10 Practical Strategies to Pay Off a $221K+ Optometry Student Loans in Less Than 5 Years (Updated for 2024)

KEY POINTS:

  • Avoid "Doctor Lifestyle": Live like a student a bit longer to build financial stability, even after graduating.

  • Shift Your Mindset: Stop making excuses and take charge of your financial future by learning and applying financial principles.

  • Refinance Loans to a lower rate with a goal to pay it off in 5-10 years.

  • Stick to a Budget: Track expenses for at least three months to identify essential vs. non-essential spending.

  • Use the Debt Snowball Method: Pay off smaller debts first to build momentum and stay motivated.

  • Spend Less, Save More: Keep living expenses flat as your income rises to increase savings and debt repayment.

  • Work Extra OD Shifts: Boost your income by taking on additional fill-in work, but watch for burnout.

  • Learn to Invest: Diversify into low-cost index funds or individual stocks to grow wealth and pay off debt faster.

  • Start Side Hustles: Explore additional income streams, like side projects or surveys, to accelerate debt payoff.

  • Stay Motivated: Recognize the long journey, but remember that each payment brings you closer to financial freedom.

It’s been almost five years since I paid off my student loans and shared my experience in the 2020 article, 10 Practical Tips on How to Pay Off $221K+ Optometry Student Loans in 5 Years.

Now that I’m a bit wiser, married with two boys (one due next month), I thought it would be a good time to revisit and update this article, reflecting on what I might tell my younger self.

IMG_3113

Background:

Like many optometrists, I graduated from the Southern California College of Optometry (SCCO) in June 2015 with over $221,245 in student loans. This debt was a mix of federal loans ($198,303) and high-interest private loans ($22,942), which I took out for living expenses during my fourth-year rotations. In early October 2020, during the COVID-19 pandemic, I made my final student loan payment, roughly five years later.


As I write this article today in 2024, I still struggle to share my story in a way that might help my fellow ODs avoid some of the mistakes I made as a new graduate in 2015, and hopefully, fast-track their path to financial freedom.


First, a little background about myself. No, I didn’t have wealthy parents or a high-earning spouse to support me financially during this five-year journey. My family grew up quite poor, and as a first-generation Vietnamese immigrant, I literally had no idea what a 401(k) even was. To add insult to injury, I also moved back home to one of the most expensive places in the U.S.—the “wonderful” Bay Area, CA—where optometrists were plentiful, and the average pay rate for a new grad in 2015 was a modest $350 per day. Sad, right?


I’m NOT sharing these details to boast about how “awesome” I was at overcoming obstacles, but rather to show you that I was financially unprepared, with many factors working against me. The truth is, anyone—regardless of their background or level of financial knowledge—can start on the path to financial success.


Fast forward to 2024: after helping so many new graduates with their student loans over the past four years, and seeing all the “I FINALLY PAID MY STUDENT LOANS” posts in our Facebook group, has my mindset toward debt really changed? Would I give the same advice now in 2024 that I did in 2020?

Here it is: ten honest, straightforward, and practical tips to help you pay off your student loans in five years—revised for 2024!

(1) Stop Trying to Live the “Doctor Life” (Year 1)

I was the typical new OD graduate—excited to receive my first paycheck and start living the "doctor life" because, after eight long years of schooling, I felt entitled to it. I thought I deserved it! Every day after work, I went to happy hours with friends, and every weekend, I was either at a club or traveling to some far-off destination. Like many of my classmates, I put my student loans on a 10-year standard repayment plan because, during my exit interview, they told me that the average new grad salary was $150,000. According to them, I could easily afford the $2,841 monthly payment.


Unfortunately, that wasn’t the reality. Practicing in an over-saturated California market and getting low-balled by shady practice owners as a naïve new grad, I quickly discovered that my actual annual salary was around $85,000 in 2015. After missing a few payments, I switched to an income-based repayment (IBR) plan so I could keep more of my paycheck.


Instead of negotiating for better pay or seeking extra work, I buried my head in the sand and hoped for the best.


It was disheartening. At the end of my first full year out of school, I realized I had accomplished nothing. I made $85,000 that first year as a full-time doctor, but only a measly $8,835 went toward my student loans—all of which went straight to interest. Even worse, I didn’t contribute anything to my 401(k) or Roth IRA, while I spent over 80% of my income on going out and living expenses. This was my wake-up call.

Total Salary (2015)
$
Student Loan (before year 1)
$
Total Student Loan (after year 1)
$

Take-Away

“Don’t try to live the rich doctor life—you’re still a broke doctor with a negative net worth. You might see the fancy apartment or shiny Tesla but not the $4,000+ rent or the $800 monthly car payment. Don’t believe everything you see on social media.

If you can maintain your student lifestyle for a few more years while earning a doctor’s salary, you’ll be financially more successful than your OD peers.”

 

(2) Change Your Mindset and Stop Playing the Victim (Year 2)

I made plenty of excuses for not paying off my student loans—telling myself I was too busy with work to learn about finances. I blamed a lot of people, mostly the government, for even allowing a clueless 20-something to take out over a quarter million dollars in loans. I also searched for the easiest way out, wondering if I should just opt for 20-25 year federal loan forgiveness and hope for the best.


Eventually, I grew tired of feeling stressed and complaining about money. Once I decided to stop playing the victim and took action to change, I took charge of my financial future—and it completely transformed my mindset toward money. I started by reading personal finance books and listening to financial gurus (special shoutout to Dave Ramsey). While Ramsey’s advice has its flaws, especially when it comes to investing, I’ll give him credit where it’s due: he was the first to truly motivate me to pay off debt and get my life together.

Take-Away:

“Stop making excuses and take charge of your financial future. You need to adopt a positive attitude toward your finances and genuinely want to make a change in your life. Once you shift your mindset toward money, you can finally start taking action.”

(3) Refinance Your Student Loans (Year 2) with the Goal to Pay Off in 5-10 Years

Refinancing federal student loans was still relatively new and uncommon back in 2015, with far fewer lender options than today. I casually refinanced my student loans with First Republic, opting for a 10-year fixed term at 2.9% interest—simply because a friend recommended it (2.9% is better than 6.8%, right?). I didn’t fully understand the downsides—like losing all the federal benefits... total facepalm. But this step turned out to be crucial in my journey because, for the first time, I was committed to making a monthly minimum payment of $1,852.43 over the next 10 years.


Ultimately, it was the best decision I ever made. It removed the wishful “options” of pursuing 20-25 year federal loan forgiveness. Essentially, I was forced to take charge of my financial future, rather than remaining tied to my debt for over 20 years, hoping the government would eventually forgive my massive student loan balance.


With this new approach, I set a goal to pay off my $221,000+ student loan debt within 10 years!

Take-Away:

"If you're not pursuing 10-year Public Service Loan Forgiveness (PSLF) or have a debt-to-income ratio of less than 2.5 to 1, refinancing to a lower rate is a smart financial move. It can lower your interest rate and accelerate your path to financial freedom"

Most refinancing lenders now offer competitive benefits similar to federal loans, such as forbearance or deferment during tough times, cosigner release, and forgiveness upon death or disability. Plus, it forces you into a more aggressive payment schedule, meaning more of your payments go toward the principal rather than just interest—unlike many federal income-based repayment plans like SAVE/REPAYE”

(4) Learn How to Live on a Budget to Keep Your Expenses Low (Year 2)

Year two was when I really got my act together. I was tired of being stressed about money and living paycheck to paycheck. I used Mint's budgeting app to track my spending for a few months to see where all my money was going, and needless to say, I was shocked.


One month, I spent $1,200 on restaurants, and another month, I dropped $350 in a single night on bar drinks. After a few months of tracking, I got my budget down to a consistent level, typically overspending or underspending by just $5-$10. Here’s an example of my budget from August 2016:


I know that budgeting isn’t fun, but everyone should budget for at least three months to understand exactly how much they actually need for essentials (like rent and utilities) versus wants (like that Beyoncé concert ticket).


Living on a strict budget taught me a lot about what truly brings joy to my life. In my early 20s, nights out at bars and clubs with friends were often the highlight of my week. But as I had less money to spend, I realized that simply being with my loved ones was what brought me true happiness. We didn’t need to drop $200 a night on bottle service to enjoy each other’s company—a simple board game night was enough.


Additionally, having a set amount to spend each month forced me to prioritize the goals and people that were most important in my life. If my nephew’s birthday was coming up, I would skip a dinner out with friends, knowing I’d need to save some of my restaurant budget for his gift.

Take-Away:

“You can’t determine how much to invest or pay off debt unless you know your monthly expenses and your budget. Be mindful with your spending and focus on things (or people) that truly matter to you. If you hate budgeting, try reverse budgeting: allocate funds first for essential expenses like rent, debt repayment, retirement, or short-term investment goals, then spend whatever is left over, guilt-free.”

(5) Pay Off Debt via the Snowball Method and Make It a Priority (Year 3)

To succeed in paying off large amounts of student loan debt, you need to consider the behavioral aspects that help keep you motivated. That’s why I like the Snowball method for paying off debt. The idea is simple: you list your debts from the smallest balance to the largest, regardless of interest rates. Then, you start at the bottom, tackling the smallest debt first, and work your way up.


While it might NOT make the most sense mathematically, I can’t overstate the emotional boost it gave me. Each time I knocked out a debt, I felt a surge of motivation to tackle the next one, and the momentum kept me going. Additionally, for every $20,000 of debt I paid off, I allowed myself a small celebration—whether it was going out for beers with friends or finally getting that new pair of dress shoes I had been eyeing.


Although I’m a big advocate for optometrists juggling multiple financial goals—like saving for retirement, investing, and paying off debt—I believe every OD should stay laser-focused on prioritizing student debt to get it paid off quickly.


For example, my $221,000+ student loan had a low interest rate of 2.9%, while a simple low-cost S&P 500 index fund typically returns an average of 9.8%.

So why did I put so much focus on paying down the debt? Simple: the feeling of being completely debt-free and not having to make that $1,800 monthly payment anymore is priceless.

Take-Away: 

“The debt snowball method was an effective way to pay off debt from a behavioral standpoint, and the steady momentum kept me motivated throughout my journey. Even though I had multiple financial goals like retirement and investing, I made paying off debt my #1 priority.”

(6) Spend Significantly Less Than That You Make (Year 3-4)

As my OD take-home pay gradually increased each year through annual raises, bonuses, or negotiating higher salaries when I moved to different companies, I noticed that my spending on living expenses remained the same.


During my first 1-2 years as a new grad, when I was earning around $90,000-$120,000, my annual living expenses were $47,220. But as my career progressed, my income significantly increased to around $180,000, and some years even more with occasional fill-in work.


The surprising part? I was still living on a $47,220 annual budget. This allowed me to boost my post-tax savings rate to nearly 50%, which I then put toward investing or paying off debt each month.


During the last two years of my debt repayment journey, paying off my student loans became much easier & faster simply because I had more cash left over each month to put toward debt.

Take-Away: 

“I can’t emphasize enough the importance of avoiding doctor lifestyle creep. If you maintain the same strict budget each year, even as your OD salary rises, your savings rate will significantly increase, allowing you to make extra payments toward your student debt.”

(7) Pick Up Extra OD Fill-In Whenever Possible (Years 3-4)

Optometry is a unique and rewarding profession where you have the flexibility to WORK AS MANY DAYS as you want. Beyond the standard 5-day workweek, it's easy to pick up a Saturday and/or Sunday shift at a local LensCrafters or Costco for additional income.


My friends often wondered why I kept working on weekends when I was already earning a solid salary as a full-time optometrist at Apple. The answer was simple: those extra fill-in shifts brought in an additional $45,000-$50,000 per year. This extra income helped me pay off even more student debt each year.


Look, I get it—doctor burnout is real, and maintaining your mental health, relaxation, and time with family is more important than money. It’s crucial to monitor your stress levels and take care of yourself, both physically and mentally.


A mantra I always told myself was:


"I definitely don’t want to work 6 or 7 days a week when I have a family and kids, so I might as well do it now while I’m young and have the time and energy. Sacrifice now and enjoy the benefits later in life."


Editor’s Note (2024): Now married with two kids, I only work 4 days a week with no weekends. It’s a blessing to have the choice to work less, thanks to the sacrifices I made as a young, single guy all those years ago. If I hadn’t paid off my student loans before marriage, I’d be struggling to juggle mortgage payments, retirement savings, monthly expenses, childcare, and student loans. I’d still be working 6+ days a week well into my older retirement years.

Take-Away:

"Any new optometrist can instantly boost their annual income by 20-30% simply by picking up an extra 1 or 2 fill-in days. This additional capital can go directly toward paying off more student debt. Just remember to be mindful of your stress levels and watch out for burnout.”

(8) Learn How to Invest (Years 3-4)

Investing is one of the most passive ways for any optometrist to build wealth, whether through low-cost index funds or a more hands-on approach with individual stocks.


While I always maintained a strong foundation of index funds in my portfolio, I developed a deep passion for analyzing individual stocks. I understand the inherent risks of stock-picking, and any investor can achieve great success by sticking with low-cost index funds.


But after devouring nearly every investing book I could find and learning from legends like Warren Buffett and Peter Lynch, I was hooked. I spent my free time reading quarterly financial reports and listening to investing podcasts during my commute to work.


My solid strategy of “buying good businesses at a fair price for the long term” kept me steady through market ups and downs and helped me tune out the noise. After just a few years, I was amazed at how well my individual stock portfolio had performed. Through consistent investment in well-managed companies, my profits grew to nearly $82,340 over 3-4 years.


It was a great feeling when I finally sold half of those stock profits, totaling $41,200, to pay off the remaining balance of my student loans. By learning how to invest in index funds and individual stocks, I was able to shave a whole year off my debt repayment timeline.

Take-Away:  

“Any optometrist can learn how to invest, whether through low-cost index funds/ETFs or a more active strategy with individual stocks. Investing can often be one of the most passive ways to build wealth, which can then be used to pay down student loans faster.”

(9) Start a Side Hustle and Other Passive Income (Year 5)

Creating and building ODsonFinance with my co-founder Aaron has been my most successful side hustle to date. Started in 2017 as a passion project, ODsonFinance aimed to create a safe community where optometrists could learn to achieve financial success. Today, it has grown to over 30,000+ doctors, all motivated to reach their own financial freedom.


Looking back, we NEVER intended for it to be profitable (or even to become a company); we simply enjoyed helping our colleagues.


Starting in 2020, and ODsonFinance produced its first bit of profit—around $2,456 annually. While this amount wasn’t enough to replace our OD salaries at the time, it showed us the potential of the business and motivated us to continue building it into what it is today.


Additionally, I pursued other side hustles, like participating in online optometric surveys, which typically pay anywhere from $10 to $200 each, whether during lunch breaks or between patients. While this might seem minor, by the end of the year, these surveys could add up to an extra $1,000-$2,000.


I still believe that practice ownership (if done correctly) is the fastest path to financial freedom for most optometrists!

Take-a-Away:

“Every optometrist should explore multiple sources of passive income, whether through a side hustle, practice ownership or other revenue-generating activities, no matter how small or large. Find your passion, build a business around it if possible, and learn how to monetize it. If entrepreneurship isn’t your thing, learning to invest, working extra days, or doing online surveys can help accelerate your debt payoff. Every little bit helps!”

(10) Stay Motivated Because It Is a Long Journey (Year 5)

I can’t count the number of times I felt overwhelmed and wanted to cry/give up, staring at my massive student debt load as a new graduate. I can’t count the times I resented or even hated my optometric profession, feeling like it was a “bad” financial decision. I can’t tell you how depressing it felt to say no to friends’ invitations to social events simply because I didn’t have enough room in my budget. I can’t describe how lost I felt during my first year, realizing that financial education had never been taught in school.


But I can tell you that this will be one of the hardest financial journeys you’ll ever undertake. It’s tough, but trust me, it gets better each year as your income grows, your debt shrinks, and your financial knowledge expands. I can tell you that your priorities will shift; the things that once made you happy may not matter as much anymore. I can tell you that the people who support you emotionally through this journey will become lifelong loved ones.


If you ever need motivation, just remember that you’re not alone on this journey. You have the support of thousands of ODs in our community, as well as me and Aaron cheering you on.

Summary

So there you have it—10 practical tips to help you succeed in paying off your student debt. People often ask me how it feels to be done, and I tell them that it’s like having an invisible 50-pound weight finally lifted off my back.


My last piece of advice to any optometrist: Don’t play the victim or look for the easy way out—take charge of your own financial destiny and have a solid game plan! Stay motivated and take it one year at a time. Aaron and I are here to help, so please reach out to us anytime.


Cheers to financial freedom, everyone!

So, what am I going to do to celebrate?

My wonderful fiancée (now wife) Tammy, who was so supportive throughout this entire journey, took me out to my favorite ramen spot (I’m not a fancy food type of guy) where we celebrated with some nice cold Sapporo beers.

After COVID was over, we joked about heading back to Las Vegas to relive my financially irresponsible 25-year-old self and splurge on bottle service at Marquee Nightclub or something like that, but we ended up not going through with it.

BONUS SECTION (2024): Would I Do Anything Differently? Here Are Some Comments I’ve Heard Over the Years

That’s true—if I were a perfect human being, haha. But let’s be honest, if I had an extra $2,000 lying around each month, there’s no way I would have dumped all of it into a Vanguard brokerage account instead of making a student loan payment. More likely, I’d have spent it on things I didn’t need, trying to impress people I didn’t care about. That’s just human nature.


This is a good debate: should you invest or pay off debt like student loans? I advocate for a multifactorial approach and balancing multiple goals. I started by putting 10% toward retirement, then gradually increased it to 20% for investing/retirement as my debt load decreased.

Once my student loan balance dropped below $50,000, it became less of a stressor in my life, so I shifted more focus to investing. Eventually, I got tired of seeing that remaining balance and just wrote a check to pay it off.

If I’d had the money to hire a CFP back then, they probably would have told me I was in a tough spot and should apply for 20-25 years of federal loan forgiveness. They’d have pointed out that I’d have to live on beans and rice for over 10 years to pay off my loans without sacrificing retirement. And they’d have been absolutely correct.

But this is where future projections matter. As a new grad, you’re in the worst financial position—your salary is at its lowest, and your debt is at its highest. However, each year, your salary increases with raises, and each loan payment makes your debt-to-income ratio more manageable.

I won’t sugarcoat it: this path requires hard work, which might mean putting in extra hours, sticking to a tight budget, and more. But I promise you, it’s worth it in the end. Whatever you decide, make sure you stick with it!

You’re absolutely right—kids are expensive, and they can dip into your emergency fund with unexpected expenses. Looking back now, if I were a new grad, married with kids, would I have been able to pay off my student loans? Yes, absolutely. It might have taken an extra year or two, but my family would have been my motivation to work even harder to reach financial freedom and provide them with a better future than I had.

My advice to all young OD grads remains the same: grind as hard as you can for a few years and pay off those student loans so you can enjoy the fruits of your labor later on.

While I acknowledge that some doctors may need to pursue federal loan forgiveness based on their unique situations, I still believe it should be a last resort.

Many people don’t realize that student loans are an unconscious stressor that lingers over you. Seeing that balance grow while hoping for government forgiveness over 25 years is stressful.

Not having to worry about my student loans for the last four years has made me a better doctor, a better business owner, and has allowed me to focus on other financial ventures, like my real estate business.

To this day, I’ve never met a financially successful person who still has their student loans.

Want to learn how to Manage your Student Loans? Check out The Optometrist's Guide to Student Loans

Want to learn how to Refi your Student Loans? Check out The Optometrist's Guide to Student ReFi

Want to get the Lowest ReFi Rates? Check out  Recommended ReFi Lenders

Related Articles

Facebook Comments

About DatBuiOD

Dr. Bui is an optometrist at the Apple Wellness Center in the heart of Silicon Valley. He has a deep passion for ocular disease and healthcare technology. He started his career with $220,000 of student debt and was able to finish this massive debt in 5 years using budgeting and personal finance strategies, along with aggressive investing. He is a big advocate for passive index funding with a small portfolio toward individual technology stocks. Lastly, he wants to help all new doctors and high-earning professionals navigate toward wealth and financial independence.

Leave a Comment