Debt - Friend or Foe?

[ShortWhiteCoat2014]

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$225, 000 debt - without it would one not have the drive/discipline to complete training and excel. Less of a debt (<50,000), maybe not be as aggressive or hungry?

 

[DOctorJay]

European physicians seem to have enough drive to complete training and have their education paid for.

 

[Moose A Moose]

Depends on the person.

 

[freaker]

I can think a lot of things I'd rather spend my money on than student loans. Namely a home for my family, retirement savings, vacations, a modestly used car.... If you want more motivation in life, I'll glad part with my debt in your honor. 🙂

 

[Perrotfish]

$225, 000 debt - without it would one not have the drive/discipline to complete training and excel. Less of a debt (<50,000), maybe not be as aggressive or hungry?

Studies suggest the opposite. High indebtedness strongly correlates with lower lifetime earnings, which is why on average student debt costs you much more than twice the cost of just paying back the debt. The theory is that when you're in debt you are less willing to take even safe, routine risks in terms of your career because you can't afford the salary variance that such risks entail. Much like an all bond financial portfolio, a low risk career path has lower earnings overall. Source: http://www.demos.org/what-cost-how-student-debt-reduces-lifetime-wealth

There is good data that medicine is no exception. For example in Pediatrics the odds that someone will go into a lucrative fellowship is most strongly predicted by their debt unless that fellowship is an enormously clear financial winner. It takes a lot, emotionally, to overcome the emotional burden of indebtedness and put off paying down the loans for another three years, even though that decision might be a clear winner when you take the long view of lifetime earnings.
Source: http://pediatrics.aappublications.o...ract?sid=fdbaab89-d33d-44ad-87c5-4680eb386648

There is nothing good about the loans our generation is getting stuck with.