Student Loan Repayment Advice

[vitalityforlife]

Looking for some advice from the fiscally savvy

I graduate in May from my DPT program and am finishing all of my rotations in an area out of state from where I attend school. By the time I will have graduated, including undergrad, my student debt will be around 200k.

I have GradPlus loans that have already been dispersed for this semester, and will have more for the last semester. I recently moved in with my significant other which is why I am finishing all my rotations in a different state, where she works.

I was originally going to pay for half the rent, but because she is financially stable, we thought it might be better if I throw my half of the rent at student loans instead.

Does anyone have any feedback on this and whether it's smart to pay back the previous student loans with the loans being given to me now? Any other options or advice for me to begin working on cutting into the debt earlier than the start of my employment?

Thanks in advance!

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[engmedpt]

You cant. Paying off loans with loans is useless unless one loan is a lower interest rate. The only thing you could've done was try to build credit off of living expenses and then paying the balance off with loans. You can refinance you debt with a lending company with a lower interest rate. 200k is ridiculous but you already have that. take what you need to live on and do a massive repayment plan whether you refinance with the fed or a different servicer over say a 20-30 yr payment plan. You can pay over the minimum payments as much as you want and if you get hurt etc. then you use funds for yourself and just make your minimum payment.

Watch for random absurd signing bonuses at places. There may be somewhere where you can do like 15k or something. Your starting salary will most likely be 60-70k range, but I just started seeing 70s and 80s entry level. Start applying to a huge amount of jobs and accept the best offer. You wont be hitting 100k unless youre in Cali, Nevada, or doing travel temps and if youre with your SO then that is unlikely unless you can make that happen. I would also maintain perfect credit going forward in your life. Debt for this generation legitimately is at the worst point that it can possibly be. There may be random crazy sign ons or forgiveness for certain types of work but you should plan to pay it off just like a mortgage since that is what you have. Enrolling in NHSC relieves 50k after working for two years as well. However, I ont believe PT qualifies for that just yet.

Good luck

 

[engmedpt]

Note: the fed programs include Obamas REPAYE and IBR plans I believe. You pay 10% income for like 25 years and rest is forgiven BUT whats forgiven is called the tax bomb and it will wreck your savings if the tax is too high. I recommend enrolling in that since Obama is still in office and drop somewhere between 10-20k (probably much more for the first 2-3 yrs) a yr til its gone. That's $833-$1667 per month over approximately 15-20 yrs or so. I recommend slamming those payments at the beginning since youre young. The interest will stop strangling you so much when youre down after a few yrs.....You wont be going down much since the interest makes your payments null so much since your amount is so high.

Stay on top of the politics of studet debt too. Its a pretty big crisis and the gov. may do some weird things

This is a rough estimate. You will have to do the math yourself.

 

[okramango]

I was originally going to pay for half the rent, but because she is financially stable, we thought it might be better if I throw my half of the rent at student loans instead.

Does anyone have any feedback on this and whether it's smart to pay back the previous student loans with the loans being given to me now? Any other options or advice for me to begin working on cutting into the debt earlier than the start of my employment?

If you won't need your Grad Plus disbursement for the spring semester, it would be an even better idea to cancel that disbursement completely, or at least lower it to whatever amount you actually do need, so that you aren't taking as much money out in Grad Plus loans in the first place, and therefore accrue less interest. Don't take out the Grad Plus loan just for the purpose of using it to pay another loan.

 

[BiffTheFlashRogers]

Stay on top of the politics of studet debt too. Its a pretty big crisis and the gov. may do some weird things

It might be wishful thinking, but I feel like the government is going to have to step in and do something about the student debt crisis. It is going to be crippling an entire generation.

Side note: Saw a woman (middle aged) post some comment on a friend's Facebook post echoing this sentiment and she basically laughed and said how entitled our generation is, we need to stop being lazy and expecting things to be given to us, how everyone in her generation had to deal with student loans too and they were fine...etc. Some people don't get it.

 

[engmedpt]

Saw a woman (middle aged) post some comment on a friend's Facebook post echoing this sentiment and she basically laughed and said how entitled our generation is, we need to stop being lazy and expecting things to be given to us, how everyone in her generation had to deal with student loans too and they were fine...etc. Some people don't get it.

Considering the fact that college costs are 1000% more expensive than in the 70s, not as many people held degrees, and the fed wasn't raking in profits from the department of ed allowing schools to legally skyrocket tuition making education and upward mobility an economic product, that lady is delusional. It's also likely she would be pouring coffee at starbucks if her gpa wasn't high enough in todays Darwinian job market. And whos got the most representation and pull in politics.....gasp! even more baby boomers that have no idea whats going on.

 

[engmedpt]

^To be completely honest.....if they brought back subdsidized loans for all healthcare professionals then that would be a big step. Make money back while were working.....and heres the kicker..........were going to where there are jobs and we will be supporting them. we cant disincentivize the phd with in 1800s pottery but we can screw over healthcare professionals who will be taking care of you. ya. 'merica

 

[vitalityforlife]

Thanks for the feedback. I've accepted the fact that this is where I stand financially at this time, at least I'll enjoy what I'm doing. I also plan on staying in the Dallas area and the pay here is above average to excellent when considering the low cost of living.

So I guess at this point it seems the best option is to just take less in aid for the next semester. I would like to take the lump sum from this semester's rent and somehow use that money (~3000) and grow it to take a bigger chunk out of loans later - any ideas?

 

[engmedpt]

Thanks for the feedback. I've accepted the fact that this is where I stand financially at this time, at least I'll enjoy what I'm doing. I also plan on staying in the Dallas area and the pay here is above average to excellent when considering the low cost of living.

So I guess at this point it seems the best option is to just take less in aid for the next semester. I would like to take the lump sum from this semester's rent and somehow use that money (~3000) and grow it to take a bigger chunk out of loans later - any ideas?

That's important.

Texas is a great place to live my man. Pay is good there. Pay will slowly be increasing if the research for cost savings and proactive treatment gets across the desks of insurance companies but you won't be banking.