How much debt is too much?

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.

NYpremedinGA

Full Member
10+ Year Member
15+ Year Member
Joined
Jul 26, 2007
Messages
13
Reaction score
0
How much debt do you consider to be too much? basically I am deciding between attending a state school (SUNY Upstate) and borrowing $42K a year (~$170,000 when graduating + interest ) or attending a better private school (NYU) and borrowing $58K a year (~$240,000 when graduating + interest). i currently don't have any debt from undergrad and the financial part is really weighing on my mind. Any thoughts on whether the 70K difference should stop me from going to NYU?

Members don't see this ad.
 
I fully expect to be $300k-350k in debt by the time I graduate from med school. I'm okay with that, but that doesn't mean you can/should/have to be. Assuming you're going to be taking loans out for the costs of both schools, I think your decision is going to mostly be governed by what state aid programs are available to you after you graduate and what specialty you plan on pursuing. If you're doing, say, family practice, that extra 70k is going to be a significant burden. If you're into neurosurgery, maybe not so much.
 
How much debt do you consider to be too much? basically I am deciding between attending a state school (SUNY Upstate) and borrowing $42K a year (~$170,000 when graduating + interest ) or attending a better private school (NYU) and borrowing $58K a year (~$240,000 when graduating + interest). i currently don't have any debt from undergrad and the financial part is really weighing on my mind. Any thoughts on whether the 70K difference should stop me from going to NYU?

Keep in mind that after some point, that interest will compound during residency, so the differential will actually end up greater than $70k.

Personally, that is too much additional debt to take on - I would not do it. The fact that NYU is "private" and the opinion that it is "better" mean very little to me.
 
Members don't see this ad :)
I'm setting my bar at 200k, as an instate student
 
Anyone else have any guidelines to follow on this topic? Lizzy M? I'm looking at 200,000K+ in debt even if I chose my state school (IL) and can't help but worry about how I'm going to pay this back, esp. given I'll be starting med school a few years later than average.
 
Also be wary because of changing deferment policies during residency. Who knows what it will be like in a couple years.

As a fourth year I'm starting to get a good look at reality and my financial situation. I went to a state school, had no undergrad debt, and lived with roommates and such. Still have debt. Consolidated some of it at a good rate. But there is still substantial amount of money I owe.

Here's a little calculator that gives you an idea of how repayment might work for your loans.
http://www.salliemae.com/apps/SMCalcs/RCW/content/index.aspx

As for debt making the choice between the two school-I don't know. I guess how much debt is too much is a personal question.
 
Anyone else have any guidelines to follow on this topic? Lizzy M?
I don't think she would know - I believe she's said she's a professor, and most PhDs are free. $200K should be the upper limit for most people. Exceeding that is going to make your monthly payment quite massive. Not that you can't pay back a larger debt, but it will be a large burden.
 
How much debt do you consider to be too much? basically I am deciding between attending a state school (SUNY Upstate) and borrowing $42K a year (~$170,000 when graduating + interest ) or attending a better private school (NYU) and borrowing $58K a year (~$240,000 when graduating + interest). i currently don't have any debt from undergrad and the financial part is really weighing on my mind. Any thoughts on whether the 70K difference should stop me from going to NYU?

I've heard that for every dollar you borrow you end up paying back 2 dollars after interest over the length of the loan. Keep that in mind. The 70k difference is actually 140k when you pay it back. Also, the name of your med school is not as important as the name of your undergrad school. All U.S. allo schools are very hard to get into, very rigorous, and will give you opportunities to get into any specialty you want.
 
I've heard that for every dollar you borrow you end up paying back 2 dollars after interest over the length of the loan. Keep that in mind. The 70k difference is actually 140k when you pay it back.
Which is over $1000 per MONTH for a decade. Not so small any more, is it?
 
Go with the state school. Do well on the reqs and you'll be fine.
 
I've heard that for every dollar you borrow you end up paying back 2 dollars after interest over the length of the loan. Keep that in mind. The 70k difference is actually 140k when you pay it back. Also, the name of your med school is not as important as the name of your undergrad school. All U.S. allo schools are very hard to get into, very rigorous, and will give you opportunities to get into any specialty you want.


thanks for the input everyone..what do you mean by the undergrad school name is more important?...because my undergrad school isn't a big name school and the truth is I chose it based on athletics (soccer) and not academics when I could have picked a "name" school based on academics
 
Go with the state school. Do well on the reqs and you'll be fine.

Agreed...I went to a private school for undergrad and will be going to one for med school (the latter I have no choice). Having said that, do yourself a favor and save some money.
 
maybe im silly but i would go to nyu hands down.. then again i have an unhealthy attachment to new york city. i refused to leave for college
 
Agreed...I went to a private school for undergrad and will be going to one for med school (the latter I have no choice). Having said that, do yourself a favor and save some money.

Yeah, I'll probably end up doing the same thing. I'm going home but the only decent school with a research program in ug is private and $$$$$. At least I can commute.

maybe im silly but i would go to nyu hands down.. then again i have an unhealthy attachment to new york city. i refused to leave for college

You are silly... but then again your parents are probably paying for your education, so what do you care?
 
thanks for the input everyone..what do you mean by the undergrad school name is more important?...because my undergrad school isn't a big name school and the truth is I chose it based on athletics (soccer) and not academics when I could have picked a "name" school based on academics

there is much more variability in the quality of undergrad education. this is not so with med schools. they are all mandated to teach you the same things. while there are differences, by and large you will come out a well qualified graduate from any of the LCME accredited US schools.
 
Top