Dr. Ryan Bree never imagined paying for a student loan for twice his mortgage. Still, making these additional payments for his medical school debt somehow meant all in the world.
“I didn’t want this looming loan titan to be the only thing that drove my life,” says Brie, a general trauma surgeon based in Wisconsin.
By leveraging that mindset, three more student loan refinances, Bly and his family helped send around $450,000 in federal loans. This was due to paying six-figure debt three years before scheduled in July 2023.
And yes, considering his high-income career, the lucky station in Bly’s life also helped. However, given the scale of his education debt, it helped a little.
“If you send $5,000 to (the lender), the principal would be $247 or something like that,” Bree says. “The interest just shows what it can do.”
Bly’s exact repayment strategy doesn’t work for everyone. And if you don’t have the best income or the best credit, it becomes a more relevant way – but his family story may still inspire yours.
Get student loans as an investment
Brie describes his upbringing as “a solid middle class.” His parents were first in a college-graduated family tree, but they helped pay for his bachelor’s degree. That’s not to say Bly didn’t contribute. He did three jobs to pay part of his bachelor’s degree. But they made a deal. He was responsible for paying medical school.
So Bry borrowed it repeatedly until he was often caught up in the six-person student loan numbers. All of his loans were federal, except for a $7,000 Chase Bank private loan for his undergraduate degree.
“I know the people I went to school with. It’s almost scary and paralyzed, but I know they’re constantly checking their balance and having small heart attacks and anxiety attacks,” recalls Brie.
However, he was not stressed about building up debt thanks to his “financially savvy” mom.
“She really stretched her money. She showed me that she has something like a good debt, in contrast to bad debts,” says Brie. “So she helped me frame this from an investment perspective. “This is an investment in your future and allows for opportunities that we never could have. But it costs money. That cost is the loan and the profits associated with it.”
Repayment aid that affects salary and career choices
Bly recalls having consistently talked about education debt with fellow medical school classmates and later colleagues.
“It’s not even an elephant in the corner of the room, it’s a beast in the corner of the room,” says Brie. “That’s why a considerable number of people (practitioners) choose a subspecialty in medicine. If you’re graduating from school with a $500,000 debt, you’d like to see a subspecialty that offers the option to pay it back immediately.”
To combat the average medical school debt, many graduates seek jobs with signature bonuses or employer student loan repayment assistance. Others have chosen to work for nonprofit organizations or governments to achieve public service loan forgiveness (PSLF). In the case of Bly, he placed PSLF aside and took part in a private practice where he could award bonus payouts and the possibility of “making a partner.”
Public student loan forgiveness helped. Incentives from healthcare organizations can help, but the disparity is so large that people are moving away from these slightly lower wage areas (like primary care) to pay off these occasional large student loans.
– Dr. Ryan Bree
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If Bly’s final final student loan payments were emotionally high, his initial filing was low.
“When I saw how dents this payment was creating for the principals of the loan, it was very disruptive,” he says. “This is where I decided to be proactive about paying it back.”
The wake-up call made him realize that a strategy was needed, and in part helped him to carry it out.
“My wife and I knew early on that we had to make sacrifices to remove this burden,” says Brie. “And thankfully, we both had a very similar mind in terms of financial strategy, working together throughout this process, looking at a three-, five- or ten-year plan and seeing how we got there.”
With a certified financial planner, I was able to see the financial situation of the entire family at a high level.
It was, “Yes, ‘We’re going to fund a little bit of retirement. Yes, we’re investing in our children’s education accounts,'” recalls Bly. “But at the same time, “We’re going to take over one of the majority or most of the excess (cash flow) each month and make additional payments to overthrow that principle.” It’s been central here for years now, and we’ve been trying to make sure these (loans) are gone. ”
Refinance, many times
Entering a stable, high-wage career, Bry and his family felt OK with giving up the federal student loan safety net against low interest rates for private lenders. As such, refinancing student loans has become the focus of medical school debt repayment strategies.
Bly went shopping at Sofi and landed. My friend relayed a good experience, and the lender provided the lowest student loan refinance rate at the time.
His career and income undoubtedly strengthened his student loan refinance application, but strong credit was just as important. He gives his mother a nod to his credit score, remaining in “high 700s” and “low 800s.”
“She gave me a credit card at age 16, in addition to the checking account I had since I was 12,” says Brie. “And my achievements have become very good here for most of my adult life.
After the initial refinance, Brie focused on the available fees. It was even twice as mathematically meaningful to refinance.
| date* | Loan amount* | New Interest Rates** | New loan period** | |
| Refinance 1 | April 2018 | $404,596.27 | 7.50% | 15 |
| Refinance 2 | September 2019 | $375,989.62 | 3.50% | 10 |
| Refinance 3 | April 2020 | $339,961.46 | 3.25% | 5 |
**Source: Bly estimate
“Within the SOFI application portal, there was the ability to compare and contrast using current interest rates and amounts and potential (scenarios), which was more of a show than talking about it, especially for my wife.
“She was a little scared of me than I was for the total number. And we live in Wisconsin, a joint marriage property (state). So, as soon as we get married, she will inherit half of my debt.
They remained relegated to the end, realising that the $5,000 ballpark monthly payments are quicker and more enjoyable. For example, like a family trip.
When the employment bonus arrived in July 2023, Blythe decided to make one last special payment.
“I don’t want to use the term monumental opportunity,” says Brie.
Learning from Dr. Bly’s successful repayments
Bly admits that his high-income career has expanded his repayment options well beyond what the average student loan borrower has freely used. Still, parts of his debt-inflicted journey are replicable.
| Bly’s answer | Questions for you | |
| Think about your career | He chose his subspecialty (surgery). This is because it provided a higher wage career to dodge his debts. | Even if you are already committed to your job or industry, are you still looking for a promotion or promotion that supercharges your repayments? How about switching to a company that pays student loans? |
| Select a lane | He settled on a proactive approach to repayment, primarily through student loan refinancing. | Do you create a slower strategic route, from an equally aggressive approach, like making biweekly payments or registering with the PSLF? |
| Take a look at the big picture | He temporarily sacrificed his savings for retirement and devoted more income to his educational debts, experiencing family leave-like experiences. | Have you thought about where the rewards for student loans fall within the wider scope of your personal finances? |
| Please don’t go alone | He highlighted his wife’s support and financial advisor. | Have you consulted or expanded your support system to include certified student loan counselors, lawyers, or other professionals? |
| Please continue to engage | He closely monitored interest rates and refinanced three times each as they saved serious cash. | Unfortunately, student loan repayments are not set and forget. What can you do to figure out your best options? |
You had to make a plan. Just make it a wing and when there are so many variables it usually doesn’t finish well.
– Dr. Ryan Bree
What if I don’t have six figure income and strong credit?
Safety: Most student loan borrowers have also been given credit card liability as teenagers. And trust us, the purpose of sharing Bly’s story, not to rub it.
A successful repayment for you may not resemble the Bly one. For one, refinance of student loans with bad credits may not be possible or even beneficial unless there are workarounds like Cosigner or co-borrowers. As for its value, assuming you have strong credit or co-applicant, low-income refinance may be more realistic.
But refinancing a student loan is something that can work over time if it’s the right answer for you. Probably when interest rates are low anyway. So you might start simpler. Consider the above questions. You will also create or update your budget and learn about repayment strategies.
It all takes time, but there is a zero balance in your future as well.
