Managing Student Loan Debt

A Government Program You Need to Know About

As graduation approaches, medical students are concerned with two things: having as much fun as possible before internship starts, and what to do when we have to start repaying the massive amount of debt accrued during school. I can't help you with internship, but I do want to point you to a relatively new (2007) government program which graduating students should seriously consider. The video below explains the value of combining Income Based Repayment (IBR) with Public Service Loan Forgiveness (PSLF) instead of entering forbearance as a resident. These two programs combined could save you $200,000 or more in the long run. The best part? To qualify you only have to work for a non-profit, and 80% of hospitals qualify.

Finally, make sure to file a tax return during your graduating year even if you didn't make any money as a student, as the next year's IBR will be based off that income. Check it out and let us know what you think!

Money Management + Medical Students

If you've been in medicine for even a little while, you know there are a number of taboo subjects that just aren't discussed.

One of the most important discussions that medical students do not have while in training is the subject of money and overall financial management.

It's been very exciting for me to watch this very cool website, Uncommon Student MD, so quickly develop into the premiere source for honest, practical information for medical students. Over on Freelance MD, we've written a number of articles about investing and money management for physicians and medical students.  Here are some of our prior posts:

• Physicians and The Richest Man in Babylon
• Keep It Simple
• Physician Wealth Protection
• First Things First: Handle Your Finances as a Physician
• Physician: What Are Your Assets?

I also would like to recommend to you all Dr. Robert Doroghazi's book entitled The Physician's Guide to Investing.  I wrote a brief review of the book here on Freelance MD, and while I would differ from the author on a few of the finer points, I think the gist of the book is excellent.

Last, at our most recent Medical Fusion Conference I was able to sit down with Dr. Setu Mazumdar, an Emergency Medicine physician turned financial manager.  Setu gives his perspective of "financial independence" in this interview.  Check it out...it's worth watching.  Hopefully, by learning a bit about finances while in training you'll avoid some of the common pitfalls of physicians and money.

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