Paying $0 a month with $341,000 in Student Loan Debt
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- Опубликовано: 18 окт 2024
- Yes that number is correct. As of this upload - I am currently in $341,398.40 in Student Loan Debt ... and I am currently paying $0 a month.
I hope this video explained the reasoning why I am choosing not to pay back any of my school loans during residency. If any of you see flaws in my plan - please let know! I'm more than willing to hear better options that the one I got.
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It is absolutely unacceptable that education costs so much! It is no wonder there is such a shortage of medical professionals - the sacrifice of time and sanity should be rewarded not penalized with loans and interest!
It stopped me from going to med school. Getting accepted isnt that hard. Now im an electrical engineer
Education costs are artificially inflated for the political game of persuasion. They want the system socialized so they can change outrageous prices without anyone knowing and still get paid.
The same way they do with the EpiPen. The competitor of EpiPen charges $10 and still makes money. But they passed laws to force Medicare to buy only EpiPen at $600. Same game different story.
bihbhkjbnlk education still shouldn’t cost that much dummy and they don’t get paid as much as you think
Hi Jenny, thanks for sharing! I am an MD also. I am 5 and a half years out of residency. You are much smarter than I was in residency. I totally ignored my loans and I don’t even know how much loans at had at that time and I still had a small amount of college loans. I was not married nor had a kid at the time and it probably would have been possible for me to pay something towards my loans if I had been more responsible with my finances. After I graduated residency, my lifestyle did not change so I could have put a big chunk of money towards debt but I was just paying the minimum on a 10 year repayment plan. I didn’t go into anymore debt but I did pay for a wedding in cash and went on a few vacations. And was just living the life and not being responsible with finances. I had lots of money in the bank but it never crossed my mind to pay it towards debts. I did pay off a variable interest rate private residency and relocation loan quickly and also paid off my car a year sooner but other than that I didn’t have a debt payoff plan, Until I found Dave Ramsey about 6 months after buying a new house. At the start of our accelerated payoff plan I had a little over a $110,000 left (after paying just the minimum for 5 years). After paying down $41,000 in cash after cashing in a cash value life insurance plan and paying an additional $25,000 in 7 months, I have 42,000 to go and that will be paid off this year. I wish I would have started paying it down before we bought a house and when we were living way below our means. I would recommend that you don’t up your lifestyle once you complete residency and you can pay it off fast and then use all that money to pay towards retirement and your kids education. I recommend a book called “A Doctors‘ Guide to Eliminating Debt” by Cory Fawcett.
Joy Smith Thank you so much for the testimony and specific info. Will look into reading the book for sure.
yes!! The one thing all of his callers who are former medical students usually have in common is that they all started acting like rich doctors the moment they left residency. It's not really even the medical debt that got them into trouble- it was buying $500K houses as soon as they graduated, $50K cars, dozens more in credit card debt. I think that's the best advice you can really give anyone as they leave residency. Keep living on a tight budget and take debt extremely seriously, don't ignore it and let it keep growing once you're making doctor money.
Tbh the hardest thing about getting out of debt is listening to others and taking advice. Everything feels like a criticism- but when you're hearing it from people who have been there and people who have gotten themselves out and are doing well, their words just might count for something.
Thank you for sharing this Jenny. I wish we discussed debt more while in medical school. Seems like we kind of just have to figure it out on our own once we graduate.
Exactly! You guys should use the student committees at med school and make a plan to see how the school can discuss debt and plans for students, is for the sake of the students and the focus of the students on what really matters. Offer counselling, an initial discussion with options,...everything!
They don't talk about it , because they need debt slavery.
Medical schools aren't going to warn you to not go into debt...they get their money regardless if you pay your loans back or not! That's why debt is so dangerous- no one is truly on your side but you when it comes to taking out loans. The borrower really is slave to the lender. Businesses want business...just like many a car salesman won't tell a 23 year old making $40K to NOT take out a $20K car loan and Walmart doesn't ask how much credit card debt you already have when you put your $500 on your CC...sadly, our society runs on credit and although credit should be a two way street most of the time it's just not. That's why we as a consumer have no choice but to take it upon ourselves to learn as much as we can about loans, personal finance mortgages, insurance, etc. Never count on the person trying to sell you the product or service to be honest.
girl don’t worry! You’re a doctor and mother of two (almost) and all the haters are probably old jobless men! Btw you’re such an inspiration, I’m currently a premed and I hope to be a mom someday too so you really show me that it can be done!!!
💪🏼👩🏻⚕️ you can do it!
Your math is correct :) I completely agree with your repayment plan, since I would do the same! I don't understand why other people are telling you you're wrong lol It's the smart thing to get the government to pay more of your interest for you?? Money is money. You can always go back to full time or rebudget if you need more money. It doesn't matter if you have to pay back loans for another few years in order to have more time with your children. Time is invaluable.
You’re right. I can never get this time back.
David Ramsey is correct, it is not a pleasant subject, and folks have all their excuses.
Jenny! What a breath of fresh air! The student loans are a big racket- not allowing refinancing, 6 percent interest, no bankruptcy forgiveness. Thank you for approaching this with an empowered and rational view!
I'm usually silent, but I always look forward to your vlogs. 💗💙💗
Thank you so much for your support ❤️
Idk what other people are thinking, but it seems like you’re very rational with your financial strategy!
Thank you!!
thank you so much for actually talking about it! it feels like no one talks about it
You go girl!! I just want to give you a great big hug and let you know I agree COMPLETELY with all the choices you've made and understand your perspective. You are simply amazing and I love watching ALL your videos 😍
🥰🥰🥰
I think you are very smart. I will definitely work part-time until my kids are older. After all the hard work, it make sense to prioritize family.
You’re right, when the kids start school I can always work more. They won’t miss me when they’re at school! 😬
Honestly, that was the most solid advice I've heard about loan repayment while in residency. I'm finishing up my third year of med school and planning to start a family with my husband soon. I'll have about the same amount of debt that you had upon graduation. The notion of paying back my loans while in ob/gyn residency and he is primary care giver was stressing me tf out lol. That's really good information, and if they're offering that same pay as you earn program when it comes time for my repayment, I'll be approaching it that way.
Yes!! I believe that the REPAYE program will only pay 50% of your interest for 3 years ... but it might me that they pay 50% throughout your residency training. You’ll have to read the fine print to double check on that.
I think it's laughable that people think that they can tell you that you're dumb for how you're handling YOUR money. Different strokes for different folks, what works for you and your family is what's best. I just finished M2 (dedicated starts tomorrow 😬) and with scholarships and stuff, I should be graduating just under 150k (not terrible but not amazing either). I am about 75-80% sure that I want to go the family med route (one of my scholarships is contingent on me going into primary care) and I'm already thinking of how I want to tackle this debt once I've graduated. I know that time with my kids and family absolutely will take priority over student debt. And I also know that it is entirely possible to have a good balance between the two. At any rate, I think you've done a great job of really looking at your options and figuring out what works best for you and Stan as a family. So excited to see y'all bring another little one into the world!
Congratulations on being done M2! The worst is over!
Basically, you are paying $30k in interest, rather than 45k by waiting instead of paying the 30k now...makes sense.
Girl, I am confused 🤷♀️......but I’m going to watch your video, because they bring me happiness. 💜
Lol I explain in the video!!
Hey Jenny! I truly admire your work ethic, you and Stan are doing an amazing with Wyatt and I can't wait to meet baby #2! sending positive love and energy your way. I am wishing you a healthy and happy pregnancy!!!
Thank you so much ❤️
💕💕💕
You are doing the best method to repay your loans. I did the same thing and it is a huge relief.
I'm an unemployed construction worker, and this video makes me feel great about my life in much the same way watching the Jerry Springer or Maury Povich shows did back in the day.
I went to trade school and never got married. Life is good. :P
Good luck. I appreciate your optimism and am glad you have a plan. I hope everything works out and there aren't any curveballs. That is a lot of money to pay back. I can only imagine what the monthly payments will be once you start paying them. Even with a high income, you won't be able to enjoy the fruits of your hard work with this amount hanging over your head. But we all need doctors, so I am glad that there are people willing to take on the debt to help others.
You are very smart in the way you are doing it! I’m not a math major but this makes perfect sense to me because I am doing the same thing with my loans. Girl ignore the know it alls. You got this girl!
Yasss 💪🏼👩🏻⚕️
I went to com college first and transferred to a university where i paid for my classes with what little money i had. No debt for me. When you pay your loans your life will be fabulous!!
True. Unfortunately, very few people are able to afford medical school with out loans. And it is highly not recommend to work during medical school - you just won’t do as well and won’t end up in your speciality of choice
Dude she went to medical school. Even if she went to community college that probably would have only saved her about $40k so she'd still be in $300,000 debt. You cant go to a community college for med school.
btw really nice keeping it real, cause on social media peopel just post the cute side of being a doctor etc but then most of us (like literaly 90% of US population) find it very hard to make meets end. Thanks for the honesty much appreciated in times like these. and congrats on your family
It’s also frustrating that society gives off the impression that doctors get money to big pharma ... we don’t.
Thank you for this video! This makes me feel a little better about how i will be paying off my loans when i graduate med school!
Well thought out! Keep up the good work. Survive residency, then attack the debt.
I would definitely prioritise spending time with your children over debt repayment, as you say tone fits by so fast & they are only little for a short while, the debt can wait!!
Hey Jenny, I loved this video. As someone on the med track the comments let me see how people really dont understand med school. I see lots of them saying "go to a cheaper shool" as if you can take med school at community colleges. Also doctors take money out to live because med school is literally a full time job. Also family medicine doctors make a good amount of money! I dont think people realize that you can pay off debt responsibly and still enjoy life.
It made sense to me Jenny Le you are such an inspiration keep going forward
I truly hope you are getting your youtube money. This channel deserves much more growth, I would watch any ad for you to help you pay those student loans, get those views and sponsorships coming Jen, I will click them all!
Question Jenny Le: Do you work with a personal accountant or finance manager to decide on these aspects? I would like to know your view on this?
My hero 🥰
We did talk to a finical advisor that we paid for before graduating medical school. We also have an accountant that does our taxes that we can ask questions. A lot of it, I do my own research.
We hope to find a good financial advisor after I graduate residency - it’s just scary hearing all the stories about how they have no obligations to actually recommending investments that will benefit you. I was told the best is to find a financial advisor who works off commission of the managing portfolio.
Thanks @@drjennale , you are right, it is difficult. I am also changing financial advisors right now, not easy to find one
You will be in debt to "them" for more then 7 years after your training is complete, I can speak for that... There is no way you repay your loans off in less then that time frame. Might as well go through the motions to stay up to date on it because it just might be your best option when its all said and done. As far as paying monthly for your IBR plan, I would double check on the thought process that you do not have to pay anything at this time due to making $50K. Income based means the amount you owe would be much less but not zero. Even if it is $80 a month, that monthly payment can qualify towards your 120 required qualifying payments for the 10 year forgiveness plan. Make sure you are not missing an opportunity to capitalize on a very low qualifying monthly payment while you can!
I commented last night on your old video about your debt. Little did I realize there were probably thousands of previous comments, so I bet you won't ever see mine on there. I know a lot about money and how to maximize it. Especially since I refuse to acquire a degree I need to get the most out of the money I make in life. I refuse to acquire a degree because of what's known as "lost opportunity cost". I won't get into this here but if you want to know more I can show you mathematically how the average doctor does not technically make more money during their career on a pure income basis comparison to people at the national salary average.
You're right though about the way to pay down this interest. You are avoiding paying $45k while the government only pays $15k. So saving up on the side is the better option mathematically. Now, I'm not very familiar with all of the nuances regarding student loans and which agencies provide which benefits. Since I don't have student loans, I've never had to learn all those little things. I'm also not going to get into the debate of whether to use a CD or simple savings account. People worry too much about a 2.5% APY over the course of a couple years which won't affect anything. Inflation also won't have a significant enough impact in 3 years on the current value of your cash. So honestly, save it wherever you want. I guess if you use a CD you can buy yourself a pair of shoes after 3 years for doing nothing.
It doesn't sound like I can easily convince you though that Dave Ramsey is correct about his teachings (though they aren't always the best blanketed options for everyone). And hey, you are entitled to your opinions. I will however heavily advise that you plan for your kids' future so that they may not have to suffer like this.
Whether you are consciously aware of it or not, you are f*cked financially. I cannot begin to describe the mathematical implications of paying off $341,000 in student loans. Now, I'm not saying you have to stay f*cked the rest of your life. I'm also not saying that going into this much debt will make you homeless or something. I'm saying that you have put yourself into a hole that has altered the course of your ability to grow wealth on a meaningful level. If you would like examples I can provide them. I'm also saying that you really are not making as much money in your 30 year career as you THINK you are making, or are made to believe by college advertising, etc.
I highly recommend opening a 529 account for your kids and fully maximizing their contributions over the course of the next 18-20 years. The tax limits for contributions is $15,000 / year. You have a couple options, but one commonly used is purchasing a Target Retirement Fund (TRF) dated around when your kids are expected to go to college. Example: If my child is 3 and will attend college at 19 that means they will go to college in 2035. So I would purchase a TRF dated to expire on 2035. If you want more aggressive growth you simply purchase a TRF dated to expire later, say in 2045. I would only otherwise recommend purchasing the individual index funds that are allocated to those TRF's if you are willing to do the research and learn about how these things work. The expense ratio for buying the same index funds individually is much cheaper than a single TRF.
If you truly value your kids, like you keep making it obvious in these videos that you do, then you will pay for their college and not have them follow in your foot-steps. College is a complete scam, as necessary as it might be for professions like yours, but a complete scam none-the-less. Similar to how a house that you live in that provides no cash-flow is NOT an asset, a college degree is NOT an asset for anybody who has to pay for them out of pocket. I promise you that you are paying more for college in the long-term than what you are earning as a doctor over your career. This is not me wearing a tin-foil hat. This is me using the same math calculations businesses use to determine if spending money on a venture project is financially worth it.
By purchasing your kids' college for them you are passing on wealth to them indirectly by allowing them to stay out of debt and being able to use their money for investing instead. None of this was done for me in life. And frankly, it was a blessing in disguise. I happen to have a high enough level of intelligence to be able to figure out wealth on my own. But for most people, sadly they don't get the chance to understand how easy it is to become wealthy and free in life. Your kids may not want to be doctors later in life. They may want to go to college to get a degree in communications or something else that's as relatively useless in life. And having them go into severe amounts of debt to do that is painful to watch. Because neither they nor the parents that allowed that to happen are clued into how money works at all.
I'm curious if you have enough humility to discuss finances like you state in your video you are willing to do. Seems like you don't though and just want a pat on the back and an atta'boy.
I’m a fan, I think your plan is good, given your situation. You are smart to fear PSLF, the program is a basket case , I think tons of people who think they are going to get it will be screwed.
I’m hoping that’s not he care but I’m not going to put all my eggs in that basket
Jenny Le buzzfeed just did an article on it, there is a systematic issue of payments not being credited correctly, the prospect is horrifying to consider that after 10 years, there will be people who have nothing show for their payments save for higher loan balances. I am single with no kids, so I decided to stay in the private sector and pay mine off, it might take me 4-5 years.
Stan and I discussed different options for loan repayment. And if I work full time, it is possible to pay it off in about 3 years. But if we choose to work part time might take 6. So not too bad.
I like your plan less stress when you already stress about your job
Can I please come to you for financial advice? I feel like you know what you're doing and making your moves to it. I hate it when people outside of the situation telling that you're crazy/stupid for having kids, for paying the debt the way that you do... I REALLY HATE THEM. But i have to admit they get to me sometimes. I am not there to ignore them and listen to myself. Thanks to you, i have much more confidence. THANK YOU.
Thank GOD I don't live in the US. This is extortionate!
Mima D it truly is and we Americans fall for it all the time. College is the biggest scam in our country especially once the government realized there was so much money to be had in the industry. They have been exploiting us since. College isn’t for everybody. But everybody’s going. And boy are we paying for it.
The scam is on you. It is just that we realize the problem here and can identify the where and why. Where as in Europe the only thing they know is that their Government hasn't balanced the budget and their deficit keeps ballooning out of sight.
I agree with you.Doctor is a profession what the country needs to improve health.If you choose to pay the loans after you graduate then you make the right choice.You can pay $2000-3000 per month.However,during that time you need to maintain your standard of living like you had in university
Dude already realizes his life is over. You can see it on his face.
He sure look scared and unhappy 😱
Thanks for explaining again! Loved the Monopoly money! Oh.. and thanks Stan for participating. I know there is a smile in there somewhere and can’t wait to see it! Lol
😂 we just need to give him some liquid courage
Jenny Le My husband is exactly the same way. Stan always looks so serious. Is he camera shy?
He is so shy. This is actually an improvement compared to when I first started RUclips!
The student loan debt is not the only crisis. When you add child support payments on top then problem is worst. With both programs you cannot discharge in bankruptcy. Why is the government imposing this restriction on our future population.
My current employment and my loans are eligible for PSLF. Your assertion that they don’t tell you anything after recertifying your PSLF employment isn’t true. They offer a payment tracking online that updates every time you recertify. Not knocking your choice to not “trust the government” but that particular assertion is not true.
That is great to know! Can you share this specific site where you track your online payments? I’ve applied for the last to years and still haven’t see/heard anything about approval or qualification.
Loved this video. It put a lot of things into perspective for me. 💪
I felt compelled to respond and validate your feelings. I 100% agree with you. You have obviously looked into options and have taken into consideration your current and future life, goals, dreams etc. don’t pay any attention to people who are criticizing your decisions. Only YOU know what is best for you and your family! I totes agree with you about Dave Ramsey. He has great points but I feel like it’s mainly geared towards consumer spending and such. I think it would be doable to incorporate some of his methods if your overall mountain of debt was lower or if you were just trying to pay off your undergrad for instance but tackling this huge amount requires different tactics. P.S. I love your comment about PSLF and trusting the government 😂😂😂. 10 years is a HUGE time commitment!
Thank you ❤️
I feel like watching this video gave me a breathe of relief being a premed student :)
I really enjoyed your video and I do have a few questions. Are you paying $0 monthly for the first 3 years in the REPAYE plan? I maybe missing a piece of information but, doesn't not paying count against your 120 payments for the PSLF? Or does doing the lump sum at the end of the 3 years "make up" for the 36 months of payments of $0 monthly payments. I look forward to your response :)
Based on my income, my required payment was $0 for the first 2 years. Third year, we made a little bit more money do payments were $111 a month. All 36 months count towards PSLF even if I did not do a lump sum. As long as you’re making their minimum requirement each month (even if that minimum is zero).
Hope I will be able doctor someday
Hi Jenny and Stan, how are you both doing on this very nice day? Thanks for posting this excellent video, much appreciated. I'm sending you both positive energy and good vibrations. Have a good and peaceful day my friends, fist bumps : )
👊🏻❤️
Dave Ramsey's plan isnt bs.
I love how you always put your family first.
Ideally, I would work 2.5-3.5 days a week. This would give me to time to build up my own practice if I so choose. Part time salary here in my area is around 150-160k. Haven’t truly looked but that’s the average google gave me 😅 it would be much lower if California.
My husband has over 500,000 in student loans from med school. We had to consolidate because they wanted 4,000 a month so now the loan repayment is 3,200 for 30 years. Family medicine Drs don’t make a lot. He works in urgent care also so a lil more than family medicine. He makes 11,700 a month after taxes. Not including my loans or any bills. It sounds like a huge Dr salary will cover all bills. It doesn’t.
Agree. Insurance companies are the ones making the money, not doctors.
Another great video! I'm so proud of the life you and Stan are creating with Wyatt! Congrats on your second pregnancy!!!
I had a few questions because I haven't ever heard of the gov't subsidizing interest for med students/residents? What is the name of the program? Can anyone (MD or DO) qualify? Does it apply to student loans taken out during undergrad, med school and residency?
Thank you for your help! These videos are so informative and the monopoly money really solidified your argument :)
You would have to prove that you are in Economic hardship for the government to take off most of the interests. Call your loan repayment and ask they will tell you how things work.
With $341k, that's 20% down on a $1.5 million dollar of real estate. You can put it the investment into LLC for tax benefits. With a modest 10% cap rate, you would make $150k per year off your investment. Minus loan and upkeep, you probably make $60k a year of pure passive profits.
Consider going into real estate when you pay off the loan and save up from being a full-time doctor. Not trying to be mean, just wanted to give an option.
Ugh I know this life too well... paying nothing and the interest keeps building 🤦🏻♀️
When does it even end!
Jenny Le I’m hoping public service loan forgiveness is still a thing in like 7 years 😂 a lot of jobs qualify
That’s true. I just don’t know if I want to work full time for that long. I was talking to some physicians and they said they end up working 80 hour weeks working full time.
Jenny Le No thanks!! I work 45 a week at student health and it qualifies 👍🏼
That sounds amazing 😭
Awesome video! I have a question though. Wouldn’t it be better to pay off the interest now that is smaller rather than waiting at the end of your residency where the interest will build up more after waiting those years?
Lol about Dave Ramsey I feel the exact same way. It absolutely sounds like you are doing the right thing.
I don’t know what everyone sees in that guy.
The actual guy (Dave Ramsey) is kind of annoying but the principals work in general. Everyone's goals are different. I agree with another one of your comments where you basically say that it is not really possible to pay your way through medical school. You basically can't. You will have a large income when you are an MD and can pay off your debt later. It's not like you are beimg wreckless and borrowing $$ to go on vacations and stuff.
Yes! Finally ! I also do not like Dave Ramsey... he’s impractical.
@@WOG18 Im curious, what makes you say he is impractical?
Michael Brewer , for example, on one of his shows he told a client to sell a car that they were financing and a lot of times that’s almost impossible to do if the car has negative equity. I feel like he has “quick fixes” on situations rather than real life examples. Hope that explains a little.
Some of that student loan debt could have been paid off with that ring money. The struggle and priorities don't make sense in this equation... but hey, to each their own. Best of luck!
Helen Tam People don’t want to make real sacrifices man. They want want want and call you crazy for not signing off on their foolishness. In the same breath they cry in dark corners trying to figure out why their lives suck when no one is paying attention.
Helen Tam her ring was less than $200 from Walmart...don't just make assumptions, you would know this if you watched her wedding and engagement videos
@@moa6081 I have not had the opportunity to see her videos yet other than this, but thank you for the heads up. One can only assume when that bling bling is being waved around like a shiny disco ball.
Jenny Le, you do whatever you feel is right. Considering you have no debt other than a mortgage and student loan, I'd say to a degree your on the right path... Your choices may not make sense to me or other people, but I believe in the end you're going to be just fine. If I were you though, I would hold off on giving financial advice until you've actually reached the point of financial freedom. Going to sub and support your journey. Be well and good luck! 🤗👍
What a bitchy comment....could be not real or her grandmas...wtf you bitchy person
Honestly, this is part of the reason why I don't want kids. The ways things are looking, I'm on path to having 60K student loan debt when I graduate. I'm planning on paying that off within 3 years, don't want it for ANY longer. So I need to keep my expenses low. Gonna be living at home paying 300 a month, 100 a month transportation, 100 a month on food. 500 a month expenses, everything else is getting shipped to student loan debt. I really want to be debt free and save, invest & be financially independent. Kids just don't fit into that for me. Kids equals more money and I can't get down with that. Tryna have a milli before 45-50 years old.
you are the smartest person ever
This is actually really freaking smart can you link the program that you are currently using pretty please. I’m looking at a SPM in bioscience and then med school or my PsyD and the amount of debit I know i will accumulate is terrifying. My husband and I want to start a family sooner than later so I’m taking as many tips from your videos as possibly but this one might be the best one yet ❤️❤️❤️❤️❤️❤️❤️❤️❤️🎓🎓🎓🎓🎓Thanks for posting and sharing with us all.
Smart, You can still put that money away in the bank so that it's there to be paid and then earn some interest on it
you wont get much interest in the bank thats for sure lol
so the #ZERO dollars #count within the #PSLF program? so the "qualifying payments" they beat into or brains are actually counted with the current $0 payments???
That is correct
Jenny, just wondering if your medical school did any sort of personal finance education for you? At my school we have a lecture every year about finances and we are required to meet with the financial aid advisor during our 4th year to make sure that we have some idea of what we are doing when we go off the residency and have a salary (even if its small) for the first time. Money management is so important but a lot of doctors studied science in college and so few have any financial literacy.
Our school gave us the option to speak with a financial advisor prior to graduation for a small fee (I believe it was $200-250). Which we took. I believe we also had to take an online course as well - but seriously who pays attention to those online courses when you have 13 exam to study for 😑 I think medical school can do a better job of educating their students about finance for sure.
This was helpful to consider! I'm an M1 and I worry about the loans I'm gonna accrue but hoping things will work out
All of us are pretty much in the same boat. We got this! 💪🏼👩🏻⚕️
I'm in $42,600 USD in student loans myself, I feel your pain.
I say do what works for you and forget what other people say or think! It sounds like your pay off method is going to be more beneficial to you and your family 😄
totally get that, great plan!!!
after residency ,your gonna work another 7 years for loan forgiveness. So are you gonna make any money during that 7 years though or you basically work for free?
No, I am choosing not to be part of the loan forgiveness after residency (you have to apply annually to be in the program). As part of the program they require you to make monthly payments on your loan based on your income. I suspect it would be around 3000 a month for 7 years. But at that rate you’d only be paying the interest and your principal balance will still be accumulating. You only come out on top of the loans are actually forgiven after 10 years.
So to answer your question - no you’re not working for free. But you may be working more in a place you may not have wanted to work at in the first place for 7 years.
Hi Jenny, I am a current MS4 student, also looking into the REPAYE program. Was just wondering if you and Stan filed your income taxes separately? I am worries that if I filed jointly with my husband, my income based repayment will not be zero dollar
Yes that’s what happened with a lot of my co residents. They all ended up filing separate. Stan didn’t make enough for us to have to pay anything
absolutely ridiculous. It makes no sense to pay. They need to figure out how to make education cheaper. Im a recent law graduate. I have way too much. there is no way to pay loans have a child and live..
I totally understand not working ten year and also I think your plan is great I am telling my niece to be in debt to become a doctor too
Love you and your channel and just watch out of interest as married 20 years and 15 years older than you. I wasn’t a doctor but was a teacher and when I trained was able to graduate completely debt free. However now in England having a 16 year old who is now looking at university it has changed so much that it terrifies me thinking about that amount of debt , as now he would leave with realistic debt if at least 30 thousand pounds. That’s so unfair to his age group I feel, as if that was me it would have frightened me so much that I may not have gone to university at all and never been a teacher. It’s so unfair
The scary this now is that job security is not guaranteed even after university.
Actually that makes sense. But having that .edu debt would make me sick. You should be wary of the loan corgi sense. It seems like they only let about one percent get it forgiven
Does your interest stay fixed at 6% after completing residency, if you stay with your current IBR plan? Thank you for sharing this knowledge. I find it very valuable to learn about the financial side of medicine prior to pursuing a career in medicine.
Yes! If you stay on IBR after residency and want to qualify for PSLF - everything has to stay the same. Which means you can not refinance to get a lower interest rate
@@drjennale thank you! Would you recommend staying in IBR post-residency or switching your payment terms in order to be eligible for refinancing your loans?
@@drjennale btw I admire you so much haha, you have been a huge inspiration and help along my journey. I feel like our paths have a lot in common..It's a blessing to follow someone of your stature who continually gives back and mentors prospective students like myself, thank you.
I am personally trying to refinance my loans after residency. And paying off the loan quickly. If you plan to have your loans forgiven then you should not refinance.
Thank you, for sharing :) .. I will be a college freshman this Fall and almost everyone tells me not to get loans for undergrad or go to a smaller university where less money is necessary. Any recommendations on university choices and financial decisions? Is the student loan amount that you have from various loans? I was told I would need another loan apart from the government to cover undergrad? Was that the case for you? Thank you, in advance for the advice!!
I can from a single parent income family in undergrad. Based on our income - I think we were considered below poverty line so I was able to take out all government loans.
Great video, how much is your morgage? plus childcare? do you have adiitional debt? how does this add to the equation, Much love and respect...
I do have a mortgage which is about 1600 a month. This was cheaper than rent in all the places around the hospital so we decided to by. It’s also a good rental when we decide we need to upgrade. Child care is around $700. We both have no addition debt. No credit cards or car payments. Just the school loans. I feel that we live reasonably now and if we continue to do so after residency, It will be much easier to pay off the loan on a attending’s salary.
I have only 12 000 loans. In finland people can't take loans that much Damn!!!
You took out the money and recieved your education and degree now you need to hold up your end of the deal. Pay off your debt! Personal responsibility is what is wrong with this loan crisis. Think of other career paths or another school path. People need to be real about the opportunities they actually have and make informed decisions. Don't pawn off your debt on everyone else. The government subsidy= tax payer's money.
Being a Mother comes first ☝️you will never get those precious moments back
I agree 👦🏻👶🏻❤️
I think it's good idea, but what if loans will increase much after few years? Will you be able to pay them off still? 1.5 year ago you had $321,000 and now you have $20,000 more in debt. Will you be ok?
Maybe I didn't understand something bcuz I don't live in US. Good luck ;)
We do have money saved in a separate account to pay a lump sum after residency. If we were paying now, the debt amount would actually be more. I know it sounds confusing
Wait doesnt some employers help with your student loan. Afterall you working with them. Especially in underserved communities etc.
I owe 65000.00 not counting what I will rack up to get my RN. Forbearance now. Had knee replacements. Praying to find a job now.
Forbearance really does compound the interest ... on top of an already high interest rate
Good luck. Nurses are averaging about 1 year before they get their first job.
That’s not true. I really think it depends on the location.
@@drjennale yes it is true. nurses depending on area. a lot of hospital dont want to hire nurses with no experience.
@@drjennale youtube nurses who cant find work.
Let me get your thoughts.
As a tax payer IM PAYING UR LOAN! But i like u and ur videos so i'll keep paying.
Good Good 😅
Great explanation! You are a smart woman, don’t let others get you down. You clearly have thought it through
You have a good understanding but please understand that your lender and the services are separate. The services is actually there to help because the lender aka the government doesn’t care about you. Your servicer will explain it as long as you don’t get otp yelling and being rude. Pslf is legit but it takes your own effort to see it happen. Btw pslf the payments don’t have to be consecutive so it can be longer than 10 years
I could never imagine being rude to anyone trying to help with have hundreds of thousands of dollars of loans forgiven lol. I guess being a mom and working 80 hour work weeks just hasn’t given to the time to do further research. As I said, I’m currently part of the program (at least I think I am if I filled out forms correctly) but I am skeptical. It may be a better choice for someone else.
How do i qualify for the government to pay half my interest 👀 i need that
It’s on the fine print of the REPAYE program. They are only willing to pay half the interest for the first 3 years. So while you are in residency.
Hey Jenny. One word: Forex!
I'll still insist to get on it on the side. Been insisting since last year. Learn how to trade the markets and you'll have a chance of pulling yourself up out of the financial underclass debt real quick into the comfort zone of money and independence.
I'm over here making five-figures monthly just trading. Thanks goodness, no debts.
Ted B how?
How? Please leave a link
Send me a text on Telegram. I'll guide you. My username is: Ted45
Doing it now
Her husband is very uncomfortable about her debt. 1:30 his body language says it.
Maybe because he doesnt have a job Or considerable income to help out?
@@FlabbyDouglas wow had no clue . Lol ok
Nothing you can do about the past but you definitely overpaid for med school and or Undergrad.
U do u n do what works for u.
How much is the salary of the physician in USA? after u finish residency...in AU its about $150K
I think average family medicine outpatient is 200k for full time. But some physicians say they work 60-80 hours working full time.
Education loans should be interest free.
I’m just gonna put it to you bluntly, you are $341,000 in debt so you really do not have the luxury to choose between part time or full time work. I’d be throwing any of my discretionary pay from residency at the student loans. Let’s say you can knock them down to $300,000 at the end of your residency. Once you become a physician (full time) you’ll knock those loans out in 2 to 3 years with the money that physicians make. I found Dave Ramsey last year around April of 2018 and from then to now July 2019 I have paid off a 12,000 car loan and now have no car payments and have knocked out roughly 14,000 in student loans with another 30,000 that budget forecasts will be gone next summer 2020 and I will be completely debt free. Bottom line is those car payments and student loan payments could be going into your retirement and investments and a college fund for your children if you would just take 2-3 years of your whole life to knock it out.
Do you have any advice for loans that are much smaller? I have 25,000 in debt and i cant afford to make monthly payment with income driven they want me to pay some insane amount that i could never do. Than ive done were u get a year off because i had a child in 2018
Maybe you should look into velocity backing. There are lots of RUclips videos where people have used velocity banking to pay off mortgages that way
Hmm thank you! Is it like a loan? Ill look up a video
Dave Ramsey is your answer. I paid off 70k in three years only making 50k. Get an extra job and go to work. Dave’s plan isn’t just about paying off the debt. It’s about the respect of money you gain through the process. That respect is what will prevent you from ever going back into debt in the future.
Ivr heard of the David Ramsey and we dont spend on anything extra everything goes to bills. :/ for the velocity banking i feel like u have to have line of credit meaning a credit card tht has tht much money on it.
Whats the debt on? Household Income?
wow 20,000 JUST interest
Aww. Wyatt is so cute.
Love your channel. Great info on debt
stan has nice eyelashes, I'm jealous
I know right!! Wyatt got Stan’s lashes
Maybe I could help you. I'd offer to pay for stuff for you if you'd like.
You are definitely a debt slave....to the federal government.....must be stressful...sounds that way when you talk about this subject.....
It’s quite evident you are not living with only the bare essentials. If you weren’t prepared to pay for the loans you shouldn’t have attended the school and definitely shouldn’t be popping out children with over 3/10’s of a million dollars in debt.
80% of med school student take out school loans to further their education. We all don’t have rich mommies and daddies to pay for our education. And with the majority of women delaying having families is the reason why many of struggling to start families in later ages. You should now shame people for making life choices that do not affect you.
Jenny Le Oh but they do affect me. People like you take a bite more than they can chew and default on their loans. This will increase our government spending because people are raised to believe they can be whatever they want instead of what they are actually capable of. Look at the numerous students studying gender studies, art or language arts. These degrees are useless and are a waste of everyone’s money as a large majority of students get in state tuition and government financial aid. Don’t try to tell me this doesn’t affect me. While you’re out here popping out kids and having gigantic rings you should instead try to live by the bare minimum and pay that off.
The majority of physicians pay back their loans (in the hundred of thousands each) once they make an attending salary. I never said I’m not willing to pay. And the goal is to pay it within 3-6 years. I don’t see how that is unreasonable. The government is getting their money back with compounded interest.
When I choose to start a family does not affect you.
Jenny Le LOL you’re insane. When you choose to have a family completely affects me. Especially if you’re choosing not to pay your loans when you’re supposed to. Your negligence is taking a toll on our government spending since you obviously choose things that you WANT to do instead of what you SHOULD do.
There is no where in my loan contract that states “when I should” pay back this government loan. But even with a goal of paying back the loan in 3-6 years after residency, the loan would be paid back with compounded interest within 15 years. This is half the time most people pay back their mortgage (30 years). The only rule is I pay a minimum monthly installment. It is not my fault the government states that my minimum monthly payment is currently ZERO. So in plain terms - my loan is not in deferment nor forbearance. So I stand by original statement. When I decided to have a family does not affect you.
students and former students should protest this, and vote massively for socialist governments (like the ones in northern europe, it's crazy how on earth one's supposed to raise a family, buy a home and live starting life with that kind of debt its utterly crazy. but you know what We all together can change that.
Noel Garland to be honest, it would be hard for the US to move in that direction. USA nurses and doctors get paid the most out of all developed countries. If a socialized system including healthcare is implemented, the wages of doctors and nurses would also need to drop drastically. With how much the loans are for those who are already done with school, that would be very bad news.. not to mention money is a huge factor in the USA so many nurses and doctors will refuse to work with way less pay
P.S. I live in Canada. We have socialized medicine but medical school program is not free. (20-30000 dollars per year) People still have about 100k dollars of debt when they get out but they do earn 60k/year in residency and 90k-100k as a general practitioner.
It s crazy, for sure! I live in Eastern Europe and I will graduate with no debt as a med student! If you study hard and have good grades you pay nothing.
i don't know.. sometimes the best thing for yourself is not the best thing for society... end of the day the government money is coming from our taxes and people that actually may need more help and don't have a future predicted doctor salary may be ones with most impact from actions like these... just my thoughts, can't change society i guess! I mean we can't blame everyday people like you, only corporations and money in politics..
I would be happy if my taxes go to pay things like this. After all my taxes aren't paying any free education or healthcare system so at least make it count.
Her interested compounded by $20,000 since she exited medical school. I'm not sure what in this video makes you think she is stealing tax dollars.
The system is actually jeopardizing doctors who actually have a net positive effect on the system and the poor. If doctors can be helped by the government with taxes by waiting until after residency to pay off debts, they should!
The government has enough money for it. If they have enough money for a wall they can also have money for much more important things
Don't sugar coat this...you, and your GIANT diamond ring, are gaming the system. You should pay SOMETHING. Cheat.
I will be paying something. Over $350k AFTER residency. I don’t see how charging someone upwards of 10% interest is fair for furthering their education.