Anyone else nervous about dental school loans?

[Star-Lord]

So after making a few calculations, I realized that even my cheapest option (state school) is already around 300K (285K to be accurate), while most others will be around 350-450K. My initial goal was to try and stay under 250K, but that seems impossible unless by some miracle I get into a Texas school. I have made these kind of calculations before applying, however it hadn't really sunk in until now that I am actually applying and paying for everything that comes with the application cycle. I don't want to be 50 years old and still paying for loans. My question is, for those of you that are already in school and are taking out loans, how do you plan to pay for it all afterwards. I know that its possible, however I am wondering what is the most financially smart way of paying back loans. Does specializing make it any easier? Anyway I would appreciate any and all advice!

P.S. because of health reasons I don't qualify for HPSP.

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[CDT13]

Friend of mine graduated 5 years ago and has paid 10k a month since he graduated, and he will have them paid off this November. It's defiantly possible just don't be stupid with money when you get out. FYI he did also borrow to buy a practice 3 years ago, and that also will be paid off at the same time.


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[hizi]

Learn Spanish, live in Puerto Rico for a while then apply there. PR's dental school is only 8 thousand a year (8K). I know.. it's crazyyyy how cheap it is

 

[CDT13]

He is a general dentist btw sorry I forgot that part.


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[Star-Lord]

Friend of mine graduated 5 years ago and has paid 10k a month since he graduated, and he will have them paid off this November. It's defiantly possible just don't be stupid with money when you get out. FYI he did also borrow to buy a practice 3 years ago, and that also will be paid off at the same time.


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That's awesome! Do happen to have any idea how much he had in loans and what the interest rate for his loans were? I know that in the last 5-10 years tuition has increased significantly and so have interest rates.

 

[ProspectivePostPreDent]

Don't let some of the panic artists get into your head. Go on any forum for any job, and you'll see dozens of people complaining about it and/or questioning if it's worth the investment. A general dentist who is smart with his money should have zero issues dealing with 280k.

 

[Lalibila]

Friend of mine graduated 5 years ago and has paid 10k a month since he graduated, and he will have them paid off this November. It's defiantly possible just don't be stupid with money when you get out. FYI he did also borrow to buy a practice 3 years ago, and that also will be paid off at the same time.


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10k a month towards loans, woah. He must be doing well.

 

[Str82th]

Don't let some of the panic artists get into your head. Go on any forum for any job, and you'll see dozens of people complaining about it and/or questioning if it's worth the investment. A general dentist who is smart with his money should have zero issues dealing with 280k.

It's also the internet that is always left out. That 280 will be over 300 before graduation. A smart general dentist should do fine. However, it is not possible to outsmart the declining insurance reimbursement rates and increasing competition.

Minimize debt, attend the cheapest program, live like a student during dental school.


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[FeralisExtremum]

10k a month towards loans, woah. He must be doing well.

Being able to pay 120k after taxes towards loans each year as a general dentist in the first 5 years out of school is a serious outlier, I think it's far from realistic for most graduates.

 

[Life of Pablo]

Well at least you're having this realization now and not when you graduate dental school like a lot of people. It's no joke. Pick your school wisely. Just ask @Big Time Hoosier his thoughts on this topic

Edit: to answer your question if specializing makes it any better... Yes and no. To specialize you might need to take out another big loan. Yes you'll be making more money, but is it enough money to pay about that extra 100-300k loan you took to specialize? Who knows...

 

[CDT13]

Yeah he told me he had 450k all together when he got out. Also it's not after taxes?? He writes it out of the practice, it's an expense. I know he's doing better than most not saying he's average by any means, he's just the only personal example I know.


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[CDT13]

It was out of his check before he bought a practice to be fair. Also no idea what the interest rate was but when you pay that fast 2% here or there isn't as big a deal as ppl holding on for 15 or 20 years


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[Life of Pablo]

Yeah he told me he had 450k all together when he got out. Also it's not after taxes?? He writes it out of the practice, it's an expense. I know he's doing better than most not saying he's average by any means, he's just the only personal example I know.


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He must be living on beans and rice then. For many people that want to start a family out of dental school, this lifestyle probably isn't an option. However, if you're a single male with no females in your life, then maybe.

 

[oralcare123]

He must be living on beans and rice then. For many people that want to start a family out of dental school, this lifestyle probably isn't an option. However, if you're a single male with no females in your life, then maybe.

Why would you want to start family straight out of school with half a mil in loans to pay?

 

[Star-Lord]

He must be living on beans and rice then. For many people that want to start a family out of dental school, this lifestyle probably isn't an option. However, if you're a single male with no females in your life, then maybe.

Yup, I have a wife and a baby, so ramen noodles everyday are not an option. We live cheaply enough but living under 30K for 8 years after dental school might be a bit difficult.

Don't let some of the panic artists get into your head. Go on any forum for any job, and you'll see dozens of people complaining about it and/or questioning if it's worth the investment. A general dentist who is smart with his money should have zero issues dealing with 280k.

I know that a lot of people overreact when it comes to debt, but I want to at least have a plan before borrowing that amount of money. There is also the other extreme, where people will borrow and have no idea how they'll ever pay it back, and I do not want to be in that position.

 

[Life of Pablo]

Why would you want to start family straight out of school with half a mil in loans to pay?

Well to a lot of people, starting a family is very important. If you are a typical applicant, you graduate when you're 26. Are you going to wait until you're in your mid 40s - 50s to start a family when you're debt free?

But what you are saying is correct and it ties back into what I originally said. 400-500k is a LOT of damn money. If you can save 200k, why wouldn't you...?

 

[FeralisExtremum]

Yeah he told me he had 450k all together when he got out. Also it's not after taxes?? He writes it out of the practice, it's an expense. I know he's doing better than most not saying he's average by any means, he's just the only personal example I know.

As far as I'm aware, in the US you legally can't write off student debt incurred in previous years as a present business expense.

 

[Life of Pablo]

Yup, I have a wife and a baby, so ramen noodles everyday are not an option. We live cheaply enough but living under 30K for 8 years after dental school might be a bit difficult.

In your case especially, I think going to the cheapest school would make the most sense. If you work hard during dental school, specializing will always be there. Then again, I'm a pre-dent so what do I know?

 

[oralcare123]

Well to a lot of people, starting a family is very important. If you are a typical applicant, you graduate when you're 26. Are you going to wait until you're in your mid 40s - 50s to start a family when you're debt free?

But what you are saying is correct and it ties back into what I originally said. 400-500k is a LOT of damn money. If you can save 200k, why wouldn't you...?

26 plus 5 makes 31, which is absolutely fine. Even if you wouldn't pay everything off, you are definitely are going to be in a better position to enjoy children, rather then be all overworked and stressed out financially.
How exactly am I supposed to save 200K?

 

[Life of Pablo]

In this day and age, 285k for dental school is a bargain. I don't think you could possibly ever regret going to your state school and saving possibly over 200k. You do realize that amount of money can pay for your child's college tuition? Let that sink in....

 

[Life of Pablo]

26 plus 5 makes 31, which is absolutely fine. Even if you wouldn't pay everything off, you are definitely are going to be in a better position to enjoy children, rather then be all overworked and stressed out financially.
How exactly am I supposed to save 200K?

99% of people won't be able to pay their loans back in 5 years. Stop acting like it's a realistic endeavor.

Edit: I'm saying he can save 200k by going to his state school and not a private school.

 

[oralcare123]

This thread is just another on of those " O, I am/will be half a mil in debt, how on earth people pay that off?"
The answer is simple. Same as if you want to loose weight you need to eat less and exercise more, to pay off a loan you need to work more and spend less. This is in general.
Working more includes working more days and hours, as well as changing practices to get better patients and conditions to become more profitable over shorter period of time.
Spending less means you might have to postpone getting married or having children. Believe me, it is much more pleasurable to have children when you have money to spend on them rather then realize in horror that single diaper costs 50 cents

 

[Life of Pablo]

This thread is just another on of those " O, I am/will be half a mil in debt, how on earth people pay that off?"
The answer is simple. Same as if you want to loose weight you need to eat less and exercise more, to pay off a loan you need to work more and spend less. This is in general.
Working more includes working more days and hours, as well as changing practices to get better patients and conditions to become more profitable over shorter period of time.
Spending less means you might have to postpone getting married or having children. Believe me, it is much more pleasurable to have children when you have money to spend on them rather then realize in horror that single diaper costs 50 cents

The OP already said he has a wife and baby so

My point is, it's very easy to tell people that they need to work more and spend less. It's similar to how easy it is to tell someone to lose weight (referring to your analogy). However, when you actually try to do it, you realize it's not that easy. At the end of the day, the easiest way to pay back half a million in loans is to not take that much out to begin with (go with the cheaper dental school )

 

[Star-Lord]

The purpose of the thread was really to ask for advice to see how people plan on tackling their loans. Would it be smart to try to pay them back in 10 years or 15? It is realistic to think of paying them before 10 years? Are they planning on owning a practice before they pay off the debt or take more risk by buying one before? How do banks feel about lending you money (car, house, or for dental office) when you have over 300K of debt? Do they regret going to a more expensive school or would they do it again? Are they still interested in specializing after D1/D2 when they are realizing the meaning of having such a debt, etc.

I can totally get behind working more and spending less, but there is strategy to it.

 

[CDT13]

He must be living on beans and rice then. For many people that want to start a family out of dental school, this lifestyle probably isn't an option. However, if you're a single male with no females in your life, then maybe.

Actually not close to it. He is taking home around 500k a year. He showed me the taxes because I know him really well, but still called bs and I was proven wrong. Is it typical 5 years out? Hell no but all these ppl on SDN are stupid to say oh if I ever get to 180k a year in 20 years I'll be so happy. I know 12 dentists, no one makes less than 300k a year.


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[oralcare123]

The OP already said he has a wife and baby so

My point is, it's very easy to tell people that they need to work more and spend less. It's similar to how easy it is to tell someone to lose weight (referring to your analogy). However, when you actually try to do it, you realize it's not that easy. At the end of the day, the easiest way to pay back half a million in loans is to not take that much out to begin with (go with the cheaper dental school )

Like that is easy.

 

[Life of Pablo]

Like that is easy.

I don't think it's too difficult

 

[oralcare123]

The purpose of the thread was really to ask for advice to see how people plan on tackling their loans. Would it be smart to try to pay them back in 10 years or 15? It is realistic to think of paying them before 10 years? Are they planning on owning a practice before they pay off the debt or take more risk by buying one before? How do banks feel about lending you money (car, house, or for dental office) when you have over 300K of debt? Do they regret going to a more expensive school or would they do it again? Are they still interested in specializing after D1/D2 when they are realizing the meaning of having such a debt, etc.

I can totally get behind working more and spending less, but there is strategy to it.

The smart way is to pay loans back ASAP to avoid paying too much in interest. Will it take you 5-10 or 15 years, its up to you. If you are in a high production practice getting better and faster every day, making 200-300K a year paying faster is easier compared to working in some chain in CA for $500 a day
Banks will lend you money, if you show them good steady income.

 

[oralcare123]

It is to easy to just not go to an expensive school Just ask @Big Time Hoosier

And what?Work at Walmart?

 

[Alpha Centauri]

And what?Work at Walmart?

No, go study IT or CS and make 6 figures for a few more years before we outsource work to China and India. Soon enough the saturation hanging over Pharmacy swaps to a different field.

 

[caffeine jitters]

The smart way is to pay loans back ASAP to avoid paying too much in interest. Will it take you 5-10 or 15 years, its up to you. If you are in a high production practice getting better and faster every day, making 200-300K a year paying faster is easier compared to working in some chain in CA for $500 a day
Banks will lend you money, if you show them good steady income.

From what I've heard, the smartest option is to make minimal payments on your dschool debt straight out of dschool. This is so you can throw income towards opening your own practice or specializing (if your residency happens to charge tuition).

 

[oralcare123]

No, go study IT or CS and make 6 figures for a few more years before we outsource work to China and India. Soon enough the saturation hanging over Pharmacy swaps to a different field.

Nah. Drilling and pulling teeth is much more fun. Sitting on my a.. all day is not my cup of tea and
I rather go to expensive school

 

[oralcare123]

From what I've heard, the smartest option is to make minimal payments on your dschool debt straight out of dschool. This is so you can throw income towards opening your own practice or specializing (if your residency happens to charge tuition).

Maybe. But after a couple of years you still need to start paying as much as you can, otherwise will be stuck with pretty much the same figure. IRS will come after you eventually as you probably heard

 

[2TH MVR]

You have to think beyond your initial investment debt and to your future earnings. Yes ..... $300K is a lot of money, but to compare ......


16yrs ago I took out a $650K mortgage on my present home. Home with upgrades worth $900K. I owe $170K.
Financed a beach condo for $500K. Sold 15 years later. Paid off mortgage and made a little money.
Financed a 2nd investment beach condo for $175K. Sold 10 years later and made a little money.
My 1st practice was financed for $375K. I owe nothing on this practice.
I moved my 1st practice to another building for another $500K. I owe nothing on this practice.
I purchased an office condo 3000sq ft. Did the build out, furnished and equipped for another $800K. I currently owe $470K on just the building. The practice, and equipment are paid for.


In other words .... $300K is a lot of money, but over your lifetime of working ... you will make that up and much more.
Cheer up.

 

[Star-Lord]

Thanks for all those that have taken the time to reply! I know that paying off loans is possible. It is definitely helpful to have some advice on how to go about doing so.