Tara knew medical school would bring big bills. But even on a doctor's salary, she'll need a plan to shovel her way out from under more than $326,000 in debt.
advertisement
Nobody plans to dig a hole that's $326,956 deep.
Even when Tara D. decided to go to medical school back in 2001 -- knowing she would incur a lot of debt -- she never dreamed she would end up with $308,407 in student loans and $18,549 in consumer debt.
In fact, Tara, who is now completing a residency in western Massachusetts, didn't even know how much debt she had until a couple of months ago.
"I just kept borrowing money," she admits. "I told myself, this is what you do when you go to medical school. I knew one day I'd earn a good salary, and I'd pay it back -- and that's what most doctors do. So I didn't think about it."
But without a trust fund or wealthy parents as a cushion, Tara decided it was time to get a grip, and she ordered copies of her credit reports.
"That was the first time that I added up everything I owed," she says. "I was totally shocked. I realized I had to get this under control."
Where she is now
Here is Tara's detailed debt breakdown:
* She has $117,702 in government student loans, which she consolidated last year into a fixed-rate loan at 4.25%
* She has another $190,705 in private loans, all at variable rates, ranging from 7.91% to 9.25%. These are already accruing interest.
* Her car loan is $12,404 at 6.09%.
* The balance on her MasterCard is $6,145 at 0% for another eight months.
* Total: $326,956
While that sounds like an insurmountable debt load, remember that when Tara completes her residency in 2009, she anticipates that her starting salary will be in the $150,000 range.
Also, she lives in a small town where her cost of living will be relatively low -- if she stays there.
By MP Dunleavey
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment