I've been obsessively reading this blog over the last few weeks and really appreciate all the time everyone has put in to creating this community, its amazing.
My question has many tangents and "what ifs", But to simplify it, the root question is should I go back to school or find more creative ways to pay off my enormous student loans???? I went through a masters program in an alternative medicine medical field and before I realized it was too late and I got out in to the reality of the "job market" after 4 years of school tuition and living expenses, I had a $90,000 bill with 6.8% interest waiting for me. In the last few years with accrued interest that number is at $126k. I've been on the IBR program which basically entails sticking your fingers in your ears and not dealing with it in hopes that it will disappear somehow....I've in that time also learned that yes, you do get your loan forgiven in 25 years but that you will then owe interest in the total amount and the IRS expects that to be paid immediately as well. It seems to be anyone's guess what this will look like when the first batch of loans start coming around the 25 year mark, but running on the bet that the whole system will collapse first doesn't seem like the best coarse of action. So IBR really isn't a break from any debt, it just shoves it in the closet for a while. You'll see my financial break down below, but basically the field I'm in doesn't seem to allow me to have any real shot at paying the loan off outright, even with living below my means which I do. I also don't qualify for the public loan forgiveness which will take your debt away in 10 years interest free(although yes I've seen that capping that is getting some air play right now anyway, and again anyone's guess what will actually happen). I've thought very seriously about returning to school to become a nurse and the end goal being to become a nurse practitioner. Between the decent pay, eventual job flexibility, encounters I've had with nurses, and making a positive impact on people's lives, it seems the best course if I was to go the western medical route. I really have an interest in Physical Therapy as well but with the cost of those programs and enormous debt it doesn't make sense for me at this point....I'm not sure I would even have enough loans available(they cap at $129k) even if I wanted too. Nursing would also provide the potential of PSLF. I'm a big fan of alternative medicine and love what I do but something's got to give in one way or another. I have always lived on less than my means and figure with the amount I could save on nurses wages, I could probably pay this thing off in 5-7 years. The other option is to not go back to school at all and find a way to bring in more income in another way, but that seems trickier. Another "maybe possible" scenario that I need to investigate more is actually starting a 501c 3 which would qualify me for PSLF, although I'm not sure of the details if its possible to start a non-profit as well as utilize PSLF.
I very much appreciate any input you all might have on the situation. I'm interested in going in any direction, as reading this blog has got my brain ticking with other ways I could possibly pay this debt off with out school....but i love medicine and that is where my heart is, the idea of stability and flexibility that the nursing profession gives is also very appealing. Being financially independent is appealing, although I think at this stage my first goal needs to be getting this monster debt DOWN!!!
Income: I made $25k gross last year, $32,000 right now after 2 years I've salaried myself at this level in my practice. Its typical in my field and practice model that within 4-5 years I could realistically make about $40,000. But that's about it. Its next to impossible to make more than that because I as a practitioner have to be there seeing patients and can only see so many in a day. I also can't be away from the clinic otherwise patients disappear as well. Not as easy as a shop where the owner after getting things stable can hire other people to run the show while I do other things, there's the relationship piece that keeps things a float. I have time away from work to do other things, but its a pretty involved gig and would be easy to spread myself to thin if I'm not careful. There's also a certain fragility to the whole thing, if my clinic closes for whatever reason, there aren't other jobs out there waiting or if I was to move somewhere new I would be starting from scratch.
34 years old, single.
Current expenses:
rent/utilities- $750/month
car insurance-$30
cell-$30
health insurance- $70
3 credit cards, no credit debt on those or any other debts.
child support, travel, gas, gym, entertainment, $900
IBR- $117
grocieries-$300
Total: $2197/month in expenses
Assets: I have $17k sitting in a regular old savings/checking account waiting for a rainy day. I've through about putting it in to a vanguard fund, but am holding off until I decide if I'm going back to school, this would be what pays for it. That's everything, I did rough math in my head and probably saved about $3000 total last year to get to that number.
Thanks so much.