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*Official student loan pay off thread*

Home Student Loan Management *Official student loan pay off thread*

  • Avatar AZGoBlue 
    Participant
    Status: Physician
    Posts: 6
    Joined: 01/17/2018

    We are officially done!

     

    My wife and I started with 514k in loans (after capitalization) that was anywhere between 6.5 – 8.5% interest.  Refinanced through Sofi 6 or 7 times.  We basically refinanced every time our salaries went up and the principle went down significantly until we got their best advertised interest rate.  Got it paid off 4.5 years after we finished our residencies.  Started paying attention to this site my 3rd year of residency and it really got my priorities straight.  We were even able to max out our pretax (401k and HSA) and backdoor roth savings every year since residency as well.  We could have probably done “better” by investing that money every month, but I can’t put a price on the feeling of that burden being lifted.

     

    Thanks WCI.

    Avatar newdoc1 
    Participant
    Status: Resident
    Posts: 47
    Joined: 02/24/2018

    both repaye and paye have an interest subsidy.

    #105809 Reply
    SerrateAndDominate SerrateAndDominate 
    Participant
    Status: Physician
    Posts: 487
    Joined: 02/01/2018

    I believe PAYE does for subsidized loans.  I guess I never looked into that part since most of mine are unsubsidized.

     

    I think it boils down to a few things:

    – Are you pursuing PSLF? If you are, and you’ve been doing payments for the 4 years of training, it may make most sense to do PAYE for the 10 years.

    – If not doing PSLF, get the lowest rate and pay it off quickly.

    Earn everything.

    #105815 Reply
    Avatar beth928 
    Participant
    Status: Physician, Dentist, Small Business Owner
    Posts: 78
    Joined: 11/15/2017

    Graduated Dental School in 2003 with ~200k debt

    Entered 6 year oral surgery residency, which included medical school.  After extra tuition and capitalized interest, debt was ~255k in 2009 at completion of residency.

    2009 – 2011 Failed associateship, stupid home purchase ultimately costing 30k, stupid whole life insurance purchase followed by selling the policy and cutting our losses probably cost 10k.

    2011, moved to new area, opened solo practice which added 535k in debt.  Another 150k for a consultant’s help to open the practice.  I thought my husband was having a stroke when I told him how much more debt we were taking on.

    2017, I found wci and re-thought the debt.  I decided enough is enough, it all needs to go.  I started making large payments towards the debt in addition to maxing out our 401k every year and starting 529s for the kiddos.

    I just now made two extra payments and have the student loan to just under 200k for the first time in many, many years and the business loan is now just under 250k!  The 150k consultant fee was paid off in 2017.  At the height of the debt, I owed 940k, not counting the mortgage.  Now, I owe 448k, not counting the mortgage. Small potatoes compared to others, but it is still significant for me and makes me very, very happy!  I am still going to max out the 401k and contribute to the 529s, but am hoping to have the rest of the debt done in under 2 years.

    For now, though, I am going to celebrate minor milestones.

    Avatar adventure 
    Participant
    Status: Spouse
    Posts: 1184
    Joined: 10/24/2016
    For now, though, I am going to celebrate minor milestones.

    Click to expand…

    And the major ones too… like crushing 1/2 a million in debt in just a short time. Seems like the investment in all that might being paying awesome dividends.

    #108207 Reply
    Avatar beth928 
    Participant
    Status: Physician, Dentist, Small Business Owner
    Posts: 78
    Joined: 11/15/2017
    For now, though, I am going to celebrate minor milestones. 

    Click to expand…

    And the major ones too… like crushing 1/2 a million in debt in just a short time. Seems like the investment in all that might being paying awesome dividends.

    Click to expand…

    That is actually a really good way to look at it!  All this time, I was looking at how much further I had left to go instead of looking back to what I already did. Thanks!

    #108217 Reply
    Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 360
    Joined: 02/22/2016

    Finally adding my name to the list. Submitted the last payment online tonight while waiting for our seafood dinner to be served in Lahaina in Maui, where we are on spring break with our 3 kids (a celebration in itself). Sent my wife a text with a screen capture of the last payment (her parents are here with us as well), and all I got was a “you paid off your student loans? That must feel nice.” ????

    Started at $344,000 about 3.5 years ago. Paid off ~ $60k right away after graduation from fellowship with a loan forgiveness check from my employer and some money we had in a CD that had been earning 4.5% interest for the previous 4 years. Refinanced the 2 highest rate loans from 6.8% to a variable rate that started at 2.63% and got up to just around 3.25% when I paid those off 18 months ago by paying at least $5,000 per month extra towards the principal. Next came the 4.25% fixed rate loan which was paid off by adding the almost $1100/month that we had been paying to the refinanced loans and the $5,000 (snowball method). Finally knocked off the 2.6825% loan tonight. Had planned to take this out last year but split some money into taxable investment account instead. With the production bonus I got about a month ago coupled with our 4-figure federal tax refund coming soon, I decided it was time and pulled the trigger. Will be weird not sending that payment every month, but I have to say I’m looking forward to the change…

    Thanks WCI and this community for everything. I’ve learned a lot and continue to learn almost daily. I’m quite debt averse by nature so would have gotten to this point on my own eventually, but the encouragement and knowledge sped things up quite a bit I’m sure. Looking forward to the next journey in my financial life—that of becoming financially independent.

    NaOH NaOH 
    Participant
    Status: Pharmacist, Spouse
    Posts: 118
    Joined: 01/09/2016

    5/11/2015: $145,000

    3/29/2018: $0

     

    Feels good, man.  😎

    "Don't fear failure - not failure, but low aim, is the crime.
    In great attempts it is glorious even to fail."

    Avatar hightower 
    Participant
    Status: Physician
    Posts: 1485
    Joined: 12/07/2016

    NICE!!  Congrats!

    #113703 Reply
    Avatar okayplayer 
    Participant
    Status: Physician
    Posts: 124
    Joined: 05/25/2016

    You guys are awesome. My wife and I will contribute some day.

    #113859 Reply
    squaredroot squaredroot 
    Participant
    Status: Physician
    Posts: 24
    Joined: 07/11/2017

    thanks for all the motivation guys!!! Congratulations to all!!

    "The mass of men lead lives of quiet desperation" - HDT
    laraizcuadrada.com

    #113875 Reply
    Avatar HeyAnesthesia 
    Participant
    Status: Physician
    Posts: 7
    Joined: 12/31/2017

    Total student loans at graduation: $225,000
    Interest paid during residency/fellowship: $63,000
    Additional interest paid after refinancing at the end of fellowship: $6,500
    Time from fellowship end to loan payoff: 15 months

    I refinanced with sofi immediately after fellowship to reduce my interest rate from ~6.8% on most of them to 3.00%. I chose variable as the rate was a bit lower and I intended to pay it all back ASAP.

    Last night my wife and I popped a bottle of champagne and made the final payment. There are no words to describe how good it feels to be done. I’m 10 lbs lighter.

    Full disclosure: My wife is an attorney. Without her help this would have taken much longer. We also paid off an additional $180k of her loans along the way ($477k total).

    Avatar RandomDoc 
    Participant
    Status: Physician
    Posts: 47
    Joined: 06/04/2016

    Congratulations. I can’t wait to be done with mine and my wife’s. Thanks for the motivation boost.

    #114122 Reply
    Avatar hightower 
    Participant
    Status: Physician
    Posts: 1485
    Joined: 12/07/2016

    Total student loans at graduation: $225,000
    Interest paid during residency/fellowship: $63,000
    Additional interest paid after refinancing at the end of fellowship: $6,500
    Time from fellowship end to loan payoff: 15 months

    I refinanced with sofi immediately after fellowship to reduce my interest rate from ~6.8% on most of them to 3.00%. I chose variable as the rate was a bit lower and I intended to pay it all back ASAP.

    Last night my wife and I popped a bottle of champagne and made the final payment. There are no words to describe how good it feels to be done. I’m 10 lbs lighter.

    Full disclosure: My wife is an attorney. Without her help this would have taken much longer. We also paid off an additional $180k of her loans along the way ($477k total).

    Click to expand…

    Very impressive!  Nearly 1/2 million dollars in 15 months?  Wow!

    Did you have to work extra or take any drastic steps to accomplish it?  I’m guessing between a lawyer and an anesthesiologist it’s probably not TOO hard to do, but still impressive regardless.

    #114141 Reply
    Avatar HeyAnesthesia 
    Participant
    Status: Physician
    Posts: 7
    Joined: 12/31/2017

    We paid her law school loans off while making minimal payments on mine in residency. Our goal was just to pay interest off before it capitalized.

    After that we kept lifestyle inflation in check and threw everything we had at my loans. We have been maxing retirement accounts, Backdoor Roths and an HSA since I finished as well. No extra jobs. Not growing into an attending salary was the key.

    #114162 Reply

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