Even with the financial difficulties and economic distress in the past decade, you have managed to wisely take advantage of the various private and federal loan facilities like the MedCap Loan to get you through medical school. Without lessons, papers, and examinations to worry about now that you are out of medical school and have earned your medical degree, you are now left with worrying about whether you are going to be making enough money in the coming months to be able to meet your student loan repayments. Chances are, if you have several of these loans at your hands, you would have hundreds of thousands of dollars in total to start paying off within at least six months after graduating from medical school. That adds up to a substantial amount of money that anybody who is just starting in his medical career would find difficult to deal with on his own. If you find yourself in this situation, you do not want to wait for your time to run out and have your student loan lenders all calling you up to demand payment.
The average salary of a starting medical professional in the United States is about $120,000 per year or $1,000 per month – which is not nearly enough to cover anything else other than rental or housing expenses in most locations in the country. How then do you expect to pay a MedCap Loan with about $800 due monthly for a $100,000 at 6.60% APR for a tenor of 20 years? As you are working to grow your income, you can try to look at your options at consolidating all your student loans to come up with a lower amount of monthly repayment that you can easily handle with your current income level. Your choice of loan consolidation instrument would depend on the kinds of college student loans you have. Federal student loans are generally not eligible for private student loan consolidation as there are certain concessions that are extended by these federal loans.
Private student loans like your MedCap Loan are eligible for private student loan consolidation and can be paid for within a maximum tenor of thirty years. You can choose to go the regular route of paying of your consolidated loan with equal payments on both principal and interest paid regularly throughout the term of your loan. Or, you can take advantage of interest-only repayment options offered by some loan consolidation companies to make payments more convenient at least during the first years of your loan tenor. Most recent graduates who choose to consolidate their student loans take this route and succeed in paying only for interest charges for the first 24 months of their loan, after which their repayments are recalculated and increased to cover both principal and interest. Going for a loan consolidation instrument that offers this kind of arrangement will work to your advantage in that it would free up part of your income for other expenses you need to take care of as you start employment and get settled in the medical field.