My girlfriend has just finished school for her PHD in Neuropsychology, and has accumulated over $100k in student loans over the past 7 years reaching this goal. She has practicum & internship still to complete (Probably about another 2 years worth), along with her dissertation to write -- and then she can unlock her true earning potential of $120-150k+... But in the meantime she's working as a social worker, making $40k a year for a local retirement community.
She likes to pay extra on her student loans, because I think it gives her some comfort that maybe some day they will get paid off, as opposed to just being overwhelmed by them. I'm currently taking issue with this strategy, and thinking that the minimum payments may be a better way to go here....
Since the $100k is financed at a low interest rate, and that interest is tax deductable -- should she really be in any hurry to pay off these loans? Especially before she's started working as a Neuropsychologist? She has $60k of equity in a house (Currently rented with break even cashflow) that could be sold to erase over half of them, if she wanted to -- And that is something we are currently considering. Holding it for a few more years until there is $100k in there is another great option I think may work...
Let's hear your advice / strategies on how you would address these student loans... I know Kiyosaki and others preach that student debt is not "bad debt", but actually "good debt" since it's in investment in your future earning potential. She will obviously be in the "S" quadrant when she's done, and our long term strategy for her to get into the "B" quadrant may be for her to open her own nursing homes at some point down the road (Specializing in Alzheimers and Dimentia type patients, etc).
Should she even worry much about these loans? I know the # is huge, but everything is relative, right?
Cheers,
- Hakrjak
She likes to pay extra on her student loans, because I think it gives her some comfort that maybe some day they will get paid off, as opposed to just being overwhelmed by them. I'm currently taking issue with this strategy, and thinking that the minimum payments may be a better way to go here....
Since the $100k is financed at a low interest rate, and that interest is tax deductable -- should she really be in any hurry to pay off these loans? Especially before she's started working as a Neuropsychologist? She has $60k of equity in a house (Currently rented with break even cashflow) that could be sold to erase over half of them, if she wanted to -- And that is something we are currently considering. Holding it for a few more years until there is $100k in there is another great option I think may work...
Let's hear your advice / strategies on how you would address these student loans... I know Kiyosaki and others preach that student debt is not "bad debt", but actually "good debt" since it's in investment in your future earning potential. She will obviously be in the "S" quadrant when she's done, and our long term strategy for her to get into the "B" quadrant may be for her to open her own nursing homes at some point down the road (Specializing in Alzheimers and Dimentia type patients, etc).
Should she even worry much about these loans? I know the # is huge, but everything is relative, right?
Cheers,
- Hakrjak
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