# how much debt will you have when all is said and done ?

#### parni-orodes

roughly speaking ? (by the time you get your md ?)

#### Pinocytosis

2+ Year Member
Total = (Expenses * 4) *2

Expenses = general living loan, tuition, etc.
'2' represents the approximate loan's interest accumulation

#### holycrap

2+ Year Member
i'm pretty sure it depends on who you are and what school you go to, but i read the average is 180k-250k

#### gonnif

##### Only 389 Days Until Next Presidential Election
10+ Year Member
Each year you get a new loan, and from the day the school disperses the money until deferment period end (6 months after graduation) you get simple daily interest applied. That is just amount of yearly interest broken down in daily amounts and added up. At the end of the 6 month deferment the interest is capitalized into a new principal (ie becomes the new total loan amount as you essentially borrowed the interest money you now owe). You will have multiple loan sources (stafford, gradplus, direct/private) and may have a few equations per year but I will give you an example with private with \$25,000 (\$25K) and 6% interest rate as this will represent the difference in loans. But you can use you the full loans amounts for an estimate if you want. This assumes dispersing in September year 1 and you graduate June year 4 starting repayment September year 4. Hence I have 12 month loan increments (this is a 3 month deferment you can go to 6 months, just easier for this example calculation)

Example: \$25,000 tuition difference per year borrowed at 6%
year 1 \$25,000 + \$6,000 (48 months interest) = \$31,000 capitalized
year 2 \$25,000 + \$4,500 (36 months interest) = \$29,500 capitalized
year 3 \$25,000 + \$3,000 (24 months interest) = \$28,000 capitalized
year 4 \$25,000 + \$1,500 (12 months interest) = \$26,500 capitalized

Total loans capitalization 3 months after graduation is \$115,000
So total difference of the tuition would mean \$115,000 when you graduate

Horse Apiece

#### Mansamusa

2+ Year Member
Total = (Expenses * 4) *2

Expenses = general living loan, tuition, etc.
'2' represents the approximate loan's interest accumulation
Good news, your estimation is way too high. The amount capitalized to you loans at graduation will only be around 15% of your yearly expenses *4. And if I do a 5 yr residency, I'm expecting to have around 125% my original loans

2+ Year Member

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#### freak7

##### Stuck in a tacky hat
2+ Year Member
Me too! Not include residency, of course.
I wrote one hell of a set of essays for USUHS too.

#### Matthew9Thirtyfive

##### *breathes in* boi
Moderator
2+ Year Member
I wrote one hell of a set of essays for USUHS too.
I'm applying for EMDP2. I wrote probably the best PS I've ever written for that, so we'll see if it helps.

#### freak7

##### Stuck in a tacky hat
2+ Year Member
I'm applying for EMDP2. I wrote probably the best PS I've ever written for that, so we'll see if it helps.
Dude, nice. That program looks pretty great.

#### Matthew9Thirtyfive

##### *breathes in* boi
Moderator
2+ Year Member
Dude, nice. That program looks pretty great.
Yeah. Praying I get selected. They take 6 from the Navy.

#### freak7

##### Stuck in a tacky hat
2+ Year Member
Yeah. Praying I get selected. They take 6 from the Navy.
How you'll feel if you get selected

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2+ Year Member

#### TheBiologist

2+ Year Member
if you go private even more. heck, Columbia med alone is nearly 90k YEARLY - plus your ugrad loans

#### freak7

##### Stuck in a tacky hat
2+ Year Member
if you go private even more. heck, Columbia med alone is nearly 90k YEARLY - plus your ugrad loans
Nope, I paid those off on purpose.

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#### Lost In Transcription

##### reports of my assimilation are greatly exaggerated
2+ Year Member
Yeah. Praying I get selected. They take 6 from the Navy.
Best of luck, sir.

Still debating USUHS or not. Depends pretty much on SO.

#### Matthew9Thirtyfive

##### *breathes in* boi
Moderator
2+ Year Member
Best of luck, sir.

Still debating USUHS or not. Depends pretty much on SO.
Heard that. Wouldn't have applied for this program if the SO wasn't on board (no pun intended).

#### freak7

##### Stuck in a tacky hat
2+ Year Member
Best of luck, sir.
Hey don't call him "sir", he works for a living!

#### Lost In Transcription

##### reports of my assimilation are greatly exaggerated
2+ Year Member
Heard that. Wouldn't have applied for this program if the SO wasn't on board (no pun intended).
Ahh, congrats!

Also considered just doing FAP too. Makes me feel a little guiltier though..haha. And USUHS is freaking awesome.

#### hurtem&healem

5+ Year Member
Good news, your estimation is way too high. The amount capitalized to you loans at graduation will only be around 15% of your yearly expenses *4. And if I do a 5 yr residency, I'm expecting to have around 125% my original loans
You also have the years it takes you to pay off the loan. I know there are a lot of heroes on SDN who plan to be debt free 3 years after school, but 10 years is a much more feasible time frame for most people. That actually does put the total cost of the loan at right around 2x the original amount.

Every school I'm applying to is ~\$50k/yr (some of us don't have state schools :/ ), plus ~\$20k/yr CoL loans... I'm hoping to make it out of this paying less than \$600,000 over 10 years. In a strange twist, the better the school I get into, the less I'll probably end up paying thanks to need based scholarships.

#### bluestrawberries

I would rather not think about it...

mw18 and tankster1

#### Matthew9Thirtyfive

##### *breathes in* boi
Moderator
2+ Year Member
Hey don't call him "sir", he works for a living!
Only when I can't get away with skating.

Ahh, congrats!

Also considered just doing FAP too. Makes me feel a little guiltier though..haha. And USUHS is freaking awesome.
Yeah. I know a few docs who went to USUHS and loved it. The O-1E pay will be nice too.

#### freak7

##### Stuck in a tacky hat
2+ Year Member
Only when I can't get away with skating.

Yeah. I know a few docs who went to USUHS and loved it. The O-1E pay will be nice too.
Dude, right? It's like you're getting paid twice. No school fee and a salary not a stipend. The value of that whole package is just insane.

#### Matthew9Thirtyfive

##### *breathes in* boi
Moderator
2+ Year Member
Dude, right? It's like you're getting paid twice. No school fee and a salary not a stipend. The value of that whole package is just insane.
And BAH. Mine will go up by about \$400/month. Not as good as it was in HI, but close (although the COLA really takes HI money over the edge--too bad it sucks the big one to live on Oahu).

#### Mansamusa

2+ Year Member
You also have the years it takes you to pay off the loan. I know there are a lot of heroes on SDN who plan to be debt free 3 years after school, but 10 years is a much more feasible time frame for most people. That actually does put the total cost of the loan at right around 2x the original amount.

Every school I'm applying to is ~\$50k/yr (some of us don't have state schools :/ ), plus ~\$20k/yr CoL loans... I'm hoping to make it out of this paying less than \$600,000 over 10 years. In a strange twist, the better the school I get into, the less I'll probably end up paying thanks to need based scholarships.
Okay, but OP asked about the time you get your MD and if there is ever a time when your debt is 2x the original balance you are doing something wrong (yes, you may pay in total close to 2x, but that is a different story).

When people plan to be debt free, they are talking about after residency. People with average amount of debt could pay it off in that time frame. Most people could do it in 5-6yrs after residency if they make debt their focus.

You will also probably find that \$20K/yr is too much for COL (assuming you don't have a family or a car to take care of and are still on your parent's health insurance). I live in one of the major, high COL cities and I am a good amount below my \$14K/school year target. Found cheaper housing, so rent + utilities= \$750. That leaves \$650/month for all other expenses if \$14K is my goal. I've been spending on average \$40/week on food (I could go lower if I went to all the free food events) and \$50-60/wk on going out (which may get lower when things ramp up), leaving me almost \$250-300 below target. You can work out the details once you get in, but create a firm budget and you will not need \$20K

Edit: I stressed out a lot last year about the debt aspect of this thing- it was not a fun stress. Good luck with your applications and with getting aid!

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#### Lannister

5+ Year Member
I'm hoping to have under 200k in loans by the time I graduate. I'm not sure tho, because my grandpa left me some money when he died, and I think there's about 50k in the account now, but my parents control the account (I know, I should be independent or whatever, but I'd definitely eff it up if I had to manage the account myself) and apparently it changes every day so I really have no idea.

Sent from my iPad using SDN mobile

#### Pinocytosis

2+ Year Member
Good news, your estimation is way too high. The amount capitalized to you loans at graduation will only be around 15% of your yearly expenses *4. And if I do a 5 yr residency, I'm expecting to have around 125% my original loans
That is good news. haha. Thank you.

6

#### 68PGunner

Dude, right? It's like you're getting paid twice. No school fee and a salary not a stipend. The value of that whole package is just insane.
Don't worry. The military will make it back and more when they control your life and underpay you by 50-70K/yr for the next 6-8 years after residency.

Lannister

#### freak7

##### Stuck in a tacky hat
2+ Year Member
Don't worry. The military will make it back and more when they control your life and underpay you by 50-70K/yr for the next 6-8 years after residency.
Yeah, I actually don't mind that. I don't want to make big doctor money which is why I want to end up debt free; so I don't have to chase money.

OP
P

#### parni-orodes

abc = always borrow conservatively.

#### Turkishking

2+ Year Member
i'm pretty sure it depends on who you are and what school you go to, but i read the average is 180k-250k
Same

#### Matthew9Thirtyfive

##### *breathes in* boi
Moderator
2+ Year Member
Don't worry. The military will make it back and more when they control your life and underpay you by 50-70K/yr for the next 6-8 years after residency.
I've been in for 5 years. I know what it's like to get ****ed. The benefits outweigh the negatives for my family and me.

Yeah, I actually don't mind that. I don't want to make big doctor money which is why I want to end up debt free; so I don't have to chase money.
Same. I actually just like the Navy, even with the occasional rough sex.

#### Cara Delevingne

Poor family, 100% loans, 0 savings. 65k/year, baseline of 260k, assuming 25% extra total (fees, interest) from PLUS and unsub fed loans averaged over 4 years, close to 330k.

#### holycrap

2+ Year Member
Poor family, 100% loans, 0 savings. 65k/year, baseline of 260k, assuming 25% extra total (fees, interest) from PLUS and unsub fed loans averaged over 4 years, close to 330k.
I love the name

#### Horse Apiece

2+ Year Member
I'm hoping to have under 200k in loans by the time I graduate. I'm not sure tho, because my grandpa left me some money when he died, and I think there's about 50k in the account now, but my parents control the account (I know, I should be independent or whatever, but I'd definitely eff it up if I had to manage the account myself) and apparently it changes every day so I really have no idea.

Sent from my iPad using SDN mobile
Hey, Cersei may be a little controlling, but she just wants what is best.

2+ Year Member
0

#### Lannister

5+ Year Member
Hey, Cersei may be a little controlling, but she just wants what is best.
I would totally be Cersei's daughter for four years if it meant I could graduate debt-free.