main break and you will be out 10k. I know from experience. That’s why you need an emergency fund.

Also don’t get married and definitely don’t have kids until the debt is knocked out. You can live in a $600/month apartment if you’re single but it’s much harder when other people are involved.

 

[PunkIsNotDead]

I have started Medical School, and took out the federal unsubsidized loan and part of the GradPlus loan. I budgeted as much as I could and am paying $600 in rent and living frugally in terms of food and fuel.

However, I will still end up racking up $302,000 of debt (without interest) at the end of Medical School. Adding interest to this, will I be able to pay this debt off? How many years will it be? Could I possibly do it in three years after residency? Four? What do you think?

I'm really freaking out right now.

relax
take a deep breath.

remember you are a medical student in the U.S.
This is a very prestigious spot to be in. It means thousands of other potential students that couldn't get into your program alone

you will pay it off. just focus on doing your best in class and wrecking that COMLEX.

 

[BorntobeDO?]

I will agree that my budget underestimates or ignores some things, but it was really only meant to be an example. I have kids/wife and the numbers I posted are pretty close to ours (except the salary, haha). Our only real outlier is that we have super cheap health insurance through my wife's job. Our last house before moving for school was >~300k and my mortgage (PITI) was just about $1,500. As for groceries, we go out to eat once/week and then cook the rest of the month. We pretty much only buy quality stuff and our food budget is <1k/mo. All comes down to how well you shop and if you can cook IMO. When I was single I spent over $500/mo on food because I ate out a lot and was wasteful when I shopped. I do disagree that it takes 6k/mo to live decently, though, but I guess that depends on what your definition of decent means. The majority of people cannot afford to spend 4k/mo on living (that would require a salary probably in excess of 60k/year before putting a penny away), but I wouldn't say the majority of people live like a pauper. I would wager that most people are pretty poor at budgeting and accounting for money spent, and could live on a lot less without much change to their quality of life. My $0.02.

The median family income in the US was 61,822.00 in 2017 with an average of 87k (source: United States Household Income Brackets and Percentiles in 2018). So yes I do think most families are over 4k a month after taxes. The median home price in the US is somewhere between 200k and 270k per most sources, so the median family gets more money in the budget by having a cheaper home and racking up credit card debt.

I am not disagreeing that you can live on 1k a month for food for a family. Just that it basically means eating at home all the time. There is no entertainment/going out in that kind of budget. Unless the entertainment is cooking food yourself for your family

I suspect you had a decent down payment if your mortgage with taxes and insurance was under $1500. Most people coming out of residency will not, and will most likely be doing physician loans for 0% or 5% down (15k on a 300k loan). My physician friend just got a loan this month, the base rate (with excellent credit) was 3.6% for 5% down. Using that rate, I have your 300k house at $1295 for just principle and interest (Mortgage Calculator | Doctor loans | Physician Loans | Loans for Physicians). Taxes on a house that size will be at least $3000, and more likely 4-5k even in a cheap state, putting that number over $1500 a month without homeowners insurance which would add another $100 or so. Not to mention half the homes now have a useless HOA for another $200 a month. This is all before we talk about health insurance that actually covers things.

I guess agree to disagree tho, I stand by my earlier statement. 4k is a tight budget for a new attending with a family.

 

[IntheClouds4ever]

The median family income in the US was 61,822.00 in 2017 with an average of 87k (source: United States Household Income Brackets and Percentiles in 2018). So yes I do think most families are over 4k a month after taxes. The median home price in the US is somewhere between 200k and 270k per most sources, so the median family gets more money in the budget by having a cheaper home and racking up credit card debt.

I am not disagreeing that you can live on 1k a month for food for a family. Just that it basically means eating at home all the time. There is no entertainment/going out in that kind of budget. Unless the entertainment is cooking food yourself for your family

I suspect you had a decent down payment if your mortgage with taxes and insurance was under $1500. Most people coming out of residency will not, and will most likely be doing physician loans for 0% or 5% down (15k on a 300k loan). My physician friend just got a loan this month, the base rate (with excellent credit) was 3.6% for 5% down. Using that rate, I have your 300k house at $1295 for just principle and interest (Mortgage Calculator | Doctor loans | Physician Loans | Loans for Physicians). Taxes on a house that size will be at least $3000, and more likely 4-5k even in a cheap state, putting that number over $1500 a month without homeowners insurance which would add another $100 or so. Not to mention half the homes now have a useless HOA for another $200 a month. This is all before we talk about health insurance that actually covers things.

I guess agree to disagree tho, I stand by my earlier statement. 4k is a tight budget for a new attending with a family.

National avgs are highly skewed by outliers in a society with enormous income inequalities ‍.. :shrugs: If you can’t live off $1k/month (this includes eating out) for food, you have lived in a bubble for your entire life.

 

[Link0358]

One of the specialties I am very interested in is Hematology. I don't know how hard it is to get into Hematology, but it seems that if I can get into that specialty, this will be a lot easier.

My school is really pushing for Primary Care, but I don't know how a PCP is supposed to pay this debt off really quickly.

I plan on living like a resident even after residency, because my primary goal is to completely wipe that debt, so I can go on to practicing Medicine without having to stress about this financial burden.

It's just really hard to focus when I'm thinking about how much I'm going to owe.

PCP pay is approaching 300K in many cities. If you can’t pay off your debt with that, you should reconsider your finances.

A US Med school spot practically guarantees an upper middle class lifestyle, I would not worry much about debt as long as you are smart about it.

 

[NITRAS]

Assuming nothing major happens in the next decade, you should be fine.
1 Pass your classes.
2 Pass your licensing exams.
3 Be flexible on where you live. Incomes vary widely on where you work.
4 make a plan and pound out your debt in just a few years. Should be less than 4. $300k (likely closer to $400k by the end) in an emotionally high number. You have to beat it, kill it or you look up in 10 years and it’ll still be there.
5. Don’t buy a house.

 

[12jas]

you will pay it off. just focus on doing your best in class and wrecking that USMLE STEP 1.

Fixed it for you. This will put OP in a much better position.

 

[Splenda88]

PCP pay is approaching 300K in many cities. If you can’t pay off your debt with that, you should reconsider your finances.

A US Med school spot practically guarantees an upper middle class lifestyle, I would not worry much about debt as long as you are smart about it.

If your income is 250k+/yr, which is where most physicians are, that puts you in the 97th+ percentile. Most would not call that upper-middle class. Most would that say that you are rich. You are not wealthy like the big-time CEO and athletes, but many would say you are rich.

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I was a nontrad student, and before starting med school, my household income was 110-120k/yr, and I was able to afford most things with that income and we are a family of 4.

 

[NITRAS]

If your income 250k+/yr, which is where most physicians are, that puts you in the 97th+ percentile. Most would not call that upper-middle class. Most would that say that you are rich. You are not wealthy like the big-time CEO and athletes, but many would say you are rich.

I’m going to get semantic on you. A doctor who makes $300k/year and has basically no money who’s is $400k in debt is a broke doctor.

People should act their wealth status. Meaning the above doctor who has no money and $400k in debt shouldn’t go buy $100k in cars, and $500k in house. They will struggle despite earning millions of dollars in their working life.

 

[BorntobeDO?]

National avgs are highly skewed by outliers in a society with enormous income inequalities ‍.. :shrugs: If you can’t live off $1k/month (this includes eating out) for food, you have lived in a bubble for your entire life.

Reading comprehension is your friend along with budgeting. I gave the median which was over 60k (i.e. over 4k a month after taxes) and $1k for a family of 4 is not a huge number. If you think $250 bucks a month per a person is a huge amount I suspect you have never tracked your spending or are eating a very limited diet (i.e processed things like ramen everyday).

 

[IntheClouds4ever]

Lol, being a non traditional student with a family and career before med school, I guarantee you $1k food budget is extremely generous and absolutely unnecessary. It’s easy to live off 1/2 that for a family, maybe if you have two teen boys, it might be more difficult but I will digress.

Anyone living in the real world (taxes, health insurance, and rent/mortgage) with a family of four and a 60k income (before taxes, insurance, 401k, and rent/mortgage) is not spending $1k a month in food..

 

[AlbinoHawk DO]

Just pay IBR 10% for 20 years and then deal with the taxes. I wouldn't worry about student loan debt. It's becoming crazy, and it's only a matter of time until a democrat forgives it for everyone. On top of that, student loan debt goes away if you die without worry that they'll raid your bank account. There's absolutely no reason why a doctor should care about student loan debt. You'll be making 300k and paying 30k. No other job will give you this

 

[GypsyHummus]

Every other healthcare position (doctoral level) has it worse than MD/DO

Just be glad you’re not a dental student. Those guys take out 500k+ in loans and unless you own a practice, you are stuck making 130-170k/year as an associate.

Optometry is also approaching 300k/year and they cap out at 130k. Most start off at 80-100k.

Poor physical therapists make about 60-70k with a 200k debt load.

Podiatrists take on 300k with big variability in income. Some make 120k working as an associate, others make 400k working at an ortho practice.

Pharmacists take on 250k of debt and can’t even get jobs!

 

[Splenda88]

@GypsyHummus


I don't know about dentistry and podiatry since these people have the potential to make 250k+/year with high ceiling after a few years of experience, but PT/OT, AuD, OD and PharmD (for now) are terrible investments

 

[WoundupKnight]

Every other healthcare position (doctoral level) has it worse than MD/DO

Just be glad you’re not a dental student. Those guys take out 500k+ in loans and unless you own a practice, you are stuck making 130-170k/year as an associate.

Optometry is also approaching 300k/year and they cap out at 130k. Most start off at 80-100k.

Poor physical therapists make about 60-70k with a 200k debt load.

Podiatrists take on 300k with big variability in income. Some make 120k working as an associate, others make 400k working at an ortho practice.

Pharmacists take on 250k of debt and can’t even get jobs!

I’d argue CRNAs are doing pretty good.

RN+2-3 years of CRNA school both of which can be done partially online, come out making 150-250k. They just changed their title from Anesthesists to Anesthesiologists and are transitioning all programs from masters programs to doctorate programs (which also gives all previous CRNA grads retroactive doctorates).

So you get to be a doctor anesthesiologist in two to three years with equivalent low end PCP pay.

 

[wolverine10k]

I graduated with a similar amount of med school debt. It had gotten up to 400k when including undergrad/interest. Just refinance once you get into residency. I even refinanced again a few years later. Live like a resident after or find a more rural location which tend to give you a chunk of money towards your loans. You are committed to paying the loans off without a loan forgiveness program, but I had more peace of mind knowing my loans were gone. I’d recommend just sucking it up and being aggressive with the payments.

 

[Angus Avagadro]

Just pay IBR 10% for 20 years and then deal with the taxes. I wouldn't worry about student loan debt. It's becoming crazy, and it's only a matter of time until a democrat forgives it for everyone. On top of that, student loan debt goes away if you die without worry that they'll raid your bank account. There's absolutely no reason why a doctor should care about student loan debt. You'll be making 300k and paying 30k. No other job will give you this

Not a chance all student loans will be forgiven, especially not for doctors. The govt wants paid... period. Try not paying your income taxes. During prohibition, the govt went to the South with machine guns to break up illegal distilleries. Why,? The govt was not getting paid the liquor tax. Debt is tyranny, you get up every morning to go to work to pay someone else first. I am debt averse. It took 10 years as over priced specialists to pay off our student debt, and most ,85% , was low interest govt subsidized loans. Paying off early saves hundreds of thousands in interest. 300k debt at 8% is 24 k a year in interest. Pay it off early and you save some serious money. With a little discipline, you'll be ok

 

[Mr. Babe]

Get out of residency and live like a resident. If you make $200,000 and are married you are taxed 24% and will have $152,000ish (This number would actually be a little higher) in take home pay. so in residency you are paid about $50,000 give or take. Taxes for $50,000 are 12% if married, giving you $44,000ish take home pay. So if you live on $44,000 for a few years (Which is still a great living compared to many), then you'll have $108,000 leftover to pay towards loans. In 3 years you'll have paid off over $300,000. Then your 4th year out, you can start living like a doctor and finish out the remaining loans. Seriously is not hard to get loans paid off quick and not be a slave to your loans for years. Take lots of discipline. Loan forgiveness is dumb because you have to pay for 10 years still when you could just get it done in 3-4 years and then enjoy yourself. There is not a single doctor making more than $200,000 that needs to do loan forgiveness.

 

[WoundupKnight]

Alternatively refinance down to 3-4%, let the loans ride and invest it.

 

[Hippocrates II]

Alternatively refinance down to 3-4%, let the loans ride and invest it.

This is my exact plan, surprised you don't see it on here more often. I will refinance down to the lowest amount I can, and as long as it's less than ~4%, I will set an autopay for the monthly payment, never give it a second thought, and go on with my life. Your income will be high enough at this point that you really shouldn't be lying awake at night wondering how you're going to cover that monthly expense, and you'll be free to use the remainder of your money for investments, saving for a house, or whatever your heart desires. I'm one of those people with faith in the stock market continuing to return >4%, but I guess if you aren't or don't plan on investing much in the beginning, this isn't a viable tactic.

 

[Angus Avagadro]

This is my exact plan, surprised you don't see it on here more often. I will refinance down to the lowest amount I can, and as long as it's less than ~4%, I will set an autopay for the monthly payment, never give it a second thought, and go on with my life. Your income will be high enough at this point that you really shouldn't be lying awake at night wondering how you're going to cover that monthly expense, and you'll be free to use the remainder of your money for investments, saving for a house, or whatever your heart desires. I'm one of those people with faith in the stock market continuing to return >4%, but I guess if you aren't or don't plan on investing much in the beginning, this isn't a viable tactic.

I guess the question is to do the math on interest saved over the life of the loan. Would you rather pay it off in 5 years and put the remainder in your pocket? Or, pay it off over 15 yrs and livea little better and acru more debt with a mortgage, taking longer to get debt free. Everyone has different risk tolerances and goals. I prefer to be debt averse and put my money in my own pocket.

 

[Hippocrates II]

I guess the question is to do the math on interest saved over the life of the loan. Would you rather pay it off in 5 years and put the remainder in your pocket? Or, pay it off over 15 yrs and livea little better and acru more debt with a mortgage, taking longer to get debt free. Everyone has different risk tolerances and goals. I prefer to be debt averse and put my money in my own pocket.

I think both approaches have their merits. Some people want to pay it down quickly and be debt-free. I consider that more of an investment into your psychological well-being. It's like taking out a 15-year mortgage when rates are so low that a 30 year is the better financial alternative, but some people would rather live without a mortgage rather than pad their investments. Other people want to get a cheap loan rate and then invest the difference in potentially higher-returning investments. I consider that to be the more financially-driven investment. Both have their perks and I can see both sides, but I personally expect the stock market to continue returning 6+% and the thought of loans aren't burdensome to me, so it's an easy choice for me.

 

[Kardio]

I have started Medical School, and took out the federal unsubsidized loan and part of the GradPlus loan. I budgeted as much as I could and am paying $600 in rent and living frugally in terms of food and fuel.

However, I will still end up racking up $302,000 of debt (without interest) at the end of Medical School. Adding interest to this, will I be able to pay this debt off? How many years will it be? Could I possibly do it in three years after residency? Four? What do you think?

I'm really freaking out right now.

I'm not exactly the most financially responsible person, but buying the grande instead of the venti is a drop in the bucket. A little guiltless deficit spending might give you the fuel to rocket out of the primary care poorhouse in the long run anyway.

 

[Sardonix]

I'm not exactly the most financially responsible person, but buying the grande instead of the venti is a drop in the bucket. A little guiltless deficit spending might give you the fuel to rocket out of the primary care poorhouse in the long run anyway.

You have triggered every medical school's financial aid department haha. Literally every presentation they give us has the same old "bring your coffee from home instead of buying! That will turn into big money down the road!"

 

[Chibucks15]

I'm not exactly the most financially responsible person, but buying the grande instead of the venti is a drop in the bucket. A little guiltless deficit spending might give you the fuel to rocket out of the primary care poorhouse in the long run anyway.

I'm in this camp. I'd rather live like a normal human being now and be sane than live in a dump, eating only ramen and instant coffee. Sure you save money but cmon now that sounds horrendous

 

[Wjldenver]

Want to eliminate your medical school debt? Maybe moving to California should be in your future...

California doesn't have enough doctors. To recruit them, the state is paying off medical school debt

California will spend $340 million paying off doctors’ debts. In exchange, doctors must pledge that at least 30% of their caseloads will be devoted to Medi-Cal patients for five years.

www.latimes.com

 

[Kardio]

You have triggered every medical school's financial aid department haha. Literally every presentation they give us has the same old "bring your coffee from home instead of buying! That will turn into big money down the road!"

I'm in this camp. I'd rather live like a normal human being now and be sane than live in a dump, eating only ramen and instant coffee. Sure you save money but cmon now that sounds horrendous

I was dating some chick from a well-off family a while ago. She was traveling (recreationally) with her friend at the time. I was sitting in my car outside a Starbucks, actively stressing about finances, and going back and forth on buying the venti or grande ice coffee. Amid my contemplation, she texts me. I looked down at my phone to read "omg my friend left her luggage in another country so her dad bought us plane tickets to go back and get it."

From that moment on, I decided that I was never going to worry about buying the medium or large coffee ever again.

 

[BorntobeDO?]

You have triggered every medical school's financial aid department haha. Literally every presentation they give us has the same old "bring your coffee from home instead of buying! That will turn into big money down the road!"

Yes I love the 'its not our crazy overpriced tuition thats doing you in, its your lavish lifestyle' talks. Thats usually followed by the 'thats why we are cutting the cost of living to reduce our COA' talk. Yep, it was that nasty starbucks habit that put you 300k in the hole.

 

[BorntobeDO?]

I'm in this camp. I'd rather live like a normal human being now and be sane than live in a dump, eating only ramen and instant coffee. Sure you save money but cmon now that sounds horrendous

Instant coffee? Way too much, you need to be filters and huge bins, and even then you should have cut back to just tap water! Don't you know water is good for you!?!?

 

[Sardonix]

Yes I love the 'its not our crazy overpriced tuition thats doing you in, its your lavish lifestyle' talks. Thats usually followed by the 'thats why we are cutting the cost of living to reduce our COA' talk. Yep, it was that nasty starbucks habit that put you 300k in the hole.

Students complain cost of living is too high? Calculate it for 8 months instead of 12 months! Can't complain about cost of living if you're not actually living for 1/3 of the year.

*Taps forehead