Student Loan Advice: 7 Important Rules of Thumb

Swipe up at anytime during this story for more details on the topic. There's so much to cover we couldn't add it all here.  See you there!

Where do you get your student loan advice? From blogs? Podcasts? Friends and neighbors?

It’s an important question because bad advice can cost you tens of thousands of dollars in unnecessary interest. Refinancing privately when you could have qualified for PSLF could cost you hundreds of thousands of dollars in lost loan forgiveness.

1. Make a Student Loan Plan

The first piece of student loan advice I can give you is the simplest. Yet, it is also the most important: Your loans are not going to magically disappear. Despite this being self-evident, physicians frequently stick their heads in the sand when it comes to student loan management.

3. Single Resident = REPAYE 99% of the time

If you file your taxes as “Single” and have (non-private) student loan debt in training, then REPAYE will be the right program for you the vast majority of the time.  This is solid student loan advice 99% of the time.

4. Residents Should Skip the Grace Period

If I told you that I would pay you $3,500 to click some buttons online and to fill out a few forms, would you accept that job?  I know that I sure would.

5. Use a Refinance Ladder

Many attending physicians will decide that they should refinance their student loans.  Maybe this is because their DIR is <1 or they will not be working for a PSLF qualifying employer.

6. Choose the Right Debt Paydown Method

There are different methods to pay down debt. Some prefer the debt snowball method where you pay down the smallest debt first and then roll that payment into the next debt until it is all gone.  Others prefer the avalanche method where you attack the highest interest rate item first.

7. Complicated Situation?  Consider a Consult

The truth is that student loans can get complicated very quickly.  Particularly, if you fit into one of these categories: – Your DIR is > 1.5 – You are a married couple who both have debt – You are married to a high-income earner – Your student loan burden is well above the national average

Read the Full Article by Swiping Up! There's lots more to read!

Check out all the articles just like this one!