Climbing Mt. Debt

Navigating your student loans and repayment options

Abstract

Federal student debt is different from other types of debt. Traditional repayment strategies of paying more as quickly as possible can be contraindicated depending on your student debt balance and student debt-to-income ratio. The ability to pay using Federal Income-Driven Repayment (IDR) plans can greatly increase monthly cash flow and decrease total student loan repayment costs for most recent graduate veterinarians with student debt. The challenge is understanding the various repayment options available and matching an IDR strategy to each veterinarian's circumstances, which often includes student loan forgiveness and a tax liability due 20 to 25 years after starting repayment. Using objective measures for analyzing repayment options, as well as analyzing the rules and political landscape around Federal student loans, a borrower can create a student loan repayment treatment plan that can lead to increased financial flexibility and improved financial wellness.