HELP!!! Is the cost of out of state worth it???????

[relilaube31]

I just got accepted as an out of state resident for a vet school that costs about 40,000/ year. I will paying for this all on my own and I have at least 25,000 from my undergraduate degree. So after the four years I looking at 200,000 in debt and the average income of a veterinarian right out of school is 50,000-70,000/year. My thoughts are I have two options with two big negatives:

First I could bite the bullet and except knowing I will have that amount of debt or

I could wait a year and establish residency... this brings the possibility or not geeting accepted the following year (and possibly giving the veterinary school the impression that I don't want to go too their school and holding that against me in the future)

Help me please I have been dreaming of being a vet for so long but I don't want to end up miserable because I can afford to live???????

Any advice would be very helpful!!!!!

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[Tiktaalik]

I just got accepted as an out of state resident for a vet school that costs about 40,000/ year. I will paying for this all on my own and I have at least 25,000 from my undergraduate degree. So after the four years I looking at 200,000 in debt and the average income of a veterinarian right out of school is 50,000-70,000/year.

That's unlikely to work out well. If you can find a forgiveness program or something, it might be possible, but trying to do that as a straightforward borrow-then-pay-it-all-back loan scheme is probably not the best idea.

I could wait a year and establish residency... this brings the possibility or not geeting accepted the following year (and possibly giving the veterinary school the impression that I don't want to go too their school and holding that against me in the future)

Some schools allow you to defer matriculation to next year in order to gain residency - that is, you stay accepted, but you wait and work until next year, then join that class. Not every school does this, and how easy it is to do this depends on the school. Call them and see if this option is open to you.

If it's not, vet schools aren't boyfriends. As long as you are tactful and open about your reasons for turning down your seat and you continue to build your application over the year you work for residency, I think the school would be unlikely to hold a grudge. You've already gotten in once, so you know that you're good enough to do it - if you continue to improve, your chances of getting in again next year should be excellent. It's never a perfectly sure thing, but it wouldn't be something to stay up late and worry about. Carrying $200k of debt on a vet salary, however, might be.

 

[Nexx]

hey, look.. it's not an easy choice to make (debt that is...)

Personally I wouldn't take the chance of getting accepted again or not especially at one particular university. All in all I personally don't think it would look good with regard to your 'commitment' to the field (my thought if I were an Adcom).

I just don't think that they might view the wait and get residency approach to be a valid reason to reject or defer their offer. There is no harm in asking if they will allow a simple deferral however and if they allow it, bonus.

Another thing to consider is that by putting off starting this fall and waiting for residency is that you will be losing out on earning a higher salary that much sooner (aka you may miss out on earning $65,000 plus maybe another $5,000-$7,000 or more the following year depending on raises and potential production--could be more, could be less). That $65,000 only applies if you aren't working currently however but you get my point I hope

There's also the cost of moving to consider into weighing everything up. All in all, if you were earning $0/year currently with the move (let's say conservatively costing $2000) and adding in all the opportunity cost stuff, might mean that you only pay an extra $30,000 to start now versus wait -- no small chunk of change but not horrible either.

 

[HopefulAg]

Also this isn't the optimal solution but consider that in the new changes to student loans, the income-based repayment method is now fixed at 10% (vs 15% previously) and all debts are waived past 20 years (10 years if you are a civil servant; IE a professor or perhaps some public health worker).

There's probably some factor X I'm missing, but to my understanding that'd work out to be far less than paying back the full amount. Question is whether you want to be paying back loans for 20 years. It's also a burden upon your credit history.

But I think even without using the system, you'd be able to pay back your OOS loans. You'd just have to live more sparingly.

 

[Tiktaalik]

Please don't think I was being flip about the decision, by the way. I think that deferment would be the best option for you because it would save a lot of money, but I would encourage you to plug your info into some loan calculators and see what your payments are going to look like - you might decide that the payments you have to make aren't so bad after all. Just going this year is the lowest-risk option in terms of actually getting in to the school, I will admit.

 

[Electrophile]

And this thread is why you shouldn't apply to professional school just to see if you can get in somewhere. Apply to where you can realistically get into and where you can realistically go. Otherwise, why waste your time and money applying there? And if the debt is freaking you out, why did you apply there in the first place?

 

[Nephromaniac]

Also, just in case you didn't look into it, some schools allow you to become a resident after certain stipulations. With some it's relatively easy, & some almost impossible, but definitely something to consider. And I would disagree with the thought that because you were accepted this year your chances would be excellent next year. Not to say you wouldn't, but the application pool changes every year, and it's definitely a risk, although I totally understand the worry (OOS myself... luckily, I have an upcoming wedding this summer that will rectify my situation, lol... but I didn't know that going in, so I definitely understand where you're coming from) Good luck with the decision though, & grats on being accepted regardless!

 

[dyachei]

Also this isn't the optimal solution but consider that in the new changes to student loans, the income-based repayment method is now fixed at 10% (vs 15% previously) and all debts are waived past 20 years (10 years if you are a civil servant; IE a professor or perhaps some public health worker).

There's probably some factor X I'm missing, but to my understanding that'd work out to be far less than paying back the full amount. Question is whether you want to be paying back loans for 20 years. It's also a burden upon your credit history.

But I think even without using the system, you'd be able to pay back your OOS loans. You'd just have to live more sparingly.

Your loans aren't waived. The government pays the remainder back for you. However, you do have to pay income tax on the amount that they repay. Just as an FYI

 

[Tiktaalik]

Also, just in case you didn't look into it, some schools allow you to become a resident after certain stipulations. With some it's relatively easy, & some almost impossible, but definitely something to consider.

Throwing info on one school out there - it is possible at Minnesota, but it is H-A-R-D HARD. Everyone I've talked to who's tried to get past the residency lady has come back sounding discouraged. She basically said - "If you can't afford OOS tuition, don't come and expect residency to save you."

 

[sumstorm]

hey, look.. it's not an easy choice to make (debt that is...)

Personally I wouldn't take the chance of getting accepted again or not especially at one particular university. All in all I personally don't think it would look good with regard to your 'commitment' to the field (my thought if I were an Adcom).

I just don't think that they might view the wait and get residency approach to be a valid reason to reject or defer their offer. There is no harm in asking if they will allow a simple deferral however and if they allow it, bonus.

I personally couldn't handle that debt load. I would have the same concerns mentioned here. Remember, adcoms are not the same as mentors; their interest is what is best for the school as a whole, not what is in the student's best interest. Not saying they are heartless, but that their present loyalty is doing what is best for the school. Don't turn it down unless your 100% ok with the risk of not being admitted again. Check deferment & changing residencies. Also, depending on the locale, residency may take >1yr, a FT job, or more.

 

[HandD42]

I am in the same position as you, same amount for OOS tuition and no possibility of gaining residency.

I have decided to buck up and take the loans and hope for a higher paying job or just stick with IBR for 20-25 years if that is what it takes.

It plain sucks but I am an older student and did apply to some cheaper programs (including combined DVM/PhD programs with some tuition included) but failed to get into any other program. I also failed to get into my IS. ALthough to be honest my IS is one of the more expensive ones out there and our state is cutting funding ever single year.

I doubt I would have any greater success any other year so for me it is debt or spending my life not being a vet.

There are no easy choices and no easy answers.

If you are young and have opportunities to improve your app, probably do that and apply again.

 

[HandD42]

Also this isn't the optimal solution but consider that in the new changes to student loans, the income-based repayment method is now fixed at 10% (vs 15% previously) and all debts are waived past 20 years (10 years if you are a civil servant; IE a professor or perhaps some public health worker).

There's probably some factor X I'm missing, but to my understanding that'd work out to be far less than paying back the full amount. Question is whether you want to be paying back loans for 20 years. It's also a burden upon your credit history.

But I think even without using the system, you'd be able to pay back your OOS loans. You'd just have to live more sparingly.

From what I have read this will not apply to c/o 2014, just an FYI

 

[alliecat44]

From what I have read this will not apply to c/o 2014, just an FYI

What do you mean? My understanding was that it went into effect in July 2009...?

 

[dyachei]

What do you mean? My understanding was that it went into effect in July 2009...?

This was what I thought as well

 

[HandD42]

What do you mean? My understanding was that it went into effect in July 2009...?

This came up in the thread I started over in pre-vet forum. The direct lending will start in July but the other benefits will not start until 2014.

Orignal post by Jennieblue:
Eventually, students with federal loans will qualify for better repayment terms. Part of the legislation signed today also improves repayment terms first enacted last summer. Loan payments will be capped at 10 percent of a student’s disposable income (it’s currently 15 percent) and any debt remaining after 20 years will be forgiven (the current threshold is 25). For public servants – including teachers, nurses, or members of the armed forces – that cap is 10 years.
But, those repayment terms are only applicable for loans signed after July 1, 2014, and will not be retroactive, nor do they apply to private loans."

So for the class of 2014, this legislation will have no impact.
Bummer...

You can read the whole article here:
http://www.csmonitor.com/Money/2010/0330/Student-loan-reform-What-will-it-mean-for-students

 

[GellaBella]

I found this on the government website studentaid.ed.gov

What federal student loans are eligible to be repaid under an IBR plan?



Any Stafford, Grad PLUS or Consolidation loan made under either the Direct Loan or FFEL program is eligible for repayment under IBR, EXCEPT loans that are currently in default, parent PLUS Loans, or consolidation loans that repaid a parent PLUS Loan. The loans can be new or old, and for any type of education (undergraduate, graduate, professional, job training).

which makes me think that the class of 2014 will benefit from this program

 

[relilaube31]

Thank you for all of your advice!

I have spoken with the school and they don't defer and I can't become a resident while attending school.

Also, technically I am not a resident for an veterinary schools, because long story short my family (which I' still dependant on even though i've tried to become independent) moves around so much that we are lacking true residency in any state.

I had applied to this school because it was my dream school and I'm graduating with a BS so it seemed like the next step. I also chose it because I have some extended family in the area, which would be great resource during the four years.

I'm just still torn between the debt and the risk. The vets I have worked with are torn also, some say I should wait others say its worth it. And I agree there are great arguments for both.

Thank you again for everything!

 

[alliecat44]

This came up in the thread I started over in pre-vet forum. The direct lending will start in July but the other benefits will not start until 2014.

Orignal post by Jennieblue:
Eventually, students with federal loans will qualify for better repayment terms. Part of the legislation signed today also improves repayment terms first enacted last summer. Loan payments will be capped at 10 percent of a student’s disposable income (it’s currently 15 percent) and any debt remaining after 20 years will be forgiven (the current threshold is 25). For public servants – including teachers, nurses, or members of the armed forces – that cap is 10 years.
But, those repayment terms are only applicable for loans signed after July 1, 2014, and will not be retroactive, nor do they apply to private loans."

So for the class of 2014, this legislation will have no impact.
Bummer...

You can read the whole article here:
http://www.csmonitor.com/Money/2010/0330/Student-loan-reform-What-will-it-mean-for-students

Hmm...all the sites I'm finding were last updated in Jan or Feb 2010 and state the same thing that GellaBella cited (and what I've been looking at). I hadn't heard of the student loan reform legislation changing the terms/eligibility of the IBR...wonder how the CSM got that information/where it came from/if it's really true??

If that's really true--then I am totally screwed. Sigh.

 

[HandD42]

Hmm...all the sites I'm finding were last updated in Jan or Feb 2010 and state the same thing that GellaBella cited (and what I've been looking at). I hadn't heard of the student loan reform legislation changing the terms/eligibility of the IBR...wonder how the CSM got that information/where it came from/if it's really true??

If that's really true--then I am totally screwed. Sigh.

Yeah, CSM isn't exactly the source I go for for my money questions, per se. But I also doubt they would knowingly spread mis-information, especially when the new bill benefits students. Maybe a fin aid officer at one of the vet schools will have the real scoop.

It does seem odd that the direct lending portion of the bill goes into effect now but the other portions don't start for 4 years. By then we could have a new president who may repeal the health care bill (including these student loan changes). It is puzzling to me.

 

[Nexx]

It doesn't really make sense that taking a loan out today wouldn't apply for those reduced % of IBR repayments.

It's not like you sign up for your repayment terms when you take out your loans. You pick your repayments when you detach from your uni.

 

[philomycus]

And this thread is why you shouldn't apply to professional school just to see if you can get in somewhere. Apply to where you can realistically get into and where you can realistically go. Otherwise, why waste your time and money applying there? And if the debt is freaking you out, why did you apply there in the first place?