How do med students get by with no income?

[QofQuimica]

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take a military scholarship if you are worried about it.

I am a person who abhors debt like very few people you've never known ( 😛 ), but even I would choose to spend my life in debt over losing it in Iraq. (No disrespect whatsoever intended toward any of our fighting men and women.) The only reason why anyone should even consider taking a military scholarship is because they desire to serve this country as a member of the military. Like Doctor Bagel said, the armed services don't give people free medical educations out of the goodness of their hearts.

 

[sm007thie]

I am a person who abhors debt like very few people you've never known ( 😛 ), but even I would choose to spend my life in debt over losing it in Iraq. (No disrespect whatsoever intended toward any of our fighting men and women.) The only reason why anyone should even consider taking a military scholarship is because they desire to serve this country as a member of the military. Like Doctor Bagel said, the armed services don't give people free medical educations out of the goodness of their hearts.

Well said.
Joining the military for financial reasons is a disaster. For one, with the amount of time that you'll be way underpaid, you could have used that money to pay your loans off. No matter what they say, doctors get deployed to horrible places all the time.
One of my good friends is a psychiatrist getting ready to go to Iraq. He's loosing his mind right now. Not to mention how his new bride feels. IMO the military scolarship should be reserved for single, free-spirited, ultra-patriotic people. I can't overemphasize single.

 

[sharmei17]

Sell drugs, become a prostitute/gigalo, open a secret clinic and practice your clinical techiniques on stupid people that believe you when your white jacket says "student" and you tell them you wear it for nostalgic reasons, and you are really a practicing doctor....oh, and only take cash.

ummm... that sure sounds really bad. or you're making a weird joke?

 

[QofQuimica]

ummm... that sure sounds really bad. or you're making a weird joke?

Well, if you're worried about tangling with the law, you could just be a stripper instead of going all out into sex-for-hire like Faze. But I have to confess that following the laws would put a real crimp in my entrepreneurial plans too. I've been thinking that I want to start up a meth lab to help me fund my way through med school. I mean, surely if people with no formal chemistry training can successfully operate a meth lab (ok, "successfully" minus the occasional tragic explosion), *I* would be able to run one. Maybe I could do a structure-activity relationship study on meth and see if I could make the stuff more potent while I'm at it. You know, science, experiments, and yeah, definitely clinical trials on my clients. Plus, if I had a meth lab, then obviously I would specialize in addiction medicine so that I could "treat" my customers for their meth addictions. Yeah, that would work ok, as long as I didn't successfully treat too many of them. I think I am really on to something here....Faze, you can just open an STD clinic for your customers.

 

[Faze2]

ummm... that sure sounds really bad. or you're making a weird joke?

I'm gonna let you guess.

 

[Omashu]

,

 

[Omashu]

I don't think my friend's story is funny....but some people actually do it...and its really sad.

 

[35m]

Well said.
Joining the military for financial reasons is a disaster. For one, with the amount of time that you'll be way underpaid, you could have used that money to pay your loans off.

Unless you are one of the people speculating in the socialized health care thread that doctors will soon be making <$100,000/year ?

If they are correct, then the military scholarships are the way to go. 😀

 

[sharmei17]

Well, if you're worried about tangling with the law, you could just be a stripper instead of going all out into sex-for-hire like Faze. But I have to confess that following the laws would put a real crimp in my entrepreneurial plans too. I've been thinking that I want to start up a meth lab to help me fund my way through med school. I mean, surely if people with no formal chemistry training can successfully operate a meth lab (ok, "successfully" minus the occasional tragic explosion), *I* would be able to run one. Maybe I could do a structure-activity relationship study on meth and see if I could make the stuff more potent while I'm at it. You know, science, experiments, and yeah, definitely clinical trials on my clients. Plus, if I had a meth lab, then obviously I would specialize in addiction medicine so that I could "treat" my customers for their meth addictions. Yeah, that would work ok, as long as I didn't successfully treat too many of them. I think I am really on to something here....Faze, you can just open an STD clinic for your customers.

?????????????????😕

 

[QofQuimica]

?????????????????😕

Come on, you're playing with me, right? Please, please, PLEASE tell me that you're just playing with me, or I am going to be very scared.

 

[DevonL]

For those with families: something that has saved me probably $1000s of dollars - plan out your meals each day for a week. Buy all the groceries you need and stick to it. You will find that you are spending around $100 per week feeding a family of 4 in my case. This includes 2-3 vegeterian meals which are significantly cheaper.

The other key is to choose a med school in an area with a low cost of living.

Do not go anywhere for vacations and if you do, drive.

Yeah this came up on another forum I'm on. Get a BigY card or something similar for your area. A lot of times grocery stories have good buy 1 get 1 free deals for meats (or various other items) that they need to unload. Buy the max you can and just stick them in the freezer until you're ready to eat them. Becoming a good and clever cook can help a lot. Keep in mind, there are tons of things you can do with hamburger meat for instance 🙂. Rice too! It's super cheap but with just some seasoning and some veggies it can make for a great meal.
Honestly if anyone has any cooking questions, feel free to shoot me a PM as I love to cook.
I still have time to figure out how I'll be paying for Med-School (barring I can get in with how competitive it is and will be in 4 years 😱). I know that my brother and parents will be helping me out, but I'm not sure if that will pay for everything. I'm just gonna have to let my body eat itself a little bit for 4 years I guess.

Oatmeal + tuna fish + canned vegetables; cereal is way expensive, it's like $5 a box.

Not if you buy that cheap stuff on the bottom shelf in those enormous bags 😀.

Well, if you're worried about tangling with the law, you could just be a stripper instead of going all out into sex-for-hire like Faze. But I have to confess that following the laws would put a real crimp in my entrepreneurial plans too. I've been thinking that I want to start up a meth lab to help me fund my way through med school. I mean, surely if people with no formal chemistry training can successfully operate a meth lab (ok, "successfully" minus the occasional tragic explosion), *I* would be able to run one. Maybe I could do a structure-activity relationship study on meth and see if I could make the stuff more potent while I'm at it. You know, science, experiments, and yeah, definitely clinical trials on my clients. Plus, if I had a meth lab, then obviously I would specialize in addiction medicine so that I could "treat" my customers for their meth addictions. Yeah, that would work ok, as long as I didn't successfully treat too many of them. I think I am really on to something here....Faze, you can just open an STD clinic for your customers.

Thank you, I needed a good laugh. haha

 

[heymanooh1]

Come on, you're playing with me, right? Please, please, PLEASE tell me that you're just playing with me, or I am going to be very scared.

there's a whole thread dedicated to sharmei over at da lounge.

 

[QofQuimica]

there's a whole thread dedicated to sharmei over at da lounge.

Double 😕 on that one. Hooking up is one thing, but marriage??? People have to be able to communicate better than we've been doing here if they want to stay married for long!

 

[sharmei17]

there's a whole thread dedicated to sharmei over at da lounge.

what the hell are you talkin about?😕

 

[sharmei17]

Come on, you're playing with me, right? Please, please, PLEASE tell me that you're just playing with me, or I am going to be very scared.

scared of what?😕

 

[heymanooh1]

what the hell are you talkin about?😕

Faze2 is asking for your hand in marriage on this thread. Should I tell him you're not interested in boys yet

scared of what?😕

QofQuimica may not have realized you're an impressionable 17 year old....let it go.

 

[QofQuimica]

QofQuimica may not have realized you're an impressionable 17 year old....let it go.

I think she's messing with us.

 

[cfc]

If I decide to go through with this pharmacy gig, I am thinking that I can keep my real job the thorugh the pre reqs and then I will go back toworking for this company that i worked for when I was doing my bachelors. It is a work at home thing where you take calls for major clients - i mean major, like the mouse and apple, airlines. You have to pay for the training which is a few hundred but that is because they have to cover their costs and get lost of losers that apply and can't do the job. This place is the real thing and I am not affiliated with them in anyway but I know tons of people that stillwork for them and can average about 10-15 or more an hour. They used to have office depot but no longer. I am not advertising so i hope that know one gets mad at me for sharing this info with you but I have to tell you it has been a life saver for so many students I have met. www.arise.com there are others like it that are legit i think there is one workathomeagents but I cannot vouch for that one. Arise used to be called willow and they were bought out a few years ago and expanded. You can work from anywhere in the USA.

 

[heymanooh1]

I think she's messing with us.

Kids these days. Oh wait, I'm part of that group

 

[sharmei17]

Faze2 is asking for your hand in marriage on this thread. Should I tell him you're not interested in boys yet
QofQuimica may not have realized you're an impressionable 17 year old....let it go.

lol. thanks🙂

 

[cheezer]

yay sharmei

 

[Doctor Bagel]

So I'm going to be a cranky old lady here, but can we get back on topic. Financial issues are always important to nontrads, and I hate to see a thread totally derailed. If you want to talk to Sharmei, I suggest you pm her or post in the lounge thread.

 

[J ROD]

So I'm going to be a cranky old lady here, but can we get back on topic. Financial issues are always important to nontrads, and I hate to see a thread totally derailed. If you want to talk to Sharmei, I suggest you pm her or post in the lounge thread.

Don't hate on her because she is beautiful!!!

You can post around it and those interested in the original topics can still get what they need.

There is enough room here for everyone.

 

[Doctor Bagel]

Don't hate on her because she is beautiful!!!

You can post around it and those interested in the original topics can still get what they need.

There is enough room here for everyone.

Just saying that it's irritating to waste my time opening this thread thinking that maybe somebody actually said something related to the topic when it's just this sharmei cr@p.

If we have nothing more to say on this issue, perhaps the thread should be locked, or we should just let it die.

 

[heymanooh1]

Just saying that it's irritating to waste my time opening this thread thinking that maybe somebody actually said something related to the topic when it's just this sharmei cr@p.

If we have nothing more to say on this issue, perhaps the thread should be locked, or we should just let it die.

If you don't want to see posts by some SDNers you can put them on your "Ignore List".

My Account --> Buddy/Ignore Lists

 

[Doctor Bagel]

If you don't want to see posts by some SDNers you can put them on your "Ignore List".

My Account --> Buddy/Ignore Lists

Yes, I'm well aware of the ignore list and have used it frequently. 🙂 However, that doesn't help the fact that this thread gets bumped and shows up as having recent posts. So again, I waste my time opening it.

So no, this isn't about obnoxious posters. It's about thread derailing, which does a discourtesy to everyone interested in the initial topic.

 

[Mayday]

If you shop carefully, watch ads, use coupons, shop at a good dollar store, and shop at costco, you can get food and household supplies (toothpaste, shampoo, laundry soap etc) for a family of three for $400 a month. My husband and I are both students, and we live off our financial aid money. (between us with loans, grants, and scholarships, we get about $20,000 per year.)

 

[souslepont]

If you shop carefully, watch ads, use coupons, shop at a good dollar store, and shop at costco, you can get food and household supplies (toothpaste, shampoo, laundry soap etc) for a family of three for $400 a month.

Um...didn't you see the story in the news recently about the poisonous dollar store toothpaste? I'm all for being frugal but I would never buy anything that goes on my skin/in my body from a dollar store. Pens and paper, sure. Soap and food? I don't think so.

 

[Mayday]

Um...didn't you see the story in the news recently about the poisonous dollar store toothpaste? I'm all for being frugal but I would never buy anything that goes on my skin/in my body from a dollar store. Pens and paper, sure. Soap and food? I don't think so.

Yeah, I did. That was a different chain than I go to though - the one that I go to I've never heard of any problems with. But most of what I buy there are household supplys like light bulbs and cleaning supplies.

 

[ShyRem]

Depending on where you live, you can get really great toothpaste cheap. there's a Tom's outlet store near me, and I can get slightly dented tubes of Tom's toothpaste for $0.93. Yup, less than $1. If you like Celestial Seasonings tea and are in Colorado, their factory is in Boulder. They sell their "dented" boxes of tea bags (I'm not kidding here) for $1 each. So it's worth it to go stock up. Look around. Be creative. There are LOTS of ways to save money if you just look around you. Bath and Body Works has an annual soap sale - really really nice bars of soap for $1 each. Stock up and treat yourself at the same time (I've been known to go and buy 30 or 40 bars at once during their sales).

One of the biggest ways to save: take your lunch. A crockpot is your friend (buy one at a garage sale for $1 or $2). I'm currently cooking a pork shoulder for pulled pork sandwiches. Cook it overnight, pull it the next day and let it slow cook in BBQ sauce, and you have lunch for a week. Put some in the freezer for next month for another week of lunch. Two weeks of lunch for less than $10 total. Can't beat that.

Try getting stew meat. Put it in the crockpot with a $1 packet of seasonings of your choice (Mongolian Beef works well). Add carrots and little potatoes. Walk away from it and let it cook on low for 8 hours. another 2 weeks of lunches for less than $12 (and you can freeze individual portions if you want).

Love good expensive shoes like Birkenstock? Many Birkenstock stores (Simply Birkenstock for example) have their last year's closeouts on 50% off Labor Day weekend. Find the outlet stores near you, but be a smart shopper. Outlet stores aren't always cheaper, but can be an absolute steal if you're savvy.

There's an awful lot of stuff you can do and live well for cheap cheap cheap cheap.

 

[TeaKae]

I wanted to add to this post because I also LOOOOOVE SOYMILK!

Also, I think we've passed over the most obvious way to avoid a lot of medical school debt........go find a rich man or woman and marry them. Have said sugar daddy or momma support you as you pursue your dream 😀

 

[TexasTriathlete]

I am a 6'4"+ 230# triathlete. I eat like a freaking horse. This is starting to worry me.

 

[montessori2md]

How I'm hoping to save $$$$:

1) I'm keeping my job w/ my son's school this year, and pre-paying his tuition out of my salary, so that when I start M1, we have preschool tuition paid (at the discounted rate I get) until he's old enough for 1st grade (public schools here don't have a lot of full day kindergarten, and it's not mandatory, a lot of working parents just keep their kids in private school for that year). I could also, if I wanted to, agree to sub/work summers there to keep the lower tuition rate, instead of prepaying.

2) My husband works as a chef, he gets food there for free, and if we so desire, he could order certain expensive items wholesale from his suppliers and pay for them (I used to ask my boss to order cases of boneless skinless ckn for me, back when I waited tables, it was like 1/3 of the cost in the supermarket). Some of his hosts/waitstaff are students who work there on breaks/weekends. You could do that in order to get the discount. From personal experience, being a former employee is a pretty good way to get a free meal now and then. I'm thinking about working part-time for one of the stores we shop in lots, in order to get the employee discount -something like a dept. store, or grocery store.

3) We're hoping to carpool and I make my own biodiesel, cost, as I calculate, is about $1.00/gallon, from used fryer oil. Who says organic chemistry is a waste of time!

I think the best way we saved money this year, though, was just by keeping way to busy to shop. If you stay away from the malls, and places like costco, where we have a tendency to drop $200, then you don't buy anything.

I'm also trying to wipe out as much debt as possible -eliminate a car payment, etc.

Our major problem is food. Hi, chef husband. We spend serious $$ on groceries, and eating out is part of his job. At least we can write some of it off on the taxes. We also are replacing our HVAC right now, which hurts, especially right after paying all the application/MCAT fees.

 

[Foghorn]

Grocery coupons especially double coupons. If you're going to buy a Sunday newspaper, buy it on Sunday evening since most places will sell it for half price.

Never buy books new if you can help it. It's even better if you have friends that will let you borrow you books you need. Some universities even loan out a few copies to students for a whole semester/quarter. Rent books, instead of selling, you'd like to keep if it's going to be used for subsequent semesters/quarters.

Shower in the evenings, you'll do fewer loads washing bed sheets and pillow covers since you don't have as much "dirt" and body oils on you after the shower.

Buying disinfectants to clean the bathroom is overrated. A spray bottle filled with 70% isopropyl alcohol is better, cheaper and more eco friendly. For ladies that like to paint their nails, buy a half gallon of acetone at the hardware store which is about the same price for a little teensy bottle of fancy nail polish remover.

Avoid watching TV or spending time surfing the Internet unnecessarily, electricity costs munnies. Unplug appliances not being used regularly like a washer & dryer. ~15-20% of the electric bill is from appliances being plugged in. They still draw current even if they're not "on". That's how they turn "on" instantly when you hit the "on/start" button.

Get your car checked every 6 months and regularly inspect for tire pressure and fluids. Snugly wrap around a one sheet paper towel layer around the car's air filter. This acts as a pre-filter and generates cleaner air intake, improves combustion and gas mileage.

 

[Celestron2000]

Lots of good advice on this thread.
I second the slow cooker.

Unfortunately living frugally gets harder in medschool. Its difficult in MS1, a little easier in MS2, and nearly impossible for most of MS3. You'll finally have your own time for shopping, cooking, gardening, whatever again come MS4... whew.

Sometimes "getting a deal" isn't really the same thing as saving money, alot of that junk you didn't really need in the first place. The best way is to stay away from the clothing, bath supply, whatever tempts you stores, altogether...

Not that I've been very successful with all this. I lived much more frugally when I was working before medschool, as I said you're just so busy... 🙁

 

[Doctor Bagel]

Sometimes "getting a deal" isn't really the same thing as saving money, alot of that junk you didn't really need in the first place. The best way is to stay away from the clothing, bath supply, whatever tempts you stores, altogether...

This one is so true and something I've fallen in to before. Just because it's on sale or you have a coupon doesn't mean you should buy it. I actually don't use coupons because it drives me crazy, and I find myself doing actually what you mentioned and buying cr@p I don't need. I know it works great for other people, but it doesn't for me. I think that's a big message, though -- you've got to find what's doable for you.

You're right about the time issue. When you're really short on time, you are going to spend extra money on convenience, and sometimes that's a reasonable trade-off.

 

[QofQuimica]

This one is so true and something I've fallen in to before. Just because it's on sale or you have a coupon doesn't mean you should buy it. I actually don't use coupons because it drives me crazy, and I find myself doing actually what you mentioned and buying cr@p I don't need. I know it works great for other people, but it doesn't for me. I think that's a big message, though -- you've got to find what's doable for you.

You're right about the time issue. When you're really short on time, you are going to spend extra money on convenience, and sometimes that's a reasonable trade-off.

I think it's most helpful for people with families or several roommates. If you're living alone, it really doesn't make sense to buy things in bulk; you'll never use them all before the go bad, and even if they don't go bad (like toilet paper), where the heck are you going to store your two-year supply worth of the stuff???

 

[geewiz]

Too funny!

 

[queenbee]

another financial question:

if you do have some extra money saved up for school, is it better to just use that to pay off tuition upfront or do you just take on the loans to your maximum capacity? will companies lend less money if you have some saved up?

there's the time value of money argument - better to keep the money today, earn interest off of it, then pay off the loans later. but, for the debt-averse folks out there, it's nice to NOT have to take out a 6-digit loan if you don't have to, right? i also think it would be nice to keep money now to pay off the daily stuff - rent, food, bills. and take out loans to pay the tuition?

any thoughts? tia.

 

[LexiLuthor]

Another perspecive here- I attend USUHS and as an active duty air force officer I am paid a regular salary and housing allowance. It's enough for a family here in the DC area to get by, and if you're part of a couple where the other person works, it's downright cushy. I am married and my husband and I will probably be starting a family in the next few years.

Although one of the factors in my school decision was finances while in school, I come from a military family and felt strongly about serving the members of the armed forces and their families. It's a tough job, deployment is something you have to assume will be part of your life, and you won't make as much as your civilian counterparts. But for me, it was still the best choice, and if there are any non-trads interested in USUHS or HPSP feel free to PM me.

You can also check out the mil med forum, although there is a negative tone there toward military medicine in general. I think that a major source of unhappiness/discontent for docs in the military now is that their working environment, training, and deployment schedules weren't what they expected. And yeah, no one is going to tell you that spending 12+ months in the desert away from your loved ones doesn't suck, but depending on your attitude towards service and why you joined it isn't necessarily a dealbreaker. If you have a good idea of what it entails upfront you can make an informed decision, knowing the benefits and drawbacks.

 

[Foghorn]

http://www.couponmom.com/

 

[Old Grunt]

For those with families: something that has saved me probably $1000s of dollars - plan out your meals each day for a week. Buy all the groceries you need and stick to it. You will find that you are spending around $100 per week feeding a family of 4 in my case. This includes 2-3 vegeterian meals which are significantly cheaper.

The other key is to choose a med school in an area with a low cost of living.

Do not go anywhere for vacations and if you do, drive.

That's great advice. Thanks.

 

[Old Grunt]

Another perspecive here- I attend USUHS and as an active duty air force officer I am paid a regular salary and housing allowance. It's enough for a family here in the DC area to get by, and if you're part of a couple where the other person works, it's downright cushy. I am married and my husband and I will probably be starting a family in the next few years.

Although one of the factors in my school decision was finances while in school, I come from a military family and felt strongly about serving the members of the armed forces and their families. It's a tough job, deployment is something you have to assume will be part of your life, and you won't make as much as your civilian counterparts. But for me, it was still the best choice, and if there are any non-trads interested in USUHS or HPSP feel free to PM me.

You can also check out the mil med forum, although there is a negative tone there toward military medicine in general. I think that a major source of unhappiness/discontent for docs in the military now is that their working environment, training, and deployment schedules weren't what they expected. And yeah, no one is going to tell you that spending 12+ months in the desert away from your loved ones doesn't suck, but depending on your attitude towards service and why you joined it isn't necessarily a dealbreaker. If you have a good idea of what it entails upfront you can make an informed decision, knowing the benefits and drawbacks.

I think the negative tone in general in the military (not counting the people who have served honorably and enthusitically only to be abused at the hands of the DOD via stop loss and involuntary mobilization) are from people who joined for monetary reasons.

The military is an honorable and wonderful profession, and that is what it is, a profession. Not a job. It will demand so much from a person, that if you didn't do it for the right reasons, you will not be happy (that's the proverbial you).

The soldiers I served with that did it for the money were unhappy, unmotivated and ended up being a hazard to their subordinates (to a degree).

I always tell people not to join unless they want to serve. Don't do it for the money, because the government is going to get their money back, most likely by cramming it up your keester one nickle at a time.

None of this is directed at you, just my observations based on what I saw. Thanks for your service and good luck.

 

[Old Grunt]

Well said.
Joining the military for financial reasons is a disaster. For one, with the amount of time that you'll be way underpaid, you could have used that money to pay your loans off. No matter what they say, doctors get deployed to horrible places all the time.
One of my good friends is a psychiatrist getting ready to go to Iraq. He's loosing his mind right now. Not to mention how his new bride feels. IMO the military scolarship should be reserved for single, free-spirited, ultra-patriotic people. I can't overemphasize single.

None of it would be a problem if recruiters were up front about things. They should be giving the good, the bad, and the ugly to people as opposed to acting as salesmen. I don't agree that military service should be reserved for the single and ultra-patriotic. I don't consider myself ultra-patriotic. I have a lot of problems with this country, but I served because I wanted to contribute.

That being said, I deployed with a new bride too as did many of my soldiers. I hope your friend can suck it us, because he is going to be badly needed. PTSD is no joke, and that is an area where he is needed to provide assistance.

 

[plauto]

Save your money like crazy now while you are working. Have a goal. My goal was to save enough to have 4 years of mortgage paid for my house. In June, one month before starting med school, I'll have reached that amount thru forced deductions out of my paycheck. If you know your house is not going to be an issue you'll be much more relaxed. Then you can always borrow money against your house later on, it's cheaper than private loans and the interest is tax deductible in many cases. Good luck!

 

[Doctor]

another financial question:

if you do have some extra money saved up for school, is it better to just use that to pay off tuition upfront or do you just take on the loans to your maximum capacity? will companies lend less money if you have some saved up?

there's the time value of money argument - better to keep the money today, earn interest off of it, then pay off the loans later. but, for the debt-averse folks out there, it's nice to NOT have to take out a 6-digit loan if you don't have to, right? i also think it would be nice to keep money now to pay off the daily stuff - rent, food, bills. and take out loans to pay the tuition?

any thoughts? tia.

👍 Excellent question. They'll still give you loans if you want them, despite having money saved up. Since your interest is deferred, the loan is always a good idea even if you have $1 million sitting in your Citibank account.

Since the average return of the stock market is 10% over the past 100 years, and since student loans are at a 5% rate (maybe 2.5% or 3% after tax deductions) you are always better off being "leveraged" and take the loans from a purely financial standpoint.

This being said, you may want to pay down the loans before applying for a mortgage because you debt-to-income ratio needs to be below a certain threshold to qualify for the lowest mortgage rates.

 

[Doctor Bagel]

👍 Excellent question. They'll still give you loans if you want them, despite having money saved up. Since your interest is deferred, the loan is always a good idea even if you have $1 million sitting in your Citibank account.

Since the average return of the stock market is 10% over the past 100 years, and since student loans are at a 5% rate (maybe 2.5% or 3% after tax deductions) you are always better off being "leveraged" and take the loans from a purely financial standpoint.

This being said, you may want to pay down the loans before applying for a mortgage because you debt-to-income ratio needs to be below a certain threshold to qualify for the lowest mortgage rates.

Well, if your income was high enough before going back to school, and if you have too much money saved, you might not qualify for subsidized loans. You can still get all the unsubsidized loans that you want, though, because those aren't technically need-based. I agree that it probably always makes sense to take any subsidized loans offered to you. Unfortunately, subsidized staffords are capped at $8500/year. 🙁

As for the using the money for tuition versus investing, I think it's a matter of how risk averse you are and how comfortable you are with the market. While 10% growth has been the norm recently, that's not a guarantee, and retirement advisors generally tell you to assume about 5% growth on your money. I opted to keep my money in the market (in my retirement account), but I don't think there's necessarily a right answer there. It's really a gamble.

 

[Doctor]

Well, if your income was high enough before going back to school, and if you have too much money saved, you might not qualify for subsidized loans. You can still get all the unsubsidized loans that you want, though, because those aren't technically need-based. I agree that it probably always makes sense to take any subsidized loans offered to you. Unfortunately, subsidized staffords are capped at $8500/year. 🙁

As for the using the money for tuition versus investing, I think it's a matter of how risk averse you are and how comfortable you are with the market. While 10% growth has been the norm recently, that's not a guarantee, and retirement advisors generally tell you to assume about 5% growth on your money. I opted to keep my money in the market (in my retirement account), but I don't think there's necessarily a right answer there. It's really a gamble.

Good points... 10% is the historical (100-year) norm though. The recent return has been more like 12-15% I think for the past 20 years, but maybe that means it will be 5-7% for the next 20 years to make up for the aberration. As you say, there's no guarantee of any return at all...

Although, there's only been one 10-year period since the 1800's when the market didn't go up and that was 1929 through 1938 (the Great Depression). If you consider only 1920-1929 or 1930-1939 to be "decades" then the market has never declined during any decade since the New York Stock Exchange has existed. So the odds are pretty slim that you'll ever lose money if you leave it in long enough (and invest broadly).