Student loan debt has been weighing on my financial mind for over the past decade, since the first day of medical school. It is hard to believe it has been 12 years since I started medical school and my debt balance began accruing. The largeness of my student loans has (fortunately) dwindled to a degree through hard work, discipline, and continued extra payments to them. But believe me: I will be incredibly elated when this debt monster is finally slayed. As things stand right now with my calculations and estimates, this should be in a little more than a year (October 2020 to be exact… I will need to celebrate grandly when that date hits).
Currently I am at around a 55k balance on my loans. It is hard to believe my debt balance was sitting over 200k at one point years ago. The “magic” of compound interest can really work against you when you borrow money and are working hard to payoff debt. And of course, on the flip side, its magic works wonders on your investments and retirement savings accounts, particularly if you take on the risk and invest in the stock market.
Will this battle with my student loan “debt monster” make me more risk averse in taking on new debt in the future? I am sure it will. I am already conservative with credit, and payoff my credit card bills monthly, live reasonably frugally, and try to spend mindfully. (This of course is getting better as I am getting older, and live and learn through past “silly purchases” here or there that never get used.) Also, as I get older, I am seeing that relationships, experiences, memories, time, and energy are incredibly more valuable than stuff and money. I suspect we all need to learn this lesson with time and trial and error in life.
If I could do things over again, would I do things differently? Most definitely. (Hindsight is always 20/20, right?) One key thing I would do differently is borrow the absolute minimum I could, continue to live as frugally as I could on borrowed money, and strive for side hustles while in medical school and residency. One other key thing I would do differently is analyze more job options after residency to maximize loan payoff packages and higher salary in a different location of living. I chose to stay in the Pittsburgh area where I am from, as this is comfortable, and my family is here, and I wanted to have family close by as I raised my family. I sacrificed a higher salary doing this, and was not offered any student loan help due to my priority of staying near home. But even a short 3-5 year hiatus in a different area with a greater need for medical care (and thus higher salary) would have helped me crush my debt, I think, a lot sooner. It would have been a sacrifice, but I think in the long run, this could have been well worth it.
Also, I think this student loan journey I have taken will change the way I view things as my children grow older and I offer them parenting advice as they advance through high school and future career options. Is an expensive school really worth it? Is the name of a school on a diploma really that valuable? I am learning that the school name on a degree and the fancy letters after my name don’t matter as much as I thought it would when I was a young adult. I hope I can impart some of my financial wisdom to my children as they chose their life paths. There may be a less expensive option that gives just as much joy, fulfillment, and happiness in life. And in the long run, avoiding debt will avoid the stress and heartache that come with being in the “red.” And more importantly, avoiding debt will get you started on building wealth a lot sooner, giving you the freedom to use your time and money on things truly bring you happiness and fulfillment.