debt fear

[bethhill]

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i just sat down and calculated out the amount of money i will owe by the time i'm out of med school... i'll owe ~190,00 which will likely equate to a total loan payout of $350,000 over the years. i'm really freaking out -- i'm not going into a high pay specialty (fp) and i'm afraid i'll never get out of my debt and build any kind of savings for retirement....
is anyone else in the same boat?

 

[skypilot]

$190k is not bad. Don't let the $350k payout figure scare you at all. If that is a 20 year payout and you are an FP you will have earned $3 million dollars over that period. That's right a cool 3 million. Why are you letting $350k scare you?

If you suck it up for a few years you could pay that $190 down to $100k in the first few years post residency.

 

[wook]

i just sat down and calculated out the amount of money i will owe by the time i'm out of med school... i'll owe ~190,00 which will likely equate to a total loan payout of $350,000 over the years. i'm really freaking out -- i'm not going into a high pay specialty (fp) and i'm afraid i'll never get out of my debt and build any kind of savings for retirement....
is anyone else in the same boat?

There are a few options to help pay off student loans, especially for FP. You could try the National Health Service Corps (http://nhsc.bhpr.hrsa.gov/jobs/search_form.cfm). Many places offer incentives to pay a certain amount toward student loans to attract primary care physicians (e.g. FP). I wouldn't worry too much about it.


Wook

 

[familyfirst]

i just sat down and calculated out the amount of money i will owe by the time i'm out of med school... i'll owe ~190,00 which will likely equate to a total loan payout of $350,000 over the years. i'm really freaking out -- i'm not going into a high pay specialty (fp) and i'm afraid i'll never get out of my debt and build any kind of savings for retirement....
is anyone else in the same boat?

I think about my debt from time to time too. I am afraid that I will never back and never been able to save up for retirement as well. But I spoke to so many professors and physicians, those who manage their income well and stick to a budget seems to be able to afford the lifestyle they wanted. Just have to suck it up for the first few years as an attending and pay off as fast as you can.

There are urban cities that are underserve as well that the federal government can help repay your loans as well. Not just rural areas.

 

[tridoc13]

You're not the only one. I've got close to $250K in student loans and am also going into FP. It will take a while to pay down, but I plan to continue to live like a resident for a few years after I'm actually out and making money. That will allow me to pay a good chunk of that debt off early on and not have such a heavy burden down the line. It can be done, just know that the worst thing we can do is try to live beyond our means when we've got that much debt. If the car can last another year, then wait to buy a new one, etc. At least that's my plan...

 

[OSUdoc08]

i just sat down and calculated out the amount of money i will owe by the time i'm out of med school... i'll owe ~190,00 which will likely equate to a total loan payout of $350,000 over the years. i'm really freaking out -- i'm not going into a high pay specialty (fp) and i'm afraid i'll never get out of my debt and build any kind of savings for retirement....
is anyone else in the same boat?

If you make $150,000 as a family practitioner, you can pay it back in 7 years and still make $100,000 a year. Since you are given 10 years to pay it off, it will not be a problem at all.

I still am baffled by why people are worried about things like this.

 

[AlternateSome1]

If you make $150,000 as a family practitioner, you can pay it back in 7 years and still make $100,000 a year. Since you are given 10 years to pay it off, it will not be a problem at all.

I still am baffled by why people are worried about things like this.

Sounds like you forgot taxes.

 

[OSUdoc08]

Sounds like you forgot taxes.

It shouldn't make that much of a difference.

Would it make the example better if I said you made 150K after taxes?

 

[CycloneDub]

It shouldn't make that much of a difference.

Would it make the example better if I said you made 150K after taxes?

Yes. But FP's don't routinely make 150K after taxes. (given 35% taken out for taxes, office expenses, etc.) I think 100-120K seems more reasonable, at least to begin with.

Remember, it all depends on your loan payment interest rate. If you locked in something low, you should not rush to pay it all back because your money is better spent on investing at current interest rates. If your loan interest rate is higher than the current bank interest rate then it is in your best interest to pay it off sooner.
In the end, if you live smartly for the first few years, you should do fine.

 

[familyfirst]

Sounds like you forgot taxes.

But if you buy an affordable house, you can deduct on your taxes. If you have family and children anyone during repayment, you cah deduct. That should help with taxes. Find a good and trustworthy financial planner and accountant.

 

[familyfirst]

Oh, there are some states that don't have state income tax like Texas. So if we are really worry about our debts and don't mind moving to texas or something, it will help save up. NYC tax is one of the worst. All depends how you want to live. I agree with the person who said, the worst thing to do is to live beyond our means at this time because you just get further into debts like so many residents buy new, luxury cars. They lease actually thinking that it is ok because everyone loves to sell things to physicians. Anyway, that's my 2 cents as well. 😀

 

[Gut Shot]

Oh, there are some states that don't have state income tax like Texas. So if we are really worry about our debts and don't mind moving to texas or something, it will help save up.

Oh, they still get their pound of flesh. The sales tax in Texas is 8.25%, and depending on where you live the property taxes can be jaw-droppingly outrageous.

 

[OSUdoc08]

Yes. But FP's don't routinely make 150K after taxes. (given 35% taken out for taxes, office expenses, etc.) I think 100-120K seems more reasonable, at least to begin with.

Remember, it all depends on your loan payment interest rate. If you locked in something low, you should not rush to pay it all back because your money is better spent on investing at current interest rates. If your loan interest rate is higher than the current bank interest rate then it is in your best interest to pay it off sooner.
In the end, if you live smartly for the first few years, you should do fine.

The average total salary if you are an FP (with OB) is $182,000 (1-2 years in practice) and $204,000 (greater than 3 years with practice).

It all depends on where you live, however.

http://www.allied-physicians.com/salary_surveys/physician-salaries.htm

 

[ekydrd]

OK all you smarty pants... help me out with this one then...

Not only do I have to worry about paying back student loans of nearly $200K, I am also getting close to retirement age already, so I also need to save for retirement, and live comfortably in the mean time. What's the best plan for that?

P.S. I'm med/peds so income potential is similar to FP.

 

[penguins]

I don't know if it would help you out or not, depending on your situation. But if you have a SO...
We are buying a house based on my income alone and will live like we just have a resident's salary. My husband's income will just be for paying off my loans. I took out about 200K but with all the origination fees and interest so far, I owe $250K already. The interest rate I have now is about as low as it can get so it can't get any better. I don't want the interest to pile up on me.

Instead of buying a new car or upgrading lifestyle, put that money towards retirement. Do residents usually get to participate in a 401k?

 

[CycloneDub]

The average total salary if you are an FP (with OB) is $182,000 (1-2 years in practice) and $204,000 (greater than 3 years with practice).

It all depends on where you live, however.

http://www.allied-physicians.com/salary_surveys/physician-salaries.htm

Ok, let me lay it out for you:

1) Those salary survey numbers are not accurate. I think that they are in the ballpark, but I would not use them a standard candle for salaries.

2)
FP total salary = 182,000
Tax bracket: 33% + State Tax + City Tax (NYC higher, TX lower) (say 5% total extra) (this does not include property taxes, etc.)
Take home compensation = 182,000 *.62 = 112,840

FP total salary = 202,000
Tax bracket: 33% + State Tax + City Tax (NYC higher, TX lower) (say 5% total extra) (this does not include property taxes, etc.)
Take home compensation = 202,000 *.62 = 125,400

Of course it matters where you live, but every state has there own means of obtaining revenues. NYC/MA uses income taxes while TX uses property taxes. Other states fall in the middle somewhere. Either way, there is extra taxation on your living besides federal income tax.

You can still live very well on this salary and pay off your loans -- just probably not 50K/yr unless you really budget.

 

[teninepit]

It shouldn't make that much of a difference.

Would it make the example better if I said you made 150K after taxes?

Sigh, taxes matter HUGELY. For example, an ER doc in Oklahoma making 300k.

Federal taxes per IRS website - $86,048
Fica/Medicare $10,190
OK State $20,080

Total $116,318 in TAXES on 300k income. Not to mention the ancillary sales tax on everyday things. Property tax on homes run minimum $2k for $150k house. Mortgage payments, car payments, food, cc etc etc etc. Yes, married people will have some decent deductions, but it only gets you so far.

And before you go and say you will live in TX, (from looking at your other posts) they KILL you on property taxes. I have a friend who used to live there and makes this kind of income and they paid MORE in taxes there than they did in Oklahoma or the third state (within this region) they live in now.

So in summary, to say that it is easy to pay back 300k in student loans in 3 years is very silly because you obviously do not have a firm grip on the economics of life. Also, I did not even mention malpractice insurance which in EM which not all EM groups cover for you.

 

[Va-Jay-Jay]

Except for the minority of students with sugar daddy parents or significant others, we're all pretty much in the same boat. Although we've been cursed with soaring tuition costs, we've been blessed with great interest rates over the last few years. Consolidate your loans if possible to lock in these rates, and don't be in a hurry to pay off all your debt within 10 years. Sure... you spend more on interest if you spread it out over 30 years, but you'll be able to invest WAY more into mutual funds, retirement accounts, etc. from the get go, which have a higher interest rate than those loans.

 

[skypilot]

Sigh, taxes matter HUGELY. For example, an ER doc in Oklahoma making 300k.

Total $116,318 in TAXES on 300k income. Not to mention the ancillary sales tax on everyday things. Property tax on homes run minimum $2k for $150k house. Mortgage payments, car payments, food, cc etc etc etc. Yes, married people will have some decent deductions, but it only gets you so far.

So in summary, to say that it is easy to pay back 300k in student loans in 3 years is very silly because you obviously do not have a firm grip on the economics of life. Also, I did not even mention malpractice insurance which in EM which not all EM groups cover for you.

The above example illustrates the problem perfectly. Lets say you choose to live the equivalent lifestyle of someone who makes $60k per year for a few years before taxes. That would be a $40k in take home income after taxes.

$316k-116k taxes = $200k take home minus $40k in living expenses = $144k in debt service which will allow you to pay off your loans in well under 3 years.

If you can't live on $40k take home it is because you are blowing too much money on BMWs and expensive homes. Plenty of people are living quite well on this type of income.

 

[AlternateSome1]

The above example illustrates the problem perfectly. Lets say you choose to live the equivalent lifestyle of someone who makes $60k per year for a few years before taxes. That would be a $40k in take home income after taxes.

$316k-116k taxes = $200k take home minus $40k in living expenses = $144k in debt service which will allow you to pay off your loans in well under 3 years.

If you can't live on $40k take home it is because you are blowing too much money on BMWs and expensive homes. Plenty of people are living quite well on this type of income.

While I agree to some extent, I think it is pushing it to disregard the fact that we are 8 years (schooling + residency) behind the people making $60K a year. As soon as we get out of residency we have to start purchasing vehicles to replace the jalopys that got us through schooling, homes and furniture since most of us will have very little, AND start saving for retirement (hey, most of us will be in our 30s!). These expenses plus the fact that most of us will NOT be making 300K our first year out of residency (many never reaching that amount) makes the situation less tolerable than presented. That being said, I think it is pretty realistic to have $80K in take home, put 20-30K toward loans, and live off of $50-60K.

 

[teninepit]

While I agree to some extent, I think it is pushing it to disregard the fact that we are 8 years (schooling + residency) behind the people making $60K a year. As soon as we get out of residency we have to start purchasing vehicles to replace the jalopys that got us through schooling, homes and furniture since most of us will have very little, AND start saving for retirement (hey, most of us will be in our 30s!). These expenses plus the fact that most of us will NOT be making 300K our first year out of residency (many never reaching that amount) makes the situation less tolerable than presented. That being said, I think it is pretty realistic to have $80K in take home, put 20-30K toward loans, and live off of $50-60K.

My point was to OSUDoc saying taxes dont matter. Granted many never realize the 300k example. However, back to the start of this thread and someone going into FP which might, might make 150k, the point is taxes are going to take a good chunk. Also with 40k of living expenses(and I would argue for a family of 3 closer to 50-60K), you are not going to pay off your loans in 3 years as OSUDoc so put.

 

[OSUdoc08]

My point was to OSUDoc saying taxes dont matter. Granted many never realize the 300k example. However, back to the start of this thread and someone going into FP which might, might make 150k, the point is taxes are going to take a good chunk. Also with 40k of living expenses(and I would argue for a family of 3 closer to 50-60K), you are not going to pay off your loans in 3 years as OSUDoc so put.

Sure you are. If you continue living as you have as a resident at the $40,000 a year, then you will quickly pay everything off and then purchase whatever you wish.

If it is instead your priority to start buying lots of things now while you are still in debt, that is your business.

Your argument is based on the fact that one needs the remaining $100K (after taxes, insurance, etc.) to live on, which is not true, since you have been living on $40K for several years at this point.

 

[OSUdoc08]

While I agree to some extent, I think it is pushing it to disregard the fact that we are 8 years (schooling + residency) behind the people making $60K a year. As soon as we get out of residency we have to start purchasing vehicles to replace the jalopys that got us through schooling, homes and furniture since most of us will have very little, AND start saving for retirement (hey, most of us will be in our 30s!). These expenses plus the fact that most of us will NOT be making 300K our first year out of residency (many never reaching that amount) makes the situation less tolerable than presented. That being said, I think it is pretty realistic to have $80K in take home, put 20-30K toward loans, and live off of $50-60K.

This is exactly why you must pay off your loans as quickly as possible in a few years, so that you may being these large purchases and savings. If you are buying things while you have debt collecting interest, you will lose more money in the long run.

 

[dobonedoc]

If you suck it up for a few years you could pay that $190 down to $100k in the first few years post residency.

Don't have a business degree, and therefore do not claim to be an expert in this field - ANYWAY - I question this approach. At recent interest rates I was able to consoidate at under 4%. After a few years, my interest will fall to about 2.75%. Life of this loan is in the neighborhood of 30 years.

I plan to pay as little as possibe on this loan at this rate as I can. I suspect that inflation will continue to increase, and expect that the return on my investments will provide greater than 3% gains per year. I plan to contribute to my retirement as much as possible, and to keep consumer/auto debt to zero. As for my house, seems like a mortgage payment is a benefit to the taxes. Finally - GOD FORBID - If my life is cut short for whatever reason, my loans expire with me. I'm not banking on this apporach, but if it were to happen, I would like to know that I provided as much for my family as possbile (House, college, insurance, etc.) than paying off my school expenses.

Bottom line, paying off the big and scary educational debt quickly seems to be the wrong focus. I will be more concerned about making greater returns on my assets.

 

[OSUdoc08]

Don't have a business degree, and therefore do not claim to be an expert in this field - ANYWAY - I question this approach. At recent interest rates I was able to consoidate at under 4%. After a few years, my interest will fall to about 2.75%. Life of this loan is in the neighborhood of 30 years.

I plan to pay as little as possibe on this loan at this rate as I can. I suspect that inflation will continue to increase, and expect that the return on my investments will provide greater than 3% gains per year. I plan to contribute to my retirement as much as possible, and to keep consumer/auto debt to zero. As for my house, seems like a mortgage payment is a benefit to the taxes. Finally - GOD FORBID - If my life is cut short for whatever reason, my loans expire with me. I'm not banking on this apporach, but if it were to happen, I would like to know that I provided as much for my family as possbile (House, college, insurance, etc.) than paying off my school expenses.

Bottom line, paying off the big and scary educational debt quickly seems to be the wrong focus. I will be more concerned about making greater returns on my assets.

How does a "locked-in" consolidation interest rate fall?

 

[CameronFrye]

How does a "locked-in" consolidation interest rate fall?

Depending on who you consolidate with, various lenders offer various interest rate deductions for automatic debit, 48 straight months of on-time payment, etc.

 

[teninepit]

Sure you are. If you continue living as you have as a resident at the $40,000 a year, then you will quickly pay everything off and then purchase whatever you wish.

If it is instead your priority to start buying lots of things now while you are still in debt, that is your business.

Your argument is based on the fact that one needs the remaining $100K (after taxes, insurance, etc.) to live on, which is not true, since you have been living on $40K for several years at this point.

First off, I was trying to make a point to you about how silly your comment about taxes not mattering is. $300k salary you lose 110+. If that is not a big deal to you, all I can say is wow.

If you make $150,000 as a family practitioner, you can pay it back in 7 years and still make $100,000 a year. Since you are given 10 years to pay it off, it will not be a problem at all.

I still am baffled by why people are worried about things like this.

Back to the original post, they claimed FP income which might be around $150k. In the state of OK, which I know you currently reside OSUdoc, that would still cost you $58788 in income taxes. Again, not forgetting paying a mortgage and all the other daily needs. Lets say those are $50K which is very fair for a family setting(many residents I know with only the resident income are barely getting by on 40-50k) , by my math that leaves less than 42k for loans, not to mention needing to save for retirement.

SO AGAIN TAXES MAKE A HUGE DIFF AND YOU CANNOT REASONABLY PAY OFF $200K IN LOANS CAPITALIZED IN 3 YEARS AS YOU CLAIM. It might be doable to pay off the loan in 7, BUT that assumes paying 42k a year. You mean to tell me a doctor & family is gonna live on 50k a year for 7 years without no large expenditures? I dont think soooooooo.

Let also say that I am a HUGE advocate for paying off student loans, especially if you have the high interest private loans. But, you also need to save for your retirement. That is generally goning to mean extending the life of the lower interest loans well beyond 7 years in my above discussion.

Why dont you stop, listen, and learn from someone who has 13 years of experience in financial planning matters and is actually having to deal with these matters as of now.

 

[OSUdoc08]

First off, I was trying to make a point to you about how silly your comment about taxes not mattering is. $300k salary you lose 110+. If that is not a big deal to you, all I can say is wow.

Wow? I'm not following. You were already making $40,000 a year, so it shouldn't be a problem to keep living on that amount. What's the point in buying a mansion the first year out when you can take care of some unsettled debt first?

Back to the original post, they claimed FP income which might be around $150k. In the state of OK, which I know you currently reside OSUdoc, that would still cost you $58788 in income taxes. Again, not forgetting paying a mortgage and all the other daily needs. Lets say those are $50K which is very fair for a family setting(many residents I know with only the resident income are barely getting by on 40-50k) , by my math that leaves less than 42k for loans, not to mention needing to save for retirement.

It's still enough money compared to what you are already making a resident. You don't need to worry about retirement if you are paying off the loans quickly, as you can save massive amounts the following years to catch up.

SO AGAIN TAXES MAKE A HUGE DIFF AND YOU CANNOT REASONABLY PAY OFF $200K IN LOANS CAPITALIZED IN 3 YEARS AS YOU CLAIM. It might be doable to pay off the loan in 7, BUT that assumes paying 42k a year. You mean to tell me a doctor & family is gonna live on 50k a year for 7 years without no large expenditures? I dont think soooooooo.

Give it a rest. You were making less than that during residency anyway. Who said anything about a family? Lastly, you've only got 10 years to pay it off anyway. The discussion is about 3 years.

Let also say that I am a HUGE advocate for paying off student loans, especially if you have the high interest private loans. But, you also need to save for your retirement. That is generally goning to mean extending the life of the lower interest loans well beyond 7 years in my above discussion.

Once again, you do not need to save for retirement if you are paying off loans quickly in 3 years. You can save double the normal amount the subsequent 3 years to make up for the lost time.

Why dont you stop, listen, and learn from someone who has 13 years of experience in financial planning matters and is actually having to deal with these matters as of now.

I don't feel as though your points are applicable to the situation.

 

[teninepit]

Once again, you do not need to save for retirement if you are paying off loans quickly in 3 years. You can save double the normal amount the subsequent 3 years to make up for the lost time.

Pay Attention,

I just showed you how it is mathmatically impossible to pay off the $200k loan in 3 years on a FP salary in my post.

Again 150k (attending salary) less $58788 in taxes = 91212 tax home less 50k family year(same as a sr resident) expenses = 41212 for possible loan service. 42212 TIMES 3 Years = 126,636 loan serviced.

How does that pay the $200k loan plus interest off in 3 years?

Also, you have 30 years to pay off loans now.

 

[OSUdoc08]

Pay Attention,

I just showed you how it is mathmatically impossible to pay off the $200k loan in 3 years on a FP salary in my post.

Again 150k (attending salary) less $58788 in taxes = 91212 tax home less 50k family year(same as a sr resident) expenses = 41212 for possible loan service. 42212 TIMES 3 Years = 126,636 loan serviced.

How does that pay the $200k loan plus interest off in 3 years?

Also, you have 30 years to pay off loans now.

Pay Attention,

I'm going into EM.

You have a choice of paying back loans in 10 or 30 years. If you choose 30 years, you will be paying MUCH more money overall in the end. That's pretty idiotic when you are making a buttload of money to being with.

 

[teninepit]

Pay Attention,

I'm going into EM.

You have a choice of paying back loans in 10 or 30 years. If you choose 30 years, you will be paying MUCH more money overall in the end. That's pretty idiotic when you are making a buttload of money to being with.

Dude,
The original question was paying off loans on a FP attending salary, which as I just showed is impossible to pay off the loan of 200k in 3 yrs.

I hope you listen better to your patients then you do on here.

 

[businessmd06]

Keep in mind compounding interest on your investments. It is always wise to add each year, then to try to double up the next. Obviously it is great if you can double up, but you should still put something in each year, atleast a roth IRA 4k-8k depending on Marital Status.

If you are going into EM and are contracted you can also look into SEP accounts. They tend to double in value every 7 yrs or so if invested properly.

 

[OSUdoc08]

Dude,
The original question was paying off loans on a FP attending salary, which as I just showed is impossible to pay off the loan of 200k in 3 yrs.

I hope you listen better to your patients then you do on here.

Dude,

The OP didn't say anything about 3 years repayment----he can use 10 years for all I care. The 3 years was applicable to EM only.

I hope you listen better to your patients than you do on here.

 

[teninepit]

Dude,

The OP didn't say anything about 3 years repayment----he can use 10 years for all I care. The 3 years was applicable to EM only.

I hope you listen better to your patients than you do on here.

Whatever, I did not know this thread was about you. BTW im not a doctor, just a concerned citizen and truth detector. You come in and tell everyone they are wrong and turn it to your situation.

 

[OSUdoc08]

Whatever, I did not know this thread was about you. BTW im not a doctor, just a concerned citizen and truth detector. You come in and tell everyone they are wrong and turn it to your situation.

I was simply saying that loan repayment is a non-issue at a physician salary---no matter the specialty. You'll get it repaid in a timely matter and still live well.

You have persistently, but unsuccessfully attempted to disprove this.

 

[EctopicFetus]

Let me quickly chime in. I missed the beginning part but on 150K you will pay about

5600 to Social Security and 1.45% to Medicare so about 2200. According to the US Govt if your taxable income is $150,000 and you are single you will pay about 36K which if you "earn" that amount you do get a personal exemption and if you have a mortgage you can write off the mortgage interest, also keep in mind that retirement (401k) and your health insurance is all tax deductable. But if you deduct NONE of that then you pay 36K plus the 5K plus the 2200 to medicare. So thats 43K, now there is also state income tax which is also tax deductable and even at 5% you would be 7500 but of course that then becomes less and you can deduct a lot of stuff off that number. So with everything you are looking at 50K in taxes etc and so you would be left with 100K minus the 50K as a resident leaving about 50K to pay off loans.

 

[teninepit]

Let me quickly chime in. I missed the beginning part but on 150K you will pay about

5600 to Social Security and 1.45% to Medicare so about 2200. According to the US Govt if your taxable income is $150,000 and you are single you will pay about 36K which if you "earn" that amount you do get a personal exemption and if you have a mortgage you can write off the mortgage interest, also keep in mind that retirement (401k) and your health insurance is all tax deductable. But if you deduct NONE of that then you pay 36K plus the 5K plus the 2200 to medicare. So thats 43K, now there is also state income tax which is also tax deductable and even at 5% you would be 7500 but of course that then becomes less and you can deduct a lot of stuff off that number. So with everything you are looking at 50K in taxes etc and so you would be left with 100K minus the 50K as a resident leaving about 50K to pay off loans.

I agree with you, I have a strong finance background and took all my numbers from govt tax tables and did the calculations. I did not assume any deductions that you mention for the purpose of discussion but those are very good deductions you mention. Still at the 50k for loans you still looking in excess of 3yrs to pay off the loans in the original post.

 

[EctopicFetus]

IN the end on the 150K salary your taxable income will be no more than 120K if you have any sense (aka have a house and have an accountant). I have a ton of debt and I plan on paying off about 1/2 my debt in 3 years, my wife works however and the remaining loans I will leave since they are at 3.3% now and once I make ontime payments and auto withdrawal will be at like 1.8%.. I can get 4.5% in an money market now so why would I pay back those loans..

Of course the ones at 7% are a different story 🙂

 

[EctopicFetus]

I agree with you, I have a strong finance background and took all my numbers from govt tax tables and did the calculations. I did not assume any deductions that you mention for the purpose of discussion but those are very good deductions you mention. Still at the 50k for loans you still looking in excess of 3yrs to pay off the loans in the original post.

I also agree that you couldnt pay off 200K in loans in 3 years on a FP salary of 150K even if you did take all the exemptions. But one thing no one mentioned is the government program for repayment of loans if you work in an underserved area and do primary care.

So I assume that you agree that the federal taxes on a taxable income of 150K per yr for a single person is about 36K.

 

[teninepit]

I was simply saying that loan repayment is a non-issue at a physician salary---no matter the specialty. You'll get it repaid in a timely matter and still live well.

You have persistently, but unsuccessfully attempted to disprove this.

NO matter what specialty. OMG we are talking about a FP and their respective income. You claimed they could pay off in 3 years and taxes did not matter. I have proven my point, 50k for loan service on a FP salary does not equate to paying off 200k loan in 3 years.

I am sorry you cannot seem to grasp this FP salary 3 year discussion.

Granted EM is a higher end salary and it should not be a problem. BUT, this has been about FP.

 

[teninepit]

I also agree that you couldnt pay off 200K in loans in 3 years on a FP salary of 150K even if you did take all the exemptions. But one thing no one mentioned is the government program for repayment of loans if you work in an underserved area and do primary care.

So I assume that you agree that the federal taxes on a taxable income of 150K per yr for a single person is about 36K.

Yes, but my point also include state of OK (since OSUdoc is posting from and he said taxes dont matter), med/fica which arrived at my $58k in taxes without deductions.

 

[OSUdoc08]

NO matter what specialty. OMG we are talking about a FP and their respective income. You claimed they could pay off in 3 years and taxes did not matter. I have proven my point, 50k for loan service on a FP salary does not equate to paying off 200k loan in 3 years.

I am sorry you cannot seem to grasp this FP salary 3 year discussion.

Granted EM is a higher end salary and it should not be a problem. BUT, this has been about FP.

The only reference made to "3 years" was about me and EM. I don't recall a discussion about the above occurring.

 

[EctopicFetus]

SO I just checked and I guess Oklahoma state taxes are a touch higher than the 5% I guessed. I looks like they have a bunch of brackets including the top bracket of 6.65%.. so assume a total of 6.5% and you end up paying an extra 2K.. You would then be left with about 48K for loan repayment give or take a few G's.

Although one of the big "faults" with the logic is 50K after taxes for the FP is a lot more than 50K as a resident (when taxes are still due) but I will let it slide since I assume you would want to live at least a little better.

 

[EctopicFetus]

Everyone relax and kiss and make up. And for OSUDoc yeah you most def can make 300K starting doing EM in Oklahoma.. It def wont be too hard to pay off some serious loans... Good luck..

 

[OSUdoc08]

Everyone relax and kiss and make up. And for OSUDoc yeah you most def can make 300K starting doing EM in Oklahoma.. It def wont be too hard to pay off some serious loans... Good luck..

Thanks!

and

for everyone

 

[dobonedoc]

How does a "locked-in" consolidation interest rate fall?

With automatic payment, and two years of on time payments, the interest falls quite nicely.