Debt dilemma for a 30 something incoming student

[yogacat]

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Hello,

I've been mulling over this for several weeks and trying to decide what to do. I hope someone on this forum can offer me advice or tips I haven't thought of.

I’ve been accepted to a DO school and am 95% sure I will be attending this fall. I’ve paid my deposits, found an apartment, etc. I liked the school and think I would be happy/do well there. Of course, I’m terrified about the tuition. I’m in my late 30s, and haven't had any debt for many years. I love that feeling!

I work for an academic physician and every time I talk to him about the debt I’m about to take on, he says “don’t worry about the debt… you got in somewhere, just go.” And all my friends/family are excited that I’m going to medical school… But the debt is almost all I think about. Tuition is about $50,000 year and living expenses another $16,000, though I hope to reduce this by having a roommate. In addition, I have enough savings to cover most of my living expenses for the first two years. Still, I’m looking at the prospect of a large amount of loans AND less time to pay off that debt because of my age. In addition, I’m interested in primary care so I may try for an HSLC scholarship next year. I’m interested in loan forgiveness too but I know those may not be available in the future. Finally, I COULD tap into retirement savings (Roth IRA and State employment plan) but this seems like a bad idea.


I keep thinking about going back to school full time to make myself more competitive for my state MD program just so I can reduce my student loan burden. But we only have 1 in-state program where I live – is it worth the risk to stay and try and get in again? I’ve applied twice and the Dean suggested that before I try again, I go back to school full time. I could move somewhere else with more state medical schools but I know it’s not easy to establish residency as a full time student. Furthermore, there is no guarantee I would get in to a cheaper program if I reapplied… (I’d want to bump up my MCAT score too). FYI, I can’t stay at my job and take classes because we’re out of funding.


So… what to do?

Go with the DO program and do what I can to reduce loan burden/pay off quickly?

Try for a cheaper MD program?

 

[jared_the_great]

Every year you put off attending med school is a year of lost income as a doctor. So by saving yourself tuition you'll be costing yourself earnings. I'd be really surprised if you would actually come out ahead.

 

[thesauce]

I too would not turn down a sure thing to go back to school full time in hopes that you'll get in somewhere that you've already been rejected. Count your blessings and do everything you can do decrease your debt load.

 

[The White Coat Investor]

Go to school this year. Minimize your debt as much as you can. Commit now to live like a resident for 2-5 years after residency. You'll be okay with that approach. Be uncomfortable with debt, but don't lay awake at night because of it. That additional income is worth the hassle of the debt.