Paying off 40,000 in Student Loans

In this video, I describe how I plan to attack a half million dollars in student loan debt in 2 years. This video will not obviously work for everyone because:

So i went to a very expensive medical school where i came out of medical school with around $400,000 in debt over the last five years i decided not to make any payments on this $400,000 primarily because my plan was to pay it off within two years after finishing all of my training as a residence depending on your pgy level as well as where you’re doing your training

You can expect to make around $3,000 per month if you decided to pay back this $400,000 here say for instance your payment’s or around thousand dollars which is quite likely and then you pay that for twelve months of that year times five that’s around $60,000 that you would have paid of that $400,000 loan that you owe the interest on these loans are they vary but

In general around 7% 7% times at 400 k equals $28,000 per year and a few times this times five years times five is a hundred and forty grand so the $400,000 plus 140 k equals five hundred and forty thousand dollars now i want you to remember this number right here the five hundred and forty thousand dollars say for instance you pay that thousand dollars per month

Times 12 months times five years you would have paid sixty thousand dollars of that 540 and your new balance would have been four hundred eighty thousand dollars that’s your new balance after those five years i decided not to make any payments whatsoever and defer all of my student loans during my whole five years of training due to the fact that that $60,000 would

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Not make any difference whatsoever or a very small difference to that grand total that thousand dollars that you could have put in your pocket over that number of years could have been invested or spent however you have would have liked but to me having a four hundred eighty thousand dollar loan balance versus a 540 loan balance at the end of five years of training

Doesn’t really matter to me much at all so here’s my plan as a spine surgeon and this goes for not every specialty and every specialty is different in terms of pay but as a spine surgeon i can expect to make right out of training five hundred grand to six hundred grand a year i’m a janitor janitor that’s right baby i just bought this truck straight cash if you

Break that down and then after taxes i let’s estimate that i will bring in $30,000 a month and that’s pandey the rest towards taxes that thirty thousand dollars per month if you live on your same salary that you made as a residence plus a little bit extra let’s say you pay yourself five thousand dollars per month to live on that leaves you with twenty five thousand

Dollars per month to pay back your loans to invest to do other things with now i know everybody who gets out of training they want to buy a new car new house going to vacation but if you just wait to pay off all your loans you can do all of that plus more there’s twenty five thousand dollars per month and if you take twenty two thousand five hundred dollars each

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Month and put it towards your student loans 22500 times twenty four months it’s five hundred and forty thousand you can completely pay off all of your student loans and twenty four months if you live as a resident and if you go into a high-paying specialty so my plan is to pay off all of my student loans within two years of finishing all of my training by living

Like a resident living within my means and stand aggressive on my loan repayments dave ramsey said it best when he said live like no one else so later you can live like no one else thanks for watching please subscribe and we’ll see you next time

Transcribed from video
Paying off $540,000 in Student Loans By Antonio J. Webb M.D.