“Hi Money Minder,”
So here’s the deal – I’m working my way up from RN to nurse practitioner and I’m facing a hefty 220k-225k student loan debt. But don’t worry, my starting salary is expected to be between 130-145k. I’ve got minimal credit card debt (less than 2300, which I’ll clear by the end of this year) and a 17k car loan for my 2020 used car.
I’m only 25, my rent’s not crazy at $1350, and I’m pretty thrifty with my spending. I do treat myself to a trip or two each year, though!
I’ve heard about PSLF programs and loan forgiveness for serving underserved communities, but I want to hear your take on how I can tackle this debt. I’m confident I can hit 200k+ income in my career, especially if I keep working in big cities like New York or Cali.
Looking forward to your advice,
[Made-up name here]
Response from THE MONEY MINDER:
Hello There,
Congratulations on your journey to becoming a nurse practitioner! It’s great to see your dedication to your career and your financial responsibilities. Given your situation, it sounds like you’re in a good position to make a dent in your student loan debt relatively quickly.
To start, I would suggest creating a detailed budget to track your expenses and identify areas where you can cut back even further. Since you already mentioned being thrifty, this might involve looking for additional ways to save, such as cooking at home, finding cheaper entertainment options, or considering ways to reduce your rent costs in the future.
Considering your potential starting salary, earning between 130-145k, you could allocate a significant portion of your income towards paying off your student loans. I recommend setting aside a specific amount each month for loan repayment, making sure to prioritize paying off high-interest loans first while covering the minimum payments on others.
While exploring PSLF programs and options to have your loans forgiven through serving underserved communities is a good idea, it’s essential to have a backup plan and be prepared to tackle your debt aggressively regardless of those outcomes. By maintaining a frugal lifestyle, setting clear financial goals, and being disciplined in your repayment strategy, you should be able to make significant progress in reducing your loan balance.
Most importantly, don’t forget to allocate some funds for emergency savings and retirement planning to ensure a solid financial foundation for your future. Remember, every bit counts, and with dedication and consistency, you’ll be able to tackle your student loans effectively. All the best from THE MONEY MINDER as you navigate this path towards financial freedom!
