Advise/Info?

[DrCure21]

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Hello guys:

I don't have too much knowledge about business. Therefore, I was wondering if someone can give me any oppinions/suggestions about my concern. Based on the current pharmacist salary, how long will it take to repay like $ 175 000 dollars of student loan after graduating from pharmacy school? (working full time for sure lol).

Please, any comments is well appreciated.

Thank you.

DrCure21

 

[npage148]

you could do it in 3 years if you did nothing but live in a small aptarment and payed off loans. If you wanted, you could easily put 60k a year towards them

 

[Moxxie]

you could do it in 3 years if you did nothing but live in a small aptarment and payed off loans. If you wanted, you could easily put 60k a year towards them

Hmmm... I was interested in this so I did a little number crunching. Assuming a salary of $100K a year (a little high for some areas), your net income per year would probably be between 70-75K, depending on your deductions (it could be as low as 66K). Now what about income tax? The income tax for a single person having a net income of $66000/year is $13,165 (I looked it up on a tax table). If you're married and can claim more deductions (and hence probably had the higher net income), your tax rate might be $11,630 (being married REALLY helps when it comes to taxes). Of course these taxes will be offset by deductions and such, but you could end up paying $10K in taxes!

So is it feasible to pay 60K a year towards student debt on an average pharmacist's salary? Doubtful. You could probably squeak by with 40K a year if you lived really frugally.

**Disclaimer - I am so NOT an accountant, so my numbers might be wrong here. But it's definitely something to think about. That nice paycheck can certainly be cut down to size quickly!**

 

[imkim01]

Hello guys:

I don't have too much knowledge about business. Therefore, I was wondering if someone can give me any oppinions/suggestions about my concern. Based on the current pharmacist salary, how long will it take to repay like $ 175 000 dollars of student loan after graduating from pharmacy school? (working full time for sure lol).

Please, any comments is well appreciated.

Thank you.

DrCure21

As a career changer, i thought about this matter seriously. But after I got accepted, i was just happy so haven't considered about the loans. Anyways, I will probably go to private school in CA, MA or NV. If I go to school in CA, my loan will be close to $150,000 and the loan for other two schools would be around $100,000. As others mentioned, putting $60,000 doesn't look feasible if you are single. Retail pharmacist makes a little more than $100,000 in CA and after tax, you would bring home around $65,000 ~ 70,000. If you live at home, don't pay any kind of payments and focus on loan, you may be able to pay back the entire amount of loan within 3 years. but I don't think so.

So there are a couple of ways that new pharmacist can do, who really want to get rid of the financial burden.

1. Do overtime. Do as much overtime as you can do. I have seen some pharmacists making close to $200,000. So whatever money you make through overtime, use it for loan.

2. Forget about the loan. Just live with loan. It will take 10 to 30 years depending on how much you are willing to pay. If you want to live a good life style, it will take longer. If you can suffer, you will be able to pay a bit earlier. Anyhow, you would get some tax benefit so it is up to you.

3. find rich girl or guy.... just kidding...

Personally, I will do a lot of overtime and try to pay off as much loan as possible and also save the downpayment for my dream house.

Anyways, let's not get streesed too much about it. Before I get accepted, I really wanted to see the acceptance letter. But now, I sometimes think about the first day when I write a check for loan.

 

[bananaface]

Hmmm... I was interested in this so I did a little number crunching. Assuming a salary of $100K a year (a little high for some areas), your net income per year would probably be between 70-75K, depending on your deductions (it could be as low as 66K). Now what about income tax? The income tax for a single person having a net income of $66000/year is $13,165 (I looked it up on a tax table). If you're married and can claim more deductions (and hence probably had the higher net income), your tax rate might be $11,630 (being married REALLY helps when it comes to taxes). Of course these taxes will be offset by deductions and such, but you could end up paying $10K in taxes!

So is it feasible to pay 60K a year towards student debt on an average pharmacist's salary? Doubtful. You could probably squeak by with 40K a year if you lived really frugally.

**Disclaimer - I am so NOT an accountant, so my numbers might be wrong here. But it's definitely something to think about. That nice paycheck can certainly be cut down to size quickly!**

The deductions usually already include your income tax. So, I think you subtracted it out twice in your estimate.

 

[Moxxie]

The deductions usually already include your income tax. So, I think you subtracted it out twice in your estimate.

Yeah, I thought it seemed a little low - but still, a 66-75K net from 100K gross is a big difference. I think that a lot of people don't realize how much of their salary goes to taxes and other things like 401Ks. I know a couple of PharmDs that just graduated and bought fancy cars right away - now they are struggling to keep up with those payments plus loans, rent/mortgage, etc., even though they are making over more than the 100K figure I mentioned above.

 

[All4MyDaughter]

When I visited my future pharmacy school in September 2004, I met several students who had already purchased/leased EXPENSIVE ($50,000+) vehicles and they were only P4's.

If you do stuff like this you will likely have trouble living on your new salary and paying back the loan.

My family and I have been living on much less than that for awhile, so we plan to really try to hold off on some of the big ticket purchases until a little while after I graduate. The difference between our current income and our income with me as a pharmacist (probably a little more than $100,000 a year in my area in 2010) will be so great that there should be plenty to put toward debt repayment, IF we can resist making major lifestyle upgrades right away.

 

[bananaface]

I'd imagine that alot of us end up paying alot more in the long run by running up stupid debt and not paying it off in a timely manner.

 

[pharmduic]

be financially wise and if your interest rate on your student low is lower than current rates you should take the full 30 years to pay them off
for example, if you student loan rate is 3.0% you could earn 4.75% if you put your money in a savings acct with ING and then you would be making 1.75% on your money and then just paying off the 3.0%
don't EVER rush to pay off your student loans it is not a wise financial decision; make sure you look at interest rates first...also take as much out as you can cuz you get it at a lower rate and then you could invest that money and make more

 

[usi]

OK. I am going to be 41 when I graduate the pharm (provided I get accepted, still waiting here)
I don't mind working overtime, but I do want to take a vacation to Europe with my teenage daughter and my husband, and I don't care if the loans wait a little. Because you live only once!
I will not live luxuriously, but..., I am tired of counting pennies.
My familiy has lived on one income exclusively for way too many years.
We only have one car.
It's getting old...
For me the loans can wait...So can the house.
My mother in law died with a huge credit card debt...She didn't have any overdue payments, I don't think that was so bad...

 

[WSU2007]

Check your student loan interest rate first, rates have gone up quite a bit in the last few years. You won't find one lower than 4-5% anymore!! Keep in mind that you can utilize the 6 month grace period after graduation to pay down some of the principle on you subsidized loans 🙂

be financially wise and if your interest rate on your student low is lower than current rates you should take the full 30 years to pay them off
for example, if you student loan rate is 3.0% you could earn 4.75% if you put your money in a savings acct with ING and then you would be making 1.75% on your money and then just paying off the 3.0%
don't EVER rush to pay off your student loans it is not a wise financial decision; make sure you look at interest rates first...also take as much out as you can cuz you get it at a lower rate and then you could invest that money and make more

 

[DHG]

Yeah, I thought it seemed a little low - but still, a 66-75K net from 100K gross is a big difference. I think that a lot of people don't realize how much of their salary goes to taxes and other things like 401Ks. I know a couple of PharmDs that just graduated and bought fancy cars right away - now they are struggling to keep up with those payments plus loans, rent/mortgage, etc., even though they are making over more than the 100K figure I mentioned above.

Exactly why the IRS set up the deduction system. Its less painful that way. If we all had to pay at the end of the year, we'd realize how much really goes to taxes. There'd be a revolution.

Skimming a bit off each paycheck makes it easier to swallow. Though people should know these things, the government certainly doesn't go pointing it out. I wish people were responsible for their own taxes. I wish we didn't have the option for automatic deductions. I know you can do this on your own, but I wish everyone HAD to do this on their own. It would make for a better informed public.

It also bugs me that the government can take my money before its due. I could deposit that tax money in a savings account and earn interest on it before its due. Then I could pay what I owe at tax time, and keep the interest. The gov't wants that money early (deductions) for the same reason. Bastids. 😡

 

[usi]

Exactly why the IRS set up the deduction system. Its less painful that way. If we all had to pay at the end of the year, we'd realize how much really goes to taxes. There'd be a revolution.

Skimming a bit off each paycheck makes it easier to swallow. Though people should know these things, the government certainly doesn't go pointing it out. I wish people were responsible for their own taxes. I wish we didn't have the option for automatic deductions. I know you can do this on your own, but I wish everyone HAD to do this on their own. It would make for a better informed public.

It also bugs me that the government can take my money before its due. I could deposit that tax money in a savings account and earn interest on it before its due. Then I could pay what I owe at tax time, and keep the interest. The gov't wants that money early (deductions) for the same reason. Bastids. 😡

I used to be one of those people that got happy when I got money back from taxes. Then I realized, that was my money that could have been earning interest for me.
People don't realize, you should get ZERO money back, to actually NOT being taken advantage of.
Last time I checked 20-28% of my money goes in taxes...and we still don't have government subsidized health care, and our schools suck! (except in the rich neighborhoods)