Residents and attendings dating
You are borrowing from a nice fellow that I like to call “Future You.” He seems really nice when you’re 25. I assure you that you WILL regret borrowing more than you had to as a medical student.
There is a good chance you will want to take a less lucrative job, go part-time, or even retire early at some point and a huge student loan burden would prevent that.
Your benefits may also be garnished in response to Court Ordered Victims Restitution. Treasury’s Financial Management Service can also offset, or reduce, your Social Security benefits to collect delinquent debts owed to other Federal agencies, such as student loans owed to the Department of Education.” Now, if you graduated in 2003 with me and refinanced your loans at 0.9%, then fine, drag them out over 30 years. Mathematically you’ll almost surely come out ahead given that you’re borrowing at less than the targeted rate of inflation.
But ask current medical students and residents and young attendings what their rate is.
Even most people with a good debt to income ratio and credit who have refinanced their student loans are only getting into the 3-4% range for a five year fixed loan.
As you can see, most doctors can still do all of that stuff and still be done with medical school debt by 5 years out.
But the number of physicians in trouble due to a terrible debt to income ratio is is definitely climbing.
I would guess the number was The problem is that is an average.
The answer is likely something between 5.5% and 10%.
There’s a good chance paying that down is their best available investment, at least on a guaranteed basis.