Student loans

[Deebs]

Federal loans ate forgiven at death - private loans are not. We're also in the category of very low interest. We'll be paying them after our kids finish college.

[Pollyanna]

Dh paid off a huge chunk during fellowship through the NIH loan repayment program. If your spouses do research it's a fabulous opportunity. He would have applied for a third year extension of the grant this year as well but couldn't prove enough research time as an attending. So we still have a small amount to pay off but our oldest also just began college so we have other priorities like retirement (and current expenses) to focus on.

[TulipsAndSunscreen]

We owe >260k for DHs med school and undergrad. We don't have great rates bc he went to school after the rates rose. We are paying 6-7% and those are "good" rates for his era of med school. Makes me sick to be in this much debt. And also why when people say, oh school has always required a payback, young docs shouldn't complain I want to throat punch them. Rates and tuition are both insane if you don't get into a state school (which my DH did not).

So paying forever isn't a good option for us. This is the reason I currently work a soul sucking job and will continue for 3-4 more years. If I can drop them by half (maybe a pipe dream but whatever), I feel like that's manageable to get them paid off relatively quickly after he starts attending life. But considering that might be 2019, I'm working my ass off now to pay it.

[Vanquisher]

We too owe insane amounts, about 300K. We got really lucky when we consolidated. Rates were really low. In fact, in a few months, after having paid on them for 3 years, our rates will drop 1% bringing our interest rate to 1.88%. If they were at 6-7%, we'd absolutely be paying on them as fast as we could. But, we just consider ours to be like a 30 year mortgage on a piece of paper.

[TulipsAndSunscreen]

We too owe insane amounts, about 300K. We got really lucky when we consolidated. Rates were really low. In fact, in a few months, after having paid on them for 3 years, our rates will drop 1% bringing our interest rate to 1.88%.

I want to say I'm really really happy for you all with these really low rates but there's a little part of me that wants to cry too. I know they say school debt is "good" debt but not when it's at INSANELY high rates. And the real kicker is that DH entered school just before the recession hit but they only adjust the rates every 5 years or something. So we're stuck with these insanely high rates while rates for everything else fell. I don't know why student loan rates don't float like market rates, it's so f***ing unfair.

[OrionGrad]

We're in the same boat right along with you. 6.8% interest rates make me want to cry.

[MsSassyBaskets]

I want to say I'm really really happy for you all with these really low rates but there's a little part of me that wants to cry too. I know they say school debt is "good" debt but not when it's at INSANELY high rates. And the real kicker is that DH entered school just before the recession hit but they only adjust the rates every 5 years or something. So we're stuck with these insanely high rates while rates for everything else fell. I don't know why student loan rates don't float like market rates, it's so f***ing unfair.

Since fed loans are no longer subsidized, we're paying those insane interest rates while we accrue our student loan debt. We're fairly debt-averse - as much as you can be in medical school - so I imagine as soon as DH makes a salary again, we will put virtually all of it toward paying down debt and continue to live the way we do now. We will have all other debt (previous student loans, car) paid off my the time DH starts residency, so we will be able to focus on loan payoff. If we buy a house, we will do it within our current means. I will continue to work full time for probably the next 8 years regardless of whether/when we have children. This is just one of the many ways the med training process is making me sick to my stomach this week.

[SoonerTexan]

This is the reason I'm no longer planning on quitting to stay home if continuing to work is an option when residency starts. I have a stock award that comes up in 3 years that could pay off a large chunk of our loans. It's great, but at the same time, I feel a little trapped. We just got the notification of what we can get for next year. Our loans will be right around $100k total, maybe less if interviewing is cheaper than I anticipate.

Question--we are planning to do forbearance/deferment (whatever we can get) for residency. If you make any payment during that time are they going to take the loans out of either of those statuses?

[TulipsAndSunscreen]

Question--we are planning to do forbearance/deferment (whatever we can get) for residency. If you make any payment during that time are they going to take the loans out of either of those statuses?

My understanding is that deferment is no longer an option. You can forbear but the loans continue to accrue at whatever interest rate you have on the loan. You can also do IBR but that is capped and if you make a good combined salary, it's not as good as you might think. I was depressed at the high amount they still want us to pay every month.

I don't know if paying during that time reverts it back to active status. I do know that we paid some on them between graduation and when they started (Jan of 2013) and that did not tip them into active status. That should be an easy question to get answered too.

[oceanchild]

We're also over $300K, mostly consolidated federal loans in IBR. We're hoping to get the 10-year loan forgiveness, so we've made it a priority to make the IBR payments through residency and fellowship, although with my salary in the mix the payments are fairly high. The little bit that are private loans we're just chipping away at slowly. The rates on the federal loans are high (6 or 7%?), but the private is only like 2%.

[alotofyarn]

My husband recently went through some sort of class where they talked about forebearance and all that, plus we have a good friend who just finished residency and forebeared (is that even a word - forebore??) hers. As far as we've understood it all, you can pay while they're in forebearance and they stay that way, so that's our plan - paying to keep up with interest at least. We did learn that not all loans are eligible - with federal loans it's easy, but apparently private loans are harder. All of my husband's med school loans are federal, but he has a pretty good chunk from undergrad that are private, unfortunately. I asked him yesterday and he's got about 160k, so I guess it's not as bad as it could be.

[ladymoreta]

I admit, I've been feeling a lot of guilt since reading this thread. Our total debt once we buy the house next month will be $512,800. And it's not all "good debt" like student loans and mortgage - most days I feel like we're the only people in the world who have bought cars on credit and who are still paying off credit cards. Also, it might have been almost a hundred thousand less if I'd kept working rather than quitting to be a SAHM, so I know part of it is my fault. Debt just sucks... I don't even know what the point of this post is, except to hopefully make some of you feel better.

[spotty_dog]

*hugs* LM. There has to be balance in all things. I didn't pay a lick of attention to finances until mid-residency at the soonest. Before that I was just lucky and had a diligent partner. You guys are going to be fine though. If you even know your net worth you are better off than the average American.

[SoonerTexan]

Also, it might have been almost a hundred thousand less if I'd kept working rather than quitting to be a SAHM

Don't feel bad about that. It's a tough choice all around and after waiting 10 years to have kids, no one could blame you there. I admire you for making the choice.

And considering 300K of that number is house...that really doesn't seem so out of the ordinary for a recently graduated doc.

[Curegirl]

$275,000 school loans and I have no idea what shape his credit cards are in...Got federal and private and paying up the ass with the latter. I know one of his main concerns with us is financial but I hope he also realizes how much I care about him to be willing to take this on...