Orthodontist. Went to Pepperdinefor undergrad that took me 4.5 years, NYU for dental school, Roseman for ortho residency. All unfortunate choices due to how crazy the costs were looking back. At the time I just kinda put the loans out of mind and out of sight. Had enough private loans that I really racked up interest even during the 0% covid years. Interest accrual is really what got me jacked up into this.
I'd like to bump up my earnings by being owner, but banks have mentioned that my debt is too high to loan more for a orthodontic practice. My standard payment over 10 years is just under 20k a month lol. Not doing that BS. Any tips on how you'd get out of this scenario in an optimal way would be appreciated.
Drowning in 1.65m in student loans, accepted job with 250k base and up to 50k bonus per year
byu/minnesotaslime inStudentLoans
Posted by minnesotaslime
7 Comments
Is that all made up of private loans, or do you have federal loans in there too?
What is the current breakdown between federal and private?
Um, how much in private loans do you have? Do you have a cosigner?
For the federal, get on an IDR plan, RAP will be your friend when it is available. RAP has an interest cap and forgiveness after 30 years.
The highest balance I’ve seen for a dentist was 800k before this, you have blown past that.
This is pretty rough. I think your only option is PSLF for the 860k federal loans. Then aggressively pay off the leftover 800k private loans. You would obviously need to take a PSLF eligible job and can’t be a business owner for this
> My standard payment over 10 years is just under 20k a month lol. Not doing that BS.
$240K per year might seem like a lot but what’s your annual income?
What are the interest rates on your loans? Have you looked at refinancing your private loans to get better rates?
This is the most insane student loan situation i have ever heard.
There is no way you will ever be able to pay off loans worth 7x your income
You need to look everywhere you can for a PSLF qualifying job, and eat rice and beans and make payments on your private loans.
Live on $50k per year. Allocate extra payments to the private loan with the highest interest rate.
If your federal loans qualify, get on the PAYE repayment plan. Consider whether the RAP repayment plan makes sense for you when it becomes available in July. While RAP has an interest subsidy, there is no payment cap and offers loan forgiveness after 30 years
If you don’t want to do RAP, your long term IDR plan alternative is IBR. Leaving IBR is an interest capitalizing event, so if you get on IBR plan on staying there.
Every 12-18 months apply to refinance some of your private loans at a lower fixed interest rate.
Investigate loan forgiveness options. https://www.ada.org/-/media/project/ada-organization/ada/ada-org/files/resources/students/dental-student-loan-repayment-resource.pdf?rev=4360d9ed0d9a4ad7b6fcdf935fff0b93&hash=4B7A89659DB6F08048195ABC0AA99CE9 Keep in mind if you aren’t doing PSLF, forgiven debt is considered taxable income by the Feds.