Originally Posted by Bereno
I am quite familiar with how the loan payment system works. Trust me.
That said, on 80K and year (assuming this will increase by say 5-7K a year) and maybe 25% tax (very doable on an 80K/year income). gives you 60K after tax, or 5k a month. Rounding pmts to 2K a month, that gives me 3K a month after tax to live off of. That would be easy for me lol. To do this for the rest of my life would suck, but for the first few years as an associate would be NP.
This aside, I was trying to illustrate that the video was claiming that you "need" WAY more than you actually do. To pay off 150K in 10 years, you would need about 80K or more a year to do it "easily" IMO.
Yea, the video reviewers are pulling numbers out their asses or simply don't know how to read the data they are reviewing when talking about paying back 150k in 10 years.
But I'm still not seeing how you are getting payments of 2k a month unless you are planning on stretching out your repayment longer. How much debt do you think you will have when you graduate? Are all your loans going to be at 7.9% now that the government has cut out subsidized loans?
Maybe the calculator I'm using is wrong in its calculations somwhere, but even plugging in 200k for student loans in that calculator for a 10 year repayment puts the monthly payments at 2.4k. 3k a month sounds swell, but when you add in other costs, car, house, family, savings, it stretches pretty thin.
Obviously there are other factors to consider, such as if and when you get your own practice, your earning potential may increase significantly to where you can pay back your student loans and practice debt without batting too much of an eyelash. Are you considering this into your projections as well?
I'm not saying it's all doom and gloom getting into dentistry, but the large debt burden is nothing to scoff at. Please share what it is you're thinking, it sounds like you know something we don't that would help put us all more at ease with the calculated risks of getting into dentistry.