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*Official student loan pay off thread*

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

  • Avatar akmd 
    Participant
    Status: Physician
    Posts: 51
    Joined: 10/01/2017

    Paid off my loans today. I am completely debt free.

    I had about $180K in loans. I lived very frugally in medical school and residency so I made sure I dont take on additional loans.

    It took me just about 3 years after finishing my fellowship. I also max’d out my retirement accounts and was able to put away money in taxable accounts and have about 650k saved up across my accounts. All invested in index funds in vanguard.

    I would say try your best to pay the interest as well as principal payments during residency if you can, as opposed to deferring or just interest. My loans were cdn, and the cdn banks classified residency as work, and i was not able to defer my loans. I remember half of my paycheck going towards loans, and half of the other paycheck towards rent. I pretty much lived on oatmeal, chicken breast, bananas, milk, lentils and multivitamins – and I cooked for myself. I leased a car, which in hindsight may not have been a smart choice but atleast it was headache free.

    Those 4 years of anesthesia residency were very tough for me financially, but I made it. Fellowship was a little better but expenses went up also because I got married and we foolishly spent a lot of money on the wedding.

    Other than that, what really helped me was that I always kept two or three jobs/side gigs as an attending. I was doing pain, as well as anesthesia, selling my vacation and just working. It was almost psychotic.

    Believe it or not, I also drove for UBER a couple of nights (friday and sat night) in NYC when I was living in PA, but it was not worth it. It was a great experience though and I realized how horrible some of these drivers get treated.

    I also made biweekly budgets, and paid myself first (never compromised on this and invested in vangaurd taxable account on autpay). Then I budgeted for my loans, then house expenses. If there was anything else left over after the above, it again went to student loans. It motivated me to negotiate as much as I can when purchasing things and really cut down on expenses.

     

    Thank you for WCI community for motivation and encouraging the FIRE lifestyle

    Avatar akmd 
    Participant
    Status: Physician
    Posts: 51
    Joined: 10/01/2017

    ^’liked’ my own post by mistake – sorry :/ . Can’t undo!

    #149121 Reply
    Liked by adventure
    Avatar ifonlyFI 
    Participant
    Status: Physician
    Posts: 100
    Joined: 08/23/2017

    13 years after fellowship. $170k student loans. Paid off. With this crowd, it is embarrassing that it took me this long. But, feels good.

    I probably made every financial mistake that WCI cautions us about.

    #149124 Reply
    Avatar saildawg 
    Participant
    Status: Physician
    Posts: 343
    Joined: 01/24/2016

    13 years after fellowship. $170k student loans. Paid off. With this crowd, it is embarrassing that it took me this long. But, feels good.

    I probably made every financial mistake that WCI cautions us about.

    Click to expand…

     

    Better than most docs not on this forum!!  What was your interest rate?

    #149130 Reply
    Avatar BoogerPickerMD 
    Participant
    Status: Physician
    Posts: 3
    Joined: 08/11/2018

    About a month late in posting but we’re done! Finished residency with about 150k. We were able to refinance and get them paid off in 11 months. Maxed our tax advantage accounts for these 2 tax years as well. Now that the loans are gone we’ll increase our giving and get our taxable account going. Thankful for big shovels and for you all sharing of your time and experience to help get me on the right track.

    Cheers!

    Avatar ppdochopeful 
    Participant
    Status: Student
    Posts: 1
    Joined: 10/11/2018

    Hello all, I am in a particular situation and not sure as to what would be the best actions. My parents have both passed away and I was left with their assets which amount to nearly 1 million. I will have approximately 175K in student loans when I graduate this year. I was not prepared for this to happen and am totally unprepared. I was curious as to what others thought about paying the entirety of my debt off now comparatively to investing and paying it off slow. If anyone could help me sort through the negatives and positives of each option I would be extremely thankful.

    #156562 Reply
    Avatar DCdoc 
    Participant
    Status: Physician
    Posts: 607
    Joined: 06/14/2016

    To the above poster, my condolences. Pay off your student loans. Forever, you will be able to view that as a gift from your family. There’s still plenty to invest, but paying off loans is a no-brainer.

    #156581 Reply
    Liked by okayplayer, Craigy
    Avatar treesrock 
    Participant
    Status: Physician
    Posts: 350
    Joined: 08/14/2017

    Hello all, I am in a particular situation and not sure as to what would be the best actions. My parents have both passed away and I was left with their assets which amount to nearly 1 million. I will have approximately 175K in student loans when I graduate this year. I was not prepared for this to happen and am totally unprepared. I was curious as to what others thought about paying the entirety of my debt off now comparatively to investing and paying it off slow. If anyone could help me sort through the negatives and positives of each option I would be extremely thankful.

    Click to expand…

    I would start another thread to go over you choices at this time, there is a lot to consider.  Sorry for your loss.

    #156583 Reply
    Liked by okayplayer, Craigy
    Craigy Craigy 
    Participant
    Status: Spouse
    Posts: 2111
    Joined: 09/16/2016

    Made the final payment of $45k last week, finally cleared a couple days ago.

    Wife started out with about $190k of student loans after graduation (which would have been over $200k had she not made payments back while still in school).  I refinanced her loan with DRB by cosigning while she was an early resident, and we started making a dent in the principal instead of barely paying the interest.  As the debt went down and she got her PGY raises, we refinanced her on her own income with Earnest.  When she hit attendinghood about a year ago, the quest for a new home began and we refi’d again to a 5yr fixed rate with ELFI, and began saving up for a down payment.  Once we had a reasonable down payment set aside, we started to pay even more aggressively on the loan again.  Long story short, we’re still looking for a teardown, but we found a decent rental, and listed and sold our old house.

    The same day the closing money wired into our account last week, we made that last $45k payment.  Pretty funny, paid off the mortgage and the student loan in the same day.  😎  😀  Both were at low rates (3.125% and 3.09% fixed), and I thought I might possibly feel some pang of regret paying off the low-interest student loan, but I haven’t yet.  It feels great, and it’s one less thing for my wife to worry about, plus I think it gives her more confidence in her career.

    After being used to making huge payments on the loan each month, now our monthly expenses are going to be super low.  Well, at least until we find that teardown and start building a house…  😛  😆  But for now we’re living the dream.  😎  😎  😎

    LEVEL 1 WCI FORUM MEMBER.

    Avatar hightower 
    Participant
    Status: Physician
    Posts: 1501
    Joined: 12/07/2016

    Wow, that must feel really great!  Congrats

    #156593 Reply
    Liked by Craigy
    Avatar Hem onc doc 
    Participant
    Status: Physician
    Posts: 1
    Joined: 10/12/2018

    Just made my final payment, 3 years out from fellowship, 11 years after graduating med school about 180K total. A lot longer than some on this forum but still feels really good. Have been waiting to be able to post this for the last year and have used other people as motivation for me to pay it all off so thanks everyone.

    Avatar Firefly 
    Participant
    Status: Physician
    Posts: 41
    Joined: 07/31/2018

    Keeping the hope alive for those still in repayment:

    Made the last payment to Navient last night and stopped Autopay.

    The path:

    Started my first job 2 years 2 months ago, graduated with ~325K in debt from 3.9 to 10% interest. This sum was after 70K paid during residency by the loan repayment program.  Also we had paid about 10K in a high interest private loan during fellowship, otherwise I was clueless and make no progress during training.  Since graduation, we paid down everything over 4% and were left with 165K at 3.9%.  I was torn between starting a taxable account versus slaying the beast.  I got all excited about learning asset location and revisted our allocation, which was a very fun process, so we went with opening a taxable account and brought this up to ~150K before pounding the loans.  I finished our IPS at that time. Then rapid fire payments every two weeks with about 80% of our take home salary, and now it’s done!!

    For the record, we live a resident lifestyle that is well padded with a few luxuries that make a big difference for us. No house yet, we rent, that is the next big goal for us.  We maxed out all tax advantaged space, back door Roths, HSA, employer match etc…

    I read the WCI book as a fellow, when I was a spendthrift consumer slave with zero financial knowledge.  I owe thanks for this milestone to Dr Dahle and the contributors here for the knowledge and inspiration to become a DYI investor.  We are well on our way to FI. And probably RE.

     

     

    #158385 Reply
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 2465
    Joined: 03/01/2018
    Splash Refinancing Bonus

    Congrats Firefly!

     

    sheepishly admitting I only make minimum payments. Consolidation fixed at 1.625%. Only about $125k and have the cash to pay them off but with the rate I’m not in any hurry.

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #158388 Reply
    Liked by Firefly, Zaphod
    Avatar Firefly 
    Participant
    Status: Physician
    Posts: 41
    Joined: 07/31/2018

    That’s a terrific rate.  You are probably making money after inflation!

    #158393 Reply
    Avatar RandomDoc 
    Participant
    Status: Physician
    Posts: 47
    Joined: 06/04/2016

    Congrats firefly. That’s impressive. I can’t wait to add my name to this list in about 10 months. Thanks for the inspiration.

    #158424 Reply

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