SemperLegal wrote:So, I feel like a dick for asking, because I'm 99% sure that I am in good shape, but I want to make sure I'm not special snowflaking.
Me: Biglaw, No debt, NYC
Mrs. Legal: $230k debt, Family medicine resident (three years @ $55k(ish), then a bump to low 6 figures)
easily manageable, right?
I highly recommend maxing out repayments on her debt as soon as possible Having a combined income north of $200k means you can afford to allocate her entire income toward repaying her debt.
Assuming you flame out of biglaw after 3 years toward a low 6 figure income, you two will still have a combined income of around $200k, and hopefully will have knocked the debt to around $100k or so. That's manageable if you live in NYC, though probably still not enough if you plan to buy a decent size apartment in the next 5 years.
I plan on living in JC or Further West on NEC or the RVL so that I have a 45 minute commute.
We do plan to max out repayment, as in put her entire pre-tax pay into paying off her loans and lay the taxes, rent, etc. out of mine.
She also will qualify for a tax-free* repayment of $15,000 a year for up to 4 years if she gets an attending job at the hospital where she is going to be a resident. I am thinking this means that we want to end up with $60,000 in loans or more after year three. Not sure if she is going to be PSLF, but I am assuming not. That plan , if possible, will get us down to a sizable debt, as long as I can last 3 years in biglaw and find a decent position afterwards. My thought is that two people can live on 160k less (double) taxes is Northern NJ. Are all my assumptions close enough to correct?
*there's a special IRC section for it