Loans $200k

[deleted727644]

How long did it take yall to pay off your $200k loans? What did y’all do expedite the process?

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[WhateversClever]

First thing I did was refinance to lower the interest rate......Got it down from 7.6% to like 4.5% I believe. Unfortunately with the current interest rate environment I don't know how good that would be for you right now. I paid aggressively for a few years to get the principal down (4-5k/month I think). Then refinanced again that lower total amount and got the interest rate dropped again to under 4%. Once the amount got under 100k, I started paying less aggressively because at that point the interest I was paying was not that high and I started thinking about how I can reallocate that money to something better like investing and buying real estate. I started with 230k ish in loans and got under 100k in about 4-5 years. I could have finished all of it in 7 years but instead I pushed my payments out several more years so I could buy a house and invest more. The house has appreciated almost 300k and I have equal that much in investments so I would say a worthy trade off. Had I kept paying aggressively I would probably be debt free now (8 years later) but with no houses or other noteworthy investments. Make decisions that are best for you individually and be open to adjust your plans if situations change. You can pay it all off!

 

[bacillus1]

VA EDRP is up to $200k if you can find a job that has it (will likely need a VA residency or experience to land one).

 

[deleted727644]

Why are our loans the same as doctors?

 

[Gombrich12]

Why are our loans the same as doctors?

Because pharmacy students have no other options. What are they going to do? Go to hairdressing school?

 

[PharmtoCS]

Why are our loans the same as doctors?

Because naive students are still willing to borrow stupid amounts of money to pay the overpriced tuition despite the terrible job prospects and work conditions.

 

[RxPreceptor]

First thing I did was refinance to lower the interest rate......Got it down from 7.6% to like 4.5% I believe. Unfortunately with the current interest rate environment I don't know how good that would be for you right now. I paid aggressively for a few years to get the principal down (4-5k/month I think). Then refinanced again that lower total amount and got the interest rate dropped again to under 4%. Once the amount got under 100k, I started paying less aggressively because at that point the interest I was paying was not that high and I started thinking about how I can reallocate that money to something better like investing and buying real estate. I started with 230k ish in loans and got under 100k in about 4-5 years. I could have finished all of it in 7 years but instead I pushed my payments out several more years so I could buy a house and invest more. The house has appreciated almost 300k and I have equal that much in investments so I would say a worthy trade off. Had I kept paying aggressively I would probably be debt free now (8 years later) but with no houses or other noteworthy investments. Make decisions that are best for you individually and be open to adjust your plans if situations change. You can pay it all off!

I’ve had a similar path. Yeah, it’s tough thinking, planning, strategizing when to buy/invest in a house/make a major financial move when starting out with that much debt. Patience, persistence, learning some personal finance skills and putting into practice…all very helpful.

OP - It’s easy to envy the success of others, but stay focused on yourself!

 

[sozetone]

They have loaned out WAY to much money (at crazy high interst rates) to people who will not be able to pay back over the last 10-15 years. It's gonna all blow up anyway, dont stress it too bad. Pay the minimum you HAVE to to avoid defaulting. NEVER default. And enjoy your life. It's shorter than you think.

 

[MatchaCookie]

Why? because it’s a scam

 

[mentos]

How long did it take yall to pay off your $200k loans? What did y’all do expedite the process?

Took me about 3 years to pay off 150k. I lived like a student, shared a modest 1 bedroom apartment with my wife, didn't buy a new car, didn't eat out much. Did some overtime but didn't kill myself. Also refinanced but that probably doesn't help now. Every extra dollar went to loans until they were gone.

 

[RxPreceptor]

Zero help from family, friends, no resources given (housing, cars, etc.) living in a high cost of living area (NYC area). I’m just wrapping up paying off 225k at the 10 year point albeit with 3 year break from Covid and getting side tracked buying a house. I was not (truly) aggressive until after buying a house (only paying around 3,500$/month). Easily could have been done in about 5-6 years (could have rented a slum place for half of what I paid) if I was aggressive the entire time and didn’t get side tracked saving for a house.

I seldom expect help and am reluctant to take any given; I think I’ve developed into a stronger more self reliant person as a result of over time and embrace independence.

 

[nickw2401]

paid off 180k in 6 years...but during that same period I also paid 40k in cash for a new car.

 

[telomerein]

Live with your parents. It would take 4 years to pay off 200k but I'd say it's worth it if you took that much out in loans. The interest will kill you if you don't get it down fast. This will also help you not suffocate with all that interest