Student loans can be overwhelming and affect the trajectories of income, savings, and lifestyle. Understanding the available options and best strategies to manage student loans can make a significant difference in the personal and professional satisfaction of dentists.
Always be aware how much you owe. I am always surprised when I hear from a dentist who doesn’t know their student loan balance. It is as if they have shifted into autopilot and are paying bills without considering how long they will have to pay (the term of the loan), when the loan will be fully repaid (also known as retired), and how much is still due (the outstanding balance). Only by understanding your total debt will you be able to make critical decisions about your career path, lifestyle and savings, and options for managing your student loans.
Don’t fall into the trap of making interest-only payments. It may be appealing to make lower payments, but by doing so, you may find yourself in a trap where you are paying off loans for many more years. Always try to pay something toward the principal with every payment.
Dr. Roger P. Levin is CEO of Levin Group, a leading practice management and marketing consulting firm. To contact him or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit LevinGroup.com or email [email protected].
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