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- Mar 22, 2011
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I'm a married, 44 y/o 4th year medical student who will (hopefully, knock-wood) be starting residency next year. I'll graduate with roughly $300,000 in student loan debt. I've recently read that federal student loan debt is cancelled upon death, but I'm also a big Dave Ramsey fan who advocates paying down all debt ASAP.
By tightening the belt a little, I could probably pay off my loans early and save a lot of interest over the life of the loans, but if I paid the minimum, and just invested the income over and above expenses, I could maybe do better, if the loans outlive me and get cancelled.
I also read that loan forgiveness (for people with disabilities, not deceased individuals) is taxable. So would my estate get taxed for the cost of the outstanding loan at the time of my death?
Any thoughts?
--Sean
By tightening the belt a little, I could probably pay off my loans early and save a lot of interest over the life of the loans, but if I paid the minimum, and just invested the income over and above expenses, I could maybe do better, if the loans outlive me and get cancelled.
I also read that loan forgiveness (for people with disabilities, not deceased individuals) is taxable. So would my estate get taxed for the cost of the outstanding loan at the time of my death?
Any thoughts?
--Sean