Time frame for paying off debt

[personal jesus]

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So now that finicial aid time has come I am beginning to feel pretty overwhelmed at the idea of graduating with 100k + debt. My question is how long do you guys think it takes to pay off the debt? If residents only make 30-40k then I am supposing that payment is going strech will into my 30's. Any thoughts?

 

[jlee9531]

im thinking about around 10 years to pay back my debt.

 

[ATPase]

I've heard of people stretching it out over 30 years, like a mortgage.

 

[Herpeto]

I am estimating five years post-residency, No More. Frugality with money and the lack of desire for material possessions will definitely help. I'll build the house I want when I'm fifty. And there isn't a car or item that I am interested in other than a nice retirement nest-egg. Food in belly is all I care for.

Herp

 

[Sharkfan]

I'm in the frugal boat as well. I plan to learn to how to just squeak by with what I need (hey, I'm a college student, I know how to do that already 😀 ) and put as much $$$ as I possibly can into paying things off the first few years I begin to practice. I'm okay going without luxury for a bit with the incentive of being debt free in the future!! With those darn interest rates, I want to get in the black asap!!

Just my two cents. 🙂

 

[mdforlife]

on the other hand, student loans are tax deductible, so depending on your income you might want to keep them as a mortgage, and your deductions will basically pay for them.

 

[Sharkfan]

Baaaaah!

Taxes! I hate taxes! I always feel like I am going to get screwed out of something!! I need to marry an accountant!!! 😡

Good point though.

 

[mpp]

Originally posted by mdforlife
on the other hand, student loans are tax deductible, so depending on your income you might want to keep them as a mortgage, and your deductions will basically pay for them.

The interest on student loans is deductible, but only $2500 worth, and this deduction goes away for those with a modified adjusted gross income of more than $65,000 per year ($130,000 if married filing jointly).

Mortgage interest is deductible up to $1,000,000 of home acquisition debt and $100,000 of home equity debt.

 

[ATPase]

mpp, how do you know so much??!! You are the financial god (or goddess). 🙂

 

[edmadison]

To the OP,

One important aspect of your question will be the specialty that you pick. If you do private practive interventional radiology you will able to pay off about 10 times faster than if you do academic pediatrics.

I agree with mpp, you will probably want to pay off your loans quickly because you won't be getting a deduction once you're done with residency. On the other hand, if you lock in a low interest rate and the rates go up, you may be better off not paying them off.

Ed

 

[jlee9531]

Originally posted by ATPase
mpp, how do you know so much??!! You are the financial god (or goddess). 🙂

seriously man...i had some questions on my fafsa and i think i just found our resident sdn accountant...to help me out!

(makes a howard dean scream) 😀

 

[confewshz]

Originally posted by Herpeto
I am estimating five years post-residency, No More. Frugality with money and the lack of desire for material possessions will definitely help. I'll build the house I want when I'm fifty. And there isn't a car or item that I am interested in other than a nice retirement nest-egg. Food in belly is all I care for.

Herp

Im with Herp, I plan on living like a hermit for 5 years while I pay off loans. Then when im done, Im gonna splurge for a bit (house, cars, etc), while saving up for retirement, etc. I hate being in debt, so the faster I can get out of debt, the better.

 

[A.D.O.R.]

Does anyone here know about IRAs and financial aid? I know some schools ignore your investment if it's small enough whereas others take everything into account. Also, I attend a public school in california so I want to know if an IRA would affect my ability to qualify for subsidized stafford loans. Thanks in advance.

 

[bonez318ti]

ive heard that when calculating fin aid, they do not look at your 401k, IRA, and house (and other illiquid assets)..

everything else is fair game (ie: your investments, dividends, your income tax return from the year prior to attendence)

and by the way.. I'm 26 now.. 28 by the time i start med school (if i can get in the 1st try).. so.. lets see residency from 32-36.. so i wont pay off my debt till my mid 40s at my EARLIEST!!!

So.. paying it back by the time you are 30 isnt so bad..