I have a BS in Psychology from the University of Texas at Arlington and am just now finishing up my medical degree from the University of Auckland in New Zealand. (Finish Nov 9)
I ended up taking out some private loans during my undergrad as my parents were against PLUS loans, and I was paying for everything myself. I have about 23,000 in private loans now (since interest has been accumulating for the past 5 years of my medical degree).
In terms of federal loans, well, that equates to $400,000…but I have my degree!? My undergrad I came out with about 35,000, but the sheer cost of medical school has significantly elevated the debt. On top of that, I didn’t have the ability to work, so more had to be taken out for cost of living.
I’m living overseas and don’t have any income they can base consolidation of private loans on as I am about to FINALLY start working in November, but the work is in New Zealand. While many have told me, I should just run away from the debt because I don’t want to work in the states, it is dishonest, and as a doctor, I feel I need to take the moral high ground. Is filing for bankruptcy an option for me?
How the heck do I go about this? With the private loans, I obviously want to pay those off as quick as possible and really want to know a way I can consolidate without having to work for a year so that I can prove I’m making some money…otherwise the interest is just going to keep on coming.
I’ve looked at personal loans here in NZ to try and just do a one-off payment, but the interest rates on those suckers are 15%. Oh, and since I’ve been in school since basically 1982, I am currently already paying down the interest on the private loans monthly because I exhausted the maximum deferment period. That’s already $150, and my federal loans are looming to kick in in May.
With the federal debt, I was thinking income based contingency plan may be best as I think it’ll work out that I just end up paying the debt I owe without the interest since there is SO much of it and 25 years is a REALLY long time. Thoughts on this one? I won’t be making much the first few years and will be only working part-time after that to take care of kids for a while. I figure that gets me through the first ten years?
Let me know if you need further information. I know exactly how confusing my situation is.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.I'm a U.S. Resident Living in New Zealand With U.S. Student Loan Debt. - Tess by Steve Rhode