Counting the Cost/Loan Forgiveness Programs

[futuredevpediat]

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I am 36 years old and already have debt from a bachelor's degree and master's degree to pay off. I have not been able to pay those off due to having some years at home with children as well as simply not being able to earn a decent income with those qualifications. I truly feel called to the field of medicine and have specific goals in mind with regard to what I plan to do in the field of medicine. However, one of my biggest fears is the debt. Will I be able to pay all of this off when I am done? I am also unsure of the loan forgiveness programs and how they play in to these decisions. I know that I live in an "underserved area." So, that may help to some degree. However, my concern with that is that I am wondering if these positions would pay much lower than other positions, thereby making it non-beneficial? In other words, would I be able to just pay the loans off faster on my own, making a higher salary? One last question, I am drawn to pediatrics with a special interest in developmental/psychiatric disorders, but I do not want to be a Psychiatrist. I want to work with children on biological treatments of developmental disorders such as the spectrum disorders and other childhood disorders which are considered to be in the mental healthcare field. My background is in Psychology and Counseling. O.K., that's probably too long of a post. So many questions...Thanks for any help and guidance!🙂

 

[FutureDrB]

I am 36 years old and already have debt from a bachelor's degree and master's degree to pay off. I have not been able to pay those off due to having some years at home with children as well as simply not being able to earn a decent income with those qualifications. I truly feel called to the field of medicine and have specific goals in mind with regard to what I plan to do in the field of medicine. However, one of my biggest fears is the debt. Will I be able to pay all of this off when I am done? I am also unsure of the loan forgiveness programs and how they play in to these decisions. I know that I live in an "underserved area." So, that may help to some degree. However, my concern with that is that I am wondering if these positions would pay much lower than other positions, thereby making it non-beneficial? In other words, would I be able to just pay the loans off faster on my own, making a higher salary? One last question, I am drawn to pediatrics with a special interest in developmental/psychiatric disorders, but I do not want to be a Psychiatrist. I want to work with children on biological treatments of developmental disorders such as the spectrum disorders and other childhood disorders which are considered to be in the mental healthcare field. My background is in Psychology and Counseling. O.K., that's probably too long of a post. So many questions...Thanks for any help and guidance!🙂

I'm going to be short and sweet on this one. I'm in the same boat...Already $140K in debt from undergrad and grad. But in all reality, let's say you're $350K in debt after med school. On the Graduated Repayment Plan that's $2,000 per month ($2,800 towards the end). Even pursuing the lowest paying specialty, you'll still be bringing home over $100K per year, or $8,000 - $9,000 per month. Granted, that's going to hurt each month making that payment, but certainly not going to keep you from living a comfortable lifestyle. Plus, chances are you will make a whole lot more than $100K per year. ie. Look around the forums, some recent residency grads post their starting salaries. $250K-$350K for EM, etc. $2,800 is completely feasible, and that doesn't take into account any loan forgiveness, etc.

 

[Prncssbuttercup]

My friend is a general hospitalist, and she makes 220, first year out of residency... I think you can, and if you do something with loan repayment, it will just go that much faster... If you work for the VA (for example) you can get 100% of your loans paid off in 10 years. You will have to make graduated payments for the 10 years, but afterward, they will be paid off... then there is all the NHSC and local stuff for urban/rural work...

 

[pkwraith]

Just did some quick calculations:

At 6.8% over 20 year payment, we have

principle - payment
principle interest years payments
200000 0.068 20 1526.679
150000 0.068 20 1145.009
100000 0.068 20 763.3395
250000 0.068 20 1908.349
300000 0.068 20 2290.019
So, at a low paying job at $100,000 with full payment forgiveness
aftertax monthly salary: 6000 - 0 = $6000

Median debt is around 200k now?
high paying job at $200k with median debt:
after tax salary: 11166.67 - 1526.679 = $9,639.99

median paying salary at $150k with median debt:
9000-1526.679 = $7473.321

median paying salary with forgiveness:
$9000


Now, this is back-of-the-hand excel calculations. So, doing a family medicine with forgiveness and getting a median salary of 150k, you will do pretty close to someone getting a 200k job with median debt (9000 vs 9600 /month).

So the answer is: it depends. You have to crunch your own numbers with more specific details.

 

[futuredevpediat]

I'm going to be short and sweet on this one. I'm in the same boat...Already $140K in debt from undergrad and grad. But in all reality, let's say you're $350K in debt after med school. On the Graduated Repayment Plan that's $2,000 per month ($2,800 towards the end). Even pursuing the lowest paying specialty, you'll still be bringing home over $100K per year, or $8,000 - $9,000 per month. Granted, that's going to hurt each month making that payment, but certainly not going to keep you from living a comfortable lifestyle. Plus, chances are you will make a whole lot more than $100K per year. ie. Look around the forums, some recent residency grads post their starting salaries. $250K-$350K for EM, etc. $2,800 is completely feasible, and that doesn't take into account any loan forgiveness, etc.

Thank you so much for the encouraging reply! I was trying to search around to see what recent residency grads had posted regarding salaries, but I couldn't find it. I am still getting familiar with the site. Can you post a link to one of those discussions? Thanks again!

 

[futuredevpediat]

My friend is a general hospitalist, and she makes 220, first year out of residency... I think you can, and if you do something with loan repayment, it will just go that much faster... If you work for the VA (for example) you can get 100% of your loans paid off in 10 years. You will have to make graduated payments for the 10 years, but afterward, they will be paid off... then there is all the NHSC and local stuff for urban/rural work...

Wow, that is very encouraging! With that type of salary, paying off the debt would not seem quite so daunting. I have looked at the NHSC website, and it seems as though, in one place, it is saying that there is only one site in my area. However, I recall looking there the other day and seeing multiple sites-not sure where I looked on the site to get different answers..Bottom line, though, if the salaries are there, the loan forgiveness could just be a "cherry on top" but would not break me if it didn't work out. Thanks for the reply!

 

[futuredevpediat]

Just did some quick calculations:

At 6.8% over 20 year payment, we have

principle - payment
principle interest years payments
200000 0.068 20 1526.679
150000 0.068 20 1145.009
100000 0.068 20 763.3395
250000 0.068 20 1908.349
300000 0.068 20 2290.019
So, at a low paying job at $100,000 with full payment forgiveness
aftertax monthly salary: 6000 - 0 = $6000

Median debt is around 200k now?
high paying job at $200k with median debt:
after tax salary: 11166.67 - 1526.679 = $9,639.99

median paying salary at $150k with median debt:
9000-1526.679 = $7473.321

median paying salary with forgiveness:
$9000


Now, this is back-of-the-hand excel calculations. So, doing a family medicine with forgiveness and getting a median salary of 150k, you will do pretty close to someone getting a 200k job with median debt (9000 vs 9600 /month).

So the answer is: it depends. You have to crunch your own numbers with more specific details.

Thanks for taking the time to lay some numbers out for me. It is very helpful to see it that way. I think the thing that makes it so difficult is all of the "unknowns," not knowing how much debt I will incur, how much money I will make, and whether or not I will be involved in a loan forgiveness program. I like to plan for the worst and hope for the best. So, if the salaries are high enough, then worst case scenario, I could pay off my loans on my own, I suppose. One big concern is the three residency period, too, though. How do people manage their enormous student loan payments on a resident salary? Aren't those usually around 40K?

 

[FutureDrB]

Thank you so much for the encouraging reply! I was trying to search around to see what recent residency grads had posted regarding salaries, but I couldn't find it. I am still getting familiar with the site. Can you post a link to one of those discussions? Thanks again!

Here is a recent thread by pinipig523. He just finished his EM residency and got two job offers, one for $400K and one for $375K. (Which is pretty freakin' good since I always thought EM salaries were more in the $200K-$250K range.) He took the lower one for benefits if I recall. The entire thread is worth reading, because he provides some valuable insight into several topics.

He also pointed out something that not many people think about when it comes to salaries and that's how they are affected by the population you work with in regards to their insurance coverage. Like I said, I would just go ahead and read the entire thread.

http://forums.studentdoctor.net/showthread.php?t=871408

Keep playing with the search function and you'll find other examples.

 

[Prncssbuttercup]

Fyi, if you use the 'mutliQ' function, you can reply to all of our posts in one reply... just an fyi 😉

 

[futuredevpediat]

Fyi, if you use the 'mutliQ' function, you can reply to all of our posts in one reply... just an fyi 😉

Thanks for the tip. I tried to use the multiQ button, and it would not work for some reason, probably just a glitch, but good to know, nonetheless. I'll try it again later🙂

 

[futuredevpediat]

Here is a recent thread by pinipig523. He just finished his EM residency and got two job offers, one for $400K and one for $375K. (Which is pretty freakin' good since I always thought EM salaries were more in the $200K-$250K range.) He took the lower one for benefits if I recall. The entire thread is worth reading, because he provides some valuable insight into several topics.

He also pointed out something that not many people think about when it comes to salaries and that's how they are affected by the population you work with in regards to their insurance coverage. Like I said, I would just go ahead and read the entire thread.

http://forums.studentdoctor.net/showthread.php?t=871408

Keep playing with the search function and you'll find other examples.

Very informative thread. Thank you! I think I figured out why my searches were not fruitful. I was using the search box at the top right hand corner, and that just kept turning up google searches. I found the search drop down menu for the site. Gonna try that one to see if I can search the forums. Thanks again!