No announcement yet.

Beginning Student Loan Payments While in Medical School

First Prev Next Last
  • Filter
  • Time
  • Show
Clear All
new posts

  • Beginning Student Loan Payments While in Medical School

    Hi everyone!

    I am an accepted class of 2024 medical school student in the process of making a long-term plan to tackle my student loan debt. I will need to take out $150,000 over four years to cover the cost of my tuition. Fortunately, I am married and my spouse has a good job, so I will not need to take out extra money to cover living expenses. We also do not have any existing student loan debt from our undergraduate degrees.

    I will be receiving a monthly living stipend from the Post-9/11 GI Bill and my plan is to use some of that money to begin paying off my student loans immediately. I can budget a monthly payment towards my loan that would cover the cost of the interest that would accrue over my four years of medical school. My logic here is to pay down the interest so I can avoid the capitalization event that will occur after graduating from medical school.

    My question is: can anyone think of a reason why I should NOT do this? The only possible drawback I can see is that, if I were to pursue PSLF, this plan might be unnecessary. That being said, I have no plans to pursue PSLF. It is not because I don't have interest in working in a qualified public service position, it is because I am debt averse and having to think about a loan balance for 10 years will burn a hole in my brain. So, my plan is to cover the interest payments on the loans while in medical school, avoid the capitalization event, and then do the math to figure out what is the best repayment plan to enter while in residency.

    If anyone sees glaring flaws in this logic please let me know. Thank you in advance and I appreciate all the insight!

  • #2
    Welcome to the board. Congrats on medical school acceptance. I think your plan sounds good. Only other things I can think of:

    pay only unsubsidized loans' interest at the onset

    if you have income via the living stipend, maybe reduce your borrowing by that amount
    "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓


    • #3
      Congrats on getting accepted into medical school! No small feat. Sounds like you are in a similar position to me with my wife working full-time while I was in medical school. My advice would be to simply save up your monthly stipends each month and take out less student loans each semester. That way you limit the amount of debt you accrue (principal) instead of trying to chip away slowly at the interest that is accumulating.


      • #4
        Congrats on the acceptance. The real fun begins soon!

        Curious if the wife has a job she can do at the medical school and get a tuition discount? obviously if she's a high earner, it may not be worth the jump. Never hurts to look into


        • #5
          My suspicion is that she earns enough to where that would not be a viable choice, but it is worth examining! Thank you everyone for the input.