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How much is your Debt so far?
Started by Cold Front
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$0
(That's an advertisment for HPSP even if I don't want it to be.)
(That's an advertisment for HPSP even if I don't want it to be.)
I'm a pre-dent, but I've got 40K in loans right now. I plan on adding another 60 to 90K in dental school, depending on how much I need. Tuition is fairly cheap at the school I'm hoping to attend.
kew said:
what school are you enrolling in?
HD
dentalman said:
I heard this too, but don't forget this is for '04 or '05 graduates just coming out. There has been a lot of tuition increases nationally since they first matriculated in the Fall '00 or Fall '01. This will certainly go up in the next few years.
A little over 220k w/undergrad. 🙁
I'm at $100,000 now and expect to be about $230 by graduation (no undergrad debt)
I have no choice but to borrow that much money. We have three kids and so my wife couldn't work while I've had to go to school for 5 years. I couldn't work as much as I wanted to get good enough grades to get into dental school so I just spent my time studying and being with my kids. Also, we don't like to live like students. Especially in dental school. If we can borrow it all and live happily, we will. That last thing we want to do is go through 4 years of dental school with three kids and we can never go out because we are trying to live like students. We would die before the 4 years are up. We choose to worry about dental school during the dental school period and finances after dental school, but to worry about dental school and finances at the same time just would stress us out during a time where stress is already at its highest.
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mtheman said:
I don't how loans work quite yet. The only thing I know is that you don't start paying back until you are out of school. Heck, I don't even know what the interest rates are.
Question for all of you with $$-sense and know-how:
assuming you are about $300K in debt, how much per month to repay the loan are we talking about here, and for how long (worst case)?
👎
Pelotari said:Question for all of you with $$-sense and know-how:
assuming you are about $300K in debt, how much per month to repay the loan are we talking about here, and for how long (worst case)?
Well, it will be a couple of different payments, becuase you'll have federal loans and private loans in the mix.
You're probably looking at $1500-1800 a month for 360 months.
Interest rates are going up right now so I would be very careful about borrowing more than you'll need.
My borrowing will depend on what kind of job my wife gets when I go to dental school. If she gets one that pays what she makes now or more then I'll only borrow what the school charges (~$16,000) per year or less, but if she can't find a decent job then I'll be forced to borrow more to make ends meet.
My borrowing will depend on what kind of job my wife gets when I go to dental school. If she gets one that pays what she makes now or more then I'll only borrow what the school charges (~$16,000) per year or less, but if she can't find a decent job then I'll be forced to borrow more to make ends meet.
before or after tax?mtheman said:
kew said:
Live like a student now or live like a student when you are a dentist....young kids don't understand deprivation as much as a teenager. Learn frugality now or later. You are holding your future hostage for the moment. My buddy and I had a bunch of kids in undergrad and dental school. I went the chincy way and he had your philosophy and he regrets it deeply now.... it limited his options and he is paying for his lack of fiscal discipline now (he's almost been out 3 years). He's not saving, investing, and buying into his practice as quickly as he'd like. He would be much wealthier and more secure quicker had he restrained himself.
Living like a poor student has a lot of memories for my wife and I. Being poor and making it builds real world experience. It builds the discipline that wealth, security, and confidence require. A universal truth is that wealth and security have very little to do with what you make and entirely to do with what you spend. I'll bow out now. I sound like a preacher. But I'm at the end of the path that you are about to start and I feel like I should point out the flaws in your philosophy. But you're not alone, many think it is the way. I thought my kids learned alot about sacrifice, frugality, and real world skills to watch their mom and myself pull through. I think it will help my kids not be spoiled, unrealistic, and to be adaptable. I think they realize the value of education and hard work because we've tried to show them how important it is....sacrifice isn't glamorous that is why it is sacrifice...
None of this has anything to do with our children. It has to do with our own sanity. I know full well that I will be behind in the long run compared to the next graduate. I know that it will take me much longer to pay off my debt. I know that this will hurt me when trying to set up a practice or try to buy a home. I know it will affect all the areas of my life afterwards. But at least at that point I have a piece of paper that lets me take care of it at a rate that I choose. If I want to work extra hard, I have the ability to. I will have a career that allows me to correct my mistakes. This decision is not mainly for me. It is for my wife. I personally could live without. But I know that she would just as soon give up and have me go be something else that doesn't requre such a sacrifice. Hence, I will pay the price and I'm fine with that. That's just the way it goes. Marriage makes you do things no matter how illogical or unpractical they may be. I do appreciate your cander though and believe me, I agree with every bit.
As a 2006 grad (though I still have 3 more years of residency to come), if I was to start practice in June and consolodate my DDS debt (~$125,000) at the present rate (after discounts), I'd be paying somewhere about $650-700/mo. for 30 years.
Not bad, though it'll probably be somewhere closer to $180,000-200,000 after I finish ortho. 🙂
Not bad, though it'll probably be somewhere closer to $180,000-200,000 after I finish ortho. 🙂
kew said:
And I agree with your above statement also. The only thing worse than too much debt is divorce..... now that is expensive! What loan repayment programs will let you extend your education debt for 30 years (you could be retired and still paying on student loans or be disabled and still paying for your education)? Who will guarantee a rate over that period of time? At 650 dollars over 30 years on a 125KKK debt will mean you will pay around 235,000 assuming the interest rates are locked in and absolutely will not fluctuate. My buddy had a hard time getting anyone to extend his loans past 10 years without constantly switching and refinancing which cost him around 3% of his total debt each time he did that.
A smart man earns interest, he doesn't pay it....
Wow...repaying debt. So once we're *student* debt free...we'll be in retirement. 😛
I'm looking at about 20-30k from loans in undergrad. Probably thinking like $200k when getting done dental school. That's a lot of money.
I'm looking at about 20-30k from loans in undergrad. Probably thinking like $200k when getting done dental school. That's a lot of money.
esclavo said:
I agree completely...have you read Ballard's "One for the Money"? 🙂 My goal is to have school, mortgage and pracice paid off 10 years out. I was simply showing an illustration of how a low rate could be achieved through CFNC (a common company used by UNC grads). While it is appealing in the short-term, as you pointed out the long-term ramifications aren't worth the comfort now.
jpollei said:
What is CFNC?
ItsGavinC said:
Gavin, I'd like to know the formula and the interest rate yo are using to calculate that monthly payment for $300k debt. I'll be in debt about $325,000 when I get out and the way I calculated it, I'd have to pay almost $3000/month just for student loans. here is my formula (interest rate : 7%)
Interest = Principal x Rate x time (years)
So, 325,000 x .07 x 30 = $682,500
+ the initial debt = $1,007,500
devide by 360 payments = $2798.11
and I don't remember if this is the interest compounding formula or not
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So has anybody looked into any loan repayment programs?
http://nhsc.bhpr.hrsa.gov/join_us/lrp.cfm
The National Health Service Corps pays off 25,000 a year if you sign a contract to work in an underserved area for 2 years. Since I'm only pre-dental, I have no clue how good that is in context. *scratches head* Anybody have some insight on this? I know I'm going to be way in debt by the time I get out...
http://nhsc.bhpr.hrsa.gov/join_us/lrp.cfm
The National Health Service Corps pays off 25,000 a year if you sign a contract to work in an underserved area for 2 years. Since I'm only pre-dental, I have no clue how good that is in context. *scratches head* Anybody have some insight on this? I know I'm going to be way in debt by the time I get out...
There is alot i don't like about living in Louisiana, but there is also alot that I love about it. It is very easy to get your enitre undergrad education paid for by the state. The admissions requirements for LSU are above the state's requirements for their scholarships. Therefore, basically every freshman at LSU is able to get full paid+ scholarships. Furthermore, I will probably be only around $80K in the hole when i am out of dental school in four years.
wigglytooth said:So has anybody looked into any loan repayment programs?
http://nhsc.bhpr.hrsa.gov/join_us/lrp.cfm
The National Health Service Corps pays off 25,000 a year if you sign a contract to work in an underserved area for 2 years. Since I'm only pre-dental, I have no clue how good that is in context. *scratches head* Anybody have some insight on this? I know I'm going to be way in debt by the time I get out...
If you want to work in an underserved area then do it. If you don't want to live in an area like that then don't. If you want to practice in a bigger city and if you work hard, then paying off your loans won't be too tough.
Cold Front said:
College Foundation of NC...for students either from NC or attending school here. My buddies that consolodated last year (at 2.7%) will have their interest rate down to about 0.7% after 3 years of on time payments...almost like free money. Those who consolodate through CFNC this year (at 4.7%) will be down to 2.7% by 2008. Sweet set-up.
I wouldn't stress too much about it. Noone wants to be in debt. But there is good debt, which is our student loans and bad debt. Bad debt would be borrowing to buy a brand new M5 when you really can't afford one. Remember student loans are good debt with very low interest rates (for the most part). 🙂
😱Comet208 said:Gavin, I'd like to know the formula and the interest rate yo are using to calculate that monthly payment for $300k debt. I'll be in debt about $325,000 when I get out and the way I calculated it, I'd have to pay almost $3000/month just for student loans. here is my formula (interest rate : 7%)
Interest = Principal x Rate x time (years)
So, 325,000 x .07 x 30 = $682,500
+ the initial debt = $1,007,500
devide by 360 payments = $2798.11
and I don't remember if this is the interest compounding formula or not
This math does NOT compound the interest. You're calculating interest for each year based on the initial principal of $325,000. You have to take into account the interest that is accruing each year (or however often interested is compounded). Use a financial calculator to determine the future value of $325,000 at 7% for 30 years and then you'll really be blown away. You can also use it to determine the monthly payment needed to pay it off in 30 years, or whatever time period you want. If you really want to be depressed, look at an amortization table of that loan and see how much you're paying in interest and principal with each payment for the life of the loan. This will make you think twice about getting unnecessarily deep in the hole. Just remember, there is still no question whatsoever that dental school is a great investment, even if it's just from the finance point of view. 🙂Comet208 said:Gavin, I'd like to know the formula and the interest rate yo are using to calculate that monthly payment for $300k debt. I'll be in debt about $325,000 when I get out and the way I calculated it, I'd have to pay almost $3000/month just for student loans. here is my formula (interest rate : 7%)
Interest = Principal x Rate x time (years)
So, 325,000 x .07 x 30 = $682,500
+ the initial debt = $1,007,500
devide by 360 payments = $2798.11
and I don't remember if this is the interest compounding formula or not
One of my good friend graduated couple of years ago from Dental school with about 200K in school debt. He wanted to pay of the school loans so bad that he lived like dental student while he was associating and paid almost 6K in monthly payments and has his loans are almost all paid of. Now he did this because he thought he would just spend his money on BMW's and chicks and etc so it was wise for him to pay it off. For me personally I would pay it off over 20 years if interest rates were as low as 2.7% like couple of years ago but with interest rates going up about 6.7% now it seems it would be wise to pay it off as soon as you can and live like a student for couple of years after graduation.
I know this may sound crazy. If you think about the discrepancy between the in-state vs. out-of-state and the public vs. private. Instead of using the tuition reimbersment programs after you graduate, one should move to a state, establish residency, work for one year, get into a public dental school in that state. This could easily save you 100,000 over 4 years. And they will still call you dr.
Comet208 said:Gavin, I'd like to know the formula and the interest rate yo are using to calculate that monthly payment for $300k debt. I'll be in debt about $325,000 when I get out and the way I calculated it, I'd have to pay almost $3000/month just for student loans. here is my formula (interest rate : 7%)
Interest = Principal x Rate x time (years)
So, 325,000 x .07 x 30 = $682,500
+ the initial debt = $1,007,500
devide by 360 payments = $2798.11
and I don't remember if this is the interest compounding formula or not
Loan Balance: $325,000.00
Loan Interest Rate: 7.00%
Loan Term: 30 years
Minimum Payment: $50.00
Monthly Loan Payment: $2,162.23
Number of Payments: 361
Cumulative Payments: $778,406.62
Total Interest Paid: $453,406.62
The Total interest you pay back on the loan will be more than the total Prinicipal you borrowed?rahmed said:
that's crazy! - is this do-able?
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3 yrs at ucsf and 67K in debt. Sound like a good deal
$110 000 so far (includes undergrad loans). will owe ~$250 000 by the end.
that depends on the cost of living allowance determine by your school financial aid office. It varies from school to school, even if two schools are in the same city. I remember the year I applied, uop allowed 9K while ucsf allowed 12K. Those numbers increase every year due to inflation, but not much at all.
You can't tell them that you'd like to get more than what they determine for you. Financial aid is very strict about what you should borrow, as they don't want you to end up with loads of debt
You can't tell them that you'd like to get more than what they determine for you. Financial aid is very strict about what you should borrow, as they don't want you to end up with loads of debt
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