How much debt is okay for Pharmacy School?
Started by Potential123
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If you owe $150,000 by the time you have graduated and with a 6.8% interest rate, you will be paying $1726 per month for 10 years.
This number does not include the compounded interest that will be added to the principle while you are in school.
The amount you take home after federal and state taxes, social security, medicaid, health insurance and perhaps 401k is not as much as you think, just ask any new pharmacist.
This number does not include the compounded interest that will be added to the principle while you are in school.
The amount you take home after federal and state taxes, social security, medicaid, health insurance and perhaps 401k is not as much as you think, just ask any new pharmacist.
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120k/year....wtf?
No no, 120k for over the four years. Sorry about that.
After take into consideration where you plan to work after graduation. Is it going to be an impacted area?
I agree on this one. The fact that some people are willing to go to these schools that I have never heard of paying $35,000 - 40,000 on tuition alone is ridiculous at best. They are looking at $200,000+ compounded interest loan and then they experience loan shock upon graduation. Meanwhile, their school is laughing all the way to the bank.
I go to a private school but it's close to where my family lives. I can live with them and commute. My costs will be cheaper than going to one of my state schools and having to pay for more living expenses.
The debt limit you deem to be "too much" depends on how you want to pay it back, it's up to you to evaluate how much debt is worth the higher payments. This website has a really good loan and repayment calculator. http://www.bankrate.com/calculators/college-planning/loan-calculator.aspx
The debt limit you deem to be "too much" depends on how you want to pay it back, it's up to you to evaluate how much debt is worth the higher payments. This website has a really good loan and repayment calculator. http://www.bankrate.com/calculators/college-planning/loan-calculator.aspx
the correct answer: as little as possible.
This. While there is more wiggle room for higher paying jobs, going over 1.5x is not a good idea. Remember that after taxes, insurance, max retirement savings, the paycheck is closer to half of what you started with. If you have $200k in debt, are you really willing to fork over almost half of what's left each month for 10 years straight to pay for student loans?
i'd be worried if i was 200k in debt. when it comes to graduate school, you want to tack on as little as possible. this means in-state public ideally but if commuting to a private school isn't that much more, go with that.
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I have 148k in debt. I only took what was needed and had a full scholarship.Tbh we pharmacists are a little spoiled compared to some professions. For e.g. getting a degree in social work at one of the top rated schools (Wash U) can take 100k+ and the earning potential is not even close. Law schools would be another example.
Paying off $150k in 5 years? That's $3k a month. Expect your take home pay to be around $5-6k a month after taxes, benefits, and 401k depending on the state. Now take away $3k a month, that doesn't leave much unless your wife makes pretty decent money and has no debt.
Since you mentioned that your wife's pregnant, I wouldn't plan to live off of $2k/month. We used to do that during school too, but the cost went through the roof after the baby was born. The hospital bill ran $6K in co-pays alone. The the visits to the pediatrician, lactation consultants, immunizations... goes through 6-8 diapers a day, still had to go to formula after about 3 months, a ton of cloths.... It just never ends. Best of luck to you man.
lol, I know it'll be hard, but that's life. This is actually preganancy number 2 for us, so we are familiar with the costs associated with it. Fortunately for us, since I am still in school, we qualify for public assistance. I figure I might as well use it while I'm eligible...I'll be paying it all back plus tons more once I'm out of school.
With the job I'll have after graduation, I should clear just a bit over 6k a month assuming salaries don't plummet (which admittedly, could happen). Wife has no debt; will be staying home with the kids. We may foster parent, which will mitigate some grocery costs, etc. Baby clothes are bought at garage sales, diapers at Target (best cheap diapers ever; no rashes or leakage). We cook almost all the time at home; Taco Bell is kind of a splurge for us.
Additionally, odds are that we will have housing at little to no rent via some family connections after graduation. Crossing fingers that that will work out.
My plan might not work out, but at least I have a plan. Won't be the end of the world if it takes me 6-7 years to get this debt gone.
EDIT: Forgot to metion that we live in Indiana; where cost of living is dirt cheap.
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"How much student debt is too much? The rule of thumb is don't graduate with more debt than your expected first year salary. But less is better."
http://moneyland.time.com/2012/08/1...uent-struggle/?iid=pf-main-lede#ixzz23BBv1eK3
True to that.
http://moneyland.time.com/2012/08/1...uent-struggle/?iid=pf-main-lede#ixzz23BBv1eK3
True to that.
I think the more important thing to address is how can you reduce that debt, or pay off that debt quickly.
Pharmacy students, you have to be creative and work hard. Not just in pharmacy school, but work in general. Work hard and as much as you can in your internships and any etc jobs you may get. Yes it means you will have little time to have a social life, but if you manage your time well, you can have time for everything you need and want to do. And the benefits of graduating and working as a pharmacist are great because you really do get to enjoy the fruits of your labor. Trust me, I graduated with $17,000 in loans (but now it's $0 yay), and I graduated 2011. No help from parents, still managed to stay in Rho Chi, and enjoyed 'some' social/me time while in school. It can be done.......don't let the government keep compounding that 6.8% interest; you're already getting screwed in federal and state taxes
Pharmacy students, you have to be creative and work hard. Not just in pharmacy school, but work in general. Work hard and as much as you can in your internships and any etc jobs you may get. Yes it means you will have little time to have a social life, but if you manage your time well, you can have time for everything you need and want to do. And the benefits of graduating and working as a pharmacist are great because you really do get to enjoy the fruits of your labor. Trust me, I graduated with $17,000 in loans (but now it's $0 yay), and I graduated 2011. No help from parents, still managed to stay in Rho Chi, and enjoyed 'some' social/me time while in school. It can be done.......don't let the government keep compounding that 6.8% interest; you're already getting screwed in federal and state taxes
I graduated in 2012. My wife and I have a combined student loan debt total (incl/ undergrad) of 170,000 and no other debt. Our take home pay after health care, taxes and 401k is 108000 a year. By choice, we currently pay 1/3rd of our take-home to student loans. We also max out our Roth IRAs. We are 31 and 32. 170k of debt feels like a lot, but it is manageable. We cashflowed about 22000 of my tuition as well, and are still left 170k which incl/ interest. 160k is the principle. Personally, as a single pharmacist with no 2nd income I would go no more than 100k total including undergrad.
Famu?
A 200,000K loan, paid back over 30 years at 6.8% interest is going to cost you
$469,386.14. Use the total cost of the loan number to know what you really are dealing with. Any mortgage calculator can give you this number just put in 0 for PMI and 0 for insurance.
$469,386.14. Use the total cost of the loan number to know what you really are dealing with. Any mortgage calculator can give you this number just put in 0 for PMI and 0 for insurance.
