Attending advice on debt

[TheBoneDoctah]

I am going to be hopefully attending medical school next year. Have any of you had trouble with your debt yet? Is 250k in loans doable?

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[BoardingDoc]

This question doesn't really belong in the "general residency issues" forum. That said, it is going to be completely and utterly dependent on which specialty you go into. Ortho/cards/derm/plastics/rads? You're fine. Peds/IM/FM/psych? You might want to look into PSLF.

 

[Winged Scapula]

$250K is a hefty loan amount but its doable depending on practice/your lifestyle. Anything you can do to limit loan amounts is wise (I limited mine with family help but I understand that not everyone has that option).

Moving to Pre-Med forum (in accordance with SDN policy) where those who wish to do so can comment.

 

[gyngyn]

I am going to be hopefully attending medical school next year. Have any of you had trouble with your debt yet? Is 250k in loans doable?

Nope.
Yes, it is even normal.
There are many ways to discharge debt as a physician.

 

[TheWeeIceMan]

Nope.
Yes, it is even normal.
There are many ways to discharge debt as a physician.

I'd imagine you weren't anywhere near 250k in student loans, correct?

What proven ways are there to discharge debt as a physician? I say proven because I'm not sure we can pencil in any of the repayment programs just yet.

 

[gyngyn]

I'd imagine you weren't anywhere near 250k in student loans, correct?

What proven ways are there to discharge debt as a physician? I say proven because I'm not sure we can pencil in any of the repayment programs just yet.

It cost more for me to attend medical school for a year than everyone in my family put together could earn in four. Whatever the actual cost comparison between then and now, an understanding of what it means to be in more debt than anyone in your family history is a concept that I understand.
Since you noted that you are aware of the programs that reduce debt through service, I won't go through those (your financial aid office can do this quite expertly). I did enroll in one of those. In addition, I moonlighted (moonlit?) and consulted. I am a thoughtful spender. I was debt free in 4 years.

 

[aklark]

OP you might want to take a look at
The White Coat Investor: A Doctor's Guide To Personal Finance And Investing.

Tuition hikes and high interest rates make it harder to pay back than it used to be.

 

[QofQuimica]

I am going to be hopefully attending medical school next year. Have any of you had trouble with your debt yet? Is 250k in loans doable?

There are two key points to making your debt manageable.

First, you should reduce your principal as much as possible. I remember going on my first med school interview at one of my state schools in 2005 and being told that every dollar I borrowed would cost me $2-3 by the time I paid it back (so your $250k could end up costing you as much as $750k). That was a pretty sobering statistic for me, and it heavily influenced me to accept a full scholarship to an OOS med school even though I would have preferred to have continued living in FL. Unfortunately, scholarships to med school are few and far between, and you can't count on getting one. What can you do? Be frugal when it comes to your medical education. Attend the cheapest medical school you can; borrow only the bare minimum that you actually need; and try to avoid high interest loans if possible.

Second (and most important IMO), once you get out of medical school, continue to live well below your means, and use the difference to pay off your loans as quickly as possible. In particular, if you continue to live on $50-60,000/yr for a while after you get out of residency, you will probably be able to pay off your loans within a period of five years even if you didn't borrow as frugally as could have while you were a med student. However, note that this is easier said than done. As an attending, you have to resist the powerful urge to expand your spending up to the level of your increased income. But paying off your loans within a few years is doable if you make it a priority.

 

[TheBoneDoctah]

There are two key points to making your debt manageable.

First, you should reduce your principal as much as possible. I remember going on my first med school interview at one of my state schools in 2005 and being told that every dollar I borrowed would cost me $2-3 by the time I paid it back (so your $250k could end up costing you as much as $750k). That was a pretty sobering statistic for me, and it heavily influenced me to accept a full scholarship to an OOS med school even though I would have preferred to have continued living in FL. Unfortunately, scholarships to med school are few and far between, and you can't count on getting one. What can you do? Be frugal when it comes to your medical education. Attend the cheapest medical school you can; borrow only the bare minimum that you actually need; and try to avoid high interest loans if possible.

Second (and most important IMO), once you get out of medical school, continue to live well below your means, and use the difference to pay off your loans as quickly as possible. In particular, if you continue to live on $50-60,000/yr for a while after you get out of residency, you will probably be able to pay off your loans within a period of five years even if you didn't borrow as frugally as could have while you were a med student. However, note that this is easier said than done. As an attending, you have to resist the powerful urge to expand your spending up to the level of your increased income. But paying off your loans within a few years is doable if you make it a priority.

I would like to live very frugally during medical school for sure. My wife will be working as a nurse as well so we aren't going to be taking out loans for living expenses.

 

[QofQuimica]

I would like to live very frugally during medical school for sure. My wife will be working as a nurse as well so we aren't going to be taking out loans for living expenses.

You're already going to come out ahead of many of your peers then. And the other good news is that your wife can probably find a job just about anywhere in the country. I don't know how competitive your app is, but if you are in the happy position of having a choice among two or more schools, then pick the school with the cheapest tuition.

 

[TheBoneDoctah]

You're already going to come out ahead of many of your peers then. And the other good news is that your wife can probably find a job just about anywhere in the country. I don't know how competitive your app is, but if you are in the happy position of having a choice among two or more schools, then pick the school with the cheapest tuition.

Eh haha. I started my med school journey a little later than most and messed around my first 2 years ruining my GPA. Long store short transferred to ucla from a CC and have a 3.3ish GPA /31 Mcat. I applied to 20 Md schools and 20 DO but most are pricey because they are private unfortunately. :/

 

[Blizzard18]

I am coming out with around 175-200k in loans. This is an estimate since I am just starting. My SO is starting pharmacy school so we will come out pretty good considering she has a full scholarship and pharmacy doesn't require a residency and she can work in retail (community pharmacy) making 90-100k a year while I am in my residency. Basically we will be living on her salary and paying my loans with my resident salary. On the other hand, If she realizes how out of my league she is and bounces (lol) I'm used to living poor since I grew up poor and I intend to pay my loans off first before I do anything else. The journey to be a physician isn't all glamorous like most people think. It's a long hard road, but that's why we do it. Nothing worth doing was ever easy. Don't worry too much about finances man, everyone else is right there with you and life is short lol

 

[TheBoneDoctah]

I am coming out with around 175-200k in loans. This is an estimate since I am just starting. My SO is starting pharmacy school so we will come out pretty good considering she has a full scholarship and pharmacy doesn't require a residency and she can work in retail (community pharmacy) making 90-100k a year while I am in my residency. Basically we will be living on her salary and paying my loans with my resident salary. On the other hand, If she realizes how out of my league she is and bounces (lol) I'm used to living poor since I grew up poor and I intend to pay my loans off first before I do anything else. The journey to be a physician isn't all glamorous like most people think. It's a long hard road, but that's why we do it. Nothing worth doing was ever easy. Don't worry too much about finances man, everyone else is right there with you and life is short lol

Hahahaha the part about her leaving you made me laugh lol.