Article weighs paying off student loans versus investment

June 16, 2015
Article weighs paying off student loans versus investment

(HealthDay)—Newly-minted physicians should consider the issues relating to paying off their loans versus investing for retirement, according to an article published in Medical Economics.

The article discusses whether newly-minted physicians should start by paying off loans or invest for retirement. Two issues should be considered with respect to this question: attitude toward and the interest rate on student loans.

Peace of mind is key, and if having debt is stressful then the loans should be paid off in full first. Refinancing is recommended if the interest rate on loans is more than 4 percent. If the interest rate is still high after refinancing, the loans should be repaid, rather than using the money to invest. If the is low and being in debt does not cause unnecessary stress, extra money should be invested in a retirement account, giving priority toward maxing out the allowable salary deferral to employer-sponsored , especially when employers match contributions. Those working in the public sector may be eligible for loan forgiveness. Taking on additional debt, including home purchase, should be considered carefully and possibly delayed until are paid.

"Consider hiring a financial advisor who is a fiduciary and is legally obligated to act in your best interests," the article suggests. "These are complicated issues you face as young doctors, and having an expert in your corner will set you up for future financial success."

Explore further: New programs aim to forgive student medical loans

More information: Full Text

Related Stories

New programs aim to forgive student medical loans

May 23, 2014
(HealthDay)—Changes to the student loan environment will make it possible for a significant amount, if not all, of medical student loans to be forgiven, according to an article published May 8 in Medical Economics.

UK doctors unlikely to be able to repay student loans

April 20, 2015
UK doctors are unlikely to be able to repay their student loans over the course of their working lives, amassing debts of more than £80,000 by the time they graduate, in some cases, finds research published in the online ...

Student loans take emotional toll on young adults

January 27, 2015
(HealthDay)—Student loan debt is a major cause of stress for young adults, a new study finds.

AMA: Tips for managing medical school loans

July 4, 2014
(HealthDay)—Creating a budget and other tips can help medical school graduates to manage their loan repayments, according to an article published by the American Medical Association (AMA).

Recommended for you

Best of Last Year—The top Medical Xpress articles of 2017

December 20, 2017
It was a good year for medical research as a team at the German center for Neurodegenerative Diseases, Magdeburg, found that dancing can reverse the signs of aging in the brain. Any exercise helps, the team found, but dancing ...

Pickled in 'cognac', Chopin's heart gives up its secrets

November 26, 2017
The heart of Frederic Chopin, among the world's most cherished musical virtuosos, may finally have given up the cause of his untimely death.

Sugar industry withheld evidence of sucrose's health effects nearly 50 years ago

November 21, 2017
A U.S. sugar industry trade group appears to have pulled the plug on a study that was producing animal evidence linking sucrose to disease nearly 50 years ago, researchers argue in a paper publishing on November 21 in the ...

Female researchers pay more attention to sex and gender in medicine

November 7, 2017
When women participate in a medical research paper, that research is more likely to take into account the differences between the way men and women react to diseases and treatments, according to a new study by Stanford researchers.

Drug therapy from lethal bacteria could reduce kidney transplant rejection

August 3, 2017
An experimental treatment derived from a potentially deadly microorganism may provide lifesaving help for kidney transplant patients, according to an international study led by investigators at Cedars-Sinai.

Exploring the potential of human echolocation

June 25, 2017
People who are visually impaired will often use a cane to feel out their surroundings. With training and practice, people can learn to use the pitch, loudness and timbre of echoes from the cane or other sounds to navigate ...

1 comment

Adjust slider to filter visible comments by rank

Display comments: newest first

ruslia82
not rated yet Jun 16, 2015
Student loans have already brought many young borrowers into the situations when they can't cope with the debt and have to take another credit to cover the initial one. Fortunately, there're programs and plans to help, still, many keep on borrowing from parents' savings. work extra hours and sometimes even go for short-term loans to cover expenses (more on onlinepaydaycalifornia.com). Thy system keeps proving itself ineffective.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.