Dismissed from school, What do I do about Loans?

[iumf12345]

I was recently dismissed from DO school with 6 figures of debt. I now have a doctor's debt but do not have a doctor salary. I am not blaming the school, and I cannot do anything about my dismissed status. I do not want to try to get into medical school again (MD/DO/Foreign). I know some people have been able to, but it is not worth the risk for me and it is not something that I want to try again.

I am sincerely worried about my debt load. While being dismissed does weigh heavily on me mentally, it is something that has happened in the past, and there is nothing I can do about it now, and I have (somewhat) made peace with it. The best thing is to plan for the future and move on. Even if it's very hard.

Does anyone have any advice on what to do about paying for my debt? I do not have that much experience with finances, nor do my parents (not born in America/do not really know how the American system works). My current status, of having no graduate degree/no job puts me as low income ($0/year). I am somewhat young (in my 20s).

Are there any programs for loan forgiveness? Interest rate reduction? ANYTHING? Any type of financial professionals I should talk to (Preferably with zero or low consulting fees, as I do not have that much money)? Organizations to call? I really am at a loss about what to do.

I apologize for being a downer, I did not make this thread to bad mouth my school, etc. I just don't have anyone to talk to and would sincerely appreciate any advice or comments, it would really help me and would calm my mind a little.

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[EMDO2018]

PAYE at 10% of income.

 

[VolunteerMoose]

If you name your school, maybe some alumni in the local area could help you out; offer you a job or something. In terms of paying back the school loans, if you're not making any money, no financial professional or organization can do anything for you. You must have learned something in your time at the DO school. Parlay those skills into a job.

 

[group_theory]

If you have federal loans, you may qualify for 3 years of deferment on your federal loans if you are unemployed. Depending on the types of loans you have, the federal government may pay the interest portion of the loan while in deferment (does not apply to unsubsidized loans or PLUS loans)
http://studentaid.ed.gov/repay-loans/deferment-forbearance

You can try changing the terms of the repayment plan (longer repayment terms may lower your monthly payments, but overall you will end up paying more). Another option is Pay as you earn (PAYE)
http://studentaid.ed.gov/repay-loans/understand/plans/pay-as-you-earn

If you are totally and permanently disabled, your federal loans obligations may be forgiven.

There's the Public Service Loan Forgiveness Program if you work for the government or non-profit and make 120 monthly payments, but that program (as well as limits/exclusions) are still in flux.

Students loans are really really hard to discharge during bankruptcy process. Student loans are usually non-dischargeable in bankruptcy unless the debtor is able to demonstrate that repayment would impose undue hardship on you and your dependents (sounds easier than in actual practice).

If you need to talk to an expert, you can try to find a credit counselor who can analyze your situation and provide advice. There are numerous credit counselors available, some are for-profit, some are non-profit. Some charges a fee, while others are free. Here's a link to the FTC website that provides advice on how to find a credit counselor. You can find credit counselors easily through your search-engine of choice. Just do your homework since not all credit counselors are equal (Caveat emptor!)
http://www.consumer.ftc.gov/articles/0153-choosing-credit-counselor


There are also support groups available for people in your situation, with large student loans and are either unemployed or underemployed. Unfortunately with current job market and increasing student loan debt obligations, there are plenty of people who are in similar situations. Being in a support group and being able to freely talk about your debt, your fears, and get support from other people who are going through what you are going through may help.

Good luck.

 

[Elisabeth Kate]

I'm sorry to hear about your troubles. Have you looked into maybe applying for a job with one of the EMR companies? EPIC and Cerner, etc seem to always be hiring as more and more hospitals convert to an all-EMR system. They need trainers and who better than a former med student to train nurses, PAs, NPs, and residents on how to use the system. I think they pay well and if you do the income-based repayment of your loans, you'll only pay as much as your income will allow you to pay.

 

[Otto of the Silver-Hand]

Tough break. You may want to look for work in Pharmaceutical sales. You could also take a course in medical billing and become a biller.

 

[HopefulReapp]

As Elisabeth wrote, look into Epic. If your grades were good enough to get into medical school, that company will be interested in you. Contact a recruiter on linkedin

 

[mark110]

sorry to hear that! enroll in IBR and don't default on your loans because it would hurt your credit score

 

[VolunteerMoose]

OP. lots of good advice here. It wouldn't hurt to acknowledge some of the posters and respond in kind.

 

[iumf12345]

Hey everyone, thank you for all the advice. I appreciate it. I spent most of the other day looking up the various programs/doing my own research/reading/planning/etc, so I didn't reply yet because I wanted to give responding the adequate amount of time it deserved. It seems like PAYE seems to be the best plan right now, and to try to hack away at the loan as fast as possible. Since whatever is forgiven is taxable as income and if I just pay the minimum, even getting 1 million forgiven would result in tax on 1 million, so that would just end up costing more than paying it upfront.. I think PAYE stops interest from being added for 3 years, but unfortunately, only for the subsidized loans, which got severely reduced recently and most of our loans are Unsub or something else (Grad plus, etc) now.

PSLF seems good, as it is tax free forgiveness, but it seems like Obama wants to cap the forgiveness at $5xK (proposed cap not official). Some people say that the potential new cap will only apply to new loans and older loans will be grandfathered in to the old program, as in the past, it was told to forgive any amount for public service for 10 years. It would be kind of messed up for them to change it last minute, since the first people to get reimbursed would be in 2017, and some people have been working/planning their life on the PSLF plan and changing it last minute will pull the rug out beneath a lot of people.

I appreciate everyone's comment and I'm open to any other suggestions, thoughts, or inheritances (just kidding about the last one)

 

[scummie]

What about medical writing? Research lab? Are you living in the US? If you are on IBR and you are at a certain debt:income ratio, you may not have to make any payments at all.

Check this out for some ideas of what other docs have done after leaving. I think you will be limited though in certain areas because you don't have the degree or even a basic license.

http://money.cnn.com/gallery/smallbusiness/2013/01/09/doctors-quitting-reasons/

 

[studentp0x]

I was recently dismissed from DO school with 6 figures of debt. I now have a doctor's debt but do not have a doctor salary. I am not blaming the school, and I cannot do anything about my dismissed status. I do not want to try to get into medical school again (MD/DO/Foreign). I know some people have been able to, but it is not worth the risk for me and it is not something that I want to try again.

I am sincerely worried about my debt load. While being dismissed does weigh heavily on me mentally, it is something that has happened in the past, and there is nothing I can do about it now, and I have (somewhat) made peace with it. The best thing is to plan for the future and move on. Even if it's very hard.

Does anyone have any advice on what to do about paying for my debt? I do not have that much experience with finances, nor do my parents (not born in America/do not really know how the American system works). My current status, of having no graduate degree/no job puts me as low income ($0/year). I am somewhat young (in my 20s).

Are there any programs for loan forgiveness? Interest rate reduction? ANYTHING? Any type of financial professionals I should talk to (Preferably with zero or low consulting fees, as I do not have that much money)? Organizations to call? I really am at a loss about what to do.

I apologize for being a downer, I did not make this thread to bad mouth my school, etc. I just don't have anyone to talk to and would sincerely appreciate any advice or comments, it would really help me and would calm my mind a little.

Since you're anonymous, may i ask what the reason for your dismissal was? And what year?

 

[TheSpeechFactory]

I was recently dismissed from DO school with 6 figures of debt. I now have a doctor's debt but do not have a doctor salary. I am not blaming the school, and I cannot do anything about my dismissed status. I do not want to try to get into medical school again (MD/DO/Foreign). I know some people have been able to, but it is not worth the risk for me and it is not something that I want to try again.

I am sincerely worried about my debt load. While being dismissed does weigh heavily on me mentally, it is something that has happened in the past, and there is nothing I can do about it now, and I have (somewhat) made peace with it. The best thing is to plan for the future and move on. Even if it's very hard.

Does anyone have any advice on what to do about paying for my debt? I do not have that much experience with finances, nor do my parents (not born in America/do not really know how the American system works). My current status, of having no graduate degree/no job puts me as low income ($0/year). I am somewhat young (in my 20s).

Are there any programs for loan forgiveness? Interest rate reduction? ANYTHING? Any type of financial professionals I should talk to (Preferably with zero or low consulting fees, as I do not have that much money)? Organizations to call? I really am at a loss about what to do.

I apologize for being a downer, I did not make this thread to bad mouth my school, etc. I just don't have anyone to talk to and would sincerely appreciate any advice or comments, it would really help me and would calm my mind a little.

How are you? Where you able to find helpful information regarding your loans? Where are you now with career in medicine?

 

[beachside]

First off, like everyone else is saying, you need to figure out your next career. If you could get into medical school, you can probably make it in a number of other well-paying fields. Figure that out and get some income going.

Also, remember that if you end up defaulting or declaring bankruptcy, it only stays on your credit report for 7 years. That's not bad at all. To get the debt discharged in bankruptcy is not impossible, you just have to prove "severe hardship", which you maybe could. You may also be able to avoid bankruptcy and just default and negotiate a lower total principal.

You could also do some form of income-based repayment, which may be your best option over the short term.

 

[herkulis]

If you don't want to walk the medicine path again, just avoid #4 and try any of the top 10 here http://money.usnews.com/money/careers/slideshows/the-25-best-jobs-of-2015/3. Engineers and nursing seem to have the most bang for the (tuition) bucks and time commitment. You can likely get student loans because the banks probably prefer your working and paying them back both student loans to the alternative of your defaulting on the previous loans. Good luck!

By the way, one can have the Wallstreet banksters and the corrupted US CONgress to thank for the banks' bailouts but not dischargeable student loans under bankruptcies.

 

[Dr. Zombie]

Since you're anonymous, may i ask what the reason for your dismissal was? And what year?

Didn't pass his boards.

 

[Seth Joo]

I was recently dismissed from DO school with 6 figures of debt. I now have a doctor's debt but do not have a doctor salary. I am not blaming the school, and I cannot do anything about my dismissed status. I do not want to try to get into medical school again (MD/DO/Foreign). I know some people have been able to, but it is not worth the risk for me and it is not something that I want to try again.

I am sincerely worried about my debt load. While being dismissed does weigh heavily on me mentally, it is something that has happened in the past, and there is nothing I can do about it now, and I have (somewhat) made peace with it. The best thing is to plan for the future and move on. Even if it's very hard.

Does anyone have any advice on what to do about paying for my debt? I do not have that much experience with finances, nor do my parents (not born in America/do not really know how the American system works). My current status, of having no graduate degree/no job puts me as low income ($0/year). I am somewhat young (in my 20s).

Are there any programs for loan forgiveness? Interest rate reduction? ANYTHING? Any type of financial professionals I should talk to (Preferably with zero or low consulting fees, as I do not have that much money)? Organizations to call? I really am at a loss about what to do.

I apologize for being a downer, I did not make this thread to bad mouth my school, etc. I just don't have anyone to talk to and would sincerely appreciate any advice or comments, it would really help me and would calm my mind a little.

I would honestly try again at a foreign school. A lot of people who fail out at US schools often re-start at foreign medical schools, only do this if you are determined. I had a friend who could not get into MD schools and was against the idea of DO schools and just went overseas, he actually matched pretty well, but he worked very hard.

My main beef with DO schools is the emphasis on Osteopathic Manipulation and Primary Care as well as AT Still, it seems as we have to thank him for giving us the opportunity to become doctors.

I think if your loans are the federal ones you can get the income based repayment loans. Might also want to look into another career. Nursing is a good bet.

 

[chasm-e-baddoor]

military might forgive some of your loans

work on an oil rig make tons of money?

 

[Mehd School]

My main beef with DO schools is the emphasis on Osteopathic Manipulation and Primary Care

Not all schools pound primary care down your throat. Mine doesn't really emphasize anything too much, and primary care certainly isn't in our mission statement.

But I don't know what you expected with OMM.

 

[hallowmann]

Not all schools pound primary care down your throat. Mine doesn't really emphasize anything too much, and primary care certainly isn't in our mission statement.

But I don't know what you expected with OMM.

Be sure to compare your school's curriculum to that of some MD schools. I didn't think PC was hugely pushed at my school, until I noticed most (virtually all) clinical faculty were FM, IM, or Peds docs. Then I noticed that rotations in 3rd year require a selective that most do in either FM, IM, or Peds (in addition to the cores which already require those rotations). Then I noticed a required primary care selective in 4th year in addition to 2 rotations of ambulatory medicine and a Rural/undeserved rotation that has to be done in FM. I also noticed how most clinical sites in my school's OPTI (and most OPTIs) are either places with standalone FM residencies or places with 3 programs, TRI, FM & IM.

I actually could see myself doing PC, but I'd at least get enough exposure to other fields so I know that's really what I want to do. Most MD students I know have required specialty rotations even in 3rd year. I don't think pushing hard for specialties is good either, but I'd sure prefer somewhere in the middle.

Also, to be fair this isn't just a DO vs. MD thing. Rural/undeserved MD schools and some state MD schools actually push PC pretty hard too.

 

[Promethean]

Oh.. this was a necrobump.

Nevermind. OP has figured this out by now, or he hasnt.