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Need Some Financial Advice

DR.BroScience

DR.BroScience

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Get Shredded!
Alright hoes, this is actually a srs thread. As some of you know i'm a 2nd year Med school student and obviously am accumulating massive debts, and will continue to do so over the next 3-4 years. I work part time right now and make a good deal of money by most standards, however most if not all of that goes to supporting myself (food,rent,etc.) I try not to splurge on things, though I have recently invested in getting my tattoos removed and that's costing a pretty penny. My question for you bros is, is it better in the long run for me to hold off on paying down my student loans, and wait until I'm receiving a doctors salary to just pay off huge chunks each month, or should I try to pay it down each month? As of right now, I pay enough to cover the interest, plus a small portion towards principal. I'm also looking to get a new car here soon and I know the debt to income ratio will be a factor. I spoke with my banker and they advised me to put my loans in deferment, that way they can't be counted in debt/income ratio. What do you guys think?
 
Your loans should be in deferment until you finish school anyway. That used to be automatic, has it changed? I don't see how that would be a factor. School loans are also usually looked at differently than credit cards, since school loans have like 50000 years to be repaid. As far as repayments, look at the percent interest you are paying, compare it to the loan % for the car. Aim to pay off the car (assuming it's the smaller loan) as quickly as possible. First you get to own something (and they can't take your educaton away - its in your head), and second, getting aloan and paying it faster will look better on credit report.
 
I have the option of paying while in school or having them in deferment. However, they can be put in deferment while in school at any time. My loans are private, not government loans. The school loan interest rate is very low, much lower than the vehicle interest rate. At my current salary, it would take forever to pay off the student loans, hence why I'm wondering if it would be smarter to put them in deferment, and pay them off once I'm working as a physician. The vehicle loan is large, I'd prefer not to specify the amount. When I spoke to my banker, she advised to put the student loans in deferment, and pay solely on the vehicle. I'm just wondering if that's the smartest route to go, since I know the banker is just looking to make quota/commission on the vehicle loan.
 
DR.BroScience said:
I have the option of paying while in school or having them in deferment. However, they can be put in deferment while in school at any time. My loans are private, not government loans. The school loan interest rate is very low, much lower than the vehicle interest rate. At my current salary, it would take forever to pay off the student loans, hence why I'm wondering if it would be smarter to put them in deferment, and pay them off once I'm working as a physician. The vehicle loan is large, I'd prefer not to specify the amount. When I spoke to my banker, she advised to put the student loans in deferment, and pay solely on the vehicle. I'm just wondering if that's the smartest route to go, since I know the banker is just looking to make quota/commission on the vehicle loan.
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What do you mean by "banker" DBS? Were you talking to your financial planner or were you talking to a kid at your bank trying to sell you a car loan??
 
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I have some life experience around this. My recommendation is to do deferment. Once you're done w your intern year, you can do locum tenens work during your residency that pays muuuuch better than your average job. Reassess at that point.
 
go for deferment..better still look into either serving in the reserves as a dr when you graduate or working in an under-privileged area when you graduate

both used to wipe out all of your student debt for med school
 
geoffsawyer said:
What do you mean by "banker" DBS? Were you talking to your financial planner or were you talking to a kid at your bank trying to sell you a car loan??
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douche lady at the bank tryna sell me a car loan lol.
 
oh, and under served doesn't mean in the middle of a terrible city either..it often means in the middle of nowhere where "outback" medicine can get pretty interesting
 
Sheriv said:
go for deferment..better still look into either serving in the reserves as a dr when you graduate or working in an under-privileged area when you graduate

both used to wipe out all of your student debt for med school
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more info on this! links?
 
DR.BroScience said:
douche lady at the bank tryna sell me a car loan lol.
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chances are the car loan has worse interest and no real grace periods or re-working if you get into trouble...
I'd pay the car loan off first
 
also...several ivy's have waived tuition for students making under a certain amount...seats aren't limited aside from their normal standards
 
Defer your loans until you've started making a salary. If you have any private loans, consolidate those and try to find the lowest interest rate.

If you can make retirement contributions, start with those now. I can link you so many calculators about how you'll be significantly ahead if you start saving just a little bit now. If you can contribute the max that receives matching on a 401k and/or max out a roth IRA (which you'll no longer be able to pay into on a physicians salary) just for the next few years, you're setting yourself up for retirement.

You can look into military medicine or serving rural/underserved areas as Sheri mentioned. Those are a serious life commitment though. Just consider what starting your practice on a Native American reservation, or being tied to the military (instead of a suburb/city hospital/private practice) will be like.

I'm free to answer a lot of questions about this stuff, I'd consider myself qualified to speak about finances.
 
Is there a 7 year statue of limitations on student loans like with credit cards? If you don't pay your credit card after 7 years it will fall of your credit.

www.levram.us
 
Thanks Rainier, I have a 401k with the pharmacy that is matched at the moment. I currently deposit 10% of my paycheck into it each month. I don't think I'll be opening a private practice at all, I'll be in internal medicine, hoping to move from that into reproductive endocrinology. I'll most likely work for an established clinic. But things could change I could stay with just internal medicine so I'm trying to keep my options open. Basically at this point i need to decide if i want to put the student loans in deferment and take on the car loan, or keep paying the student loans and take on the car loan, or forget the car loan altogether and just pay on the student loans. Does the student loans being in deferment damage my credit score? I've worked very hard to get it where it's at now. Will taking on the car loan impact my ability to obtain more private student loans in the future?
 
psychowhitekenny said:
Is there a 7 year statue of limitations on student loans like with credit cards? If you don't pay your credit card after 7 years it will fall of your credit.

www.levram.us
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i have no idea. my credit score is great, and I only have 1 credit card. I'm worried about how having student loans in deferment will look on my credit report, and how taking on a massive car loan will affect my ability to get more private student loans in the future.
 
I know for a fact student loans if in deferment won't mess up your credit scores. My job has me running credit reports all the time. They will show up but not affect the overall score if in deferment.

www.levram.us
 
DR.BroScience said:
so it won't impact my score at all?
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In the business I am in it does not, but companies are also allowed to set up their screening to ignore certain things. Our screening ignores medical bills. Student loans show up all the time and if properly in deferment they have no affect.

www.levram.us
 
Get Shredded!
I don't mean so much as like job wise or anything, I mean the actual credit score #
 
psychowhitekenny said:
Is there a 7 year statue of limitations on student loans like with credit cards? If you don't pay your credit card after 7 years it will fall of your credit.

www.levram.us
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no, no, and no. Student loans never fall off, and credit cards that you let go into key derogatory status can stay 10yrs or more. a BK won't erase student loans - I'd actually not be so fuked if it had.
 
Guillotine said:
no, no, and no. Student loans never fall off, and credit cards that you let go into key derogatory status can stay 10yrs or more. a BK won't erase student loans - I'd actually not be so fuked if it had.
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I actually ruined my credit About 8 years ago. After 7 years every credit card I had came off of my report without me having to do anything. I went from not being able to get a credit card with a 50$ limit to a 30 grand car loan at 2% interest with a 2 grand credit card.

www.levram.us
 
student loans show up on credit as good loans while in deferment


my family dr turned me onto the under served thing ..she worked in a suburb that didnt have a lot of family drs ..and none of them took medicaid
military medicine is a huge commitment however...but drs, nurses as well as ground/flight ambulance have an "easier" time in the service in general
 
psychowhitekenny said:
I actually ruined my credit About 8 years ago. After 7 years every credit card I had came off of my report without me having to do anything. I went from not being able to get a credit card with a 50$ limit to a 30 grand car loan at 2% interest with a 2 grand credit card.

www.levram.us
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Really?! I killed my credit at a 18, and at 30 the screwups from back then were still on the report. I went to one of those credit repair places for info, and they said that it can stay on forever as long as the cc company keeps reporting it.
 
Kyoshkin said:
Really?! I killed my credit at a 18, and at 30 the screwups from back then were still on the report. I went to one of those credit repair places for info, and they said that it can stay on forever as long as the cc company keeps reporting it.
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They can only keep reporting 7 years from the last time u made a payment. That's why they keep calling you years later trying to get a minimum payment or set up payment plans. If u pay on it 6 years after ur last payment it resets the 7 year clock. I was going to file bankruptcy but figured I would rather wait 7 years than pay for a bankruptcy which can ruin credit up to 10 years. I encourage everyone to google about the 7 year statue of limitations on credit debt. In some states it's even shorter.

www.levram.us
 
Credit cards are different than student loans in terms of what does to your credit. The Federal gov isnt going to write off your loans if you decide not to pay them. They take your income tax returns until they are paid off.


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Lol why is everyone talking about fuckin credit cards and government student loans. This questions is about an auto loan and private student loans. What I want to know is if I switch the private student loans into deferment and take on the auto loan will it make my credit look worse than if I pay both? If I decide to put the private loans in deferment and pay them off in lump sums when I am a physician is that better than extended monthly payments ?
 
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