Don't Get Doc-itis
Jeremy's wife who just graduated from medical school with $200,000 in student loans. Jeremy is in school full time and wonders if he should drop out of school to help pay back these loans.
QUESTION: Jeremy in Chicago has a wife who just graduated from medical school with $200,000 in student loan debt. Jeremy is also back in school full time, and he wonders if he should drop out of school to help pay back these loans. Dave thinks they should live on her income and pay these loans off while Jeremy finishes school.
ANSWER: Why don't you guys live on nothing and throw most of her income at the student loan and you stay in school? It's what I would do. I'd live on beans and rice. Don't go buy a new BMW because your wife's a doctor. You've got a mess on your hands—$200,000 of a mess. Don't act like this house is making money. You guys aren't making any money. You've got a mess to clean up here. If I were in your shoes, I would avoid doc-itis, which is as soon as you graduate from school, you go buy a bunch of crap you can't afford to go with your big student loans. Don't do that. Drive beaters, live simply, live frugally, and spend the next two or three years cleaning up this mess. That's exactly how I would do that.