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Incoming EM Intern married to lawyer, is my strategy appropriate?

Home Student Loan Management Incoming EM Intern married to lawyer, is my strategy appropriate?

  • Avatar Budgetmaestra 
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    Status: Attorney
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    Joined: 04/30/2019
    Splash Refinancing Bonus

    Great job! You are on the right track and so is your wife. Once you really make the decision to do this together it is actually very satisfying to pay down debt. I actually find that paying down debt is way more satisfying than saving.

    #212098 Reply
    Liked by osteoson56
    Avatar osteoson56 
    Participant
    Status: Student
    Posts: 19
    Joined: 12/04/2018

    So now that my wife and I have paid off all of our private loans (which we feel awesome about) we have decided to go down the refinancing road, planning to throw all of my salary toward loans and living off of her income. Now that I am shopping between Laurel Road and SoFi .. I must admit I am a bit confused. SoFi gave a soft estimate of a little over 5% over 10 years..and says that my monthly payments will be over $4,000. I do not think we can afford $4,000 payments while in residency — though we do plan to pay them off aggressively within the first 2-3 years as an attending. Am I just reading this wrong? Am I able to pay less monthly during residency? Thank you.

    #212708 Reply
    CordMcNally CordMcNally 
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    Status: Physician
    Posts: 2263
    Joined: 01/03/2017

    Some lenders will let you pay less in residency. I had DRB (who is Laurel Road now, I think) and they had you pay $100/month while in training.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #212715 Reply
    Avatar osteoson56 
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    Status: Student
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    Joined: 12/04/2018
    medical school scholarship sponsor

    Some lenders will let you pay less in residency. I had DRB (who is Laurel Road now, I think) and they had you pay $100/month while in training.

    Click to expand…

    Whew! Thank you!

    #212718 Reply
    CordMcNally CordMcNally 
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    Status: Physician
    Posts: 2263
    Joined: 01/03/2017

    Make sure you double check with the lender, though. This was 5 years ago and I’m not up to speed on the student loan game these days.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #212719 Reply
    SerrateAndDominate SerrateAndDominate 
    Participant
    Status: Physician
    Posts: 401
    Joined: 02/01/2018

    Laurel Road and SoFi still offer the $100/mo trainee payment plan. Use the link on WCI or a referral link from someone else so you can get a couple hundred bucks back. Get rates from each company and keep asking them to beat the other’s offer (assuming you get pre-approved for both companies). Get your autopay and AMA discounts with Laurel Road. Then destroy those loans.

    Earn everything.

    #212723 Reply
    Avatar Tim 
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    Status: Accountant
    Posts: 2320
    Joined: 09/18/2018

    Sofi and Laurel Road also offer up to a 6 month grace period between residency/fellowship that can ease the cash flow gap and moving stuff. You still make the $100 payments.

    #212859 Reply
    Liked by osteoson56
    Avatar osteoson56 
    Participant
    Status: Student
    Posts: 19
    Joined: 12/04/2018

    I have been offered refinancing rates of around 3.75% for a 5 year loan term and about 4.75% for a 15-year term. Do I go with the 3.75% while I am in residency (3 years) then refinance for a longer term when I graduate? Thank you!

    #218206 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2263
    Joined: 01/03/2017

    I have been offered refinancing rates of around 3.75% for a 5 year loan term and about 4.75% for a 15-year term. Do I go with the 3.75% while I am in residency (3 years) then refinance for a longer term when I graduate? Thank you!

    Click to expand…

    Hard to say. It depends what the rates do over the next 3 years. You may not be able to touch 4.75% for 15 years in 3 years or you might be able to do better.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #218208 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2320
    Joined: 09/18/2018

    Rates are one factor. Fixed or variable and can you safely meet the monthly payment obligations? You are leaving the safety net of the government repayment options. You indicated you paid the private loans off. Before you indicated difficult with a monthly payment. Not sure what has changed. How is the 5 yr plan feasible now? Yes it’s a lower rate and you would have only 2 years left. I am probably missing something if you’re talking about refinancing to a 15 year loan. Not sure if the quote includes the $100 monthly payment for 3 years. And then, you would be forced to refi at higher rates. If you EF drained to payoff the private loans, simply reduced your cushion. No one can make the risk choices for you. Good luck.

    #218222 Reply
    Liked by osteoson56
    Avatar osteoson56 
    Participant
    Status: Student
    Posts: 19
    Joined: 12/04/2018

    We still have 15k left after paying off private loans. And yes they are letting me pay $100 a month during my 3 year residency. I have a secondary income with my wife who makes 65k a year and I’ll make 57 during residency. Plan is to use my income to make larger payments during residency then pay the loans off aggressively. Just wondering what loan term would be smartest to refinance at.

    #218224 Reply
    Avatar Tim 
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    Status: Accountant
    Posts: 2320
    Joined: 09/18/2018

    Both loans have $100/mo payments and variable interest rates and the payment ramps up in 3 years.
    a) The 5 year term has lower interest but might force a refinance due to the size of the payments.
    b) The 15 year term has higher interest but would probably have a much more affordable payment.

    a) is better for the 3 years .
    b) could be better IF interest rates ramp up.
    To be honest, the refi business could change drastically as well. My crystal ball fails me about half the time. For all I know, the $100/mo forbearance might disappear soon which would cramp a midcourse adjustment. I’d ask the wife. She holds the license that can make more cash in a pinch. I mean, she holds the cards!

    #218240 Reply
    Avatar FamilyFirst 
    Participant
    Status: Student
    Posts: 20
    Joined: 05/19/2017

    As a rising MS4, I just wanted to say congrats on paying off that private loan and getting a game plan together for the loans you still have! It is very encouraging to see someone a year ahead having success tackling the mountain of loans. I’m also impressed by your living expenses that you shared. Good luck during you intern year!

    #218243 Reply
    Avatar osteoson56 
    Participant
    Status: Student
    Posts: 19
    Joined: 12/04/2018

    New update before EM residency starts. After help from everyone on WCI  our current status:

    – We payed off all of our private loans within the first 2 years of my wife working while I was still in medical school (about 70k)

    – We decided to refinance all of our government loans, which are around 350K

    – We were approved for a 10-year fixed term at 4.57%

    – I will make 57k-60k a year during residency. Our plan is to throw all of my income at the interest and principle of our loan during residency, the company only requires $100/mo during residency.

    – We then plan to throw any moonlighting money and my attending signing bonus at the loans, and hope to pay them off within 3 years post-residency.

    – Next step: set up a Roth IRA? How do I go about this?

     

    THANK YOU TO EVERYONE FOR YOUR SUGGESTIONS!! Very confident in our current approach as we do not want to rely on PSLF and do not want to be paying loans for the next 20 years!

    #221373 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3800
    Joined: 01/08/2016

    Online at any major brokerage.

    #221374 Reply
    Liked by Tim, osteoson56

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