Medical Student Debt Management
Assistance for Borrowers with Medical School Student Loan Debt
It can be difficult for recent medical school graduates to think of building wealth and investments when their loan repayments are saddled with high interest rates. That is where Team 25 comes in. We help recent grads and doctors still making monthly payments on their medical school debt get their loans under control, so that they are open to invest in their future.
It’s simple: 25 Financial’s goal is to provide our clients with more confidence, time, and peace of mind by taking advantage of every wealth management and investment opportunity.
Tackling Medical Education Debt
It’s no secret that the cost of attendance of higher education in the United States is at an all-time high, and med school is no exception to that rule. That means that our future doctors are spending more than ever to attend medical school. According to the Association of American Medical Colleges (AAMC), average medical school debt averaged $207,000 in 2020. That number is only expected to rise.
When the total cost of medical school can be that hefty, many may assume they have to wait for years to begin building an investment portfolio or save for retirement. But that simply isn’t the case. Team 25 offers a multi-prong approach to managing medical student debt, which includes tackling the debt itself while also building investments for the future.
Student Loan Forgiveness Plans
A key strategy to tackle medical education loans is to get them forgiven. We work closely with qualifying borrowers to find the right loan forgiveness program that can erase most, if not all, of their debt. Many physicians have success working for nonprofits to qualify for a public service loan forgiveness program, although we can many times find other medical school loan forgiveness programs that better match our clients’ long-term personal finance goals.
Student Loan Refinancing Plans
If student loan forgiveness is not possible, we work with clients on how to best manage their student loan repayment plan. One strategy is to refinance the loan completely, if possible, and establish more affordable income-driven repayment options. We help our clients renegotiate more favorable repayment terms and fight for lower individual loan payments, if not the total loan amount.
Simultaneous Investment Strategies
Investing for the future doesn’t have to hold off until student loans are completely forgiven or repaid. In fact, for many with medical school debt, it can be best to start investing and building portfolios right away.
Tax-Planning Strategies
Working in healthcare can be complicated enough without having to deal with complex tax codes. We help physicians file taxes in the most efficient and money-saving ways possible.
College Planning
The best place to start is at the beginning. We offer medical school planning services to mitigate the amount of loans students assume and establish a plan to pay back loans quickly while still building investments for their retirement.
Investing More with 25 Financial
- Discover. We spend time getting to know our clients’ needs, hopes, and goals.
- Plan. We provide options to meet your goals and recommend the best approach.
- Act. We follow through to ensure the full plan is implemented.
- Review. Life often brings change, so we regularly review and reassess the plan.
Financial Planning for Physicians with Medical Student Debt
Wealth management for physicians is unlike financial planning for the general public. Physicians graduate with loads of student loan debt, begin retirement planning later in life, have shorter time horizons to reach their much larger-than-average retirement income goals, and have a target on their back for lawsuits and taxes throughout their careers.
We believe financial planning for doctors must be comprehensive, unbiased, and always in the physician’s best interest. Our comprehensive financial plans include insurance review and planning; debt management strategies; employee benefits planning and analysis; investment planning; proactive tax strategies; college, retirement, and legacy planning; estate and asset protection planning; and medical student debt management services.
Disclaimer: We are not tax professionals, so please consult with your own tax professional before implementing any strategy discussed.
Content is intended for informational purposes only and should not be considered as financial advice. Please consult with a professional financial advisor and perform your own analysis before making any investment decisions.