350k in debt for med school

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BTW, you're not seeing a dip in quality of care bc it's still a fairly new trend with insufficient data. However, having worked and received care from both physicians and mid-levels, I know that there's a difference in quality of care. I won't get into the specifics here, but my care was severely compromised when I was seen by a mid-level. I personally don't consider myself to be a fairly complex case at all. I'm a young healthy American who has instances of back pain due to my work environment.


Been doing what I have been doing for a long time, and I have had to take orders from them--and I remember when we didn't. So, midlevels have been in play for quite some time now. The expansion and push for more independence, that's been coming to a head in more recent times.

Well, especially if you are talking relatively simple, non-complex cases, that's just going to come down to the individual in a number of cases. Honestly, it's not like there aren't some S$!^^y docs. I've just been very fortunate to work with mostly really good to excellent docs over the years--but then the places I've worked weren't run of the mill.

Colleges/universities have been seeing how lucrative it is to run such programs, and as such, they don't necessarily require a lot of previous hours as an RN in clinical practice, which can make a difference. Used to be, years ago, RNs with loads and years of experience in critical care and acute care went to programs for advanced practice, and when they came out, stuff made sense. But today, so many just go through their nursing programs, work less than 2 years (which in reality, unless you are ahead of the curve, you are still quite novice), and then they apply and get into advanced practice programs--not even necessarily requiring a GRE. That's really screwed up.

So basically you end up with experientially glorified nurses' aids going into graduate level nursing programs--b/c they haven't toughed it out in the clinical fields, racking up the hours, actually learning stuff. You have some nurses that are into learning and going the extra mile, and then you have a number of barely interested, relatively disinterested nurses that can make more money as an RN than working at the Walmart. And so then later, these same nurses get to thinking, "Why shouldn't I make even more bucks and be a step up from other nurses?"🙄 They have **** for solid, clinical experience and have trouble putting variations and nuances of patient problems together, but, "Woo Hoo!" They've got at a 2.8 to 3.0 GPA, maybe a fair GRE, if required at all, and again, no substantial experience, and are not even close to being expert as RNs in terms of experience and insight. Its all good though, b/c they get some docs to write them some LORs, and schools see $$$$, and there you go. You have an "advanced nurse practitioner" in the making. Again,🙄

And I believe it is with this growing group of NPs that we may see that significant difference shift--b/c they don't even have enough baseline ward or unit or ED experience to know what they don't know--fundamentals of the pathophys and variations from what may be expected. But somehow the miraculous Masters or DNP program will make up for it. Once more, 🙄 Clinically, I don't believe it does. Now if they started stringent residency programs like physicians have, requiring MUCH more clinical hours, then I might have a different view.

But so much of education is about factory production--pushing it all along down the line. Sure, there are programs like U of Penn that are better; but I still would rather see people in programs with NO LESS THAN a solid five years, FT in acute or critical care at teaching or university-based medical center, CCRN certification, plus a high GRE, and then >3.2-3.5 GPA, especially in the sciences. Then after that, they still need to get a lot more clinical hours before they sit before their boards.

Do you actually think all of that will occur across the board? Heck, CRNAs are taking peoples' lives directly in their hands every day, and many of their programs don't require ALL of that--certainly not 5 years or> of FT RN practice in a busy, university medical center ICU. Sure, count some ED time, but mostly ICU, medical and surgical, in a university medical center. But nope. They don't require that. I've known a number of nurses go into CRNA programs that didn't have a clue about understanding basic hemodynamic indices and such, let a lone dysrhythmias. Some of them barely understand blood gas interpretation. This is stuff you should have worked with for years and know like the back of your hand before you enter into a program like that. But nope. Sorry. So much of EDU systems are all about money, money, money. People that work in them know this.

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Nope. That's why my personal PCP is against me applying to med school on financial grounds.


First, I think someone is doing something wrong with the amortization schedules/calculators. Although, seriously, no doubt the costs for ME are prohibitive.

Second, @Dohnut, as a pharmacist, couldn't you still work PT and make a helpful amount of bank to cut down on the painful cost of ME? I mean you also have the pharmacokinetics down too. That's got to be helpful. I've worked for a pharm agency and pulled some nice bank. If I can do it, you most certainly can. Last I checked, pharmacists make more than RNs, even highly experienced ones, unless they are working OT, a lot of off-shift, etc.
Funny. My PCP is supportive of me, even though we all know the financial costs are like rape, pillage, and plunder. Sorry for the hyperbole; but it's not all that far off. 😉
 
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I don't consider myself an expert on student loans, but I don't believe anyone mentioned loan refinance. With that option in mind, the best strategy I am aware of is : sign up for PAYE ( or whichever program is the best ) until such time as you have a job and know for sure if you will qualify for PSLF. If you do, then go with PSLF. If not, refinance you loans, which I have seen being done for under 2% interest rates. Then pay off your loans. Between the lower interest rates, and shorter loan period, most people will come out far ahead of doing IBR/ PAYE and then having to pay the tax due on the forgiven loans. In any case, that's an option that should be considered. As an attending, you can increase your spending over what you earned as a resident by living on your first 100k of salary, and still have an extra 50-60k in after tax money for every extra 100 k you earn to pay off your loans (after taxes ). Most people will have their loans paid off in 5 years or less.

houses are not investments/assets. I will be countered by "appreciation," etc. here. It's just my view that housing (unless you're talking rental properties) is a liability.

This is mostly an issue of semantics. It's an investment, in that you pay money, and get appreciation and a dividend in the form of free rent and the intangible benefits of more freedom and pride of ownership . You pay ongoing taxes on the "dividend" in the form of real estate taxes. The issue is not if it's an investment. It is. The question is whether or not it's a good investment, and how large a proportion of your assets should be devoted to the house. You are correct in saying that it's a liability in the sense that as an investment, it usually falls short of the S&P 500 benchmark. You are incorrect in that you are probably not accounting for the free rent and intangible benefits. Plus, since most people in general, and physicians in particular, are very poor investors, in most cases, the house ends up being their best and most valuable investment.

In my case, my house has appreciated at a rate equal to the S&P 500, even after accounting for real estate taxes, interest, and other expenses .
 
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If I can pay off a big mortgage (> $500K) in ~15 years on MY salary, then you can definitely pay off your school debt in < 10, considering you be making 2x what I make for starters.

But you have a place to live for that 500k mortgage(an additional expense for OP), and I would imagine the interest rate is much better, and you are likely building equity over that time.
 
Some people may not be able to add 2 salaries. If you live with someone or are married, there are often two salaries, which may help a lot when paying off a mortgage or other such things. 🙂 Gotta be fair here.
 
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Most people will have their loans paid off in 5 years or less.

Yes. I agree, but it does depend on their particulars, and it doesn't take away from the ridiculous costs of ME today. Yes. It is also not just ME. It's ALL post-secondary education. Sure, some folks are doing some calculations that are off; but there is still the whole rape, pillage, and plunder part of it.

The reality is that education, and especially ME is becoming more and more cost prohibitive. Paying $400,000 off over 20 or 30 years is one thing--plus a whole lot of extra interest. Paying it over 10 years will be burdensome to a number of new physicians. If they have a partner or spouse, it may well go better for them. There are many factors, but even with white-cost investing and the like, we still have to face the reality. Here's some perspective, and I think his data is ~ 5 years old, and much has increased tremendously since then, but his point is still strong.

http://www.thesimpledollar.com/a-dose-of-financial-reality/
 
And then, there is this:

[Where will it end? Hopefully, capacity will be added at universities to allow greater participation. But even then, if salary and overhead increases continue at the current pace, universities will price themselves out of the reach of most Americans. Perhaps when this happens administrators will be forced to get serious about cost control. Or maybe populist anger will turn from its current focus and realize that the American Dream is being denied them by the profligacy of these college administrators and professors.

People need to wake up and begin to demand fiscal accountability from institutions of higher learning so that future generations have the ability to access higher education and therefore the American Dream.]

Steve Odland
http://www.forbes.com/sites/steveodland/2012/03/24/college-costs-are-soaring/


Also, will this become the reality for many American Med Grads?

http://news.nationalpost.com/health...cant-find-residencies-and-full-time-positions
 
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It's crazy how if we turn those yearly values from 80K to 65K (as is possible with some schools) then the total cost owned after a 3-year residency (assuming you don't pay a penny back till after residency, and at 7%) is 378,000K.

Big difference versus 464,000. That compounding interest is a killer.
That's one of the big advantages of federal loans- they don't compound during school or hardship. If done right, you will only end up with two compounding points during your training- the end of medical school and the end of residency. Everything in between those two points is simple interest.
 
Here's some perspective, and I think his data is ~ 5 years old, and much has increased tremendously since then, but his point is still strong.
http://www.thesimpledollar.com/a-dose-of-financial-reality/

I don't see that as relevant. He's talking about student loans vs minimum wage. Also, the cost of college. Sure, if you owe $300,000 and all you have to show for it is an art history major, or a degree from an unaccredited online diploma mill, then you're in trouble. If your college degree gets you into med school, or gave you a computer programming gig with a tech company, your investment will pay off. College is an investment, but you have to invest wisely.

For most people, going to med school will pay off. Physician salaries are very high compared to most of the 20th century. They may have peaked in the 1990s for some procedures and specialties, but overall, they are still very high compared to the first half of the 20th century. You could probably cherry-pick a particular set of dates in which it was better to have gone to med school, to get the best combination of tuition and salaries that would give you a higher relative net career income than what we have today, but overall, these may very well be the good old days for physicians. You should stop complaining. If you don't think it's worth the money and effort, don't do it.
 
I don't see that as relevant. He's talking about student loans vs minimum wage. Also, the cost of college. Sure, if you owe $300,000 and all you have to show for it is an art history major, or a degree from an unaccredited online diploma mill, then you're in trouble. If your college degree gets you into med school, or gave you a computer programming gig with a tech company, your investment will pay off. College is an investment, but you have to invest wisely.

For most people, going to med school will pay off. Physician salaries are very high compared to most of the 20th century. They may have peaked in the 1990s for some procedures and specialties, but overall, they are still very high compared to the first half of the 20th century. You could probably cherry-pick a particular set of dates in which it was better to have gone to med school, to get the best combination of tuition and salaries that would give you a higher relative net career income than what we have today, but overall, these may very well be the good old days for physicians. You should stop complaining. If you don't think it's worth the money and effort, don't do it.

He's talking about the buying power of the dollar. The jumps over time are outlandish--especially for education.

LOL, it's not about complaining. It's about dealing with the realities. You are a bit ahead of the game on this. That's great for you.
I agree there needs to be better use of the amortization calculators. It's still cost prohibitive for a lot of folks, especially given the time investment, as well as the $$$$$$$. Time is money in terms of OC. Some folks like me may be fine--even if going into PCP. Others definitely will not be quite as OK. And we have to be honest about that.
 
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Man, I've been outta school for too long so that'd be a nice review, lol. At least I don't owe any more student debt and can afford the tuition entirely on my own savings and investments. But if I was what I was like 10 years ago, i.e. traditional applicant with minimum wage making parents then it'd be a gamble.

My PCP is supportive of my decision, that it wouldn't be worth it with the time & money & effort was just his opinion. Unfortunately nowadays that is what it really is for some applicants.



First, I think someone is doing something wrong with the amortization schedules/calculators. Although, seriously, no doubt the costs for ME are prohibitive.

Second, @Dohnut, as a pharmacist, couldn't you still work PT and make a helpful amount of bank to cut down on the painful cost of ME? I mean you also have the pharmacokinetics down too. That's got to be helpful. I've worked for a pharm agency and pulled some nice bank. If I can do it, you most certainly can. Last I checked, pharmacists make more than RNs, even highly experienced ones, unless they are working OT, a lot of off-shift, etc.
Funny. My PCP is supportive of me, even though we all know the financial costs are like rape, pillage, and plunder. Sorry for the hyperbole; but it's not all that far off. 😉
 
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It's crazy how if we turn those yearly values from 80K to 65K (as is possible with some schools) then the total cost owned after a 3-year residency (assuming you don't pay a penny back till after residency, and at 7%) is 378,000K.

Big difference versus 464,000. That compounding interest is a killer.


Yep, the power of exponentials man. Paying back the interest as you go is the best way to go, but I dunno if that'd be possible working yourself while in med school like back in undergrad.
 
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