Figuring out the finances

[Naruhodo]

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Hi guys,

So I'm super grateful that med school is realistically on the horizon (I was already pretty deep into figuring out plan B), but I feel like I've transferred my anxiety over acceptance to anxiety about affording medical school. How are others dealing with financial aid decisions not being announced potentially for months? I should be able to get loans, but the thought of going $150k or even $200k into debt is making me very nervous. If it were just me that would be unfortunate, but I dislike that my spouse will be living with financial insecurity for a long time because of me. I guess all of us figure out a way to make it work somehow...

 

[popopopop]

Federal loans should cover cost of attendance. I just got done looking at stuff over at whitecoatinvestor and I feel good about 200k in debt so long as I get an attending salary to pay it off. I don't plan on inflating my lifestyle right after residency so I can catch up on a lot of investing, including loan repayments.

 

[deleted480308]

Your eventual salary is just as imaginary in size as the debt at your current income, relax. It will be fine.

Live on a resident's budget for 5 years after you make attending and it will be taken care of

 

[Naruhodo]

Thank you both. Whew, OK, we can do this.

 

[Scottish Chap]

Hi guys,

So I'm super grateful that med school is realistically on the horizon (I was already pretty deep into figuring out plan B), but I feel like I've transferred my anxiety over acceptance to anxiety about affording medical school. How are others dealing with financial aid decisions not being announced potentially for months? I should be able to get loans, but the thought of going $150k or even $200k into debt is making me very nervous. If it were just me that would be unfortunate, but I dislike that my spouse will be living with financial insecurity for a long time because of me. I guess all of us figure out a way to make it work somehow...

Congratulations on winning an offer! Don't worry: once you're accepted to medical school, you're eligible for all kinds of loans.

Keep in mind two things:
1. You'll have to payback 2 to 3 dollars for every one dollar you borrow. Borrow as little as possible.
2. You and your family are making a commitment to live for 10 years like few people are willing to… In order to live for the rest of your life like few people can. This career is all about delayed gratification.

Best of luck

 

[bears1992]

Don't worry, you'll be fine. As others have pointed out, you can pay off that debt pretty quickly by maintaining your lifestyle and expenses from your residency years into your first 2-4 years as an attending. Living on 60k a year while taking home 120k+ will pay off your debt very quickly. After that, you are taking home 120k+ with no debt while you are in your 30's.

I did this in undergrad on a much smaller scale and it is certainly the way to pay off school loans in you have the income. I was making 61k as an engineer (also doing postbac) when my wife graduated college. She got a job right out of college making 30k but she had 20k in student loans. We continued to live on my 61k income and just used her salary to pay off her debt. We delayed living well(ish) for one year and in return, we paid off a sizable amount of student loans in one year.

Med school is the only situation where I would say don't worry about the debt, just focus on school. Live like an engineer for a few years after residency until you pay off your debt, then live like a doctor with no debt.

 

[Naruhodo]

while you are in your 30's

The thing is I am *already* in my 30s... 😀

But yes, I absolutely get delayed gratification. Like many of you it took me a number of years to get here, so I'm pretty used to frugal living. All worth it in the end to do what you love. Shame the pediatric specialties don't pay very well, but the cute kids make up for it 😉

 

[star.buck]

The thing is I am *already* in my 30s... 😀

But yes, I absolutely get delayed gratification. Like many of you it took me a number of years to get here, so I'm pretty used to frugal living. All worth it in the end to do what you love. Shame the pediatric specialties don't pay very well, but the cute kids make up for it 😉

I totally get what you're saying, 33 and M1 right now. I sat down and ran the numbers, calculating loans needed for tuition and living expenses, minimal pay during residency, and then the eventual pay of a family med doc in a mid sized city... figuring in cost of living comfortably (but not extravagantly, I.e a Subaru not a Beemer), it'll be fine. I'll have a decent surplus every month to throw at the loans, which should be paid off within 10 years (while still being able to invest and get a modest home). And all this was calculated without factoring in the probable partial tuition reimbursement either a hospital may grant, or through the federal underserved program. The initial investment via heavy loans is definitely worth the life we will be able to live in our 40's and on! 🙂