You know that one team member you just seemed to jive with? The one who always has your back, and who makes coming into work a lot more fun? You love that team member! But what about that coworker who seems to hate your guts for no real reason?That person makes your workday a major drag.
Debt can be a huge stressor for recent graduates and young dentists. According to my guest today, students leaving NYU dental school in 2023 could have as much as $700,000 in debt. He also says that statistics like the average dental school debt of $280,000 is low based on the real cost of attendance. Fortunately, there are ways to manage student loan debt without living like a pauper or constantly being stressed.
Travis Hornsby is a CFA who helps six-figure student loan borrowers by creating custom student loan plans. He runs Student Loan Planner which is a group of experts that can help you manage student loan debt that’s $50,000 or more. They can create a student loan plan that details your path to freedom or connect you with private lenders to refinance at a lower interest rate.
Travis shares some great information and techniques that he helps people use to make the most of forgiveness plans and programs that are available. Even better, for a small fee, he and his team can create a plan that could save you thousands, along with those sleepless nights. He’s even created a free student loan debt calculator that helps you run your debt through different repayment options. This is a can’t miss episode for anyone who has student loan debt and needs a plan to tackle it in a smart way.
On the latest episode of The Best Practices Show, we talk to Tonya Lanthier, Founder and CEO DentalPost.com about hiring team members who fit with our practice’s culture and core values.
[01:30] Travis Hornsby says he’s a recovering bond trader and Excel nerd. His girlfriend had a lot of student loan debt, and bonds weren’t his calling. He did discover that there were all kinds of loan forgiveness plans and programs, so he built a spreadsheet with all of the options.
[02:24] He turned this into a business and has advised people on over $800 million of student loan debt.
[03:03] Since 2006, there has been an unlimited amount of school borrowing, and schools have jacked the prices up. People will be leaving NYU with $700,000 in dental school debt in 2023.
[03:53] The average dental school debt is about $280,000. The median dental school debt is about 50 grand higher. Your real debt will be found on the cost of attendance from the schools website and then multiply that by 1.25.
[06:28] Parents can also end up with a lot of debt.
[08:02] The highest unemployment rate is for people who dropped out of high school. The second is for people who have only finished high school.
[08:48] In the early 2000s, people could get 2% to 3% interest rates. In 2007, people borrow at 3% or 4% of what the Government borrows. In 2010, all loans are now direct federal loans.
[11:38] The main way to get your debt forgiven is to pay based on your income for a set number of years. After that, the debt is wiped away. Under the current tax code the amount of debt that is wiped away is taxable.
[13:30] Public health dentistry is exhausting. There are profitable ways to serve an underserved population.
[16:31] Having your own practice is the way to make the most money.
[19:04] The DSO may be less stressful, but it may not be the best path.
[19:42] Equity is the future in any business.
[20:48] Credit card debt can prevent a dentist from getting a practice loan. Student debt can be paid based on income or put on pause.
[22:39] A dentist and stay at home spouse can file separately and split the income, so income based payments are cut in half. This depends on a states tax law. They could also put some money in a pension and lower AGI which the payment is based on.
[25:00] An associate makes what they make with a W-2. The dentists student loan payment is based on AGI, and write offs can lower that.
[27:15] It’s smarter to borrow to make 50% as opposed to 30%. You need a CPA or consultant, but borrow for things that increase your income.
[30:27] Figure out what you want. Find your why. Do you want multiple practices, work less, or have a family? Make your student loan like a tax. There are amazing lifestyle practices out there. Make your money match your biggest dream.
[32:35] All improvement starts with telling the truth.
[33:44] You can find all of your federal debt at NSLDS.
[34:34] For $400 to $600, Travis and his team can figure this out for you. If you owe a six-figure amount and you are unsure the help is worth the money. Student Loan Planner also has the best bonuses for refinances.
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