help on student loans!--270k!!

Jun 2, 2012
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Hey guys, I am new to this forum and in need of some financial advice and was hoping you would give me your two cents on my situation and how to best proceed with it.

To tell you a little about myself, I am a late 20s medical student who is starting a 5 year radiology residency training this upcoming July. I have no assets and I am nearly $260,000 in debt due to school loans (principal plus accrued interest thus far). Not the best situation and it totally sucks.

All figures include principal + interest thus far
133,000 of it is at 6.8%
87,000 of it is at 7.9%
40,000 of it is at 8.5%

I have a 6 month grace period until December when all of the accrued interest thus far will capitalize.

My salary for the next 5 years will hover around 50k but afterwards should hopefully jump to 250k+. Which is rather low considering im starting to work in my mid 30s with no assets and a ton of debt.

I think I have some saving grace but want to get your opinion on how to proceed. What I am thinking:

My father owns a paid off home in the city I am doing my residency so I will be able to save a large chunk of money per month on rent. My dad has proposed that he is willing to take a HELOC (at ~4.25%) on his primary home to help me pay back my 7.9% and 8.5% loans and I would be making those payments to pay off my loans rather than rent. In addition to this, I would be paying my 6.8% loans based on my income as well (which comes out to ~400/month). This wouldn’t decrease the principal I have to pay but would substantially decrease the total amount of money that I have to pay back over time. Unfortunately, I don’t know how to plug in those numbers to get an accurate amount that I would actually save! Could someone help me do that?

Do you think this is a good idea? Unless I get fired, I should have a very steady stream of money every month to ensure I can pay the required amount every month.

My other option is to just pay everything at the same interest rate it is at now. I would be paying based on income—so ~400/month during residency, and ~3-4k/month afterwards.

Thank you so much, I know it is a long post but your input will be super helpful!!!


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