With an after-tax residency pay of about ,000, that leaves ,000 for living after interest is paid.
It could be possible to survive on ,000 a year if you are single, don’t have to take care of children, and don’t live in a city.
So if the yearly interest is $17,000 and you only could pay $10,000 through the IBR program, the difference of $7,000 is added to your loan and is further compounded. Visit the section on medical school loan forgiveness / repayment programs for assistance in paying off medical school loans.
As an Attending After residency, assuming the healthcare environment did not change, your salary should be much higher.
As an attending, you should be preparing to pay more than the interest.
You should pay off your medical school loans as fast as you can.
Call up the lenders and let them know you want to pay it off in full. If you want to pay more than the stated monthly amount, make sure the lender knows you want to apply it towards the principal (the original amount of the loan).
When I had a car loan, I was paying more than the stated amount thinking that the lender will automatically apply the extra towards the principle. Instead, they held onto my money and just delayed the due date of my next payment.If you borrowed your way through medical school, it would be very possible for you to have already borrowed a quarter of a million dollars (especially with medical school tuition these days).For argument’s sake, let’s assume you have 0,000 in school loans.If you defer it for 5 years, the loan grows to almost 0,000 — almost a 0,000 increase in just 5 years.It is widely rumored that Albert Einstein once said that “the most powerful force in the universe is compound interest.” Don’t get destroyed by this powerful force. As a Resident Therefore, right after medical school, even though you are on a tiny salary, you must pay off medical school loans (or as much of it as you can). If you are reading this before or even during medical school, try to save as much money as you can.Growth During Residency You know that residents get paid very little — peanuts — at least on a per hour basis.