Earlier this week, I linked to the CNN Money article about two married doctors in residency who have a staggering $500,000 in student loan debt and on track to owe >$700K in student loans.
I thought there were several things to pull from their story. For example, I really do not know if the decision to go to the private medical school (Midwestern University) was wise Chris’s case. He already didn’t have the money to go to school, and by not going to UIC (public), he just tripled his college bill. That decision alone added >$80,000 to their repayment amount.
Additionally, I think they should have opted for cheaper housing. Although their mortgage isn’t outrageous given their income, if they could have found a more affordable housing, they would have been able to slash their total debt even more.
I also disagree with some of the experts recommendations. For example, he said they should borrow from family members or friends to repay the loans. It is usually a bad idea to try to borrow your way out of trouble. The problem is the behavior not the debt. This is also a good way to ruin a relationship.
The other recommendation of holding on to the low interest loans as long as possible is not a good plan either. Instead, why not use the same discipline it takes to finish all that training, and apply that to becoming completely debt free. That way you will have unrestricted cash flow.
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Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.