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I'm bored and I don't know if anyone's done this on the "Expensive Dental Schools" thread... (thanks @Panis et Circenses) (https://forums.studentdoctor.net/th...usly-expensive-dental-schools-thread.1223909/). I figure it's better than yet another "which school should I go to" thread. Not that those aren't interesting. As a warning, yes, SDN is obsessed with the cost of dental school. These threads pop up all the time, but I wanted to be a bit more in-depth. I've met a lot of other applicants who could care less about debt, but the dentists I've spoken to seem fairly appalled by current numbers.
As shown in that thread above, schools can put you at $400k in debt. This is because your loans are unsubsidized, and they start building up immediately. Never mind loan origination fees and tuition increases. Who knows how much tuition will increase each year? Who knows what interest rates will be on the loans you take out years from now? We'll assume 400k here, but there are certainly a lot of inexpensive in-state options.
400k of debt over a 25 year repayment plan at 6% interest (based on a combination of different loan interest rates) is $2600 a month. A modest dentist starting salary of $120000 is about 6k a month after federal and state income tax. Never mind licensing and other random fees. 6k - 2.6k = 3.4k a month left over. 15 years is 3.4k a month. 10 years is 4.4k a month. Just go here (http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx) to check your situation out. There are also loan forgiveness programs. Look at those too and do the math. Some of them hit you with a massive tax bomb at the end.
If you want a house, the average mortgage for a 120k earner is around 1k a month (http://www.fool.com/investing/gener...average-americans-mortgage-payment-by-ag.aspx). That's 2.4k left over. Who knows what sort of house you want to live in though.
Here's the interesting part. Want a practice? Practice loans are usually 7-12 years. Loans can be 500k. That's 4.6k a month for 12 years. Banks will give you a year of interest-only payments, which would be 2k a month. That's $400 a month left over to live on that first year of your practice. Then you'd better start making lots of profit (http://www.dentistryiq.com/articles/2014/09/starting-a-dental-practice-how-can-you-afford-it.html). Not sure where the fancy car and dinners come in here unfortunately. These numbers are a bit bleak, and in some cases, financially impossible.
In-state tuition is a great thing. Just as there are exceptions both high and low to the 400k of schooling debt, there are exceptions to how much you'll make as a dentist starting out. Maybe more than 120k, maybe less. Maybe you specialize (this could increase your debt due to interest though). You should also make a lot more after your first few years practicing as an associate if you're competent. Your salary can skyrocket if you run your practice well. I guess the one thing you can say is that there are unknowns. What if your practice goes downhill? What if you injure your hands or back? What if a recession hits? I think the most important thing is to know what you're getting into and the risks involved with it. Know what your personal situation is, run the numbers yourself (very important - I'm just another pre-dent/dental student), and get an idea of what your life will be like so you won't be surprised one day. Maybe this makes some people feel better, but maybe it makes them feel worse.
I've also attached a guide to getting into dental school at the bottom for those who are just getting into the process.
As shown in that thread above, schools can put you at $400k in debt. This is because your loans are unsubsidized, and they start building up immediately. Never mind loan origination fees and tuition increases. Who knows how much tuition will increase each year? Who knows what interest rates will be on the loans you take out years from now? We'll assume 400k here, but there are certainly a lot of inexpensive in-state options.
400k of debt over a 25 year repayment plan at 6% interest (based on a combination of different loan interest rates) is $2600 a month. A modest dentist starting salary of $120000 is about 6k a month after federal and state income tax. Never mind licensing and other random fees. 6k - 2.6k = 3.4k a month left over. 15 years is 3.4k a month. 10 years is 4.4k a month. Just go here (http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx) to check your situation out. There are also loan forgiveness programs. Look at those too and do the math. Some of them hit you with a massive tax bomb at the end.
If you want a house, the average mortgage for a 120k earner is around 1k a month (http://www.fool.com/investing/gener...average-americans-mortgage-payment-by-ag.aspx). That's 2.4k left over. Who knows what sort of house you want to live in though.
Here's the interesting part. Want a practice? Practice loans are usually 7-12 years. Loans can be 500k. That's 4.6k a month for 12 years. Banks will give you a year of interest-only payments, which would be 2k a month. That's $400 a month left over to live on that first year of your practice. Then you'd better start making lots of profit (http://www.dentistryiq.com/articles/2014/09/starting-a-dental-practice-how-can-you-afford-it.html). Not sure where the fancy car and dinners come in here unfortunately. These numbers are a bit bleak, and in some cases, financially impossible.
In-state tuition is a great thing. Just as there are exceptions both high and low to the 400k of schooling debt, there are exceptions to how much you'll make as a dentist starting out. Maybe more than 120k, maybe less. Maybe you specialize (this could increase your debt due to interest though). You should also make a lot more after your first few years practicing as an associate if you're competent. Your salary can skyrocket if you run your practice well. I guess the one thing you can say is that there are unknowns. What if your practice goes downhill? What if you injure your hands or back? What if a recession hits? I think the most important thing is to know what you're getting into and the risks involved with it. Know what your personal situation is, run the numbers yourself (very important - I'm just another pre-dent/dental student), and get an idea of what your life will be like so you won't be surprised one day. Maybe this makes some people feel better, but maybe it makes them feel worse.
I've also attached a guide to getting into dental school at the bottom for those who are just getting into the process.
"- SDN Predent
