I am still working on my bachelors degree in biology, but I am trying to think ahead. I want to pay of my dental school loans as fast as I can after I graduate. I think I will be in a practice with other dentists, at first. I don't know which dental school I will be attending or how much it will cost, so I know that it probably isn't possible to tell me exactly how long it will take me to take me to pay back my loans. I basically just want an estimate. I heard that most dentists have an average debt of $130,000 when they graduate from dental school. I will look for scholarships and other sources of income to avoid loans as much as possible.
If I use all of my earnings from my first year as a dentist, do you think that I will be able to pay almost all the loans off in that first year? Thank you!
If you immediately work after graduating, you will likely be associating which means your income will be only a fraction of your production. The owner and your employer will always takes a big cut, since it is his practice. You are just "slave" labor, (not really, just kidding, - it just seems that way).
If instead, you open your own practice, then you will be borrowing lots of money plus starting a patient base from scratch ... so not only would you have large new debts, but likely a low initial income stream. According to the IRS, most start-up dental practices take about 5 years to break even.
In general, your best bet if you want to pay your loans off early is to look more at the savings side rather than income side, although both are important. In another thread I posted some ideas, listing the two biggest drains on income: (1) housing and (2) transportation costs. By conserving on those two expense areas, plus taking advantage of tax law to write off educational interest where possible (I believe a deduction was re-implemented a few years ago, but check first of course), you should be able to pay your loans off sooner than later.
Also, since you have not actually incurred that debt yet, consider working while in school, to essentially reduce your debt burden before it occurs. It's useful, although because of the limited time one can devote to it, limited in its overall effect.
Going to a state school as a resident rather than to a private school helps the most, however, since the costs may be half as much in a state school.
Combine some or all of those means of saving together, and you should have no problem paying off your loans sooner than later. I successfully pursued three of those savings areas, and I was able to pay off my school loans in just 1.5 years.