You can’t wish your student debt away.

I want to convey that in the most empowering way possible. I hope you to sink your teeth into the job you’ve dreamed of. And I want you to be really well paid for it. But there is some bad news once you make it as a professional. All that “good” student debt won’t get you sympathy (or a tax deduction) once your income increases.

Exciting stuff: I’m a Guest on the White Coat Investor Blog!

A celebrity among personal finance bloggers, WCI surprised and delighted me by accepting this post.

I describe some financial pitfalls I see affecting young docs: scenarios built on the myth of the rich doctor.

“When you finish training, your income will increase suddenly, you will lose the ability to deduct student loan interest. So when you repay your loans, you pay in post-tax money. If you’re paying a third of your income in taxes, you have to earn $30,000 gross to pay back $20,000 in loans. It’s sad but true. You have reached a higher tax bracket, and the government is not going to give you a break for it once you’ve attained an attending level income.”

On the bright side, when you pay off loans at a high interest rate, say more than five percent, that’s an instant, guaranteed return on your money.

In this post I talk about the truly rich doctor: she is the one who has fought the pay gap, paid herself first, and chased down her financial goals. 

To read my guest post on The White Coat Investor, click here.

To learn about Student Loan Planner, a service to help you drill down on your repayment options so you know the absolute best approach for your situation, click here.