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Decision Tree for Physician Student Loans

Decision Tree for Physician Student Loans

| September 29, 2020
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Creating a plan for Repayment or forgiveness of student loans is one of the most important financial decisions a physician will make. You will likely go down one of two roads, refinancing and aggressively paying down loans or diligently going through the public service loan forgiveness (PSLF) process.

For those entering the private sector or starting their own practice, a refinance after graduating from training is often the most efficient route. Based on the current interest rates, there should be a significant reduction from a direct loan to a private refinance. The term of the loan is likely to be reduced to 5, 7, or 10 years which should result in a higher payment even with the reduction in rate. A consideration may be made on the ability to qualify for a mortgage payment with the new higher payment and therefore delaying until after home purchase could be advisable. The loans transition from student loans to a personal loan and therefore any availability of the PSLF is gone.

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