Student loan debt. Ugh. We’ve all been there before. Just wondering how to make this whole mountain of debt disappear.
Nick Schneider is back on The Doctor’s Life Podcast with some tips on how to attack your student loan debt to make it go away as soon as possible. All episodes of The Doctor’s Life Podcast are available on iTunes, and on SoundCloud. If you have an Android device, you can download a podcast player (I recommend Podcast Addict), and it will pull from iTunes. Make sure to subscribe and you will be the first to get new episodes of The Doctor’s Life Podcast.
What is the right way to attack your student loan debt?
- What is your employment situation
- What is your income potential
- Have you reviewed your budget?
- Should I refinance or enroll in a forgiveness program.
Today we will tackle the concept of refinancing and reducing your debt the old fashioned way.
Step #1- Meet with a team or bank that works with Physician Loans. You will need a credit score of 670 or higher to qualify.
Step #2- Once you have your new payment, that should be included in your lifestyle expenses (50%).
Step #3- Reducing this debt aggressively should come from your discretionary budget (20%). You do not want to reduce your savings to achieve this goal. You can not make up lost time for your investments.
Example:
Example 1- Reducing interest from 7 to 4 % will save you 45k in interest over 10 years and $400 monthly.
Example 2- To take it a step further, you can reduce your length of time from 10 years to 6.5 years by just applying an extra 1k monthly towards this loan balance and saving you an additional 20k in interest.
In Summary by refinancing and applying 1k monthly above your loan payment you have saved over 60k in interest and reduced your payment term by nearly 4 years.
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Go to the previous podcast episode.
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