320k in loans best way to pay off

[dentalstuden245]

Was thinking to attend a school that will leave me with about 320k in loans (did add 20k extra just in case), what would you guys suggest would be the best plan to pay it off? I know it's still very early but I just like to have a plan before getting into things, my goal is to try owning my own practice hopefully. Thank for any input.

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[Blueshirts]

Did you account for the $ interest that grows on the loans while you are in school deferment in addition to the $ increase in tuition per year

 

[voxveritatisetlucis]

Consider a different career

 

[AONLINE]

Consider a different career

Nah 320k in d-school debt is honestly not bad in this era. By the time you graduate starting salary can be close to $200k, just live frugally and dedicate a good amount of your monthly paycheck towards loan payment. You should be fine, and you will do great financially once you own. Take this opportunity and best of luck!

-From a young dentist to another soon-to-be dentist

 

[Thehighwind87]

Nah 320k in d-school debt is honestly not bad in this era. By the time you graduate starting salary can be close to $200k, just live frugally and dedicate a good amount of your monthly paycheck towards loan payment. You should be fine, and you will do great financially once you own. Take this opportunity and best of luck!

-From a young dentist to another soon-to-be dentist

320k isn't bad. Agreed.

Starting salary at 200k, more of a long shot, but right place right time sure. If I was a betting man 150k is much more reasonable.

When you factor in the student loans, most likely practice loan, and mortgage/kids, a 320k starting debt load isn't that bad. Prob end up middle class middle of the road 4 day work week. Can't go wrong.

 

[deleted923283]

Watch out for recurring expenses - fancy phone and internet stuff, rent, pricey car. **** adds up.

Avoid believing you “deserve a vacation”

***** yourself out to the best paying job for the first couple years after school.

 

[Thehighwind87]

Watch out for recurring expenses - fancy phone and internet stuff, rent, pricey car. **** adds up.

Avoid believing you “deserve a vacation”

***** yourself out to the best paying job for the first couple years after school.

Bravo. The amount of dentists at 50+ that have student loans, mortgage, etc and no "idea" of when they will retire cuz they keep getting fancy cars, boats, vacations, and even "fancy" dental equipment are numerous.

Talk to an accountant and they will tell you all the downfall of older dentists. Yes we make a decent amount- but it's not "eff you money."

And with the dental "economy" getting worse and worse as time goes on due to higher wages/supplies/rents- your margins will get worse in 5...10...15 years and you will be making "less" as time goes on due to inflation. Simple fact of dentistry is that you prob will never get a raise in the profession unless you are OON/FFS. But one can make the argument that doesn't work anymore either. It's hard to go OON and raise fees when they can just go in network next door competitor and pay 0 out of pocket. Why pay 100$ extra OON for your office? I know I wouldn't...I check my eye doc/internal med doc insurance and make sure all of them are in network. I would never pay OON.

So budget well.

 

[charlestweed]

Was thinking to attend a school that will leave me with about 320k in loans (did add 20k extra just in case), what would you guys suggest would be the best plan to pay it off? I know it's still very early but I just like to have a plan before getting into things, my goal is to try owning my own practice hopefully. Thank for any input.

1. Work 5-6 (not 4, not 3) days a week. When you work all the time, you will be exhausted at the end of the day and will have no time to go out to spend money on stupid things. The physicians, who have to do at least 3 years of low paid hard labor (it’s called medical residency) after graduation, can do this, so can you.

2. Six months after graduation, you will receive the bills from different lenders. Try to make larger payments and pay off the smallest loan first while making the minimum payments on the larger loans. Once that loan is paid off, work on the next larger loan until everything is paid off. DO NOT sign up for the IBR. Don’t rely on the government for the loan forgiveness. You should be in charge of your own problem.....believe in yourself. Government is not the solution to your problem. Government is the problem. Thousands of people have applied for public service loan forgiveness and less than 1% got approved. Here are the facts about public service loan forgiveness.

3. If you plan to get married and have kids, marry a person who also works hard like you. Hard working person tends to be good at multitasking….raising children while working at the same time. Having double income is always better than having 1 income. Financial struggle and stress are one of leading causes of divorce.

4. Once the student loans are paid off (or at least reduced to about 1/2 to 1/3) hopefully after 2-3 years of crazy work schedule, you can go back to the normal 5 day (or 4 if you want to) work week. When you have no debt (or less debt), you should have no problem taking out a business loan to set up your practice. You will still only be in your early to mid 30s.

I know you probably don’t like any of the things that I said above. We choose to go to through a long period of schooling so we can make more and not have to work hard. Nobody likes to work hard. I don’t either. But I can guarantee you that you will come out way ahead of the colleagues who don’t have any loan (because their parents pay everything for them). Life struggle and hard work will make you a better person.

Good luck!

 

[Thehighwind87]

1. Work 5-6 (not 4, not 3) days a week. When you work all the time, you will be exhausted at the end of the day and will have no time to go out to spend money on stupid things. The physicians, who have to do at least 3 years of low paid hard labor (it’s called medical residency) after graduation, can do this, so can you.

2. Six months after graduation, you will receive the bills from different lenders. Try to make larger payments and pay off the smallest loan first while making the minimum payments on the larger loans. Once that loan is paid off, work on the next larger loan until everything is paid off. DO NOT sign up for the IBR. Don’t rely on the government for the loan forgiveness. You should be in charge of your own problem.....believe in yourself. Government is not the solution to your problem. Government is the problem. Thousands of people have applied for public service loan forgiveness and less than 1% got approved. Here are the facts about public service loan forgiveness.

3. If you plan to get married and have kids, marry a person who also works hard like you. Hard working person tends to be good at multitasking….raising children while working at the same time. Having double income is always better than having 1 income. Financial struggle and stress are one of leading causes of divorce.

4. Once the student loans are paid off (or at least reduced to about 1/2 to 1/3) hopefully after 2-3 years of crazy work schedule, you can go back to the normal 5 day (or 4 if you want to) work week. When you have no debt (or less debt), you should have no problem taking out a business loan to set up your practice. You will still only be in your early to mid 30s.

I know you probably don’t like any of the things that I said above. We choose to go to through a long period of schooling so we can make more and not have to work hard. Nobody likes to work hard. I don’t either. But I can guarantee you that you will come out way ahead of the colleagues who don’t have any loan (because their parents pay everything for them). Life struggle and hard work will make you a better person.

Good luck!

Good commentary. You have to understand that the 4 day work week + vacay+ porsche lifestyle is only attainable after years of hard work.

To many new grad dentists go into dentistry and don't understand that you still have to hustle after you get your DDS before you get any of that.

And to many new dentists and even old timers just put debt on the backburner and decide to go buy the tesla/porsche/the big house/the practice and all of a sudden they are wondering in their mid 50's why they don't actually have any money in the bank and just piles of debt that is depreciating at a rapid pace while their dental income stagnates year over year. And stagnation is a real thing because dentistry doesn't adjust to inflation. It remains the same. If you work today the same amount and work in 5 years the same amount- most likely you will make the "same" amount- and actually end up losing "more money" because inflation has depreciated the value of your dollar.

 

[privatedds]

Here is how I did it.

Went to a rural area and worked 4 years making 400k/year (worked 5.5 days/week). After cost of living (which was dirt cheap), I was able to pay off my loan in 2 years. Worked 2 more years to save up money for future practice and RE. Bought both in 2017. Bought my house in 2018. Dentistry is a sh1t career but you can still make it if you work hard.

 

[dentalstuden245]

Did you account for the $ interest that grows on the loans while you are in school deferment in addition to the $ increase in tuition per year

I did not with interest but with the increase in tuition and interest for started 10 year plan I expect it to be around 443k. 3700$ a month payment which seems a very high considering id probably make 120k

 

[Thehighwind87]

I did not with interest but with the increase in tuition and interest for started 10 year plan I expect it to be around 443k. 3700$ a month payment which seems a very high considering id probably make 120k

Don't forget... 2000 $ rent 1000 $ misc expenses- food- utilities- extracurriculars-travel....and or 3000 mortgage with 1000 misc expenses...along with a car loan..car insurance...20k 401k maxing out...along with a practice loan that can amount to 5-10k a month... then with a kid or two those misc expenses climb up to 2k. So if you tack on 3700 + 3000 + 1000 + 401k... you can imagine how much take home you need to actually survive.

Yeah, now you can understand even with dental cash flow- until your debts are paid off- you are technically living paycheck to paycheck. Until you are debt free- you truely don't have freedom. Or you can just go the take on debt route and forget about it/figure it out in your 50's and start scrambling last moment to bust out a retirement.

The bottom line is that- it sounds like you have a good idea of what debt and income entails. I would sit down and really evaluate a goal/budget plan to tackle life head-on. I have a 5/10/15 year plan and it keeps me in check. It prevents me from doing something stupid like buying a 80k car, or a 40k boat.

 

[dentalstuden245]

Don't forget... 2000 $ rent 1000 $ misc expenses- food- utilities- extracurriculars-travel....and or 3000 mortgage with 1000 misc expenses...along with a car loan..car insurance...20k 401k maxing out...along with a practice loan that can amount to 5-10k a month... then with a kid or two those misc expenses climb up to 2k.

Yeah, now you can understand even with dental cash flow- until your debts are paid off- you are technically living paycheck to paycheck. Until you are debt free- you truely don't have freedom. Or you can just go the take on debt route and forget about it/figure it out in your 50's and start scrambling last moment to bust out a retirement.

Would you suggest living with parents? My parents would love for me to live with them and I actually don’t mind as well. So I was thinking if I’m making 150k around I’d probably have 100k net with some expenses here and there. What if I just push all of that 100k into loans for a year or two?

 

[Thehighwind87]

Would you suggest living with parents? My parents would love for me to live with them and I actually don’t mind as well. So I was thinking if I’m making 150k around I’d probably have 100k net with some expenses here and there. What if I just push all of that 100k into loans for a year or two?

That's a question that only you have an answer to. What happens if you get married, have a kid, noone can predict life. I did 3 years "rural" (aka a place noone wanted to work) dentistry paying 500$ for a room rented and lived with 3 other roomates. Paid off my loans- got a practice and got married etc. On track to being debt free with house/practice in 2-3 years by 37. Will prob work a decade more til 45-50 and retire.

Everyone's life situation is different. Just have goals and make yourself accountable to it. If you do that- then you will keep you check. Like I said- your estimated payments is just an estimate. You have to factor in rent, utilities, a mortgage, kids, a practice loan...and when you take all that into account- its like holy crap I need budget, setup a goal, and make it work. And now you can understand why there are "broke dentists and physicians" because the money comes in, but it comes out so quickly.



Heres a good idea of the average american...with a 200k income.

 

[deleted923283]

Absolutely do not get divorced or make a baby with anyone except your wife.

 

[charlestweed]

I did 3 years "rural" (aka a place noone wanted to work) dentistry paying 500$ for a room rented and lived with 3 other roomates. Paid off my loans- got a practice and got married etc. On track to being debt free with house/practice in 2-3 years by 37. Will prob work a decade more til 45-50 and retire.

That’s 15-20 years sooner than most people. You should be glad that you have this wonderful profession. Most other jobs don’t allow you to retire that soon. Most have to work until 65 in order to save enough for their retirements. That's the reward for your hard work.

Practicing dentistry is indeed very hard but it is at least a well paid profession. I'd rather have a well paid job that I don't like than doing what I love (not sure what I love since working is never fun) but it doesn't help me pay the bills. With money, I can get out of this miserable job as soon as the debts are paid off and the saving is big enough for retirement. It's better than living in poverty....in constant fear of losing a job....in uncertainty about the future economy for many decades.

 

[dentalstuden245]

Absolutely do not get divorced or make a baby with anyone except your wife.

Yeah that’s something I don’t want myself getting into until I make a significant dent in my debt. You mind me texting you about Rutgers?

 

[dentalstuden245]

Consider a different career

I’ve been told that before but I particularly like the idea of owning my own business. I know it won’t be easy to but it’s a goal of mine. Plus I do think that it’ll be worth the struggle once I can own my own place and hopefully make 250k or so.

 

[privatedds]

I’ve been told that before but I particularly like the idea of owning my own business. I know it won’t be easy to but it’s a goal of mine. Plus I do think that it’ll be worth the struggle once I can own my own place and hopefully make 250k or so.

First of all wtf.

You are not in dental school yet. Please choose different career. Once you enter and paid 50k or so for first semester, its too late. You get sucked into this ****hole thinking that you made a bad decision and it only gets worse. Trust me man, dont do dentistry. Anyone who goes to dental school now is officially ******ed.

Second of all, there are a plenty of businesses which make more money than dentistry. Even a local sushi place near my place was collecting over 1M lol.

Thirdly, dentistry is a ****ty business model. You cannot expand.

 

[charlestweed]

Second of all, there are a plenty of businesses which make more money than dentistry. Even a local sushi place near my place was collecting over 1M lol.

Like what? Please name one business. I've seen a lot of ownership changes at many sushi restaurants in my area because they are failing. And to open a restaurant, you have to have money. And how can one get the money to start a restaurant? Banks won’t lend the money to a broke person with no job and poor credit score. Since you are earning $900k/year, why don’t you open a sushi restaurant and get out of this horrible dental profession?

 

[deleted923283]

Yeah that’s something I don’t want myself getting into until I make a significant dent in my debt. You mind me texting you about Rutgers?

DM me

 

[axiumgod]

First of all wtf.

You are not in dental school yet. Please choose different career. Once you enter and paid 50k or so for first semester, its too late. You get sucked into this ****hole thinking that you made a bad decision and it only gets worse. Trust me man, dont do dentistry. Anyone who goes to dental school now is officially ******ed.

Second of all, there are a plenty of businesses which make more money than dentistry. Even a local sushi place near my place was collecting over 1M lol.

Thirdly, dentistry is a ****ty business model. You cannot expand.

Says the guy who allegedly makes 900k lol. Did I hear someone say out of touch?

 

[Cold Front]

Was thinking to attend a school that will leave me with about 320k in loans (did add 20k extra just in case), what would you guys suggest would be the best plan to pay it off? I know it's still very early but I just like to have a plan before getting into things, my goal is to try owning my own practice hopefully. Thank for any input.

Assume you found a school that will cost you that 320k in loans after interest, that would be a school that actually charges 65k a year total cost (including living budget), and the interest, today. I believe only 5% of schools cost that or less, and you are not even in school yet. Every year you wait to apply, schools will raise their fees. While you are in school, schools will raise their fees again. So unless your plan starts today as first year dental student, the odds of having 320k in debt is diminishing to 0 at high probability. 350k debt could be the new 320k debt in couple of years, 400k in 5 years, etc.

 

[dentalstuden245]

Assume you found a school that will cost you that 320k in loans after interest, that would be a school that actually charges 65k a year total cost (including living budget), and the interest, today. I believe only 5% of schools cost that or less, and you are not even in school yet. Every year you wait to apply, schools will raise their fees. While you are in school, schools will raise their fees again. So unless your plan starts today as first year dental student, the odds of having 320k in debt is diminishing to 0 at high probability. 350k debt could be the new 320k debt in couple of years, 400k in 5 years, etc.

Sorry if I didn’t clarify but it’s 320k before interest and my parents will be helping me with living costs so I didn’t count that in.

 

[ajlawal]

My advice would be save money and get a house before entering dental school. Your patients can pay the mortgage and you can build equity in the house. You can decide to sell the house after dental school and get a profit to pay down debt. Also, try your best in dental school so you can receive awards and scholarships. That is more money in your pocket. Some schools pay off tuition if you rank very high. Regardless if plan properly, you can reduce your dental debt.

 

[Thehighwind87]

My advice would be save money and get a house before entering dental school. Your patients can pay the mortgage and you can build equity in the house. You can decide to sell the house after dental school and get a profit to pay down debt. Also, try your best in dental school so you can receive awards and scholarships. That is more money in your pocket. Some schools pay off tuition if you rank very high. Regardless if plan properly, you can reduce your dental debt.

Eh....questionable advice. 30 year mortgages are at 6-7% interest rates. Plus housing is still very expensive compared to prepandemic. Housing in my neighborhood prior to covid was 700k starter homes at low interest rates. After covid- it ballooned up to 1.5 million... at 6-7% interest rates...and now is trending down. Still in a bubble.

 

[ajlawal]

Eh....questionable advice. 30 year mortgages are at 6-7% interest rates. Plus housing is still very expensive compared to prepandemic. Housing in my neighborhood prior to covid was 700k starter homes at low interest rates. After covid- it ballooned up to 1.5 million... at 6-7% interest rates...and now is trending down. Still in a bubble.

I understand what you are saying but I think it is still better than renting where you get no equity in return. It also depends on location. It is option that people should look into. Starter homes in other parts of the US are way cheaper. Considering this person is not in dental school, it would take him/her another year before they even get in.

 

[voxveritatisetlucis]

I understand what you are saying but I think it is still better than renting where you get no equity in return. It also depends on location. It is option that people should look into. Starter homes in other parts of the US are way cheaper. Considering this person is not in dental school, it would take him/her another year before they even get in.

No equity is better than negative equity

 

[ajlawal]

No equity is better than negative equity

very true.

 

[Bemosaidit]

That's a question that only you have an answer to. What happens if you get married, have a kid, noone can predict life. I did 3 years "rural" (aka a place noone wanted to work) dentistry paying 500$ for a room rented and lived with 3 other roomates. Paid off my loans- got a practice and got married etc. On track to being debt free with house/practice in 2-3 years by 37. Will prob work a decade more til 45-50 and retire.

Everyone's life situation is different. Just have goals and make yourself accountable to it. If you do that- then you will keep you check. Like I said- your estimated payments is just an estimate. You have to factor in rent, utilities, a mortgage, kids, a practice loan...and when you take all that into account- its like holy crap I need budget, setup a goal, and make it work. And now you can understand why there are "broke dentists and physicians" because the money comes in, but it comes out so quickly.


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Heres a good idea of the average american...with a 200k income.

The video is useful. I will say this: there will never be too much money.