Paying Off Student Loans With Passive Income

Some people like to pay down debt as soon as possible; others like to hang on to low-interest loans indefinitely. I made it a goal to be debt-free by forty, but I did carry my student loans for quite some time after I had the money to pay it off.

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According to the AAMC, the average medical student leaves school with about $190,000 in student loan debt. That can be a very intimidating number.

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Not All Debt is Bad

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[{"selector":"#anim-5445dc51-b6db-4aee-b289-f895fae5dcfd","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f79a47b6-d827-4d3e-8c23-d6ae7742ed15","keyframes":{"transform":["translate3d(96.81698%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Debt that you can use to make money (cash flow in excess of the interest you’re paying on the debt)… well, that’s very good debt. Read More

[{"selector":"#anim-adaa481f-fca0-4028-b10c-73dd3199f4da","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-06dfb620-6eac-4ed6-b450-bbc6de4fde06","keyframes":{"transform":["translate3d(96.81698%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] So, instead of paying off my student loans all at once, I decided to take that money and buy a rental property. Read More

So, What’s the End Result?

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[{"selector":"#anim-a6e33d06-2365-4abe-a6a0-417e95108172","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0178789e-da71-49b3-afee-8295975e1e52","keyframes":{"transform":["translate3d(96.81698%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] I certainly can’t fault anyone for choosing to pay off their debt all at once. There is value to the peace of mind that comes from knowing you are debt-free. Read More

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