How do dental school loans work?

[Flossiraptor]

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Hello everyone,

So after all the exciting and fun news comes all the not-so-fun reality of student loans. I have been awarded direct unsubsidized loans and a direct grad/prof loan. Before I accept them, I wanted to get some more information from some students that are already in school or dentists in the field today. These loans do have an interest attached to them, so how does the repayment actually work? Looking at these numbers are honestly terrifying, and my thoughts right now are "How much do I need to repay every month?"

Please respond with your input to help me and other students out.

Thank you.

 

[sjv]

Repayment begins 6 months after you graduate and the amount depends on how much you borrow, the plan you choose, and what lifestyle you choose to live after dental school. List of repayment plans are here: https://studentaid.ed.gov/sa/repay-loans/understand/plans

Use the repayment estimator with your school's CoA to see how much you would be paying on each plan.

 

[andreadds]

Hello everyone,

So after all the exciting and fun news comes all the not-so-fun reality of student loans. I have been awarded direct unsubsidized loans and a direct grad/prof loan. Before I accept them, I wanted to get some more information from some students that are already in school or dentists in the field today. These loans do have an interest attached to them, so how does the repayment actually work? Looking at these numbers are honestly terrifying, and my thoughts right now are "How much do I need to repay every month?"

Please respond with your input to help me and other students out.

Thank you.

Michigan was 80K a year and I pay @2122.00/month for ten years

 

[shaidester]

Michigan was 80K a year and I pay @2122.00/month for ten years

Are you able to live a comfortable lifestyle? Did you open up your own practice yet?

 

[ajj70]

Are you able to live a comfortable lifestyle? Did you open up your own practice yet?

That loan payment is about the same as making about $30,000/year gross. Obviously there are other living expenses to consider, but even at a take-home under the average for a starting dentist, $90K or so, you should easily be able to pay your bills and have plenty left over. Add in a working spouse and life should be good.

 

[Saddleshoes]

I have been awarded direct unsubsidized loans and a direct grad/prof loan.

"Awarded"!?!?!?!?!
You have qualified for big time debt! That is not an award!
I bet they are calling this your "finacial package" too, aren't they.

You may have to take it but Do Not call it an award!

I know this is sounds harsh today.
In 7 years, when the first post tax $2000 you make goes to pay your student loan every month, you will know what I am talking about.

 

[ajj70]

I have been awarded direct unsubsidized loans and a direct grad/prof loan.

"Awarded"!?!?!?!?!
You have qualified for big time debt! That is not an award!
I bet they are calling this your "finacial package" too, aren't they.

You may have to take it but Do Not call it an award!

I know this is sounds harsh today.
In 7 years, when the first post tax $2000 you make goes to pay your student loan every month, you will know what I am talking about.

Risk/Reward. You still will clear a higher income than 99% your undergrad counterparts, even after loan payments.

 

[arlmay]

Too many predents that know it all

 

[ajj70]

Too many predents that know it all

No, just thinking long term vs short term. Yes, the number is staggering, however, the long term pay out is well worth it...

 

[Incis0r]

*steps onto stage and microphone*
Basic points I've learned as a pre-dent:
1. loans = toxic and evil.

There will be no second point.
*drops mike, walks away*

But in all seriousness, loans are necessary for those of us without wealth/scholarships. The main point is to minimize how much you take out since everything accrues interest from Day 1(the day you take out the loans). Having large amounts of loans significantly decreases the amount of money you can put towards 1) retirement 2) practice purchase 3) discretionary spending and house purchase. USC can now cost 500K in loans when you graduate...at a 7% interest rate, that comes out to 7.6K a MONTH for 10 years, or 4.6K a month for 25 years. imagine taking home 10K post tax each month and having half your paycheck be gobbled up by loans just like that...my spine just felt a chill...

I've been told to live frugally so many times and to stretch every dollar as much as possible.

 

[ajj70]

Imagine taking home $2500 month on a $48K salary and having to pay $350/month in student loan payments. I'd rather have the $5000 left over than the $2100. 48K is the average salary for a college grad these days. Yes, go to the least expensive school you can, take out as little as you can get by with, but also, as you "write" that check each month, know that you will be in the top 1-2% of wage earners throughout your life.

 

[Incis0r]

I don't care about being in the top "wage earners"- I care about being in the top "wealth accumulators"- the two are not the same.

I have a buddy from high school who got into the lawnmowing business- He now controls multiple neighborhoods, has about 20 people working for him, and draws a comfortable 5-6K a month with room to expand. He has no debt either.

The real reward in dentistry is the ability to help people by providing a very important healthcare service, the chance to work in diverse settings, and the opportunity for continuous growth personally and professionally. Autonomy, owning your own business, high income are also good, but these things can (and are) changing. The satisfaction you get when a patient comes with severe pain and complains of an inability to chew, and you do a root canal and restore function/comfort- that's the priceless, unchanging part of dentistry.

 

[ajj70]

I don't care about being in the top "wage earners"- I care about being in the top "wealth accumulators"- the two are not the same.

I have a buddy from high school who got into the lawnmowing business- He now controls multiple neighborhoods, has about 20 people working for him, and draws a comfortable 5-6K a month with room to expand. He has no debt either.

The real reward in dentistry is the ability to help people by providing a very important healthcare service, the chance to work in diverse settings, and the opportunity for continuous growth personally and professionally. Autonomy, owning your own business, high income are also good, but these things can (and are) changing. The satisfaction you get when a patient comes with severe pain and complains of an inability to chew, and you do a root canal and restore function/comfort- that's the priceless, unchanging part of dentistry.

True, but it's still easier to accumulate wealth with $5000 extra bucks then $2100....

As for the benefits--of course that is why people go into dentistry...but this was specifically about loans and paying them back.

 

[andreadds]

Are you able to live a comfortable lifestyle? Did you open up your own practice yet?

My husband and I are both dentists. I would say yes. We both have our own practices.