Walkoffshot Posted June 26, 2018 Share Posted June 26, 2018 Just wanted to share my experience in case anyone is thinking about taking the plunge... As of today, no more student loans for me. I graduated in 2014, have been in practice for a little over 3 years now. Started out with roughly 120k in student loans, government and private. Have really just focused on paying the loans down for the last 2 years. My wife and I live in a smallish apartment and have been fairly good with our budget. Once we decided to tackle the loans we remained committed to make it happen. We obviously do not own a home but we are okay with this. I have been able to contribute to my employer matched 401k, nearly maxing out since I was eligible, while also maxing out my wife's IRA (doesn't have employer 401k). Every once in a while I see a topic on here about paying off student loans vs investing vs buying a home. Obviously, everyone's situation is different, but I will say it feels pretty damn good to have this weight lifted. It's definitely not easy, and I have to thank my wife for her support as we have avoided buying a home that we both want, and even put off having kids (until said home is purchased). In the end I have a strong opinion that it will pay off. Truthfully, I was kind of hoping that the housing market crashes during this time we have been saving to pay off these loans and we could jump in at the right time. Don't foresee this happening, but you never know. What I have come to realize is that renting is not all that bad. If we were to buy a home in our current market, a mortgage on a ~350-400k home would mean an interest payment probably around what we are paying for rent anyways. Spend less on a home and we would be blowing cash on repairs for a fixer upper. Just my opinion, but I feel like it is a wash and I would rather have the extra cash to save for loans then pay principle on a house. Now, with all the extra cash in our pockets we could make extra payments on a mortgage and pay off sooner.. maybe. Link to comment Share on other sites More sharing options...
PACJD Posted June 26, 2018 Share Posted June 26, 2018 Congrats! If you don't mind me asking, how much per month were you throwing towards your loans? Besides maxing out retirement and paying rent, what other expenses did you have. What sacrifices did you need to make in order to make this happen? Just trying to gauge how other people tackle this challenge. Link to comment Share on other sites More sharing options...
Walkoffshot Posted June 26, 2018 Author Share Posted June 26, 2018 We actually would save and throw down a lump sum, probably every 6 months. Not the most ideal way in terms of optimizing interest, don't know forsure on that (although the money that was saved was invested), but it worked for us. We sort of had intentions of paying off some and then getting into a home after the loans were more manageable, but finally we decided to pull the trigger, which resulted in lump sum payments. We don't really have many other expenses. I have a $200 car payment, wife's car is paid off but is junk (but i tell her its great ). No kids. Our rent is $1200 for a 900 sq ft apt. Standard utilities, phone, cable etc. Our current savings rate is roughly 40-50% of net pay (our gross last year was roughly $180k together). Frankly, our savings rate should be higher, but we like to spend a little bit. We don't make sacrifices to our food, tend to eat healthy, lots of organic food etc which is not always cheap. Above all else, our biggest sacrifice is not buying a home. That has been a constant struggle for me, because I very much dislike the apartment life. Like i said above, everyones situation is different... without many expenses we are in a great position to do this. Part of it is also accepting it as a challenge and staying committed to it... it gets pretty hard sending that money away without seeing the immediate benefits other than financial (student loan) freedom. Link to comment Share on other sites More sharing options...
jeepgirl Posted June 26, 2018 Share Posted June 26, 2018 Thanks for sharing! Link to comment Share on other sites More sharing options...
Moderator ventana Posted June 26, 2018 Moderator Share Posted June 26, 2018 2002 grad last payment is 2022.... getting closer Link to comment Share on other sites More sharing options...
SedRate Posted June 26, 2018 Share Posted June 26, 2018 Congrats! I am set to pay off mine (also a high amount like yours) at 4 years. I might've had it paid off by now had I not gotten married, bought two houses (bought a modest home after settling into my job and then recently sold it at a good time), redid the backyard of the first home in order to sell, bought two cars (low-end and used but newer), and took some decent vacations. However, the sale from the first house yielded profit and a good portion was put toward loans instead of the down payment on the next house. Like you, NO KIDS, which I think is a high factor in loan payoff. Refi'ed my loans after a year or two: left half in govt loans (the lowest, youngest loans, however rate and amount were still high but I was at least still able to defer if needed) and refi'ed the highest govt loans to private at a lower rate. Hit the govt loans hard by making double payments when possible or even more during bonus time. Now doing the same with private loans. I made sure to spread out purchases so that they weren't on the same credit card statement, which allowed me to pay off each bill and therefore carry no balance. I still have a car payment but modest and I'm also paying extra on that. I plan to focus on that next after loans are done. It helps that I also have a spouse who makes the money I do and so everything is split, mainly the mortgage and house down payments. Link to comment Share on other sites More sharing options...
JoeM Posted June 26, 2018 Share Posted June 26, 2018 Congrats! I just paid mine off two weeks ago. Graduated in 2016 with 55k. Sweet relief. Make sure you celebrate Link to comment Share on other sites More sharing options...
Moderator EMEDPA Posted June 26, 2018 Moderator Share Posted June 26, 2018 congrats! That is huge. Link to comment Share on other sites More sharing options...
mgriffiths Posted June 26, 2018 Share Posted June 26, 2018 Ugh, I would love to pay mine off - my employer is paying them which is AWESOME, but I hate when I review my finances and see that number sitting there. I know it's stupid, but I've considered dropping a lump sum to just pay the darn thing off. I have a meeting in about 3 weeks to discuss my income (feel it's about $15k low since I am by far the #1 provider in the practice of about 30 providers - and that includes the docs) and plan on discussing increasing how much they pay to get rid of my loans faster. Currently on track for about 6 years. Link to comment Share on other sites More sharing options...
Lkl1004 Posted June 28, 2018 Share Posted June 28, 2018 I will be starting PA school in August this year. When I graduate in Dec 2020, I will have $130,000 in loans. In addition, my girlfriend is in Physical Therapy school so if we end up together, that would bring our total debt to 190k. I have the opportunity to do the Navy (HSCP) which would bring me down to 60k in loans when I graduate. I would be taking a little lower pay for my 3 year commitment to the Navy compared to civilian, but the 80k difference in loans would be huge. I think the Navy would be great but my significant other would have a hard time with me being across the country while she finishes school and everything else that goes with being a military spouse. If I don't do the Navy, and we both make average starting salaries, we would have about 4k a month to live off of (After loan payment) to pay our loans off in 4 years from my estimate. Would anyone be willing to provide some insight on the reality of paying off 190k in 4 years with a PA and PT salary? Yes, some simple math shows it is possible... but is it realistic? I know location is an important factor so assuming we could rent a decent place in Ohio for $1300-1800/month. Link to comment Share on other sites More sharing options...
beattie228 Posted June 28, 2018 Share Posted June 28, 2018 21 minutes ago, Lkl1004 said: Would anyone be willing to provide some insight on the reality of paying off 190k in 4 years with a PA and PT salary? Yes, some simple math shows it is possible... but is it realistic? Very realistic depending on how low you can keep your overhead costs. Biggest factor is not letting lifestyle inflation eat into your available funds to throw at your debt. Additionally, you can pick up PRN or PT work as a PA to have even more money to pay down your loans. I can't speak to the ability for a PT to pick up extra work, but I'd assume that's an option as well. Link to comment Share on other sites More sharing options...
mgriffiths Posted June 28, 2018 Share Posted June 28, 2018 2 hours ago, Lkl1004 said: ... but is it realistic? I know location is an important factor so assuming we could rent a decent place in Ohio for $1300-1800/month. As beattie228, lifestyle creep is the biggest factor - but honestly kids are expensive as well and depending on age and relationship may be wise to hold off until loans are paid off. But everything is a cost-benefit analysis: is adding the expense of a kid (and therefore extending loan repayment timeline) worth the joy a child will bring? Is buying that house worth the expense and the extended loan repayment timeline? Those are the questions you have to ask yourself, but having the load of student debt off your back/mind is incredible - wish I did. For example: at my current salary (and I'm due for a substantial raise) and savings rate I could theoretically retire in 10-15 years (not going to, but could). But, my wife and I are looking at possibly buying what is essentially our dream home in a dream location...it would push my timeline back approximately 10 years. Is that worth it? Only you (or us in this situation) can answer that question. Link to comment Share on other sites More sharing options...
Cideous Posted June 30, 2018 Share Posted June 30, 2018 Kids are great, but they are freakishly expensive. You had better understand that going in. Basically the moment they are born, your priority is them....not you. Grats on paying off the student loans. Very good feeling. Link to comment Share on other sites More sharing options...
Boatswain2PA Posted July 1, 2018 Share Posted July 1, 2018 On 6/25/2018 at 9:09 PM, Walkoffshot said: Truthfully, I was kind of hoping that the housing market crashes during this time we have been saving to pay off these loans and we could jump in at the right time. Don't foresee this happening, but you never know. What I have come to realize is that renting is not all that bad. If we were to buy a home in our current market, a mortgage on a ~350-400k home would mean an interest payment probably around what we are paying for rent anyways. Spend less on a home and we would be blowing cash on repairs for a fixer upper. Just my opinion, but I feel like it is a wash and I would rather have the extra cash to save for loans then pay principle on a house. Now, with all the extra cash in our pockets we could make extra payments on a mortgage and pay off sooner.. maybe. HUGE CONGRATS on paying off your student loans!! Any other debt (cars, CC, etc)?? Something to consider: If you are out of debt now, then from now on you will be working/saving/sacrificing for your FUTURE instead of for your PAST. Read that again....those who are in debt are working to pay for their past expenditures. Those who are out of debt are working for our FUTURES. Example: PA with $100K in student loan debt, with a $300K mortgage, and a $30K car loan, and/or is paying off their credit card they put their last vacation on..is working their tail off to make payments on these things. Their future goals may (or may not) be to pay these debts off. Meanwhile, a PA without ANY student loan debt, paying rent or having a paid-off modest home, and driving cars they paid cash for, is working for their FUTURE goals. Another thing to consider: PA with debt HAS TO WORK or else they lose their house, car, and credit. A PA without ANY debt...well...they gotta work to pay the taxes/rent/utilities/food. Big difference there. This is the "risk" of debt that seems to be forgotten by many, but that "risk" is a very real thing. (for example - I am leaving an INCREDIBLY lucrative position at a hospital that has always been terribly run/managed, but is now becoming utterly TOXIC due to new CEO....and I'm not worried about losing that contract). Suggestion for you to consider regarding your house hunting: It sounds like you are content renting where you are. GOOD! Start throwing your (now gone) debt payments into a saving account for a down payment on your house....then take your sweet time to find the house you REALLY want! As with most things in life, the more patient you are, the better the outcome. We spent three years looking for our dream property. During those three years we were saving money (well, first 2 years we were getting out of debt) and we were looking at every property that might have met our desires. When we finally found the "perfect" land for us (first time wife and I walked out and both said "yep, this is it") we had >50% of the money to put down, and took a 5 year note on the rest of it (with a mortgage we could relatively easily pay without my PA income). We will continue to live in our modest (paid for) house for the next several years as we pay the land off and begin building our dream property/house. I am working for our FUTURE home/life, not our past decisions. Feels great! Link to comment Share on other sites More sharing options...
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