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FP resident job advice

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  • FP resident job advice

    Hey everyone,

    I've been following the blog and you're comments and advice for a short time now and I'd love to hear what you have to say about my situation. I'm a year 2 FM resident in TX. Currently at 390K student loans. I'm on the repaye program making the minimum payment and getting about 1000/mo of interest subsidized through the program. Currently saving 15% with a 6% match from my employer into 401k. Just started a Roth IRA after reading all about them on this site. I'm just starting to talk to recruiters and potential employers about jobs after residency and I'm trying to figure out the best route to get out of debt. The way I see it there are two main options:

    PSLF - this would require 10 years after residency for me as I my residency program is at a for profit institution so my current payments don't qualify. I feel like this option makes sense as it would allow me to choose a position more based on location since I would not be worrying about finding the most lucrative opportunity out there to pay of my loans quickly. I feel like this option would also allow me to save thousands per month  during those 10 years as I would just make the minimum payment towards loans.  Seems like this would set me up financially once the loans are forgiven. Downsides are the loans are there for the next 10 years. Also, I have to assume that I would be grandfathered in to the current plan if something were to change about the program (which I feel is fairly likely).

    Option 2 is find the most lucrative position in a likely less desirable location and throw every extra penny towards them to pay them off in hopefully 3-5 years. I like the idea of being out of debt that much faster but I'm wondering if I would be stupid to give up 150k+ of free money off of my current principal. I would not be saving near as much (if at all) with this route and lifestyle would likely be less than ideal. Either way I don't plan on significantly upgrading my lifestyle when I finish residency.

    Any thoughts or advise y'all could throw my way would be greatly appreciated. Thanks!

  • #2
    The big question is whether you are willing to stick to non-profit employers (also to being employed) and whether PSLF remains not amended or capped, which would prevent you from getting complete, tax-free forgiveness.

    If neither of those apply, then refinance as soon as you start earning and close them out. Idk if you'll be able to afford to do five years on $400k earning FM income (might take more austerity than you might want), but if you can, that'd give you both the lowest rate and least time for it to accrue.


    • #3
      I vote go for pslf. Staff position in flyover country might get you a decent salary at a non-profit.