Dentist’s financial goals set her up for future prosperity

Iowa practitioner pays off $180K in student loans in less than 4 years

For Sara Stuefen, D.D.S., paying off $180,000 in less than four years is just one example of how she manages her assets and plans for the future.

After graduation, Dr. Stuefen lived like she did when she was a dental student, so she could pay down her debt quickly, she said.

“I was comfortable and had what I needed,” Dr. Stuefen said. “I definitely saw others going on nice vacations or buying a new car, but I had a goal in mind and I knew a little sacrifice at the time would be worth it for me.”

The 2010 graduate of the University of Iowa College of Dentistry also took on another financial goal right after graduation — buying her dental practice in Vinton, Iowa. But she wasn’t able to secure traditional financing on the terms she was looking for.

“The practice I was purchasing was a small one, but I knew it had potential for growth,” Dr. Stuefen said. “When I applied for loans with banks, they would give me the loan but wanted me to work somewhere else for a few days a week as a guarantee of income. I didn’t feel like having my practice open only two days a week would allow for me to grow my practice. That’s when I started looking at other options. I worked with my attorney and the selling dentist to create a loan agreement.”

How did she swing paying down student loans while making payments on her dental practice?

“I started with making my minimum payments at first,” Dr. Stuefen said. “My practice needed lots of updating and I was investing a lot into it, so sometimes I didn’t take a paycheck. Those months, I was only making a minimum payment. Other months were better, and I was able to pay more towards my loans. I paid off my student loans in 3.5 years.”

The first thing she splurged on after paying off her student loans was three new pairs of shoes.

“We definitely started taking some vacations as well. We also had the momentum to pay off debt and paid off our mortgage,” she said. “My big financial goal now is stowing away additional money for retirement. I’m not as strict about every dollar on my budget as I used to be; I get a little more flexibility now. My budget for clothes has definitely grown now that I am debt free.”

Dr. Stuefen said another benefit of being debt free is having more time to pursue passions outside of work.

“Because I’m out of debt, I have more freedom to do more volunteering and things I love,” she said. “One of those things is talking to dental students about dentistry and my experiences as a presenter for the ADA Success Program.”