High student loan help

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So I have all loans from the government (with 6.8% and 7.9%). I grated with 385K which is now 435K cuz UIC charged me up the butt for out of state tuition.

I just started my first year in EM residency

I have a wife who is also a med student and nor mortgage. Any ideas on what I should do?

Switch to private loans if I can with variable rates?
Work in a random place for 2 years for a lot of money?
or any other suggestions

basically I hate my med school and wish I would have gone somewhere else

Originally Posted by HolyMolyEM

So I have all loans from the government (with 6.8% and 7.9%). I grated with 385K which is now 435K cuz UIC charged me up the butt for out of state tuition.

I just started my first year in EM residency

I have a wife who is also a med student and nor mortgage. Any ideas on what I should do?

Switch to private loans if I can with variable rates?
Work in a random place for 2 years for a lot of money?
or any other suggestions

basically I hate my med school and wish I would have gone somewhere else

There are definitely other more financially savy people on this site who can make recommendations, but here is what I would do:

In your first year of residency, try and keep up with the interest payments, you should be able to hardship defer based on your salary, and at least the interest won't be accruing.

Find out when you can moonlight (maybe by third year), and try to do some moonlighting. It's a great confidence builder for when you leave residency, it's great training for when you leave residency, and commit yourself to using money from moonlighting to try and pay down principal (particularly if you can avoid going into repayment)

Your first years out of residency (where I am now), pay like crazy - I'm paying 3 times what my "regular" monthly payment is supposed to be.


Good luck!

(needless to say, with that debt, make sure you have disability insurance)

my state has income based repayment, see if your state offers it - they take your monthly income and base your monthly minimum payment on being a certain percentage of that, if you make under a certain amount your minimum payment will be zero - even if your minimum payment is zero if you are actually able to pay something, even if only 50 bucks do so each month. and one thing that always is good to keep in perspective - you may have a ton of student debt, but they can never repo the degree.

Originally Posted by alreadylernd

In your first year of residency, try and keep up with the interest payments, you should be able to hardship defer based on your salary, and at least the interest won't be accruing.

Not sure how you would "keep up with the interest" on 435K at 6.8% (that is like ~30K per year in just interest!)

Second.. deferring does not stop the interest from accruing, it just delays when you have to start payments.

I am trying to figure out how the OP ended up with so much debt in the first place though... private undergrad?

Originally Posted by Flopotomist

Second.. deferring does not stop the interest from accruing, it just delays when you have to start payments.

Correct... sort of. Deferral delays payments & all *subsidized* interest goes <poof!>; forbearance delays and all interest accrues & compounds.

Doing IBR is likely your best bet right now... mostly interest payments, and now that you have an income (albeit crappy resident income), you actually have something on your taxes to claim it against.

Now, in terms of what to do long term: when they put the kibosh on the 20/220 pathway, they opened up a loan forgiveness pathway. Working either for the government (uniformed services, VA, state/county) or in an "underserved" area for 10 years makes your balance go away.

Now, everyone assumes that "underserved" means "rural" but it doesn't. High Medicaid/self-pay/no-pay = underserved as well.

So, keep INR or graduated payments to keep cash outlay low, find a gov't job or work in an inner city/rural setting and after 10 years - <poof!> bye-bye loan balance.

At least that's what I'm doing. d=)

Cheers!
-d

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To throw in what I'm doing and my thought process. (current Intern)

Get as much as you can in IBR. http://www.loanconsolidation.ed.gov/
1) It only applies to federal loans- Stafford or Direct. Any private or previously consolidated loan is not eligible.
2) It is based on the previous year's income, so for the first year (assuming you didn't have an income during medical school) payments should be zero. These payments of $0 count towards the 10 year forgiveness plan.
3) I personally have ~$300k. and like Daiphon am shooting for the rural or government route when all is said and done.
3a) Considering not paying and just letting the interest compound. Still trying to decide. If it''s just going to be forgiven anyway, why pay any more than I have to? Payment will always be tied to my income, so regardless of how much interest accrues it won't change how much I owe a month. However, if I decide later that I don't want to work in that environment to get to 10 years, I screwed myself. Thus I'm personally going back and forth on this point.

Private Loans
I have some undergrad loans that were private. These I'm trying to pay off as quick as possible. Even if you have to put them into economic hardship forbearance or residency deferment, there's no easy out like there is with IBR. You let these go for another 3 or 4 years letting interest compound, you're going to be in a real bad spot coming out. I've heard second hand stories from people who have talked to their loan companies and have been able to work adjusted monthly payments because they have a medical degree. Apparently, they're willing to work with people with advanced degrees more so than the general public, so you can try calling your loan company and see if you can work something out.

Good luck

Originally Posted by Flopotomist

Not sure how you would "keep up with the interest" on 435K at 6.8% (that is like ~30K per year in just interest!)

Second.. deferring does not stop the interest from accruing, it just delays when you have to start payments.

I am trying to figure out how the OP ended up with so much debt in the first place though... private undergrad?

I didn't realize that interest payments alone would be in the 30K range, that's not possible to keep up with as a resident (obviously).

Agree this is a level of debt where income based repayment might work in your favor. For most of use even with relatively high debt loads as attendings (200-250) the IBR amount would be what you are supposed to be paying anyway.

This is going to be a challenge for you but you can manage it.

1. Do not get into any more debt. I am usually not a fan of these "austerity" programs but for you I would not keep a CC in your wallet and not buy anything you can't pay cash for or use a debit card.

2. I agree that some moonlighting opportunities could be a good way to earn extra money and manage this.

3. Once you are done I think you are just have to going to move to a smaller city in a great reimbursement/malpractice climate i.e. Texas. There are EM jobs there where you can absolutely pull 300+.

4. Honestly with this level of debt if you are at all interested you might consider joining the military. I am also not a big fan of military-as-debt-management but with your capitalizing interest you are going to be even deeper when you get out. Being military could give you both debt help and extra cash as a resident. It's probably at least worth exploring the option.

thanks for all the input guys

1) yes this is all from only med school. i took out the bare minimum too for just me. i was just out of state at uic . i have plenty of classmates who are just as screwed

2) Cant do military cuz of family

3) I know they announced IRB with the 10 year public service loan forgiveness. but what if i go down that route and by that time they remove the program? I will be making income based repayments but my total debt will be so high by that time

4) Would it make sense for me to pay
- $200k first year as an attending
- 100K second year
- 100k third year
- then pay the rest gradually

5) Capitalized!!!!! I dont think my loan has capitalized yet. How often do they do that?

Originally Posted by HolyMolyEM

thanks for all the input guys

1) yes this is all from only med school. i took out the bare minimum too for just me. i was just out of state at uic . i have plenty of classmates who are just as screwed

2) Cant do military cuz of family

3) I know they announced IRB with the 10 year public service loan forgiveness. but what if i go down that route and by that time they remove the program? I will be making income based repayments but my total debt will be so high by that time

4) Would it make sense for me to pay
- $200k first year as an attending
- 100K second year
- 100k third year
- then pay the rest gradually

5) Capitalized!!!!! I dont think my loan has capitalized yet. How often do they do that?

If you do income based repayment and pay consistently for I think what is 10 years now with public service (look into whether residency counts, bc sometimes it does!!) or 20 years of consistent payments (used to be 25 years), the rest is forgiven. Please do not do private loans-that will be death.

Originally Posted by HolyMolyEM

thanks for all the input guys

1) yes this is all from only med school. i took out the bare minimum too for just me. i was just out of state at uic . i have plenty of classmates who are just as screwed

2) Cant do military cuz of family

3) I know they announced IRB with the 10 year public service loan forgiveness. but what if i go down that route and by that time they remove the program? I will be making income based repayments but my total debt will be so high by that time

4) Would it make sense for me to pay
- $200k first year as an attending
- 100K second year
- 100k third year
- then pay the rest gradually

5) Capitalized!!!!! I dont think my loan has capitalized yet. How often do they do that?

Once you're locked into a program of repayment, that promissory note is a legal document & they cannot modify it (at least the Direct Loans people can't; private loans are another story).

For example, you buy a house on a 20y fixed rate at 5%. The bank CANNOT change your terms at any time unless you 1) default, or 2) refinance.

Same principle; you lock into a DL repayment program and unless you change it, it's yours. Old plans are grandfathered in for those still in repayment.

But, I hear your concerns. You need to talk to a friend, your PD, or some other faculty & get a referral to a financial planner of the *fiduciary* sort.

-d

Sent from my DROID BIONIC using Tapatalk

So I called Direct loan and they said the "cannot predict the future" so the whole PSLF program that erases your debt magically in 10 years is not certain. They said they could not provide a guarantee in writing.

basically if I wait to pay it off with lower payments, and they cancel it, i would be screwed cuz the accumulated interest would be so high

Why is private loans a bad idea if I can get a lower interest rate than the governemnt? I would take out a loan to pay the

have your med student wife to into something more lucrative.

trying to pay those amounts in post-tax dollars is pretty much impossible unless you take a job in a terrible area, work like a dog, and don't buy a thing.

i have about $200k myself, but consolidated in 2005 ie best interest rate in history

i have no idea how ya'll do it now!!!

Originally Posted by HolyMolyEM

So I called Direct loan and they said the "cannot predict the future" so the whole PSLF program that erases your debt magically in 10 years is not certain. They said they could not provide a guarantee in writing.

basically if I wait to pay it off with lower payments, and they cancel it, i would be screwed cuz the accumulated interest would be so high

Why is private loans a bad idea if I can get a lower interest rate than the governemnt? I would take out a loan to pay the

Direct loans people frequently dont know anything. I'll look for the info and relay it back to you. This is what people with high loan amounts normally do.

Originally Posted by HolyMolyEM

thanks for all the input guys

1) yes this is all from only med school. i took out the bare minimum too for just me. i was just out of state at uic . i have plenty of classmates who are just as screwed

2) Cant do military cuz of family

3) I know they announced IRB with the 10 year public service loan forgiveness. but what if i go down that route and by that time they remove the program? I will be making income based repayments but my total debt will be so high by that time

4) Would it make sense for me to pay
- $200k first year as an attending
- 100K second year
- 100k third year
- then pay the rest gradually

5) Capitalized!!!!! I dont think my loan has capitalized yet. How often do they do that?

As someone else pointed out, there's essentially no way to have a family and still put $200k in after tax money into the loan. With taxes, $300k becomes somewhere in the neighborhood of $180k and you're probably not going to be living on less than $40k/yr if you have a family. You're going to be geographically limited in your attending spots (no NE or NW, deep South or Texas being good bets). If you can live mid to lower middle class in a state that pays well, then you can probably get out from under it in 4 yrs.

I have a lot of debt too but $400k! Damn - that's the highest I've heard of. But all this talk of joining the military or living in a monastery for 3 years. Chill! (this remark is meant as much for the responders as for the OP). Consolidate into one IBR loan (this is a MUST for this kind of debt). Yes... you'll still be throwing off 7+% interest a year for the life of the loan, but by federal law the most you have to pay is 15% of Adjusted Gross Income (Gross Income minus poverty limit for your situation). Best case if you stay in the non-profit world everything disappears in 10 years as is mentioned, but in practice this difficult as most jobs won't quality. But in 25 years no matter what job you do it all disappears if you haven't paid it off. So live your life as you want and just know that you'll be paying an additional 15% tax (actually a little bit less due to the *adjusted* gross income). True - it won't be pleasant given you'll still be paying fed and state income tax - but my guess is you'll still pull in $100k+ after all taxes and loan payments for the rest of your career once you finish residency. But consolidate into IBR now so you can start the 25 (or 10) year clock ticking when your income is nice and low.

Originally Posted by old_boy

I have a lot of debt too but $400k! Damn - that's the highest I've heard of. But all this talk of joining the military or living in a monastery for 3 years. Chill! (this remark is meant as much for the responders as for the OP). Consolidate into one IBR loan (this is a MUST for this kind of debt). Yes... you'll still be throwing off 7+% interest a year for the life of the loan, but by federal law the most you have to pay is 15% of Adjusted Gross Income (Gross Income minus poverty limit for your situation). Best case if you stay in the non-profit world everything disappears in 10 years as is mentioned, but in practice this difficult as most jobs won't quality. But in 25 years no matter what job you do it all disappears if you haven't paid it off. So live your life as you want and just know that you'll be paying an additional 15% tax (actually a little bit less due to the *adjusted* gross income). True - it won't be pleasant given you'll still be paying fed and state income tax - but my guess is you'll still pull in $100k+ after all taxes and loan payments for the rest of your career once you finish residency. But consolidate into IBR now so you can start the 25 (or 10) year clock ticking when your income is nice and low.

Excellent point! Good advice to heed...

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also, in general... you need to have a good emergency fund set up as well. loans can always go into forebearance, but you MUST have cash to live on. don't forget to put away a rainy day/emergency fund as well. experts will often recommend 6 mo of living expenses.

even if you get a top-rate disability policy, this won't cover all things that may knock you out of work and many have a 90 day or more waiting period, plus inevitable delays and whatnot.

take it from someone to whom a series of events transpired in which they didn't work for a total of 1 out of their first 3 years out of residency... then needed expensive non-covered medical care.

as others say... PAY YOURSELF FIRST. (i don't mean fancy cars etc, i mean take care of your self/family first)

Originally Posted by Daiphon

Correct... sort of. Deferral delays payments & all *subsidized* interest goes <poof!>; forbearance delays and all interest accrues & compounds.

Doing IBR is likely your best bet right now... mostly interest payments, and now that you have an income (albeit crappy resident income), you actually have something on your taxes to claim it against.

Now, in terms of what to do long term: when they put the kibosh on the 20/220 pathway, they opened up a loan forgiveness pathway. Working either for the government (uniformed services, VA, state/county) or in an "underserved" area for 10 years makes your balance go away.

Now, everyone assumes that "underserved" means "rural" but it doesn't. High Medicaid/self-pay/no-pay = underserved as well.

So, keep INR or graduated payments to keep cash outlay low, find a gov't job or work in an inner city/rural setting and after 10 years - <poof!> bye-bye loan balance.

At least that's what I'm doing. d=)

Cheers!
-d

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This no longer exists as of this summer. Subsidized loans aren't available to graduate students per some law Obama passed...don't know if previously subsidized loans are grand-fathered in. Lets hope so...

Also, it's not just 15% AGR. After residency, 15% of our AGR is usually higher then the regular payments you'd be making on a 10 yr note. So your minimum payment defaults to what your regular payment would be on a 10 yr plan.

Also, one small benefit under IBR is that your subsidized loans are still subsidized and the government pays the interest while under IBR. If you make payments in residency they will apply it to the subsidized interest first (so the govt doesn't have to pay it), then to the interest of your other loans, and then to any principal balance. It's a slight incentive to make min payments in residency.

I also agree that it should be put in perspective that residency is hard enough without the extra worry of living month to month trying to scrape to pay off loans. Moonlighting, from what I hear, is nice until you find yourself working 22+ days per month with only your conference days off.

Relax and stay frugal but not stingy. You'll easily be able to pay that off in 10 yrs post residency with a frugal mindset.

I am someone who had in the mid 300s in loans.

IMO the approach is easy and honestly it comes down to a few things. Dont make it seem like some complex process cause it just isnt.

1) know how much you owe on each loan and what the interest rate is.
2) while in residency you and wife should try and pay off interest on those higher rate loans
3) Understand that during years 1 and 2 you will continue sinking
4) Even though your wife is/will be a doc too I would argue that she should pick the field she wants regardless of what it pays. YOu will be a 2 doc family. 500k per yr is doable (perhaps easy).
5) Moonlight.. You can prob do UC for 80/hr or in the ED for 150+/hr
6) When you are done with residency take a 50% pay increase.. enjoy it.. so if you were living on your income of 50k imagine now you have 75k (after tax say 60k)
7) before you pay a SINGLE penny off of your loans save as lagringa said. Max out retirement and try to save a bit each month for an emergency fund.
8) You could probably do 5k+ per month off your student loans... If you get the right job you might be able to get to 10 but it will be harder than you think
9) when you start paying off your student loans pay off the higher interest ones first.
10) avoid further debt like credit cards etc.

a few other points..

1)You will hate your job and your life if you dont take time to enjoy what you earned.
2) Expect unexpected expenses (kids, wife, parents, siblings etc)
3) Never live in a way where you spend every penny you earn
4) The future income in EM is uncertain between Obamacare and the overall growth of medicare/medicaid
5)Educate yourself (if you already havent) on personal finance/retirement
6) educate yourself with regards to what to look for in a job. 50% of EM grads leave their 1st job within 2 years. There are great jobs out there.. Be a great resident it helps get a great job. You can work 1700 hours a year as an attending and I think it wont "hurt" you.. that number differs for everyone. There are a slew of jobs paying 200+/hr.. thats 340k.. There are even better long term jobs out there. Keep in mind about 1/3 of that is gonna go to taxes.. expect to keep between 60-70%. depending on your state.. thats before retirement and savings.

Much like la gringa mentioned when i finished rates were cheap. I consolidated about 230k at 2.875 (gonna go down to 1.875 in March). I have a slew of other loans but none at rates above 4.5%. It should be criminal to be in the position you and other recent grads are in with loans above 6%. I still drive my 05 Mazda and am proud..

As mentioned you are looking at 2500/month in just interest. thats a killer.. that a 500k home.. Thats about what I pay for my total loans a month..

Why in the he'll aren't we allowed to use pre-tax dollars to pay off our f@<#ing loans?

I'm in the 300's and have analyzed this a million different ways with the help of my father who is a big investor and financial guru.

You're best bet "as an EM resident..."

Forbearance until you can moonlight, then IBR. Accept the fact that there is little reliable, responsible investments that can yield the interest on your loans and that this is a new era of student debt where Uncle Sam has communicated a clear message that he wants his money back but he wants it NOW opposed to LATER. Gone are the days of stringing out 2.5% interest loans for the rest of your career while you invested in mutual funds with a reliable 5-10% return. You want to roughly pay off 2/3 aggressively upon the completion of residency for it to make any financial sense and to maximize your total lifetime earning potential. 50% at the least. That means.. when you finish residency, do NOT buy the big house or the fancy car, but aggressively pay down your debt to at least 50-75% over roughly 3-5 years with 3 years being optimal. You should have all of it paid off within 8-10 years maximum. You should be moderately investing in retirement by year 6 post residency. Hope that helps.

Originally Posted by la gringa

have your med student wife to into something more lucrative.

trying to pay those amounts in post-tax dollars is pretty much impossible unless you take a job in a terrible area, work like a dog, and don't buy a thing.

i have about $200k myself, but consolidated in 2005 ie best interest rate in history

i have no idea how ya'll do it now!!!

I'm with you, my interest on my remaining $90,000 is about 2% (4 years after residency graduation). You poor people who have such high interest rates. I can't imagine having interest rates that high.

Just wanted to rub it in.

Originally Posted by Jarabacoa

I'm with you, my interest on my remaining $90,000 is about 2% (4 years after residency graduation). You poor people who have such high interest rates. I can't imagine having interest rates that high.

Just wanted to rub it in.

On Suze Orman show today, some guy who went to school to become a pilot and never finished racked up 166k of student loans-she is also suggesting to use IBR, and I think it makes the best sense.You'll still be able to live, and pay off debt. You don't want to be spending all your income on your loans.

Originally Posted by Groove

I You should be moderately investing in retirement by year 6 post residency. Hope that helps.

I think not maximizing your tax deferred retirement from day 1 would be a mistake.

Assuming you are making 2-300k.. your saving of 50k would only allow you to pay off about 30k in loans. This is a sure plan to work forever...

There will be a ton of expenses once you start and IMO while I fully advocte paying off sebt esp at 6.8%.. not to sound callous but I would rather have 300k saved and owe 300k than be at zero.

Def live cheap if you can but costs just add up and unexpected events occur. If you are a smart person and want to protect your family you are looking at ~150-200/ month in life insurance another 400-500/ month for decent disability.. There are more costs too..

Originally Posted by cbtk18

Why in the he'll aren't we allowed to use pre-tax dollars to pay off our f@<#ing loans?

Ha ha. Cause perhaps it was post-tax money you spent? Nah, that couldn't be it. Guess what? Most Americans think you're super rich and many tax breaks have been eliminated at your income levels. No one cares that you have $200K or $400K in debt. Once you hit the $120K mark in income, even your interest on your loans isn't deductible, much less the principal.

To the OP-

Sorry you made such a bad decision to take out so much debt by attending such an expensive school. If it makes you feel better, many docs make a similar bad decision. They're in the military. They swapped out 4+ years of their lives to pay for medical school. Instead of making $300K, they're making $120K for those 4 years. Time or money, we all pay somehow. Some just pay more than others.

What I suggest you do, is pretend you're in the military. Live on $100K or less for at least 4 years. Every dollar above that goes toward retirement accounts, your student loans, and a house downpayment. You work hard (17, 18 shifts a month) and live frugally in a place similar to what you lived in in residency, driving the car you drove in residency. In 4 years, you pick your head up and realize you've got $200K put away toward retirement, $100K toward a house downpayment, and you've cut your loans in half.

A physician spouse is a huge asset, by the way. You can put one of your entire incomes toward student loans. And you should be the world's expert on the IBR and PSLF programs.

Active.

While I respect your opinion, I think its a bit false to accuse the OP of making a "bad decision". Not everyone gets the luxury of picking a cheap school, plenty of people will take whatever they can get. And one could argue that even with 400K in loans, it will eventually be a net positive investment. Also, while my debt aint as high, its still plenty dang high, as are everyone's I meet. If you didn't go to school in TX, or live at home, your loans will clear 225 without batting an eye. 250 is probably the new norm. Sad fact of our system.

OP, its all about the IBR.

Originally Posted by ActiveDutyMD

Ha ha. Cause perhaps it was post-tax money you spent? Nah, that couldn't be it. Guess what? Most Americans think you're super rich and many tax breaks have been eliminated at your income levels. No one cares that you have $200K or $400K in debt. Once you hit the $120K mark in income, even your interest on your loans isn't deductible, much less the principal.

To the OP-

Sorry you made such a bad decision to take out so much debt by attending such an expensive school. If it makes you feel better, many docs make a similar bad decision. They're in the military. They swapped out 4+ years of their lives to pay for medical school. Instead of making $300K, they're making $120K for those 4 years. Time or money, we all pay somehow. Some just pay more than others.

What I suggest you do, is pretend you're in the military. Live on $100K or less for at least 4 years. Every dollar above that goes toward retirement accounts, your student loans, and a house downpayment. You work hard (17, 18 shifts a month) and live frugally in a place similar to what you lived in in residency, driving the car you drove in residency. In 4 years, you pick your head up and realize you've got $200K put away toward retirement, $100K toward a house downpayment, and you've cut your loans in half.

A physician spouse is a huge asset, by the way. You can put one of your entire incomes toward student loans. And you should be the world's expert on the IBR and PSLF programs.

in my experience, maxing out my 401k minimally reduced my take-home pay, due to the tax bracket you find yourself in as an attending.

and TRUST me... the emergency fund is a MUST. if you told me i'd be out of work for 1 full year out of my first 3 with roughly $60k in out of pocket medical expenses, i would have told you you were nuts. a doc at my shop had breast ca right out of residency. another friend almost lost his leg to a weird ca and is honestly lucky to be alive.

the loans are important and a burden for sure, but they can always be put in forbearance and well, they will go away when you die you can never replace cash or catch up adequately on retirement.

Originally Posted by EctopicFetus

I am someone who had in the mid 300s in loans.

IMO the approach is easy and honestly it comes down to a few things. Dont make it seem like some complex process cause it just isnt.

1) know how much you owe on each loan and what the interest rate is.
2) while in residency you and wife should try and pay off interest on those higher rate loans
3) Understand that during years 1 and 2 you will continue sinking
4) Even though your wife is/will be a doc too I would argue that she should pick the field she wants regardless of what it pays. YOu will be a 2 doc family. 500k per yr is doable (perhaps easy).
5) Moonlight.. You can prob do UC for 80/hr or in the ED for 150+/hr
6) When you are done with residency take a 50% pay increase.. enjoy it.. so if you were living on your income of 50k imagine now you have 75k (after tax say 60k)
7) before you pay a SINGLE penny off of your loans save as lagringa said. Max out retirement and try to save a bit each month for an emergency fund.
8) You could probably do 5k+ per month off your student loans... If you get the right job you might be able to get to 10 but it will be harder than you think
9) when you start paying off your student loans pay off the higher interest ones first.
10) avoid further debt like credit cards etc.

a few other points..

1)You will hate your job and your life if you dont take time to enjoy what you earned.
2) Expect unexpected expenses (kids, wife, parents, siblings etc)
3) Never live in a way where you spend every penny you earn
4) The future income in EM is uncertain between Obamacare and the overall growth of medicare/medicaid
5)Educate yourself (if you already havent) on personal finance/retirement
6) educate yourself with regards to what to look for in a job. 50% of EM grads leave their 1st job within 2 years. There are great jobs out there.. Be a great resident it helps get a great job. You can work 1700 hours a year as an attending and I think it wont "hurt" you.. that number differs for everyone. There are a slew of jobs paying 200+/hr.. thats 340k.. There are even better long term jobs out there. Keep in mind about 1/3 of that is gonna go to taxes.. expect to keep between 60-70%. depending on your state.. thats before retirement and savings.

Much like la gringa mentioned when i finished rates were cheap. I consolidated about 230k at 2.875 (gonna go down to 1.875 in March). I have a slew of other loans but none at rates above 4.5%. It should be criminal to be in the position you and other recent grads are in with loans above 6%. I still drive my 05 Mazda and am proud..

As mentioned you are looking at 2500/month in just interest. thats a killer.. that a 500k home.. Thats about what I pay for my total loans a month..

fetus how are you getting your interest rate down so low in march? i refinanced about 2/3 of my loans to 2.875% in med school. still have the remaining 1/3 at between 4.5% and 6.875%.

Originally Posted by substanceP

fetus how are you getting your interest rate down so low in march? i refinanced about 2/3 of my loans to 2.875% in med school. still have the remaining 1/3 at between 4.5% and 6.875%.

Well my "big loan" was through student assistance foundation. safaccount.org. The initial rate was 3.125.. With auto-debit it drops 0.25%, and then after 3 years of on time payments it dtops another 1%. Hence 1 7/8.

Rates were great when I did it.. I have a little bit at 4.5%.. others at 3.5% and others at 4.1%.. none above 4.5%.. i guess the rates were good and I was lucky.. I dont know what the options are now but everyone was consolidating when i did.. I looked long and hard and found a good deal.