How much is interest is paid by dental students on loans(stafford)?

[OBL1V1ON]

Im interested to know how long it takes the "average" dentist to pay off his/her loans after school. And, in all, how much interest adds in at the end.

say you go to school and come out with 200k in debt. by the time youre done paying the money back how much would you have really paid back? 200k+ 50k(interest) = 250k? more? less?

im sure i could do some research/math and figure this out on my own but i was hoping some one out there has maybe already figured this out...?

---

Members don't see this ad.

 

[Regmata]

I would guess that it would be considerably more than 20-25%...

 

[jackbauer!]

$276,192.62 over 10 years at 6.8% (current stafford rate)..

$366,402.72 over 20 years, $469,386.44 over 30 years.

Amazing what a little googleizing turns up.

jb!

 

[rkamsterdam]

I think it is essential for everyone with a brain cell to learn how to use a financial calculator. It has many practical uses including avoiding getting screwed in the arse by your broker. I found a simple financial calculator online that best simulates your purpose. Its found here - http://www.arachnoid.com/lutusp/finance.html

Here is a quick tutorial on the inputs.

PV = present value, or the value of the principal from day one. For you, day one is the day right after graduation and the amount of your loan is $200K.

FV = future value, the value of the principal after n (see next) lengths of time. In your case, the value will be $0 since you will want to have it all paid off.

N = number of payment terms. In this example, lets use ten years which is realistically 120 months since you will most likely be paying your loan on a monthly basis and interest will be compounded as such.

INT= interest rate. This rate is dictated by your terms of n. Let’s use an annual rate of 6.8%, but we need to input the monthly amt (6.8 / 12) or .567%.

PMT = Payment. This is the monthly payment made in order for your PV to equal your FV, in the n months with an INT monthly interest rate. This is your answer.

If you input these amount in the handy dandy calculator and solve for PMT, your monthly payment will be exactly $2,289.04 bringing the total cost to a **** load or $274,684.80.

My advice (unless you absolutely detest the idea of looming debt) would be to spread these payments out as far as possible (30 years). At such a low interest rate, you should be able to get a higher return on an investment like say your practice, thus reducing opportunity cost. Boy, am I glad I majored in finance.

 

[charlestweed]

After you graduate, you will receive several bills from different lenders. Some ask you to pay back in 10 years and some (most private loans) ask you to pay back in 15- 20 years.

These loans below are some of the low interest loans that I paid off early (in 3-5 years). You'll pay more interest if you pay them in 10 years.

Fed Stafford.... original amount: $18500...... interest paid: $6664.23 (36%)
HPSL ...............original amount: $8500 .......interest paid: $1485.37 (17.47%)
UCLA Health.... original amount: $1800........interest paid: $313.56 (17.42%)
UCLA Health..... original amount: $1400...... interest paid: $236.3 (16.8%)
Perkins............. original amount: $7000 ......interest paid: $1162.32 (16.6%)

You don't get a lot of these low interest loans in dental school. Most of your loans will be unsubsidized and private loans. And you'll pay a lot more interest for private loans. My wife and I would pay close to 1 million dollars for our $450K student loans, if we just sent in the required minimum payment (approx $6000/month) every month.

 

[Regmata]

I should have stayed in sales

 

[OBL1V1ON]

thanks for the replies guys, they helped.

 

[Aceofspades]

It should be noted that the maximum federal direct student loan amount is $138,500. So any amount over that ($200,000 - $138,500 = $61,500) will have to come from private loans. So although the first $138,500 will be @ 6.8% interest, the rest will be private loans with a higher interest rate like 8.5%. Don't forget about any applicable loan fees as well.

 

[peridot12]

I understand the finance calculator - but what about the deferred payments? Interest will accure thoughout DSchool with unsubsidized loans without payments being made. How does that compute?

 

[loved]

It should be noted that the maximum federal direct student loan amount is $138,500. So any amount over that ($200,000 - $138,500 = $61,500) will have to come from private loans. So although the first $138,500 will be @ 6.8% interest, the rest will be private loans with a higher interest rate like 8.5%. Don't forget about any applicable loan fees as well.

This maximum federal direct student loan amount of $138,500.. does this include Grad Plus loans?

Thanks.

 

[jackbauer!]

This maximum federal direct student loan amount of $138,500.. does this include Grad Plus loans?

Thanks.

No.

jb!