Dental School Finances

[Chemboy23]

Advertisement - Members don't see this ad

Hi everyone, and Happy New Year's in advance!

My question is this: do you all know of any resources/financial consultants/dentists in practice that offer advice about how to handle student loans...i.e., 10 yr repayment vs 25 yr repayment, IBR, public service for 10 yr payoff option, etc...

Obviously, the best source is from a dentist that has graduated like 2-3 years ago. Every time I ask a dentist about these types of things they sort of shy away from talking about them. I don't know if they think I'm trying to get "in their business" or what the deal is...I'm just looking for advice from someone that's been there. My wife keeps telling me not to worry about it...but I think 300-325k in debt is worth worrying about. I am wanting to practice in Mississippi when I get out of school and I've been accepted at Loma Linda already, and I have an interview at my state school (one of the cheapest in the country) on January 13th.

My debt will be a lot lower should I get lucky enough to get accepted in Mississippi. But still, that's (~200k) a lot of debt. I'd love to know what my best option would be to repay all of my loans. I've searched for a while and still haven't really found that many good sources of information. I just wonder if the public service payoff option is best for me, or what program is best? We all want to maximize our lifetime income potential...and I was wondering if there was any guide to help in decision making. Anyone have any good ideas to share in this area? Thanks again and cheers for tonight!!!

 

[doc toothache]

http://mortgage-x.com/calculators/amortization.htm

 

[Chemboy23]

http://mortgage-x.com/calculators/amortization.htm

Thanks doc!!!!!!!!

 

[youknowthedrill]

Good luck with your UMC interview.

 

[Chemboy23]

Good luck with your UMC interview. My husband went to college at Millsaps, and med school, residency and fellowship at UMC. When he started residency he (really- we) owed about 120K and was only making about 35K, so the payment was huge.

He consolidated and refinanced it over 30 years. We made the minimum payments until he finished fellowship. Once he was finally finished and was making a good salary, we made extra payments whenever we had any extra money and paid them off in about 2 more years. Live as frugally as possible while you're in school. Keep your lifestyle simple for a couple of years after you finish and get out of debt as quickly as possible.

I wish I would have know back then that I wanted to become a dentist! I would love to go to UMC, but we live in a different state now. My husband has worked with colleagues that graduated from more distinguished institutions, but he received much better clinical training than they did at their schools where the focus was on research and publishing.

Oh wow, Millsaps is an awesome school! I actually went to Belhaven...which is right down the street. That's the one great thing about dentistry...you can practice straight out of school without going through a residency. I would love to specialize, but I think I will just work as hard as I possibly can to graduate high in my class...and if I get lucky enough, I will try to land a residency. I've always wanted to do OMS, but our family has about sacrificed everything to get me this far along. It's crazy how much of my own/our own money we have spent to just try to get in. When I look back on it, I'm glad I did it...but my sweet wife has really took a hit to help me fulfill my dreams.

About the debt, that's what I'm thinking as well. I probably will not make near the amount of money he did, but I can most definitely live frugally, it's all I've ever known anyway hahaha!!! To be honest, I'm a simple country boy so I don't really need much (material wise) to make me happy. As long as I have a nice TV to watch my Saints play I will be more than content...or so my wife says. But, that's very impressive that he payed his debt off so quickly.

Yeah, I hear UMC has a great program, especially for the price of attending. It would be scary to get out of Loma Linda owing ~325k...😱😱😱 We have just decided to let God lead our way though...if he wants us here, he will open the doors. If he wants us in CA...he will make it very evident that I should go there. We'll see...my wife sure is wanting UMC because she loves the environment, all of my family/friends here, cheaper cost of living, etc...The one thing I'm VERY thankful for is that I am in somewhere, which is a feeling like none other!

Good luck to you!!! Are you in school now, or still applying?

Cheers and Happy New Year's!

 

[floopy]

My question is this: do you all know of any resources/financial consultants/dentists in practice that offer advice about how to handle student loans...i.e., 10 yr repayment vs 25 yr repayment, IBR, public service for 10 yr payoff option, etc...

loan calculators galore

salary calculator to estimate how much $ you'll have after taxes to repay your loans

 

[dentalWorks]

Hi everyone, and Happy New Year's in advance!

My question is this: do you all know of any resources/financial consultants/dentists in practice that offer advice about how to handle student loans...i.e., 10 yr repayment vs 25 yr repayment, IBR, public service for 10 yr payoff option, etc...

Obviously, the best source is from a dentist that has graduated like 2-3 years ago. Every time I ask a dentist about these types of things they sort of shy away from talking about them. I don't know if they think I'm trying to get "in their business" or what the deal is...I'm just looking for advice from someone that's been there. My wife keeps telling me not to worry about it...but I think 300-325k in debt is worth worrying about. I am wanting to practice in Mississippi when I get out of school and I've been accepted at Loma Linda already, and I have an interview at my state school (one of the cheapest in the country) on January 13th.

My debt will be a lot lower should I get lucky enough to get accepted in Mississippi. But still, that's (~200k) a lot of debt. I'd love to know what my best option would be to repay all of my loans. I've searched for a while and still haven't really found that many good sources of information. I just wonder if the public service payoff option is best for me, or what program is best? We all want to maximize our lifetime income potential...and I was wondering if there was any guide to help in decision making. Anyone have any good ideas to share in this area? Thanks again and cheers for tonight!!!

repayment is something to worry about AFTER you graduate dental school and start working. But the thing that would make MOST sense is to payoff EVERYTHING you can afford to pay off because IMHO, its kinda of silly for the dentist to open a savings account (especially when you have a 7-8% interest rate riding you).

I think the smartest thing to do (and mind you, Im just day-dreaming here) is to start working as an associate for the first few years (I dunno 2-5 years), enhance your skills (both work and business skills), whatever money you (and spouce) make, put it towards that principle, and when the time is right and you feel comfortable, you can buy/start your private practice..... I believe the bank (even if you owe a boat load still from your education) will lend you more $$$ to start that new business ESPECIALLY if your rocking close to 800 credit score.

I've read a few articles / websites where newly graduate dentists are HEAVILY advised to right away start a private practice, I dunno, it seems like the rewards would be great, but I also think thats quite a huge risk. I wouldn't do that unless an experienced dentist wanted to partner up with me.

 

[Chemboy23]

repayment is something to worry about AFTER you graduate dental school and start working. But the thing that would make MOST sense is to payoff EVERYTHING you can afford to pay off because IMHO, its kinda of silly for the dentist to open a savings account (especially when you have a 7-8% interest rate riding you).

I think the smartest thing to do (and mind you, Im just day-dreaming here) is to start working as an associate for the first few years (I dunno 2-5 years), enhance your skills (both work and business skills), whatever money you (and spouce) make, put it towards that principle, and when the time is right and you feel comfortable, you can buy/start your private practice..... I believe the bank (even if you owe a boat load still from your education) will lend you more $$$ to start that new business ESPECIALLY if your rocking close to 800 credit score.

I've read a few articles / websites where newly graduate dentists are HEAVILY advised to right away start a private practice, I dunno, it seems like the rewards would be great, but I also think thats quite a huge risk. I wouldn't do that unless an experienced dentist wanted to partner up with me.

Yeah, that's sort of what my wife and I were considering today...I just am scared to death to jump into that much debt (buying a private practice + student loans). My debt will be relatively low compared to most (~200k)...and I've seen some on here with 350k which would absolutely TERRIFY me lol.

I guess to some extent I should stop worrying so much about it...but I just want to make the right moves because some of the (wrong) moves we make cannot be easily undone.

When you take into account the current inflation rate, it would sort of be silly to pick the 10 yr repayment plan because the money you owe will be worth a lot less in the years to come. It seems to me the extra money would be better in investment somewhere...but the only thing is that ANY investment in today's economy is pretty scary. I love these discussions and thanks for your input dentalworks!!!

 

[dentalWorks]

Yeah, that's sort of what my wife and I were considering today...I just am scared to death to jump into that much debt (buying a private practice + student loans). My debt will be relatively low compared to most (~200k)...and I've seen some on here with 350k which would absolutely TERRIFY me lol.

I guess to some extent I should stop worrying so much about it...but I just want to make the right moves because some of the (wrong) moves we make cannot be easily undone.

When you take into account the current inflation rate, it would sort of be silly to pick the 10 yr repayment plan because the money you owe will be worth a lot less in the years to come. It seems to me the extra money would be better in investment somewhere...but the only thing is that ANY investment in today's economy is pretty scary. I love these discussions and thanks for your input dentalworks!!!

I agree. Dental school loans (and don't forget to add undergrad loans) are scary. But, putting all the motivations toward the field aside, going into healthcare is..... a sound business plan.

You invest 4 years of your life, drop off between 200-400k and you come out with a license that has a strong potential to bring you 100k per year (if not more).

 

[racquetballer]

If we're talking investments here. What most people do is they open up a SEP-IRA Which is a pension plan similar to a 401(k) but for self-employed persons. You can add up to 11,500 per year and it will accumulate intrest tax free. It is the best investment you can make, and yes there are some very safe ways to invest. What you'll do with this SEP-IRA is invest it in Stocks and bonds. A mix of your choice. Now, a very risk free bond is an I Bond where you are protected and it will give you 0.7% + the current inflation rate. Guaranteed. The rest of your IRA portfolio can go to other types of bonds and stocks (I prefer safer, indexed stocks like S+P 500) where there are greater chances of returns (and risk). If your portfolio return gives you higher than your interest rates on student loans, it is better to invest than pay off the loans at a 10 year pace so go with the 25, but if not, then pay on the 10 yr plan. That's my advice👍