An anonymous hospitalist shares her remarkable journey of repaying $380,000 in student loans within just three years. She discusses her strict financial plan, frugal lifestyle choices, and the payoff of continuing payments during the student loan freeze. Her insights emphasize determination and commitment in managing debt. The conversation also covers the fundamentals of Target Date Funds, highlighting their benefits, cost-effectiveness, and roles in long-term investment strategies for building wealth.
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Paid Off $380K Student Loans
The guest is a Southern California hospitalist who graduated residency in 2021 and carried about $380,000 in student loans.
She announced she paid them off in full a couple months prior and described the feeling as surreal and happy.
volunteer_activism ADVICE
Channel Windfalls Straight To Debt
Do commit windfalls and bonuses directly to debt; she put sign-on, one paycheck per month, and bonuses straight to loans.
Do continue aggressive payments even during the student loan freeze to reduce principal now rather than pausing.
insights INSIGHT
Interest Freeze Supercharges Paydown
The student loan interest freeze effectively created a temporary 0% interest period that amplifies principal reduction.
Paying during the freeze can save roughly $40K a year in interest for large balances and speeds payoff materially.
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This hospitalist paid off $380,000 of student loans in only 3 years! She had a goal and a plan from the moment she completed training. She poured every cent she could into her debt while living like a resident. She shared that it is not complicated but it does take determination to do something like this. As she was riding her bike to work and skipping on buying the fancy new car her coworkers thought she was a little nuts. She also took advantage of the student loan freeze and saved roughly $40K a year in interest by continuing to pay down the debt during that time. After the interview we will be talking about Target Date Funds.
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