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Should I bite the bullet?

Home Student Loan Management Should I bite the bullet?

  • Avatar raddoc06 
    Participant
    Status: Resident
    Posts: 9
    Joined: 02/05/2019

    Current PGY-4 in radiology with 2 more years of training as of July 1st 2019. Household income $150k, me $77k. Spouse has no student loans. We are currently trying for our first child at the moment.

    I have ~$228k in federal student loans with a weighted interest rate of ~6.4%; this recently capitalized due to delayed re-certification. I was married Jan 1st and the subsidy I would receive with REPAYE would only be ~$1450/yr based on household income (little over $100/mo).

    My current rate for refinancing my loans through Laurel Road is 5yr 4.23% fixed and 3.97% variable; full 5 year repayment would start 1 month after fellowship graduation (have to pay $100/mo in training, interest would capitalize at time of full payment start). Should I go through with re-financing (if so variable vs fixed)? I plan on paying ~$1,000/mo in training with extra moonlighting money so I can cover interest and touch the principle.

    I highly doubt that I will go for PSLF due to mistrust of the government and morally wanting to pay this off/be debt free.  I want to aggressively pay off loans within 2-3 yrs of fellowship graduation so that I can get on with my life. I also want to have the most options for jobs once I graduate.

    TIA

     

     

     

    #204919 Reply
    Avatar adventure 
    Participant
    Status: Spouse
    Posts: 1154
    Joined: 10/24/2016

    We refinanced once during residency, and again during the first year of being an attending. Similiar scenario, but less overall training years. It’s debt, PSLF wasn’t likely for us. My loans are gone, working on the other half now. … a couple years to go.

    #204928 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3988
    Joined: 01/08/2016

    well you werent going to do PSLF anyways.

    you will likely have <1x income in loans.

    sure refinance.

    #204948 Reply
    Liked by Tim
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 560
    Joined: 06/18/2018

    Bite the bullet. You’ll easily knock that out in 5 years after fellowship.

    #204953 Reply
    Liked by Tim
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2503
    Joined: 01/03/2017

    I’d refinance and take the variable. You should be able to pay it off easily in less than 5 years. Maybe the increase in interest rate after 5 years will give you more incentive to make sure you finish those bad boys off.

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

    #204966 Reply
    Liked by Tim
    wonka31 wonka31 
    Participant
    Status: Physician
    Posts: 646
    Joined: 03/24/2018

    Why would you mistrust the government?

    #204976 Reply
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1296
    Joined: 02/11/2019

    You have less debt then we did and I am a family doc and I had my loans paid off in 2 years post residency.  I never thought to refinance back then and wasted tons of money on interest but at least they are gone.  You got this!

    “Never let your sense of morals prevent you from doing what is right.”

    #204982 Reply
    Avatar MSooner 
    Participant
    Status: Spouse
    Posts: 190
    Joined: 02/25/2016

    I wouldn’t bother with PSLF either. The job market could always change, but we are looking now (also rads) and seeing significant difference between what PSLF eligible jobs (academics) are offering vs private practice (or even corporate employed). The difference is enough to pay off your loans and then some in that time period, especially if you have just started making PSLF eligible payments. Good luck on the Core and potential baby. I can tell you firsthand that senior year is an EXCELLENT time to have one! 😉

    #205101 Reply
    Liked by raddoc06, Tim
    Avatar raddoc06 
    Participant
    Status: Resident
    Posts: 9
    Joined: 02/05/2019

    Thanks for the advice! Should I just do the fixed rate since the variable rate isn’t significantly lower?

    #205504 Reply

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