5 year plan

[PCOMMA]

---

Members do not see this ad.

I am in need of advice on my current situation and hopefully you guys can offer up some advice? To summarize a long story, I had to take a leave of absence this year (I was in my 1st yr) due to personal/financial issues that came up.
My school gave me an option to take a LOA or additional loans to cover living expenses after my wife lost her job. The calculations, if I take for living expenses, came out to around 400K (with undergrad and other school loans) that I would owe at the end of 4 yrs. I can not imagine how I would pay this back, esp. being a non-trad. If my wife had been able to keep her job we would have saved the living expenses (over 120K over the 4yrs) and the debt would have been somewhat managable. If she is unable to get a job, would an extended 5yr program be an option (allowing me to work part time)? Does anyone have any experience with extended programs? I know the cost should be prorated, so it shouldn't be any more expensive than if I had done a 4 yr program.
I am just not sure what to do...it is hard situation and no ideal solution. Thanks.

 

[235750]

I am sorry to hear that your wife lost her job. I am a non-trad as well so I can feel your pain about taking what seems like impossible amounts debt. But, it's not as bad as it seems.

Remember that the gov't caps your monthly repayments as a resident at 15 percent of your income that exceeds 150 percent of the poverty line for the borrower's family size ($15,315 for each individual). So, while you may not be rich, you certainly won't starve either during those lean times. Also, when you finish your training, work for a non-profit, gov't agency, academia, etc, and after 10 years your loans get forgiven no matter the size.(source) Not to mention that plenty of jobs offer loan repayment as an employment incentive (check out locumtenens.com)

SDN has lots of nifty spreadsheets. Go here to estimate your monthly repayment amount

http://forums.studentdoctor.net/showthread.php?t=623775

I'm sure your wife will find a job sometime in the future. Don't count on her being unemployed forever.

If she is unable to get a job, would an extended 5yr program be an option (allowing me to work part time)?

This is a really bad idea for many reasons, which I will all file under..

Opportunity cost. What job would you be doing part time? How much money are you going to make? Unless you are expecting to meet or exceed your income as a physician, then clearly it's not worth it from a financial perspective as you will lose 1 year of an attending's earnings.

Also, residencies are getting more and more competitive. Do you own a home or have children? Are you tied to an area? If so, then may want to concentrate on being a better physician. Achieve better board scores so have more say in where you go for your post graduate training. If you are at all interested in something not related to primary care, then that's another reason too.

Best of luck to you and your family. Feel free to PM me if you have any more specific questions