Hi, I would like to know if it is possible for an out of state veterinary graduate student to pay his big loan in 10 years. Lets say that his first year he earns around 40,000 and that his loan was around 150,000, and that he has to pay rent, food and gas. I know his monthly bill will be bigger than if it were for 25 years, but lets say that the student doesnt want to pay so much interest.
Is it possible for an OOS student to pay loan in 10 years?
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Anything is possible...
No family? No dependents? Live with a group of young people, sharing rooms & a house, and pay super cheap rent. Eat ramen and don't save any money. Pick up every extra shift you can find.
Is it a reasonable plan? Not for the average bear.
It will work best if you don't want to do an internship/residency and can just jump into private practice AND you have the luck to find a well-paying first job.
No family? No dependents? Live with a group of young people, sharing rooms & a house, and pay super cheap rent. Eat ramen and don't save any money. Pick up every extra shift you can find.
Is it a reasonable plan? Not for the average bear.
It will work best if you don't want to do an internship/residency and can just jump into private practice AND you have the luck to find a well-paying first job.
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Seeing as it would take at least 4 years of putting 100% of that gross income into paying off that debt, that would be rather rough.
Why are you thinking $40k?
Why are you thinking $40k?
Starting salary can vary quite a bit based on type of practice (large, small, mixed, etc.), whether or not you or going into an internship/residency that first year or into private practice, if you go into the private or public sector, etc. So theoretically, you may be able to do it depending on what field you go into and the quality of life you judge as acceptable.
It has been recommended to the students at my school, by several different speakers, that unless you are a person who will be driven crazy by having debt any longer than necessary, doing the IBR program and paying off as little as possible until your debt is forgiven is actually the smartest plan financially. At least one person (a certified financial planner, specializing in vet med) recommended this even after we brought up the issue of the forgiven income being taxable the year it is forgiven.
It has been recommended to the students at my school, by several different speakers, that unless you are a person who will be driven crazy by having debt any longer than necessary, doing the IBR program and paying off as little as possible until your debt is forgiven is actually the smartest plan financially. At least one person (a certified financial planner, specializing in vet med) recommended this even after we brought up the issue of the forgiven income being taxable the year it is forgiven.
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I'm pretty pessimistic when it comes to trying to figure out my earning potential after graduation... but that sounds very low. So based on the survey results for 2011 grads published in JAVMA, where surveys were sent to 4th years in the 28 stateside schools (94% overall response rate), the average starting salary is $47k including those that went into internships and further training. But it's $66k excluding those who pursued advanced education.
Now, a new grad's ability to procure a job and not be forced into taking an internship is a subject of great debate, but I think it's overly pessimistic (even for me) to project a $40k starting salary, esp if you expect that not to go up for your first 10yrs of employment.
$40K is low.
But .. $150K debt at 6.8% for 10 years is about $1700/month.
$40K salary is about $2600/month take home.
That leaves about $900 to live on. Possible? Maybe ... if you live in an already-paid for car, eat beans and rice, and don't spend much on clothes.
But .. $150K debt at 6.8% for 10 years is about $1700/month.
$40K salary is about $2600/month take home.
That leaves about $900 to live on. Possible? Maybe ... if you live in an already-paid for car, eat beans and rice, and don't spend much on clothes.
