Student loans for New grads and current grads

[C.Copello]

As the repayment for the Student loans time is around the corner, I would appreciate your plan for this?

Are you paying it as much as you can in order to get rid of this ASAP?

Or is the new SAVE plan is the best plan at the moment?

I’d appreciate your thoughts

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[Pablo Sanchez]

As the repayment for the Student loans time is around the corner, I would appreciate your plan for this?

Are you paying it as much as you can in order to get rid of this ASAP?

Or is the new SAVE plan is the best plan at the moment?

I’d appreciate your thoughts

There is no right answer to this. It all depends on interest rates, total debt amount, and how much debt you’re comfortable with.

Some people are adamant that you should pay everything off ASAP. Some people look and say “the interest rate on my loans is 4.5%, I can make 8% in the stock market” and do a longer term repayment.

As for me personally, I paid all of mine off in just over a year. Can’t imagine having that hang around for my entire life. Now I’m 27, with no debt, making hella income. That’s a whole lot of horsepower to be able to invest and do whatever I want in life. Paying them off quickly worked for me.

 

[schmoob]

Work for an FQHC, VA, any government, IHS, etc. pay the minimum and your loans will be forgiven in 10 years. The pay isn’t bad either and the benefits are fantastic.

 

[carabelliscusp]

There is no right answer to this. It all depends on interest rates, total debt amount, and how much debt you’re comfortable with.

Some people are adamant that you should pay everything off ASAP. Some people look and say “the interest rate on my loans is 4.5%, I can make 8% in the stock market” and do a longer term repayment.

As for me personally, I paid all of mine off in just over a year. Can’t imagine having that hang around for my entire life. Now I’m 27, with no debt, making hella income. That’s a whole lot of horsepower to be able to invest and do whatever I want in life. Paying them off quickly worked for me.

Investing before paying loans is a bad idea. You never know what might happen to you that could end your career while you still have loans sitting around.

 

[KurgerBing]

Work for an FQHC, VA, any government, IHS, etc. pay the minimum and your loans will be forgiven in 10 years. The pay isn’t bad either and the benefits are fantastic.

This. Plus not as much pressure with your production numbers because it's a set salary

 

[Pablo Sanchez]

This. Plus not as much pressure with your production numbers because it's a set salary

Don’t you feel like you’re leaving a lot of money on the table by working at one of these sites, especially if you do it for 10 years? They pay, what, $200k max?

Private practice money can be significantly higher if you join an established practice with a strong patient base.

 

[charlestweed]

This. Plus not as much pressure with your production numbers because it's a set salary

It’s not a bad way to pay off loans if you just want to have a simple stress free (but very average) lifestyle….and if you are ok with living in a boring less desirable area for 10 years. In 10 years, your clinical skills will just be average. When you are not under the pressure to produce and to pay back the massive amount of student loans, you are less motivated to work hard…..less motivated to learn to become a better clinician who can perform more difficult (but highly productive) procedures like implants, anterior veneers, 3rd molars, molar endos etc. When you are used to working at a slow pace government run health clinic, it’ll be hard for you to transition to a busier office that requires you to be quick and produce.

Most successful dentists I know (the ones who have a few million dollar net worth) are hard working people. They are good and fast. They were eager to learn new things when they were young new grads. When they reach high level of success and paid off their debts, they don’t stop….they continue to work hard to maintain their business success/their reputation….to invest…and to save for their retirement.