Five Ways to Pay off Your Debt from Medical School

When you ask people about what the hardest part of medical school is, you're likely to get varying answers. Some may say that just getting in is already the hardest part, while others might say sleep deprivation or pre-clinical sciences are what make medical school so tough. Aside from these popular answers, though, many people also find dealing with debt to be the hardest part. Having debt from financial aid programs, lenders, or credit card companies is difficult enough to deal with when you don't have to study and meet the expectations of med school, but it can be unbearable when the two are put together. This article will cover five options for paying off your medical school debt.

1. Manage your resources well                                                             

Perhaps the most obvious way of dealing with medical school debt is to manage your resources well. The best way to combat debt and other forms of financial hardship is to keep track of your spending, reduce expenses, increase income, and make regular payments for your loans so you can avoid and eliminate debt. Though this is probably the best way to deal with debt, it is often the most difficult, since debt can easily get out of hand.

2. Consider consolidation                                                                  

Although some people view debt consolidation as a profiteering and loan-sharking gig, a good debt consolidation plan can really help in paying off debts. When you look for a debt consolidation plan, negotiate with your company to get the best interest rates and lowest fees that they can give you. Remember to ask about grace periods, payment schemes, and other important information for your debt consolidation plan.

3. Think about deferment and forbearance                                                                             

Another option for dealing with your debt is to buy yourself a little extra time. Many lenders have grace periods and other forms of deferment that can give you extra time for paying off your bills. Aside from deferments, you can also ask for forbearance, if the company is threatening to collect the collateral on your loan contract. Try to delay as much as possible without incurring extra fees or penalties.

4. Home equity options                                                                                                                       

In relation to forbearance, you can also pay off your medical school expenses by using the value of your home to pay off your debts. In most cases, if you use your home equity to pay off your loans, the lender will be willing to deduct interest from your loan and give you lower interest rates because of the collateral of your home. Just remember that your new loan on your home equity may have a repayment deadline within around 15 years of the time that you borrow.

5. Loan repayment incentives

Some government organizations have medical school repayment incentives to help you pay off your debt, as long as you are willing to do a little work for "Uncle Sam.' For example, work with the National Health Service Corps and you can pay off tens-of-thousands of dollars in loans within a couple years. Rest assured that you are doing something good for your country by offering your medical assistance to those who are in need.

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Comments

Wed, 26 Aug 2009 at 4:52 AM, by margaret


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Margaret

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