READ before applying to Private Schools

[Realitydentalstudent]

I just wanted to share these calculations with you to show you guys a realistic scenario if you decided to go to a PRIVATE SCHOOL.

Total debt: 400k
10 year Loan repayment plan: $4,603.21/month or $55,236/ year
http://www.finaid.org/calculators/scripts/loanpayments.cgi

1st year salary: $100,000
After federal and state income tax e.g in Florida: $71,804.25
http://www.adp.com/tools-and-resour...l-calculators/salary-paycheck-calculator.aspx

After loan repayment: $71,804- $55,236= $16, 568
Disability and malpractice insurance estimate: $500/month or $6000/year
True take home pay: $16, 568 - $6000= $10, 568

What job takes home $10, 568 after tax?
One that pays $13,000/year or $6.25/hr!

Did you go through 8 years of school to make $6.25/hr at age 26?



2nd year salary: $120,000
After federal and state income tax e.g in Florida: $84,860.25

After loan repayment: $84,860- $55,236= $29, 624
Disability and malpractice insurance estimate: $500/month or $6000/year
True take home pay: $29, 624 - $6000= $23, 624

What job takes home $23, 624 after tax?
One that pays $30, 000/year or $14.42/hr!

3rd year salary: $120, 000 so same situation




4th year salary and remaining years of debt repayment: $150,000
After federal and state income tax e.g in Florida: $106,025.25

After loan repayment: $106, 025.25- $55,236= $50, 789
Disability and malpractice insurance estimate: $500/month or $6000/year
True take home pay: $50, 789 - $6000= $44, 789

What job takes home $44, 789after tax?
One that pays $60, 000/year or $28.84/hr

Jobs that make around that salary range include
http://jobs.aol.com/articles/2012/11/02/30-jobs-that-pay-30-an-hour/

Ok so a few things about the numbers is that

1. They are quite optimistic because
I used 6.8% interest when in actual fact the interest is increasing yearly.
I used the debt after 4years at 400k when it is probably between 450-550k after living costs for those applying this cycle.
This does assumes no undergrad debt.
Also this does not include health insurance for which the average american pays ~$4000/year and MORE if you are paying for an entire family.
Does not include the cost of CE courses required to advance your career e.g Implant courses are $10,000.
Also having kids within the 10 years or loosing your job would totally alter these projections.
And finally this represents a pretty good scenario in regards to the salary climb for a dentist. 150k/year is the average for an ASSOCIATE as stated by the ADA.

2. But this could be better if
You have a spouse that is willing to pay living costs during dental school or willing to help with living costs during loan repayment.
Are one of those lucky associates that are able to make 200k in their first year
Obviously if you go to a 15year loan repayment plan.

Finally you have to remember that there is rent/mortgage, car insurance, electric and water bills to pay. Looking back at the numbers I don't know if a 10year repayment plan is realistic for anybody earning under 130k in their first year. But anyway, if these numbers discourage you then I recommend sticking to in state. I mean ofcourse it is still possible to make a good living in dentistry even with the 400k debt load but these numbers are quite realistic for the average student/dentist. And last but not least, remember that even though things may suck for 10-15 years, after you have repaid your loans things will be good.


EDIT: Ok since everyone was talking about the 15 year plan and a higher starting salary lets see the scenario:


Total debt: 400k
15 year Loan repayment plan: $3,550.74/month or $42,600/ year

1st year salary: $120,000
After federal and state income tax e.g in Florida: $84,860.25

After loan repayment: $84,860- $42,600= $42, 260
Disability and malpractice insurance estimate: $500/month or $6000/year
True take home pay: $42, 260 - $6000= $36, 260

What job takes home $36, 260 after tax?
One that pays $47, 000/year or $22.59/hr!

2nd year salary: $130, 000
After federal and state income tax e.g in Florida: $91, 915.25

After loan repayment: $91, 915- $42,600= $49, 315
Disability and malpractice insurance estimate: $500/month or $6000/year
True take home pay: $49, 315 - $6000= $43, 315

What job takes home $43, 315 after tax?
One that pays $58, 769/year or $28.25/hr!

3rd year salary: $130, 000 so same situation


4th year salary and remaining years of debt repayment: $150,000
After federal and state income tax e.g in Florida: $106,025.25

After loan repayment: $106, 025.25- $42, 600= $63, 425
Disability and malpractice insurance estimate: $500/month or $6000/year
True take home pay: $63, 425 - $6000= $57, 425

What job takes home $57, 425after tax?
One that pays $78, 000/year or $37.50/hr

Jobs that make around that salary range include
http://www.careerbuilder.com/Article/CB-1348-Job-Search-30-Jobs-That-Pay-80000/

Not too bad!

Like I said before, the 400k loan is doable if you land yourself in a good situation but are the above calculations (15 years of a job that really pays you starting from $47, 000 to eventually $78, 000 a year) really what you expected for a dentist? You have to keep in mind that the current cohort of students graduating from private schools is a running experiment, no one really knows if dentistry will be lucrative at these debt amounts for the average graduate.

Also remember: To reach your income potential of 200k/ year you would need to buy a practice, so with a practice loan you have to remember that it will set your income back quite a bit, towards a first year associate's salary usually.
http://forums.studentdoctor.net/threads/lets-buy-a-dental-practice.739665/page-4

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[HookahLungs]

Looks like I'm becoming a garbage man then.. Sike.. Im still gonna be ballin as a dentist boii

 

[Weakfart]

Don't worry bruh, I got my rap career in my back pocket. I'm gonna be BIG.

 

[HookahLungs]

Don't worry bruh, I got my rap career in my back pocket. I'm gonna be BIG.

Either that or become vine famous, lol

 

[SXCoronado]

.

 

[Julian Delphiki]

This thread doesn't make sense. There are only two options. Go to dental school or don't go to dental school. Yes cost matters. But fact is, because dental school is expensive is the last reason someone will decide to not go to dental school.

 

[sjv]

^hahahahaha

 

[Incis0r]

OP, Thank you for making this thread- as a prospective pre-dent, seeing this message really helps and gives me (and other pre-dents) a lot of perspective.

 

[Realitydentalstudent]

This thread doesn't make sense. There are only two options. Go to dental school or don't go to dental school. Yes cost matters. But fact is, because dental school is expensive is the last reason someone will decide to not go to dental school.

Actually there is 2 other options. State school or military. If there is no state school then join military or get WICHE scholarships such as those available to Idaho/Montana residents, I believe N.Dakota has a similar scholarship too. If you are happy with these numbers then apply to private school.

 

[SM555]

I just wanted to share these calculations with you to show you guys a realistic scenario if you decided to go to a PRIVATE SCHOOL.

Total debt: 400k
10 year Loan repayment plan: $4,603.21/month or $55,236/ year
http://www.finaid.org/calculators/scripts/loanpayments.cgi

1st year salary: $100,000
After federal and state income tax e.g in Florida: $71,804.25
http://www.adp.com/tools-and-resour...l-calculators/salary-paycheck-calculator.aspx

After loan repayment: $71,804- $55,236= $16, 568
Disability and malpractice insurance estimate: $500/month or $6000/year
True take home pay: $16, 568 - $6000= $10, 568

What job takes home $10, 568 after tax?
One that pays $13,000/year or $6.25/hr!

Did you go through 8 years of school to make $6.25/hr at age 26?



2nd year salary: $120,000
After federal and state income tax e.g in Florida: $84,860.25

After loan repayment: $84,860- $55,236= $29, 624
Disability and malpractice insurance estimate: $500/month or $6000/year
True take home pay: $29, 624 - $6000= $23, 624

What job takes home $23, 624 after tax?
One that pays $30, 000/year or $14.42/hr!

3rd year salary: $120, 000 so same situation




4th year salary and remaining years of debt repayment: $150,000
After federal and state income tax e.g in Florida: $106,025.25

After loan repayment: $106, 025.25- $55,236= $50, 789
Disability and malpractice insurance estimate: $500/month or $6000/year
True take home pay: $50, 789 - $6000= $44, 789

What job takes home $44, 789after tax?
One that pays $60, 000/year or $28.84/hr

Jobs that make around that salary range include
http://jobs.aol.com/articles/2012/11/02/30-jobs-that-pay-30-an-hour/

Ok so a few things about the numbers is that

1. They are quite optimistic because
I used 6.8% interest when in actual fact the interest is increasing yearly.
I used the debt after 4years at 400k when it is probably between 450-550k after living costs for those applying this cycle.
This does assumes no undergrad debt.
Also this does not include health insurance for which the average american pays ~$4000/year and MORE if you are paying for an entire family.
Does not include the cost of CE courses required to advance your career e.g Implant courses are $10,000.
Also having kids within the 10 years or loosing your job would totally alter these projections.
And finally this represents a pretty good scenario in regards to the salary climb for a dentist. 150k/year is the average for an ASSOCIATE as stated by the ADA.

2. But this could be better if
You have a spouse that is willing to pay living costs during dental school or willing to help with living costs during loan repayment.
Are one of those lucky associates that are able to make 200k in their first year
Obviously if you go to a 15year loan repayment plan.

Finally you have to remember that there is rent/mortgage, car insurance, electric and water bills to pay. Looking back at the numbers I don't know if a 10year repayment plan is realistic for anybody earning under 130k in their first year. But anyway, if these numbers discourage you then I recommend sticking to in state. I mean ofcourse it is still possible to make a good living in dentistry even with the 400k debt load but these numbers are quite realistic for the average student/dentist. And last but not least, remember that even though things may suck for 10-15 years, after you have repaid your loans things will be good.

Great post. You would think someone who was smart enough to get through dental school wouldn't be dumb enough to work somewhere for 100k

 

[HookahLungs]

Actually there is 2 other options. State school or military. If there is no state school then join military or get WICHE scholarships such as those available to Idaho/Montana residents, I believe N.Dakota has a similar scholarship too. If you are happy with these numbers then apply to private school.

So what's your solution? Do you suggest we don't go to D school? All schools will leave you somewhere near the 300-400k debt range besides in state schools, and even in state schools leave you in a good amount of debt. We know what we're getting into, and it may not be as bad as you've described or it may be worse, but we're willing to take the risk that maybe we won't be broke dentists (how often do you see broke dentists?)

 

[Julian Delphiki]

I don't understand though. I want to be a dentist. I worked hard in undergrad. I did well on the DAT. I have gone to interviews already. Suppose I get accepted to a private dental school. Cost would be 400k plus. So what? Do I give up everything now? No. People who want to be dentists will become dentists.

 

[Realitydentalstudent]

Great post. You would think someone who was smart enough to get through dental school wouldn't be dumb enough to work somewhere for 100k

Yet graduates do all the time. It would be nice for everyone to think that they would be on the right side of the bell curve salary distribution but that is simply not the case. People make bad decisions all the time, take up bad job offers in wrong locations and end up making 50-70k in their first year out. It has happened in every class that has graduated.

 

[Realitydentalstudent]

So what's your solution? Do you suggest we don't go to D school? All schools will leave you somewhere near the 300-400k debt range besides in state schools, and even in state schools leave you in a good amount of debt. We know what we're getting into, and it may not be as bad as you've described or it may be worse, but we're willing to take the risk that maybe we won't be broke dentists (how often do you see broke dentists?)

If you read my post, I tried to make it as fair as possible. Of course you could become one of the groups of graduates who will have no problem with a 400k debt. Every year there's people who make a killing their first year out. I'm not trying to discourage anyone from applying but if you guys don't like the numbers you see then it certainly is something to keep in mind before applying to private schools isn't it? Don't get mad at me because you don't like the numbers.

 

[Weakfart]

If you read my post, I tried to make it as fair as possible. Of course you could become one of the groups of graduates who will have no problem with a 400k debt. Every year there's people who make a killing their first year out. I'm not trying to discourage anyone from applying but if you guys don't like the numbers you see then it certainly is something to keep in mind before applying to private schools isn't it? Don't get mad at me because you don't like the numbers.

For some reason a lot of pre-health undergrads hate seeing numbers. I helped a couple of buddies calculate their potential debt and such and they looked like they wanted to kill me.

 

[HookahLungs]

If you read my post, I tried to make it as fair as possible. Of course you could become one of the groups of graduates who will have no problem with a 400k debt. Every year there's people who make a killing their first year out. I'm not trying to discourage anyone from applying but if you guys don't like the numbers you see then it certainly is something to keep in mind before applying to private schools isn't it? Don't get mad at me because you don't like the numbers.

I know I'll be in debt, I didn't apply to private schools. But private schools are fairly close in tuition as well. Idk, I don't really plan to have to worry about my debt as much as anyone in private schools as im droppin this new mixtape soon. Lol jk, thanks for the info man.

 

[Realitydentalstudent]

This post is somewhat informative...only if you choose the 10-year repayment option and aren't super careful with your spending while in dental school.

First off, I am married and have a child. I have made a detailed spreadsheet including all tuition, fees, and living expenses (transportation, food, housing, other) for each of the schools I applied to (I researched the different locations for living expenses and included a slight increase in tuition each year). For the private schools I applied to, the predicted total average cost is around $370,000* (besides Univ. of the Pacific, which is over $400,000). *My estimates are based on living frugally (e.g. Owning a 15+ year-old vehicle, not spending extra money on expensive electronics, not eating out at expensive restaurants often, living in a small-ish apartment, etc... you're accruing tons of debt, you shouldn't be trying to live like you're a king!)

If you end up going to a private school, you can do it! You can tackle the debt.
Here are some more numbers (taken from dentaltown.com), which include different repayment options:

For debt of $400,000: (these assume a 7% interest rate)
25-year repayment: $2,800 per month
15-year repayment: $3,600 per month
10-year repayment: $4,650 per month
Five-year repayment: $8,000 per month

There are also different loan repayment programs and scholarship commitment programs through the federal government which I would highly recommend looking into.

Of course, I agree that you will be in a much better situation if you can attend a cheaper school and limit your student loans. Here are some numbers geared toward that:

For debt of $200,000:
10-year repayment: $1,750 per month
Five-year repayment: $3,000 per month

I would recommend reading this article, "How to Pay Off Your Dental School Debt" (especially the part about Dave Ramsey):
http://www.dentaltown.com/dentaltown/article.aspx?i=273&aid=3696

Good luck to everyone as you decide where to go to dental school!

Yes like I said in my post things would be different if a longer payment plan is used. But of course in the long run you would be paying significantly more. That is awesome that your schooling with living expenses will only total 370k, but we both know this does not apply to the average student who will be attending private schools. Everyone should do what you did though, calculate the anticipated debt they would graduate with considering the typical yearly tuition increase and the fact that interest on the loan borrowed accumulates from day 1. And most will find that the number will exceed 400k after living costs.

I see you use dentaltown as a resource, then you must know that my view on the 400k loan situation is far more optimistic than those of practicing dentists. Once again I stress I'm not trying to scare anyone but go to dentaltown.com, create a free account, and type "dental student debt" in the search bar for message boards and you will hear the opinion of 100s of practicing dentists about these loans and also graduated dentists with these loan amounts describing how they are doing.

 

[SM555]

Yet graduates do all the time. It would be nice for everyone to think that they would be on the right side of the bell curve salary distribution but that is simply not the case. People make bad decisions all the time, take up bad job offers in wrong locations and end up making 50-70k in their first year out. It has happened in every class that has graduated.

That's why my family will never go to corporate dentistries. Someday they will give up location for a good salary

 

[FOX_ONE]

if the first four years are not what you expected with all that debt, then choose military.
you make $30k to $40k a year as a captain i believe... much more than that $13,000 you showed.

but you project 10,000$ take home after all those payments?

how do you even live for 12 months with food/rent/water/electric??

 

[SM555]

if the first four years are not what you expected with all that debt, then choose military.
you make $30k to $40k a year as a captain i believe... much more than that $13,000 you showed.

but you project 10,000$ take home after all those payments?

how do you even live for 12 months with food/rent/water/electric??

That's based off of a $100,000 salary which is only the case for people trying to live in NYC, LA, etc. Most others will make more than that. I don't think the military is a good option if you plan on opening a private practice. In those four years you could be exponentially growing your patient pool which will be vital when you open your PPO.

 

[jenfromdablock]

Well who the hell said you're going to do a 10 yr repayment plan?

Everyone knows that going through PAYE (10% for 20 years) is the best option for all of us.

 

[SM555]

Well who the hell said you're going to do a 10 yr repayment plan?

Everyone knows that going through PAYE (10% for 20 years) is the best option for all of us.

Is that 10% of the loan or salary? Does the interest keep accumulating?

 

[sjv]

Is that 10% of the loan or salary? Does the interest keep accumulating?

Yes, 10% of salary minus poverty adjustment and the interest keeps accumulating. You end up paying nearly nothing towards the loan and the amount balloons for 20 years while in repayment. At the end of 20 years, you get hit the tax bomb that you are supposed to have saved up for. However, no one has gotten even close to the 20/25 year mark since the laws are fairly recent and everyone is hoping that there will be some student loan reform during that time (no tax bomb).

 

[SM555]

Yes, 10% of salary minus poverty adjustment and the interest keeps accumulating. You end up paying nearly nothing towards the loan and the amount balloons for 20 years while in repayment. At the end of 20 years, you get hit the tax bomb that you are supposed to have saved up for. However, no one has gotten even close to the 20/25 year mark since the laws are fairly recent and everyone is hoping that there will be some student loan reform during that time (no tax bomb).

~ 7.5% interest for 20 years, that seems like that would double the loan, not to mention the 5-9% tax bomb you're talking about. I'd have a hard accepting that payment plan.

 

[Kef318]

I am the parent of a pre-dental student who is hoping to get into Tufts (she's interviewing on 12/8). She's already had 5 other pre-Dec. 1st interviews. Tufts is her first choice simply because her fiance already has a very lucrative job offer in Boston. They realize the amount of debt they are in store for. Neither of them will have any undergrad debt.

Short of paying for her dental education, we would like to help them as much as possible. We are considering paying the interest on her loans each year, since begins to accrue immediately.

If my understanding is correct, Direct Loans are "simple daily interest" loans. This means that interest accrues daily. The amount of interest that accrues per day is calculated by dividing the interest rate on your loan (as a decimal) by the number of days in a year, and then multiplying that by the outstanding principal balance.

For example, on a $10,000 Direct Unsubsidized Loan with a 6.8% interest rate, the amount of interest that accrues per day is $1.86: (0.068 / 365) * $10,000 = $1.86.

For the ease of math, let's say she borrows 70K each year at 6.8%. Am I correct when I say the interest each year will be roughly 0.068 / 365) * $70,000 = $13.04 per day? $13.04 x 365 days would be $4759.60. Is my math correct? Am I missing something?

 

[sjv]

~ 7.5% interest for 20 years, that seems like that would double the loan, not to mention the 5-9% tax bomb you're talking about. I'd have a hard accepting that payment plan.

Yes, the loan will balloon to an insane amount but the remaining balance after 20 years is considered taxable income so you would pay income tax on that amount. For example, let's say you end up paying $300,000 in taxes that year plus the relatively low amount you've been paying for 20 years. If you run the numbers, it may be actually less than what you would pay on another repayment plan. The burden is shifted initially in your career so that you can afford to pay for other things such as a practice or a home and when you're established you can afford to pay the tax.

Once again, this is just a quick example and your experience will vary depending on income, loan amount, etc. The hope is that student loan reform will occur sometime during that time period.

 

[Realitydentalstudent]

That's based off of a $100,000 salary which is only the case for people trying to live in NYC, LA, etc. Most others will make more than that. I don't think the military is a good option if you plan on opening a private practice. In those four years you could be exponentially growing your patient pool which will be vital when you open your PPO.

Actually a 100k salary is not a very bad scenario, 120k would be what you should aim for but many do end up with jobs paying less than 100k. Remember, for these associate jobs you will be competing with people that have completed GPR programs and also with dentists that have 5 years or more experience.

 

[Realitydentalstudent]

~ 7.5% interest for 20 years, that seems like that would double the loan, not to mention the 5-9% tax bomb you're talking about. I'd have a hard accepting that payment plan.

Actually if you leave a loan untouched at 7.5 % interest, it would take less than 10 years for it to double. Just think, to pay off the interest alone for a 400k loan you need to pay 30k a year or 2,500 a month! So for the PAYE program , you need to be making 300k/year to keep your debt at your principle of 400k. You can already begin to tell from this that these programs were not designed for those with the debt load in dentistry which is why I wouldn't bank on the program to exist in 4 years time when you graduate. That being said the PAYE program is a good deal in certain situations i.e potentially high inheritance

 

[Realitydentalstudent]

Yes, the loan will balloon to an insane amount but the remaining balance after 20 years is considered taxable income so you would pay income tax on that amount. For example, let's say you end up paying $300,000 in taxes that year plus the relatively low amount you've been paying for 20 years. If you run the numbers, it may be actually less than what you would pay on another repayment plan. The burden is shifted initially in your career so that you can afford to pay for other things such as a practice or a home and when you're established you can afford to pay the tax.

Once again, this is just a quick example and your experience will vary depending on income, loan amount, etc. The hope is that student loan reform will occur sometime during that time period.

Yes furthermore, you have to remember that paying $X amount of money over 20 years evenly is different from paying the bulk of that $X amount at the very end of that 20 years. The latter will cost you significantly less because inflation over 20years at the current rate of ~2% a year will be your friend

 

[jenfromdablock]

PAYE would amount to about $250,000 as a tax bomb (in the 20th year) and then 10% of your income for 10 years.

In the end, you'd be paying less towards the principal as the interest accumulates but it's totally worth it.

That's my plan and I will live happy doing it.

 

[coolslugs]

And these do not include costs of starting a practice...

 

[Mad Jack]

You could also do 30 year extended repayment.

Loan Balance: $400,000.00
Adjusted Loan Balance: $404,040.40
Loan Interest Rate: 7.80%
Loan Fees: 1.00%
Loan Term: 30 years
Minimum Payment: $50.00
Monthly Loan Payment:$2,908.57
Number of Payments: 360
Cumulative Payments: $1,047,081.88
Total Interest Paid: $647,081.88

Your net pay would be $7,240 per month before student loan repayment with a 120k salary. Subtract out $2,908 and you've got $4,332/mo after taxes, not exactly poverty wages. You can feel free to adjust up or down on the salary for what you find to be more realistic, be it higher or lower.

 

[Thetoothhurts91]

This thread is so depressing

And yet, so realistic. Thanks OP for the wake up call.

 

[FlossFloss]

Yes, the loan will balloon to an insane amount but the remaining balance after 20 years is considered taxable income so you would pay income tax on that amount. For example, let's say you end up paying $300,000 in taxes that year plus the relatively low amount you've been paying for 20 years. If you run the numbers, it may be actually less than what you would pay on another repayment plan. The burden is shifted initially in your career so that you can afford to pay for other things such as a practice or a home and when you're established you can afford to pay the tax.

Once again, this is just a quick example and your experience will vary depending on income, loan amount, etc. The hope is that student loan reform will occur sometime during that time period.

Is that tax bomb literally 300k you have to pay in one year..?? And Idk the politics of this stuff so I'm curious. Is the tax there because you avoided paying a large amount during the whole 20 years? Thanks.

 

[cacajuate]

Well who the hell said you're going to do a 10 yr repayment plan?

Everyone knows that going through PAYE (10% for 20 years) is the best option for all of us.

10% of your income during years 10-20 you are going to be paying huge amounts. You could already pay off the loan before that and not get hit with taxes at the backend.

It is short sighted and inconsiderate to use these payment plans. Someone is going to have to foot the bill for these plans and I don't want to have to pay for other peoples financial recklessness.

 

[jwan14]

Wouldn't going to an out-of-state public school still cost nearly as much? My in-state school estimates that OOSers will spend about 90k on average per year...so 360k of debt...I'd imagine that my in-state school is on par with the rest of the country. So either I get into my one and only in-state school or I am in debt 350-400k. With that logic I should only apply to one school huh? Dang

 

[shulk]

Lots of idealism in this thread. Fact is you'll go to the school you get in at, even if it's not your state school. When the time comes, you'll pick the repayment plan that won't kill you right out of dental school, which is probably anything but the standard 10 year plan, and you won't care one bit about being 'considerate' to your creditors.

 

[krdeuce]

Wouldn't going to an out-of-state public school still cost nearly as much? My in-state school estimates that OOSers will spend about 90k on average per year...so 360k of debt...I'd imagine that my in-state school is on par with the rest of the country. So either I get into my one and only in-state school or I am in debt 350-400k. With that logic I should only apply to one school huh? Dang

Try not having a state school, ANYWHERE I go is gonna be this expensive

 

[ICUrunning]

Don't worry bruh, I got my rap career in my back pocket. I'm gonna be BIG.

Dude, just be Lorde and drop some sick autotune songs. You'll be raking in the $$$.

 

[Kef318]

Short of paying the full tuition expense, what's the best way for a parent/relative to help out? Can they make payments to the loan servicer on behalf of the student?

Because of spouse's job opportunities, I will more than likely go to a very expensive private school (hopefully Tufts). I will have the benefit of his lucrative salary, so there will be no need to borrow money for living expenses, but we will still have a significant amount of debt.

 

[Weakfart]

Dude, just be Lorde and drop some sick autotune songs. You'll be raking in the $$$.

Do you know how many songs I would have to write?!

Short of paying the full tuition expense, what's the best way for a parent/relative to help out? Can they make payments to the loan servicer on behalf of the student?

Because of spouse's job opportunities, I will more than likely go to a very expensive private school (hopefully Tufts). I will have the benefit of his lucrative salary, so there will be no need to borrow money for living expenses, but we will still have a significant amount of debt.

Have them pay off interest. Cutting out living costs would be great so I think you're an exception to the rule.

 

[Thetoothhurts91]

Wouldn't going to an out-of-state public school still cost nearly as much? My in-state school estimates that OOSers will spend about 90k on average per year...so 360k of debt...I'd imagine that my in-state school is on par with the rest of the country. So either I get into my one and only in-state school or I am in debt 350-400k. With that logic I should only apply to one school huh? Dang

As someone who can't apply for my in-state school (long story short, don't have residency due to immigration issues and the school only accepts in-staters), OOS is the only way to go. Fortunately, one of the schools I interviewed at said they give merit based scholarships at about 15K/yr which will definitely cut that 360k of debt.

 

[sjv]

Is that tax bomb literally 300k you have to pay in one year..?? And Idk the politics of this stuff so I'm curious. Is the tax there because you avoided paying a large amount during the whole 20 years? Thanks.

Yeah, the terms are that after 20 years of payments, the balance is forgiven but that amount is considered taxable income so lets say your income is $200,000 + $600,000 in loans, then owe the IRS taxes on an income of $800,000.

Lots of idealism in this thread. Fact is you'll go to the school you get in at, even if it's not your state school. When the time comes, you'll pick the repayment plan that won't kill you right out of dental school, which is probably anything but the standard 10 year plan, and you won't care one bit about being 'considerate' to your creditors.

Truth.

Do you know how many songs I would have to write?!.

Just one but that's not the point.

 

[Realitydentalstudent]

Short of paying the full tuition expense, what's the best way for a parent/relative to help out? Can they make payments to the loan servicer on behalf of the student?

Because of spouse's job opportunities, I will more than likely go to a very expensive private school (hopefully Tufts). I will have the benefit of his lucrative salary, so there will be no need to borrow money for living expenses, but we will still have a significant amount of debt.

Sorry for ignoring your earlier post, I was not sure how the interest was calculated for federal loans since I did not go via federal loans. Paying off the interests would be a huge help though. I would create a free account on dentaltown and check out the financial section
http://www.dentaltown.com/MessageBoard/forum.aspx?s=2&f=2656

It's an amazing resource, you will find the answers you are looking for.

 

[deadragonz]

Yeah, the terms are that after 20 years of payments, the balance is forgiven but that amount is considered taxable income so lets say your income is $200,000 + $600,000 in loans, then owe the IRS taxes on an income of $800,000.



Truth.



Just one but that's not the point.

Haha....love the South Park reference!

 

[EasTexan]

I see people mentioning practice loans when these threads come up. Are these not considered part of the overhead of owning a practice? It doesn't seem like this is something that should be lumped in with student loans, mortgage, car, etc. Yes, it's technically the exact same, but debt service in a practice is usually part of that magically overhead that everyone shoots for, no? (Example: $600k/yr production, 60% overhead including debt service, $240k gross income.)

Anyway, I agree with the numbers when looked at from a worst case scenario: Single student, fully funding education with loans, private school, not willing to relocate after school (hence the 100k or less job), 10 year repayment, etc.

Outside that, there are ways it could work it a lot of people's situation (I would think.. just rambling here). A spouse that can help with living expenses (before and after d-school). Don't live in the nicest place on the block. Don't live like a doctor as a student. Refinance and/or use a longer repayment period (at least in the beginning), relocate for better associateship, etc...

That said, if I lived anywhere else I would:
1. Move to Texas
2. Work for a year, establish residency
3. ~$100k Tuition
4. ?????
5. PROFIT

 

[Cello]

Funny, because I don't see new dentists working second jobs at Walmart to supplement their income. Perhaps they don't opt for a 10-year repayment plan they can't afford?...

 

[fellowstudent92]

Wouldn't going to an out-of-state public school still cost nearly as much? My in-state school estimates that OOSers will spend about 90k on average per year...so 360k of debt...I'd imagine that my in-state school is on par with the rest of the country. So either I get into my one and only in-state school or I am in debt 350-400k. With that logic I should only apply to one school huh? Dang

Hmm I guess it depends on which state right? Some allow the switch to in-state residency. I don't know but I know a couple of OOS public schools that would be cheaper than my state school. These OOS public schools would put me in less than 260 K debt after switching to in state and this includes housing/living costs. Not too shabby right?

 

[Ferneezy]

Funny, because I don't see new dentists working second jobs at Walmart to supplement their income. Perhaps they don't opt for a 10-year repayment plan they can't afford?...

this right here.

- most everyone in this thread, except for the fool above that is hilariously cheerleading PAYE, is going to extend repayment to 30yrs before the ink on their diploma dries.
- we'll all take our first job and make anywhere from $90k to the high $100s
- it's going to suck at first, but we'll get better, and faster, and that will lead to more production and more income
- we'll then be able to jump ship to better associateship opportunities, or (if you have the stones) into practice ownership

if you're not a complete dolt, what is described above will happen to you. more money will come in but your expenses (with respect to your edu loans at least, will remain static). again, if you're smart with your finances, you'll knock down more than the monthly payment on your debt as you go along until they're all paid off and you've held yourself accountable for paying the entrance price you agreed upon to become a dentist.

 

[Realitydentalstudent]

Funny, because I don't see new dentists working second jobs at Walmart to supplement their income. Perhaps they don't opt for a 10-year repayment plan they can't afford?...

I was just putting the 10year up there just as an option, there's a 15 year one in my original post too.