This post may contain affiliate links and Corporette® may earn commissions for purchases made through links in this post. As an Amazon Associate, I earn from qualifying purchases.
For today’s Money Snapshot, we’re talking salary, net worth, debt, and more with reader N, a doctor who lives in a HCOL area.
She noted, “My husband and I are both working on paying off our loans using Public Service Loan Forgiveness, as we both work for government agencies. We both have approximately five years left and are crossing our fingers, toes, really any body parts, that this government program continues and we will have our loans forgiven at the end of our 10 years of qualifying payments.
“I know there has been some controversy on high earners like physicians qualifying for the program, but I see it as an incentive to do the community-based work that I love, instead of working in private practice where I'd be making twice my income and not benefiting the community who need my services most!”
We got a few requests from readers to launch our own “money diary” series, so we’ve asked willing readers to fill out a form with lots of details about debt, spending, saving, and more! If you’d like to fill out the form and be considered for a future personal money snapshot, please click here to submit your response! You can see a PDF of the questions if you want to review them ahead of time. See others in the Personal Money Snapshot series here.
Please remember that this is is a real person who has feelings and isn’t gaining anything from this, unlike your usual friendly (soul-deadened, thick-skinned, cold-hearted, money-grubbing) blogger — so please be kind with any comments. Thank you! — Kat
Name: N
Location: HCOL area
Age: 34
Occupation: Physician
Income: $260,000
Household income: $320,000
Net worth: My husband's and my net worth is around negative $600,000 (mortgage and student loans!).
Net worth when started working: As a physician, I “started” work as a resident at age 27; however, at that time I was renting (not owning) an apartment, and NOT putting money away for retirement as I felt I could not spare any due to living in a HCOL area, so net worth at that time was student loans, approximately negative $300,000.
Living situation: I own a 1,000-square-foot condo, and my monthly mortgage is $1,600 (with additional HOA/condo dues of around $500 per month).
Because N wrote her Personal Money Snapshot before the pandemic, we asked her for an update. Here’s what she wrote:
This was sent in a year ago, so life has definitely changed — thanks, 2020! My job transitioned to virtual telehealth appointments fairly well during the pandemic — some days I work from home and some days still go into the office (masked unless my office door is closed). There has been some concern that my job may be in jeopardy as state/local budgets might suffer for 2021 due to the pandemic, but for right now my income is steady and I'm hopeful for next year. The pandemic also helped me confirm that my decision to be child-free is the right one for me, I can't imagine working from home while taking care of children and assisting with virtual learning like so many others have to do!
Debt
What does your debt picture look like?
Student Loans: $330,000 (As I am paying student loans with PAYE and will be meeting requirements for PSLF, my interest on student loans continues to go up, which is why this amount is more than I started with!)
Mortgage: $250,000
Cars (one for me, one for my husband): $50,000
My student loans are from medical school. (I was very fortunate to get scholarships covering all my expenses for undergrad.) These are a necessary evil, as the loans have provided me with an education in order to have an immensely rewarding job that I love! I also currently have car loans, which I never thought I would have (I grew up with parents that carried no debt and always paid cash for new cars); however, the particular car I was looking at did not have much difference in price for new vs. a few years old, and I plan on driving it for 10+ years.
How much money are you spending each month to pay down debt?
To pay off the above (mortgage, student loans, cars), approximately $4,500.
How did you pay for school?
Loans, glorious loans!
Home debt: Share your theories and strategies with us.
I took out a 30-year adjustable rate mortgage for $300,000 that is set up to go up in interest rate next year. Luckily, due to my husband's job, we did not have to pay PMI even though our down payment was small. We ended up with the ARM because we bought when I was still in residency training and knew that we could handle the increase in monthly payment when the interest went up, as this would be after I started working as an attending.
The interest rate is set to increase next year, but we are looking to refinance before then. At the time we bought our home, we were renting a one-bedroom apartment in our area, and every year rent would go up, so soon we were looking at small homes to buy, seeing that our monthly mortgage/home expenses wouldn't be much more than our rent. I really love our home, and now that I make more money, I'm so glad that we bought a place that's “cheap” for our area and will give us the freedom to save more money in the next few years (instead of upgrading and being house poor)!
Savings, Investments & Retirement
How much do you save for retirement?
$19,000 (max) in 401k. Employer doesn't match, unfortunately. A small percentage of my paycheck is also taken out by my employer to contribute to a pension fund. (I plan to stay in this job long enough to be vested so I will have some sort of pension, though small, in retirement.)
How much do you save outside of retirement accounts?
My husband I save approximately $3,000 per month. Currently, we are just transferring it into a high-yield savings account, but when we build this up to a certain amount, we are looking to invest it.
Talk to us about investments.
We have met with a financial advisor twice and are looking at options to invest.
N updated us on her investment situation since submitting her Money Snapshot:
My husband and I put around $30,000 to ETFs, and also I maxed out a backdoor Roth IRA for this year. We also were able to pay off my car and a small private student loan that my husband had, too — so with those debts off the table for 2021 we have a goal of adding $1,500 monthly to ETFs.
Do you have an end goal for saving or are you just saving for a rainy day?
Saving for a rainy day! An eventual goal would be to move into an old, historic rowhome and do more luxury travel.
When did you start saving seriously? How has your savings strategy changed over the years?
Started saving seriously when I became an attending — by putting max in 401k. I am now looking into putting $6,000 into an IRA and also investing in the stock market.
What’s the #1 thing you’re doing to save money, limit spending, or live frugally?
I live pretty simply — not a lot of clothes shopping, no coffees/lunches out. I would rather have that money for vacations or investments. I also plan on increasing my savings/retirement accounts (getting an IRA) every time I get a raise in the future to avoid income creep.
How much do you have in cash that’s available today?
$25,000
How much do you have in cash that’s available in a week?
$10,000
How much is in your “emergency fund,” and did you include it in the previous question?
Yes, $25,000 available immediately in a separate savings account.
How much do you have in retirement savings?
$30,000 in mine, $100,000 combined
If property values (home, car) are included in your net worth, how much are those worth?
Only have about $30,000 equity in our home; no other property values included in net worth.
Spending
How much do you spend on the following categories on a monthly basis?
Groceries: $500
Restaurants, bars, takeout, and delivery: $300
Clothing and accessories: $200
Transportation: $1,500
Rent/living expenses: $3,000
Entertainment: $100
Health care – premiums and other costs: I am not sure how much I pay for health care, as it is automatically taken out of my paycheck, but it's around $75 monthly.
What’s your spending range for these things? What’s your average?
Vacations – Range: $1,000-$6,000
Vacations – Average: $3,000
Charity – Range of donations: $500–$1,000
Charity – Average donation or giving amount: $750
Individual items of clothing – Range: $10–$100
Individual items of clothing – Average: $50
Apartment or house – Range: $1,500–$2,000
Apartment or house – Current main residence: $2,000
Car or other vehicle – Range: $20,000–$50,000
Car or other vehicle – Current main vehicle: $30,000
Any other large personal expenses?
I have one dog, and per month I pay around $230 for his expenses ($180 for dogwalking, $50 for pet health insurance.)
My husband has a personal trainer that is around $800 monthly (this is the only way he makes himself work out, so we see it as an investment in his health), and I belong to a yoga studio ($100 per month) and also take adult dance classes ($100 per month.)
Also, I have three separate insurance policies:
1. One whole life insurance policy (approximately $300 per month)
2. One term life insurance policy ($200 per month) — More expensive, because if I outlive the policy I will get back the cash amount I put in the policy; I think of it as a “stuffing money under the mattress” plan, as it would be better off invested, but if I die in the next 30 years then the payout to my husband will be large.
3. A disability income policy ($200 per month)
We asked N if she had any advice for readers about insurance decisions:
I made my decisions on life insurance because I am the breadwinner in my marriage, so though I don't have kids to worry about if I pass away, I want my husband to be able to pay off the mortgage and have enough money to take some time off of work, if needed. Now that I am a year wiser I realize that the whole life insurance is a bad investment (would rather put that money into ETF investments); however, I haven't cancelled the policy yet. As far as disability income insurance — again, as the breadwinner, I wanted to make sure that my husband and I could maintain our current expenses/quality of life in case I become disabled and cannot work in my current field. It feels difficult to part with several hundred dollars a month for “nothing” but peace of mind, which I guess is worth a lot!
Fill in the blank on this question: I could save _____ if I stopped ______, but I don’t because _______.
I could save $1,000 if I (and my husband) stopped our fancy gym memberships/training, but I don't because these fancy things are the only things keeping us working out/active!
If you're married: When was your wedding, how much did it cost (total), and how much did YOU pay?
5+ years ago — it cost around $5,000 and we paid for it all.
Tell us about your wedding!
We had a very small wedding! Just our immediate family and a few close friends for attendance in the ceremony and a “beer and cupcake” reception at a local bar for our in-town friend group. We decided to do this as my husband has a very large family (and has a culture in which the bride/groom are responsible for paying for lodging for those traveling in from out of town for weddings) and the expense would have been astronomical, especially as I was still in residency training and our family was not chipping in money. (This turned out to be a good thing, as it was our money and so I could do whatever I wanted; no one else had a say because they weren't paying!) I wore a beautiful dress, my husband had his custom-fitted tux, we got amazing pictures, and I loved every minute of it.
At any point in your life to date, has inheritance played a role in your money situation?
My father died when I was five years old, so my mother received SSI benefits for me and my sister until we were 18 years old. I almost count this as an “inheritance” because this money helped my mother/stepfather buy a home in an area where the public schools were very good (we came from an inner-city school system that wasn't great) and allowed me to flourish in high school and get a full ride to my college, thus setting me up for a secure future with a good job and less school debt.
Money Strategy
Do you have a general money strategy?
I grew up without a lot, so I have to force myself to spend money, so I would say my money strategy right now is “treat yo' self, you can afford it!” (but this doesn't always happen due to guilt.)
We asked if N could elaborate on her feelings about money:
Ooof — this is a tricky one. I feel guilty everyday about my immense privilege — I make a ton of money for very little work. (I grew up with parents/extended family who did intense physical labor for very little pay, so in comparison my work is EASY.) The guilt got worse this year as my husband and I have gone about our life as “normal” as possible during the pandemic — we both are able to mostly work from home, our jobs/income aren't in immediate jeopardy, our retirement accounts/investments have done well, and we have saved money since no travel and very minimal eating out.
This year we did lean into donating more money/time to various causes including BLM and local food banks — this helps somewhat with the guilt. Also, I try not to think of my circumstances as normal; how I live is NOT normal nor attainable for the vast majority of the people in the world, and I can use my position to help lift others up, either by donating my time and money or by using my voice to lift up marginalized communities.
Time vs. money — do you spend money to save time (e.g., cleaning service)? Do you donate your time instead of money? What else does this phrase mean to you?
Yes! I sometimes go on the toll expressway to save time commuting (can be up to $20 or so), and also we have a biweekly cleaning service at $220 monthly.
What are your favorite resources for personal finance?
I love blogs such as this one, also The White Coat Investor (for the physician crowd).
What advice would you give your younger self about personal finance?
I wish I would have put some (any!) money in retirement during residency training. Luckily I am somewhat catching up now, but the little bit extra would have helped!
Icons via Stencil.
Anon
you sound like a lovely person! i know it is hard, but try not to feel guilty for what you’ve accomplished. one question I have is do you get any disability insurance through work? or just outside of work?
Money Snapshot OP
Thank you for your comment! I do get some disability insurance through work, but I have an additional policy outside of work too (that’s noted above)- the outside policy is “own occupation” so if I cannot work as a physician, but can do other work, I still qualify for the disability income.
Anon
I personally hope you don’t get your loans forgiven. You spend a ton of money on cars, vacations (pre-pandemic) and other unnecessary items. $800/month for a personal trainer is obscene, and if he won’t work out otherwise he needs to get his act together.
Yes, I paid off my six figures of loans on way less than a six figure income as a contract attorney doing public defender work. It’s simple but not easy. You already know how to do hard things. I don’t want to pay off your loans with my tax money when you can do it yourself.
Money Snapshot OP
Thank you for your comment, I expected this. You may have qualified for PSLF if you were doing public defender work. I am not ashamed of taking advantage of a government policy that is offered for those in public service. My tax money goes toward tons of things I don’t personally agree with (the defense budget) but I still believe in taxes.
Anon
I also believe in taxes, but not so they can subsidize your entitled lifestyle. Shame on you.
Anonymous
It’s not like the millions this girl is gonna pay in taxes is going towards this right????? She is paying her loans in full, in service and future taxes. Stop shaming!!
Ali
The government set the system. There’s no reason not to participate if you genuinely qualify.
anon
Unpopular opinion but I agree with you, Money Snapshot OP.
Senior Attorney
Good Lord. If there is any shame here, it belongs (maybe MAYBE) to the legislators who enacted the program with no (or high?) income limits. I think it’s insane to shame OP for taking advantage of it.
Anon
Agreed. I assume these commenters make certain to maximize their tax payments and avoid deductions.
Anon from 2:24
Yes, I actually do pay my fair share of taxes and don’t scrounge for loopholes to get out of paying them. Your snarky assumption is ironically correct.
Verm
As a tax-focused CPA, I love that the other anon missed your point here. Incentives are there to be taken if you qualify. OP may say her work is “easy” but I would far prefer that someone else get a tax benefit for choosing to work for the government.
I did wince at $800 a month for a personal trainer. I am terrible at making myself exercise, especially when it rains 8 months out of the year. Maybe I need to look at as an investment in my long term health as well!
Anon
I was wondering about this, too. The math on loan payments gets very sketchy at higher income levels, as 15% of income becomes a much, much smaller amount of discretionary spending.
Anon
I had the same thought– I’m not sure what the monetary incentive would be here either. She has to pay taxes on any amount forgiven, which here, would be astronomical.
Anonymous
PSLF forgiveness is not taxed
AnonMom
I am actually livid that this person is not intending to pay their own loans. As in, my hands are shaking with anger as I type. I was expecting to see that their combined income was 5 figures, they drive old winter beater cars, and don’t eat out much. Not that they have personal trainers, dog walkers, and max out their retirement savings while also spending thousands on vacations. This is just gross.
Anon
I don’t begrudge her the retirement savings; I loathe how public service loan forgiveness does not have an income nor a loan forgiveness cap. It really doesn’t matter if you’re working for a non-profit or a for-profit when you’re pulling down a quarter-million dollars a year. If she changed her employer, but did the exact same work for the exact same pay, she would have to pay back every single cent.
Medical school loans also aren’t made to be paid back over ten years. The doctors I know who work in the private sector spend 20 years paying them back.
Money Snapshot OP
Thanks for your comment- in my experience, physicians don’t really talk about their student loans so I was not aware that others were spending decades paying theirs back. Many of my peers are also doing PSLF, because we graduated in that time period where it was started and we based our career decisions on PSLF. Plus, for the majority of the time I’ve been paying into PSLF I have not been making six figures- I was making $55k as a resident physician.
Anon
This is not right. Yes, doctors make very little money during their residencies. You will, however, earn about six million dollars after your loans are forgiven and before you retire.
Moreover, the split between residency/doctor income is some of the reason we don’t have bankruptcy for student loans. Doctors would get into residency, file for bankruptcy, pay money for bankruptcy based on their crap resident income, and then start their lives as physicians with no debt and very comfortable salaries.
Jess
People complaining PSLF doesn’t have an income cap should consider the physician training trajectory: 3-6 years of residency. Even if you ate rice and beans during Residency, the loans would grow for 4+ years.
As your loans keep growing while you keep paying them, I bet by the end of ten years you’ll paid at least half.
I’m a law student and the only reason I might be able to pay off my loans is because of the Big Law salaries. If I had to do a residency right after graduation I wouldn’t even try. Personally, I’m going to try to pay my loans down by 80k in Big Law before transitioning to PSLF–at least then my payments will be enough to slowly, slowly shrink the loans.
Maybe when people graduated at 25 we could tell them to live like students and pay down their debt before they did anything else, but my life won’t stop because of the debt. When people finish training at 30+ they want to get on the property ladder and maybe someday afford a family.
AnonMom
I don’t begrudge her retirement savings, either, but I do begrudge her exploiting this flaw in the PSLF system. The disclaimer at the top is so vastly misleading.
KM20
Omg the amount of ignorance here is truly outstanding. FIRST OF ALL, the PAYE monthly amount you pay while in PSLF is not insignificant, it can be thousands a month, that’s pure interest, you must make 120 payments over 10 years. SECOND, PSLF *is* indeed taxed. It will be a huge tax bill.
Medical school should be free if someone is willing to work in a federally qualified health center. They are desperate for doctors.
It’s sick that our system around student debt is so broken — btw in other countries the government only charges you interest if you earn a certain amount, or no interest at all, and school is much more affordable.
But no, Americans, when a system is grotesquely unjust, we just turn on each other.
Verm
Agree!
Anonymous
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/questions
No. The amount forgiven on PSLF is not taxed. Get your facts straight.
Ali
Why does it bother you when someone participates in programs that they legally qualify for?
nuqotw
Wow.
Anon
I have been paying my loans for seventeen years. Over half that time I worked in the public sector in NYC, where I made not a lot in a crazy expensive city. Because I graduated before 2007, I did not qualify for either the federal loan forgiveness or my law school’s program. I’m pretty grossed out that someone with An $800/month personal trainer is getting theirs forgiven. It’s not the OPs fault, but the fact that the law allows for this is horrific.
Anonymous
Harshly phrased but I agree. Loan forgiveness should not be for people who are making $250k a year, even if their job is technically public service. That’s an insane amount of money. The poster’s income alone puts her above 93% of households in income, together with her husband they make more than 96% of American households. These are not the people these programs are meant to help.
AnonMD
I just want to say as a fellow physician, that OP is far from alone in pursuing PSLF and is also far from “scrounging for loopholes”. Upon my graduation from medical school several years ago we had multiple lectures on how to manage our student loans, most of us had >$250,000 from a “cheap” public school. PSLF was highlighted multiple times and we were encouraged to run the numbers for ourselves to decide if that program might be best for us. None of us would be able to even pay the INTEREST on our loans for the next 3-6 years on our resident salaries and the idea that they balloon into >$300,000 by that time is terrifying.
It seems that to qualify for PSLF as a lawyer, people have to take much lower paying jobs. In medicine, many hospitals and clinics are not-for-profit and jobs that qualify for PSLF can be found relatively easily and don’t have a huge pay discrepancy from for-profit facilities. One must be careful to choose the correct employer, but it isn’t overly difficult.
Instead of being angry that you paid for your own loans eating beans and rice (and I’m SORRRY! That does suck! It shouldn’t have happened) I think a more productive conversation is acknowledging that no one should go into 6 figures of debt for an education that benefits society and changes need to happen in our education system. Just because you suffered to get where you are, doesn’t mean those coming after you should suffer as well.
Personally, I am not pursuing PSLF because I have concerns the program isn’t stable and I can’t stomach the idea of letting my $270,000 in loans increase for 10 years only to find out I may not qualify.
Anonymous
If there’s minimal difference between salaries in public and private positions, why do the doctors in public positions NEED loan forgiveness? It’s there to allow and enable people to take public sector jobs that pay MUCH LESS than private sector jobs, as is the case in the legal field and many others, like social work.
I’m not saying medical school costs are not crazy — but so is making $250 before age 30, MORE THAN 93% OF AMERICAN HOUSEHOLDS OF ANY AGE. This is not the person who needs their loans forgiven.
MD in a HCOL city
Given that she is 34yo now and started residency at age 27, she did not start making $250k before age 30. The shortest residency is 3 years long. Longest is 9+ years. Average salary during that time is $50-60k, closer to $70k if you’re in a HCOL city and are several years into residency.
anonnnn
It may be an unpopular opinion, but I agree. I was on board with this knowing she was working in the public sector until I saw that she makes $260k!!! That’s a ton of money and you can pay off your student loans and still live perfectly comfortably.
anonnnn
Oops, nesting fail.
KW
I agree. I’m a lawyer in a MCOL area, but when I think of people who need the PSLF program, I think of my classmates with $100k+ in student loans who went to work for places like the public defender or district attorney where the starting salary was $50k.
KW
ETA: Especially when N is able to save $3000 per month!
anon
Yeah, I paid off 200k of debt on a much lower but still six figure salary. This is really unsettling. I don’t care what the work is you’re doing, making a quarter of a million dollars a year is a ton of money and not really deserving of any loan forgiveness in my opinion.
Anon
This is me and my coworkers. Starting legal aid attorney salary is $45K. It maxes out around $80K after decades of work. Most of us will never make 6 figures, yet we have 6 figures of debt. I’m shocked doctors qualify.
Patricia Gardiner
I’m really curious to know what specialty she is and what public service institution she is at- this is way more than what many hospital based or academic physicians make.
Is it Friday yet?
Same – especially since it sounds like she’s completely office-based, which rules out a lot of the higher paid specialties.
MD in a HCOL city
Dermatology, Psych…office based and both very in demand and pay well. Psych can be dependent on private practice (which OP isn’t)…
holidays
+1
I am a physician, and I am quite surprised by the OPs situation as well. Her salary is much higher than the average salary in my field of medicine (I work in the academic medicine world / big city hospitals), and I would never think that a qualifying job for this loan forgiveness program would apply to this job.. whatever it is… where you make so much $$ at such a young career stage. Her stage is still young in medicine.
Note – You can’t really compare the medical route directly with law though – I made $42-49k during residency in a HCOL area (4 years) ] and was thrilled to hit the 50s during fellowship (another 2-3 years in my field). And my hours working were absolutely insane with incredible stakes. I made well below minimum wage. Medical school is also generally much pricier than law school and 4 years. The debt the average doctor has is much more than the average lawyer. An there really isn’t a path the same way like Big Law where you can just go work somewhere and make a fortune to quickly pay off your loans and then do “what you want to do”. Most of us have to follow a fairly strict path depending on our goals and prior investments of time/specialty/research etc…
But I hear all of you. Very eye opening to me.
I also learned long ago how fortunate you are to be married/dual income when you are in medicine. I am single. My life during residency/fellowship was worlds apart from my dual income colleagues. I think when I first saw how they lived… I cried a little.
But I love what I do.
NYCer
+2.
Veronica Mars
I think the PSFL program is a scam in its current organization/execution. Fewer than 1% of those who applied have gotten it actually forgiven — this is such a huge problem. I would not be gambling that I made it into that 1%. Especially if I could make way more in the private sector. One of my friends wanted to do that for her 80k in loans, because she made 35k a year. In the private sector, she could easily make 60k-70k per year. I pointed out over 10 years, she’d be giving up 250k-300k in income to be “forgiven” (if approved) for the remaining balance on her 80k. Doesn’t make much sense to me.
Veronica Mars
And if this was not clear, I think it has noble intentions and should be fixed and improved. It’s just so misleading with what they promised vs actual cases and what happens
Money Snapshot OP
I agree. Luckily the percentage of those who are applying and getting loans forgiven is (slowly!) going up. Initially there was a lot of confusion of what kinds of loans qualified and some people were not doing yearly employer certifications, so when they applied for loan forgiveness at the 10 year mark they found out their employers did not qualify.
Anon
It is definitely a scam. A large portion of my family and social circle teach in impoverished schools (we live in the middle of 3 cities) and many of them have bent over backwards to try to qualify for this program. Somehow the program always weasels out of paying. I highly doubt N is going to get loan forgiveness.
Senior Attorney
Yeah, there’s this. I’d say very tiny chance OP actually gets her loans forgiven so y’all are hating on her for no reason.
Anonymous
I wonder if the 1% who qualify are the people like this vs those that have a real need.
Karen
The point of PLSF is to keep qualified people in public sector jobs. If OP is making that much in the public sector, I am making the leap that she could make the same or more in the private sector. So let’s be happy that those who need good physicians the most are getting good care and not left to just have the doctor’s that couldn’t get employed in the fancier positions.
I am also in PSLF as a government attorney. I absolutely love my work but would have had to leave to go to a private firm to pay off my loans, if not for PLSF. I am thankful for a program that incentivizes bright individuals to work in positions that they otherwise would not consider. 10 years of full time work in the public sector is not a small commitment to have your loans forgiven. 10 years of blood, sweat, and equity in your position is more than a fair trade to have loans forgiven for those of us with 6 figures of debt.
Anonymous
I agree, Karen. I’m also a government attorney in PSLF. The point is to keep good people in public service (and I think that includes high-earners). Eight years ago, my salary started at $47,000. Paying significant loans at that salary is tough especially considering I know I could have made more in the private sector. However, I wanted to be a public servant and this program allowed me to do so. Now, I’ve been very fortunate in my career and am now making $120,000 per year, but still in public service. You have no idea how your career will change over 10 years. I do feel guilty sometimes, but I also know I’ve paid a ton back in my loans and I think people miss this point. I calculated that by the time I’m done with my 10 years, I will have paid over $75,000 of my $100,000 original debt. It’s the interest that kills you. Now that my salary is higher, I basically pay my 10 year rate anyway at this stage, but I had the real benefit in the years when I couldn’t pay even close to my 10 year rate. And after a decade of building my career in government, I’m probably going to be a lifer. Without this program, I don’t know that I would have been able to do that.
Verm
Thank you!
Anon
Just wanted to add that OP is calculating her net worth wrong. A mortgage doesn’t give you a negative net worth unless you’re underwater. She might still be negative because her loans are more than her other assets, but the house only counts as the value of the house minus the amount she owes and that’s overall positive.
Anon
I don’t necessarily have any hang ups with her taking advantage of PSLF, but honestly, the situation is a little weird. A friend of mine with ~250k in med school debt is also taking advantage of this program, but she makes $140k at a top tier academic institution, after making $40k in a VHCOL city for almost 10 years in residency/fellowship before that, so I get it. I think what’s odd is how much she makes at an institution that qualifies for this. It’s good to encourage doctors to stay in lower paying, but really important jobs, but this is closer to a private practice salary than an academic salary.
MD in a HCOL city
Many private practice physicians salaries are MUCH higher than OPs and move into the $300k range and above. I don’t think $260k a year is odd at all if she’s in dermatology or some other subspecialty field depending on the practice setting and how much clinical medicine she practices. I work in primary care in a HCOL city at an academic non-profit and make $210k my first year in practice. There are also a lot of other variables at play in physician salaries and the physician job market does not track other markets well in my experience. You can earn much more as a physician in rural areas than saturated, urban areas. In certain cities, what on face value look to be high paying specialties, are not because of an over supply of physicians. Where I live, psychiatry, derm, primary care and family medicine are in demand and it’s a buyers market. If you want to do academic cardiology, good luck starting at $200k.
Recovering Legal Services Attorney
So is the original poster not supposed to take advantage of the PSLF program even thought it is available to her? I understand people’s frustration but this one person taking a “moral stand” or whatever you want to call it isn’t going to change things.
Plus even though all doctors make a lot of money comparative to the rest of us, rural areas, lower income areas, and even things like primary care physician areas are notoriously underserved because they can’t afford to pay attractive salaries. As someone who worked in the legal services field for almost ten years, everyone says they think its a good thing, and say they would do it. Then they see the pay and they are long gone. And while I don’t know what or where the original poster works. anyone who has worked with with underserved populations will tell you it is HARD work. Just ask anyone who works at the VA. And ask yourself why there are always TONS of vacancies for VA physician positions.
Anonymous
Ha, even though I find the PSLF situation deplorable in this situation, what struck me about this post is the absurd amount of life + disability insurance this person carries. Whole, term and disability, with such high premiums? No one does this, except maybe JLO on her rear-end.
AnonMD
I think this is a situation where lawyers and physicians vary more than expected. OP admits the whole life insurance was a mistake and it seems she plans to cancel this policy. Most of the physicians I know carry own occupational disability insurance starting in residency. It’s a stretch to cover these costs on a resident’s salary but worth it to preserve your future earning potential. It’s also cheaper to get this started when you are younger and before you develop any pre-existing conditions that might make it difficult to qualify. Most physicians with families have term life insurance in residency as well.
MD in a HCOL city
100% agree with AnonMD. Agree the whole ife is not worth it but term life and own occupation disability are VERY common to have among physicians. And yes it’s a stretch to cover disability in particular during training but is such a valuable type of insurance to have, I think all physicians should have it! I bought both in residency and have no regrets and will probably buy more term life insurance in the future.
Anonymous
She does make enough currently, to pay off loans. If I was making $260k, I would pay $100k a year on loans and pay them off in 3 years.
shortperson
i dont understand what’s wrong with spending that much money on dogwalking and personal training. if she had just one child she’d be spending more than that on childcare and no one would be complaining about that. enjoy yourself. and take advantage of whatever loan forgiveness you can.