Pay Back Vet School Debt
By most accounts that’s a great salary, but not when you’re saddled with six figures of debt that’s accruing tens of thousands of dollars in interest. This bleak financial situation leaves many borrowers wondering how they’ll ever be able to pay back their loans and achieve financial freedom.
The good news is that it is possible for borrowers to get out of debt and achieve their personal, professional and financial goals. It just takes some hard work and a little ingenuity.
Crunch The Numbers
First and foremost, veterinary school graduates need to figure out where they stand. They need to determine how much they owe, how many years it will take them to pay off their loans, and how much interest they’ll accrue in the meantime.
For example, let’s say a borrower has $150,000 in student loans at 7% interest over a ten-year term. Their payments will be around $1,741.00 each month, and they’ll end up paying about $58,995.00 in interest.
If the borrower has an annual income of $90,000, about 33% of their monthly income after taxes could go towards paying off their vet school debt, depending on their state. That’s simply not feasible for many graduates – even with a strict budget.
Explore Loan Repayment Programs
Instead of struggling under unmanageable monthly payments, borrowers should look for alternative ways to pay off their vet school debt.
For example, some graduates will qualify for special programs, like the Veterinary Medicine Loan Repayment Program. If selected to participate, the borrower would practice in a designated shortage area for three years, in exchange for $25,000 in loan repayments for each year of service.
There are dozens of similar programs at the state level, so we advise borrowers to thoroughly explore these options to see if they qualify.
Consider Refinancing Vet School Debt
Refinancing is another great way for borrowers to take on their vet school debt, because it allows them to negotiate a lower interest rate and a lower monthly payment. It’s a smart move that can make it easier to pay back the loans, and can ultimately save the borrower thousands of dollars over the long-term.