The way we Borrowed Money through the IRS to pay a Quarter-Million Dollar Debt off in half a year

The way we Borrowed Money through the IRS to pay a Quarter-Million Dollar Debt off in half a year

For my family and I, that has been our blended debt obligations upon completing our particular residencies in June 2013. We actually had slightly less debt, but our Income Based Repayments during residency were not even enough to keep up with the 6.8% interest rate, so our debt continued to grow during residency when we graduated from medical school in 2010. Due to the fact the United states healthcare Association states that the typical 2013 medical graduate has accumulated $169,901 in debt That figure is leaner than the AAMC reports-ed, numerous brand new graduates will discover themselves in a comparable situation. Actually, $242K for 2 health practitioners is great, showing the fact smart decisions that are financial brand brand new for those two-ed. After doing a fast calculation and realizing our $242,000 loan at 6.8% would develop by more or less $17,000 yearly, we made a decision to make erasing financial obligation our main priority. Finally, we had been in a position to pay back our whole financial obligation in five-and-a-half months by residing below our means, funneling cash into our loans aggressively, and acquiring an interest-free loan through the IRS.