Career and Life Planning Guidebook for Medical Residents

R E A D : Using a Zero Percent Interest Rate Credit Card to Refinance Your Educational Debt After reading the title, you may be intrigued. On the other hand, maybe you are super skeptical. As suggested by authors David Denniston and Amanda Liu, MD, there is always another way to skin the cat that is student loan debt. I’m sure you’re still wondering… Really? Are you serious? He wants me to take out credit card debt?!?!? Yes, I am serious! You can do this! First off, you may only pay 1.5% to 3% if you do it right... One physician borrowed at a NEGATIVE interest rate using credit cards to pay off her student loans and max out her retirement savings. Negative because of the rewards she received. She wondered…. why would anyone choose 6.8% interest rate over negative to 1.7% interest rate debt? REASON #1: Federal Loans vs. 0% Interest Credit Cards I know there’s stigma and fear associated with credit card debt, but to me what’s scarier is debt snowballing at 7% interest rate while I sleep, work, & eat. Federal Student Loan Interest Rates (Fixed) July 1, 2019 to June 30, 2020 July 1, 2019 to June 30, 2020 Undergrad Direct Stafford Loan – Subsidized 4.51% 5.05% Undergrad Direct Stafford Loan – Unsubsidized 4.51% 5.05% Graduate Direct Stafford Loan – Unsubsidized 6.08% 6.60% Direct Parent PLUS Loan 7.08% 7.60% Direct Graduate/Professional PLUS Loan 7.08% 7.60% HPSL (Health Professions Loan) 5.00% 5.00% SECTION III: T MINUS ONE YEAR CAREER AND LIFE PLANNING GUIDEBOOK FOR MEDICAL RESIDENTS 380