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*Official student loan pay off thread*

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  • 2FM Congratulations! Time to get on the Monday morning WCI podcast (you might be able to provide some insight to full scope FM).

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    • Hey, 2FM - congratulations, very encouraging first post and welcome to the forum!
      Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • Originally posted by 2FM View Post
        This is my first ever post, though I have been reading the stories on this thread with envy for some time. Yesterday, I made the last payment on the student loans. My husband and I had an enormous debt burden when we graduated from residency in 2012. Between the two of us, we owed $570K in medical school debt. Minimal undergrad, fortunately. We are both in primary care, though we do rural full-scope and it pays fairly well. I calculated that we were paying $100 per day in interest alone at the time. Our monthly loan payments were something like $6500/month (it might have been more, but we were able to knock out one horrible 9% loan before it got out of the grace period). It was nauseating. The first few years, we really did throw everything we had at the debt. We lived in some awful rentals, kept the cars we had in residency, did local vacations. The pace slowed a bit when we had kids, as we choose to pay for a nanny to cover our childcare needs while we worked the long hours. We also bought a house, and though it is below 1x our salary, it did need some infrastructure repair (roof, sewer) that slowed us down as well. We also wanted to max the 401Ks, start a taxable account, and get the 529s going, all of which have proven to be good moves financially, though they also slowed the loan repayment pace a bit. We finished up the last of my husband's debt in March of 2020, and then focused on the remaining balance on my debt ($120K in March of 2020). I sent in the last $16K lump sum payment yesterday.

        I logged into Earnest today and saw a $0 balance. It is so hard to believe that this is finally done. All those years of seeing thousands of dollars every month exit the checking account and go to various loan servicers. Having loan servicers "lose" the extra payments we sent in (Sallie Mae used to require extra payments on certain loans to be paper checks--probably so she could lose them and we would have to pay extra interest while we sorted it out). Having Sallie Mae "accidentally" put an extra payment on a 2% loan instead of a 7% loan despite an accompanying letter and the Loan number written on the check and then take 6 weeks to "sort it out." Having loan servicers switch without warning so we would have to figure out where the payments needed to go. All those extra hours worked so that we could earn just a little more to put towards the loans. Refinancing multiple times. Angsting about variable versus fixed interest rates. It's done now, and I just wanted to shout from the rooftops...or type quietly from my living room. Grateful to this community to keep us inspired to get this done!
        Amazing. Congrats. The feeling of seeing the account balance read $0 is the best. Y’all shouldn’t forget to celebrate

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        • Originally posted by WorkforFIRE View Post

          Amazing. Congrats. The feeling of seeing the account balance read $0 is the best. Y’all shouldn’t forget to celebrate
          Best so far. With the lessons learned, you will see those investment balances grow exponentially. It gets "better" than best, Congrats. A hall of fame first post.

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          • Hi friends! I didn’t know where else to post this but I feel like I just had to tell SOMEONE, so I’m blasting it out into the WCI universe.

            WE ARE DEBT FREE!

            Looking back at Mint, it tells me that in April 2015 my wife and I were at the peak of our debt, owing $587,412. (That number seems so ridiculous to me.) We submitted our last payment on our mortgage on September 1, 2021. I am so proud of us - my wife and I couldn’t be happier with our financial progress so far. And now we can breathe a bit easier knowing we don't owe anyone anything. Let me give you a few more details on our journey:

            We married in 2014. My wife was in her Chief Residency (Internal Medicine) which she finished spring/summer 2015. This is where we find ourselves at our highest debt of $587,412. This debt included a mortgage (~$380k), med school loans (~$190k), and some other misc. loans totaling ~$10k (my undergrad loans & a vehicle loan).

            I work as an Engineer, having finished my Electrical Engineering degree in 2009. I am the one typing this recap as I have been following this website/blog for years so we can best understand how to deal with our household finances. My wife is definitely involved with our finances, but I tend to do more reading/research on the topic. So yes, you have individuals of all disciplines perusing this site.

            After my wife became an Attending, we wiped out our smaller loans quickly and got to work on the Med School loan. We finished the med school loan by the end of 2017 – my wife was absolutely determined to get rid of it. Moving into 2018 we started making extra payments on the mortgage but were also making deposits into a taxable account (yes, we were already maxing out tax advantaged accounts – 401ks, backdoor IRAs, etc.). We continued splitting funds between “paying off the mortgage” and “saving in a taxable account” till early 2021 where we decided we wanted the mortgage gone. So, we started putting every extra cent toward the mortgage and put our taxable account savings on hold for a bit. As previously mentioned, we finished the mortgage in September 2021!

            So at age 37 (wife) and 34 (myself) we are proud to say we’re debt free and just about to break $2M in net worth. One of my favorite WCI posts is “14 Financial Milestones Worth Working Toward” and it’s almost uncanny how perfectly we’ve stepped through the milestones as listed. Here’s to crossing off #12 and going full force ahead to #13 & #14!

            Ok, thanks for listening.

            Cheers to everyone posting on this thread – you have so much to celebrate and I’m so proud of all of you!

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            • Originally posted by DoctoredEngineer View Post
              Hi friends! I didn’t know where else to post this but I feel like I just had to tell SOMEONE, so I’m blasting it out into the WCI universe.

              WE ARE DEBT FREE!

              Looking back at Mint, it tells me that in April 2015 my wife and I were at the peak of our debt, owing $587,412. (That number seems so ridiculous to me.) We submitted our last payment on our mortgage on September 1, 2021. I am so proud of us - my wife and I couldn’t be happier with our financial progress so far. And now we can breathe a bit easier knowing we don't owe anyone anything. Let me give you a few more details on our journey:

              We married in 2014. My wife was in her Chief Residency (Internal Medicine) which she finished spring/summer 2015. This is where we find ourselves at our highest debt of $587,412. This debt included a mortgage (~$380k), med school loans (~$190k), and some other misc. loans totaling ~$10k (my undergrad loans & a vehicle loan).

              I work as an Engineer, having finished my Electrical Engineering degree in 2009. I am the one typing this recap as I have been following this website/blog for years so we can best understand how to deal with our household finances. My wife is definitely involved with our finances, but I tend to do more reading/research on the topic. So yes, you have individuals of all disciplines perusing this site.

              After my wife became an Attending, we wiped out our smaller loans quickly and got to work on the Med School loan. We finished the med school loan by the end of 2017 – my wife was absolutely determined to get rid of it. Moving into 2018 we started making extra payments on the mortgage but were also making deposits into a taxable account (yes, we were already maxing out tax advantaged accounts – 401ks, backdoor IRAs, etc.). We continued splitting funds between “paying off the mortgage” and “saving in a taxable account” till early 2021 where we decided we wanted the mortgage gone. So, we started putting every extra cent toward the mortgage and put our taxable account savings on hold for a bit. As previously mentioned, we finished the mortgage in September 2021!

              So at age 37 (wife) and 34 (myself) we are proud to say we’re debt free and just about to break $2M in net worth. One of my favorite WCI posts is “14 Financial Milestones Worth Working Toward” and it’s almost uncanny how perfectly we’ve stepped through the milestones as listed. Here’s to crossing off #12 and going full force ahead to #13 & #14!

              Ok, thanks for listening.

              Cheers to everyone posting on this thread – you have so much to celebrate and I’m so proud of all of you!
              Congratulations! Out of curiosity...do you have any kids? This was my and my husband's limiting factor with all of this (in addition to more student debt). Working on our mortgage as we speak!

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              • Originally posted by NumberWhizMD View Post

                Congratulations! Out of curiosity...do you have any kids? This was my and my husband's limiting factor with all of this (in addition to more student debt). Working on our mortgage as we speak!
                Thank you so much! No, we do not have any kids which I definitely understand gives us a financial advantage over some households.
                Good luck on your mortgage! YOU CAN DO IT! And you will feel so much better when you do!

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                • As I start our student loan repayment journey this January, once the 0% interest rate moratorium ends, I just wanted to post here to document the beginning. This thread has been inspiration, and I have been here lurking throughout residency!

                  My spouse and I are a dual physician household, without plans for children until about 2 years from now. Our combined student debt is 527k. We just started as attendings, but with WCI principles (and the federal interest loan freeze) we have been able to save up around 260k through retirement and brokerage accounts while in medical school and residency.

                  Our network is -267,000, but with monthly payments hopefully in the 15k range, we should hit a net worth of zero in 10-12 months. I'm looking forward to posting here again when that happens!

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