How much school debt are you willing to take on?

[kmon]

Hello all,

I am very curious about this so please reply. My question is, how much projected student loan would be too much for you? Or fill in the blank, if I had to spend $_____ on dental school then it would not be worth it and I would go into another profession.

Thanks.

---

Members don't see this ad.

 

[LFA20]

no more than 200k

 

[Mattthias]

What about 234k?

 

[tbond5]

Well considering I know I want to be a dentist I think 500k would be my upper limit but anything above 300k makes me shudder and hope I can get the military scholarship or some other funding option.

 

[Cello]

Well, considering how many homes cost $300,000+ these days, and a house often doesn't earn you any income (unless you get lucky and pick one in the right location), I'd rather invest the money in a lifelong career which promises a many fold return on my investment. So, given the choice between a $300,000 home and a $300,000 education, I'll take the education. If it means renting a modest house for the first ten years I'm in practice or working as an associate or even doing a residency, then that's the price. I work with lots of post-docs and PIs who rented homes through their thirties and they all end up doing well in their 40s. To expect any differently just because we have a DDS seems a bit silly. You aren't going to be rich day 1 out of dental school. It may take 15 - 20 years, but if you're smart and if the economy doesn't tank somewhere inbetween, you'll ultimately be "wealthy".

 

[tbond5]

I figure if I'm taking 125,000 home with me because its more than what my parents made combined then I'm doing pretty good. Considering thats close to a average starting salary of a dentist massive debt doesn't worry me. Plus I'll be a dentist at 27. I've got plenty of time to pay it back.

 

[free99]

Well, considering how many homes cost $300,000+ these days, and a house often doesn't earn you any income (unless you get lucky and pick one in the right location), I'd rather invest the money in a lifelong career which promises a many fold return on my investment. So, given the choice between a $300,000 home and a $300,000 education, I'll take the education. If it means renting a modest house for the first ten years I'm in practice or working as an associate or even doing a residency, then that's the price. I work with lots of post-docs and PIs who rented homes through their thirties and they all end up doing well in their 40s. To expect any differently just because we have a DDS seems a bit silly. You aren't going to be rich day 1 out of dental school. It may take 15 - 20 years, but if you're smart and if the economy doesn't tank somewhere inbetween, you'll ultimately be "wealthy".

I don't disagree at all that a $300k education in dentistry is a good investment, but I don't think it's terribly useful to compare it to real estate. Real estate may not earn you an active income, but it's still a very tangible asset and, even in the worst of real estate markets, is always worth something. A degree is an intangible asset that can't be resold, and your success is reliant on your own ability to produce. If you become disabled or die, what's your degree worth?

 

[rolayejoy]

don't think it's terribly useful to compare it to real estate. Real estate may not earn you an active income, but it's still a very tangible asset and, even in the worst of real estate markets

 

[TheWeeIceMan]

Well, considering how many homes cost $300,000+ these days, and a house often doesn't earn you any income (unless you get lucky and pick one in the right location), I'd rather invest the money in a lifelong career which promises a many fold return on my investment. So, given the choice between a $300,000 home and a $300,000 education, I'll take the education. If it means renting a modest house for the first ten years I'm in practice or working as an associate or even doing a residency, then that's the price. I work with lots of post-docs and PIs who rented homes through their thirties and they all end up doing well in their 40s. To expect any differently just because we have a DDS seems a bit silly. You aren't going to be rich day 1 out of dental school. It may take 15 - 20 years, but if you're smart and if the economy doesn't tank somewhere inbetween, you'll ultimately be "wealthy".

Depends what you consider to be "wealthy," I suppose.

 

[kmon]

I don't disagree at all that a $300k education in dentistry is a good investment, but I don't think it's terribly useful to compare it to real estate. Real estate may not earn you an active income, but it's still a very tangible asset and, even in the worst of real estate markets, is always worth something. A degree is an intangible asset that can't be resold, and your success is reliant on your own ability to produce. If you become disabled or die, what's your degree worth?

Very good point free99.

 

[kmon]

So if you spend 300k on the initial loan and pay it off with interest over 25 years like most are doing now, is there any room to put any money towards retirement during that time? Or will crazy high student loans keep that from happening?

 

[deleted470613]

My rule of thumb is student loan should not exceed your projected income.

 

[tbond5]

My rule of thumb is student loan should not exceed your projected income.

Good thing my projected income is 500k

 

[ramborhino]

I say 250K would be max for me, but it'd be tough if my only options were expensive schools. I'd probably convince myself to still go though. Cannot believe some are throwing around a 400K+ debt around here like it's nothing. Holy money . Those are some big payments you will be making, and they will be exponentially harder to make if you have a family.

 

[Jbrowndds]

230k is my max.

 

[athomas]

At USC they said one of their students went to USC for undergrad as well and will graduate dental school with almost $1 million in debt...yikes

 

[Cello]

I don't disagree at all that a $300k education in dentistry is a good investment, but I don't think it's terribly useful to compare it to real estate. Real estate may not earn you an active income, but it's still a very tangible asset and, even in the worst of real estate markets, is always worth something. A degree is an intangible asset that can't be resold, and your success is reliant on your own ability to produce. If you become disabled or die, what's your degree worth?

Your degree is a very tangible asset which allows you to sell your services throughout the lifespan of your career (you can sell a house once, I can sell my services indefinitely). There are hazards to being a dentist (what if you are disabled or can no longer perform procedures?) as there are hazards to owning a home (what if your home burns down or gets flooded?).

Thirty years as a dentist may earn you $4 - $5 million in gross income. Even with $1 million towards a loan + interest, you're still earning $3 - $4 million in gross income over thirty years (assuming ~$150,000 per year for those 30 years, which is very low). The average American may work 40 years @ $50,000 (again, no adjustment for projected inflation) which would gross them $2 million. They work as many years as a dentist does (when you factor in the decade of school for a dentist) to earn significantly less money. Dentists who earn $200,000 (most dentists I know earn more than this a few years out) can expect $6 million in gross earnings over 30 years.

Anyway you look at it, dentists still do far better than the average American. Dentists married to spouses who earn an income as well will do even better than that.

 

[TheWeeIceMan]

Your degree is a very tangible asset which allows you to sell your services throughout the lifespan of your career (you can sell a house once, I can sell my services indefinitely). There are hazards to being a dentist (what if you are disabled or can no longer perform procedures?) as there are hazards to owning a home (what if your home burns down or gets flooded?).

Thirty years as a dentist may earn you $4 - $5 million in gross income. Even with $1 million towards a loan + interest, you're still earning $3 - $4 million in gross income over thirty years (assuming ~$150,000 per year for those 30 years, which is very low). The average American may work 40 years @ $50,000 (again, no adjustment for projected inflation) which would gross them $2 million. They work as many years as a dentist does (when you factor in the decade of school for a dentist) to earn significantly less money. Dentists who earn $200,000 (most dentists I know earn more than this a few years out) can expect $6 million in gross earnings over 30 years.

Anyway you look at it, dentists still do far better than the average American. Dentists married to spouses who earn an income as well will do even better than that.

No, I wouldn't compare owning a house to your DDS degree. You can walk away from a house. You sure as hell can't walk away from student loans. If you can't make payments or no longer want to practice dentistry, well, too bad. Also, remember that you still need a place to live, even if you only want a modest house. With that 300k, you are already weighed down immensely.

Also, remember that you are paying your student loans with after tax money. You can't just swipe your total loan off the top of your gross career earnings and call it good. If you earn 150k, after taxes and a few thousand per month in loan payments, you aren't looking nearly as good. Also remember that if you want to earn that 200k income that you seem to think is so common a couple years out, you are probably going to have to own a practice, which also comes with significant debt.

Not to say that dentists don't do well, but when you say that you'll be "wealthy" after 10-15 years with that kind of debt burden, you may be in for a surprise.

 

[Cello]

Owning a practice also results in a tangible asset. I am happy renting until I can buy a house outright (it's the new American Dream!), and I don't need fancy cars as I often bike or bus to work / school and own a twelve year old Toyota Camry with 200,000 miles which runs beautifully - go Toyota! You can't walk away from student loans, you're right. You had better be damn sure that dentistry is what you want to do when you make the decision to attend d-school. But, there are risks involved in everything you do and don't do. Not going to d-school is a risk as well. You may wind up working a 9-5 under a boss you hate pulling down $50,000 per year and wishing you had gone to dental school. Life is full of risks, and I've learned from nearly a decade of working crummy jobs that some risks are definitely worth taking.

Wealthy is in the eye of the beholder (hence my quotes earlier). I worked in the real world after college earning ~$40,000 per year before taxes with crummy benefits. When I see people on here complaining that they will only be taking away a gross income of $70,000 after their loan payments, that doesn't bother me because I have lived pretty well on much less. With my income I rented a decent apartment, owned a car, traveled to South America every other year, took ski trips, went camping and backpacking, went to the symphony and ate out once a week with my wife. Life was pretty good, and we were good at finding great deals and living frugally which is a skill I encourage everyone here to learn.

One of my coworkers had put in 43 years at my facility when he retired. He was earning $21 per hour and making roughly $57,000 per year at the end (lots of O/T). He was proud as hell of his time there and he retired on $1 million in total assets. His wife worked on and off throughout their 40 year marriage, but never more than part-time and she was usually minimum wage. If he was able to save $1 million, own a home, have two newer cars, raise a family with four children, and buy the RV of his dreams after retiring, then I don't know what is wrong with the people on here earning four, five, even six times his income. As someone said in another thread, you have to let your money work for you (Roth IRA / 401k, stocks/bonds, etc.) He lived frugally during his younger years. We will all have to as well if we want to be wealthy at the end of this. But I don't have much sympathy for people earning $200,000 when I was living on 1/5th that income and still managed to put away a large sum of cash to go back to college.

 

[TheWeeIceMan]

Owning a practice also results in a tangible asset. I am happy renting until I can buy a house outright (it's the new American Dream!), and I don't need fancy cars as I often bike or bus to work / school and own a twelve year old Toyota Camry with 200,000 miles which runs beautifully - go Toyota! You can't walk away from student loans, you're right. You had better be damn sure that dentistry is what you want to do when you make the decision to attend d-school. But, there are risks involved in everything you do and don't do. Not going to d-school is a risk as well. You may wind up working a 9-5 under a boss you hate pulling down $50,000 per year and wishing you had gone to dental school. Life is full of risks, and I've learned from nearly a decade of working crummy jobs that some risks are definitely worth taking.

Wealthy is in the eye of the beholder (hence my quotes earlier). I worked in the real world after college earning ~$40,000 per year before taxes with crummy benefits. When I see people on here complaining that they will only be taking away a gross income of $70,000 after their loan payments, that doesn't bother me because I have lived pretty well on much less. With my income I rented a decent apartment, owned a car, traveled to South America every other year, took ski trips, went camping and backpacking, went to the symphony and ate out once a week with my wife. Life was pretty good, and we were good at finding great deals and living frugally which is a skill I encourage everyone here to learn.

One of my coworkers had put in 43 years at my facility when he retired. He was earning $21 per hour and making roughly $57,000 per year at the end (lots of O/T). He was proud as hell of his time there and he retired on $1 million in total assets. His wife worked on and off throughout their 40 year marriage, but never more than part-time and she was usually minimum wage. If he was able to save $1 million, own a home, have two newer cars, raise a family with four children, and buy the RV of his dreams after retiring, then I don't know what is wrong with the people on here earning four, five, even six times his income. As someone said in another thread, you have to let your money work for you (Roth IRA / 401k, stocks/bonds, etc.) He lived frugally during his younger years. We will all have to as well if we want to be wealthy at the end of this. But I don't have much sympathy for people earning $200,000 when I was living on 1/5th that income and still managed to put away a large sum of cash to go back to college.

Sounds like you know what you're doing and have realistic expectations. Not everyone does. Too many people don't understand what they are getting themselves into with higher education/debt.

As to your last paragraph, I'd like to add something. My grandparents were the same way. My grandpa was a blue collar worker and my grandma didn't work. They raised 8 kids and somehow managed to pass away with quite a lot of money. The problem is, times have changed. My grandparents generation got ridiculous return rates on investments. Hell, CDs paid like 10% interest. Things were also considerably cheaper when that generation was building a family/buying a home. It's just not as easy for our generation to amass wealth like those before us. My point is, it's not as easy for young workers to just live frugally and everyting will be fine. There is a lot more working against us these days.

 

[Teeths]

Sounds like you know what you're doing and have realistic expectations. Not everyone does. Too many people don't understand what they are getting themselves into with higher education/debt.

As to your last paragraph, I'd like to add something. My grandparents were the same way. My grandpa was a blue collar worker and my grandma didn't work. They raised 8 kids and somehow managed to pass away with quite a lot of money. The problem is, times have changed. My grandparents generation got ridiculous return rates on investments. Hell, CDs paid like 10% interest. Things were also considerably cheaper when that generation was building a family/buying a home. It's just not as easy for our generation to amass wealth like those before us. My point is, it's not as easy for young workers to just live frugally and everyting will be fine. There is a lot more working against us these days.

Not to butt in, but you can say that again!

Just to put things in perspective... the dentist I work for told me he came out of dental school with $20k in debt. I almost died of laughter and that's just the tip of the iceberg. They've worked on a very different playground than we will....

 

[jenfromdablock]

How will we manage all this debt?

 

[Longcatislong]

Not to butt in, but you can say that again!

Just to put things in perspective... the dentist I work for told me he came out of dental school with $20k in debt. I almost died of laughter and that's just the tip of the iceberg. They've worked on a very different playground than we will....

Ditto. A dentist I shadowed said both his school and practice loans were $40,000 combined. Even still, he said he struggled immensely his first few years out.

 

[kmon]

Cello,

It sounds like you do not have a family/dependence so your 40k would be different from most.

 

[Ar2]

Ditto. A dentist I shadowed said both his school and practice loans were $40,000 combined. Even still, he said he struggled immensely his first few years out.

Going to add to this list. Three dentists I shadowed all came out of school owing $70,000 or less. That's a HUGE difference from the $300,000 to $400,000 a lot of folks are having to pay these days. Oh, & one told me his interest on his loans were 2%!!

 

[Mattthias]

A lot of those dentists didn't know how good they had it. You aren't allowed to whine about 40k in debt when you can make 100k or more a year (and I'm low-balling it). If you can't pay that off you are just pitiful. Although I realize every situation is unique and there is now way to know all the variables in someone's life. Still any basic accountant could make those dividends and have room to spare.

It's all about money management. I've shadowed two dentists who live paycheck to paycheck because I'm going to be honest they are kind of *******es when it comes to money. One dentist bought two 2014 his and hers Lexus, a brand new 50,0000 dollar boat and just finished his 4500 sq. foot house on the lake and then he complains when he has no money. I don't want to be disrespectful but seriously?

I have of course shadowed many more dentists who are very good with their money don't flash it around and live very respectable lives.

 

[CleverThought]

I've honestly never had to think about it, because I was raised with the mindset that debt is bad and under no circumstances should be taken out.

But if I had to put a number on it. Entering dental school in my early 20's with arguably 40+ working years ahead of me, maybe $125k. As I got older, the number would subsequently go down.

 

[Mattthias]

I've honestly never had to think about it, because I was raised with the mindset that debt is bad and under no circumstances should be taken out.

But if I had to put a number on it. Entering dental school in my early 20's with arguably 40+ working years ahead of me, maybe $125k. As I got older, the number would subsequently go down.

How do you plan to go to a Dental School currently and avoid more than 125k in debt? The only thing I can think of is a Military or family support.

 

[CleverThought]

How do you plan to go to a Dental School currently and avoid more than 125k in debt? The only thing I can think of is a Military or family support.

I sold a kidney on the black market.

Truthfully, I worked my ass off academically (who hasn't) and have had many blessings in my life.

 

[elektroshok]

I sold a kidney on the black market.

Truthfully, I worked my ass off academically (who hasn't) and have had many blessings in my life.

Aka parents with money

Sent from my XT1080 using Tapatalk

 

[Glimmer1991]

EDIT: It is probably smartest to just not get very involved here.

 

[ModifiedBass]

Really? That just seems completely unrealistic. I can't think of anyone who could possibly be in such a situation unless mommy and daddy (or maybe an older/already established spouse) are paying. Debt does not have to be a monstrosity. Sure, it isn't ideal, but sacrifices must be made.

There's always the military route, one does not need to rely on Mommy and Daddy to keep them out of debt. I was raised in a similar way to try and avoid debt as much as possible, and even without outside support, you can always sacrifice to stay out of it. That's why I'm willing and fully looking forward to hopefully getting into the HPSP. So to answer the original question, to be honest I wouldn't really know seeing as I always had my eye on HPSP throughout the process; sorry if that doesn't help.

 

[Screwtape]

I've honestly never had to think about it, because I was raised with the mindset that debt is bad and under no circumstances should be taken out.

But if I had to put a number on it. Entering dental school in my early 20's with arguably 40+ working years ahead of me, maybe $125k. As I got older, the number would subsequently go down.

Wow. It seems that you do not understand too much about money or finance, it's probably a good thing that will have low debt out of D school. Just one example, if I were to offer you a $10,000 dollar loan with no added interest, and you could invest it and make $25,000, would you take that loan? There is such thing as good debt and bad debt, often the most successful companies and people are in debt because they are leveraging their assets to generate more wealth. Also $125k would be your max? I would like to hear your reasoning behind that one actually. It sounds like you just pulled a number from a hat because you don't really grasp basic financial concepts.

 

[Glimmer1991]

There's always the military route, one does not need to rely on Mommy and Daddy to keep them out of debt. I was raised in a similar way to try and avoid debt as much as possible, and even without outside support, you can always sacrifice to stay out of it. That's why I'm willing and fully looking forward to hopefully getting into the HPSP. So to answer the original question, to be honest I wouldn't really know seeing as I always had my eye on HPSP throughout the process; sorry if that doesn't help.

The military is absolutely a feasible route! However, I've read her blog, and I am fairly certain that isn't what she was referring to. I think that, especially considering my whole post, the point was that most people can't just go to school and come out debt free without making SACRIFICES.

I was just standing up for the people who are making sacrifices in one way or another. Most people don't get the bill paid without having to repay it somehow--whether that be by loan repayments or years of service in the military.

Debt certainly does not have to be crippling. It just doesn't. Having SMART debt can lead to greater wealth down the line. Just like taking out a reasonable amount of money in DS loans is smart debt, I think that being indebted to the military is also smart debt--but still debt nonetheless. For example, I would rather have 250k in loans than go into the military--but this just applies to my personal situation. Had I only been accepted to schools more expensive than this, though, I would have started looking into other options.

I really wasn't trying to stir the pot too much here. I was just trying to offer a different perspective that not everyone who will be indebted because of DS is doing something "bad."

 

[tandem7]

As some of you may know, I am going to dental school starting this summer but I currently have a full-time job as a lawyer and a part-time personal business. During my first year law school orientation, some finance people told us "if you live like a lawyer now, you will live like a student later", meaning that if you got into credit card debt, took out the max loans possible, etc. you will pay for it later. Well, I did not take their advice. I maximized my student loans, even though I probably could have taken out about 35K less in loans if I did not maximize the amount of loans that were living expenses. I got into credit card debt. I figured that I would make a six digit salary, and it would be so easy to pay off... I took out the max amount of bar exam loans, even though I received a stipend from my future employer just to feel more "comfortable." I'm paying for all of this now.

Well, I will say, luckily, I did make a six digit salary when I got out of law school. I was in the small minority, and most of my friends who also maximized their debt did not make that much money and could barely afford rent. While my salary allowed me to live comfortably, it was EXTREMELY DIFFICULT, to pay off my loans, even though my annual salary was close to the amount I had in loans. After you factor federal taxes, social security, state taxes, retirement plan, health insurance, rent/mortgage, cell phone, etc. your actual discretionary income is relatively small, even if you are making over $100K a year. Early in my legal carer, I did want to be a dentist, but I knew I could not take on an additional $100K to $200K in loans on top of what I had. I was guilty of being financially irresponsible, and then I had to put in 8 years of my life to at least pay down my private loans and save money (I was lucky in that my federal loans are 1.8% for life, so I am not trying to pay those off since it makes more sense to just pay the minimum until they are paid off).

I am now going to learn from these previous mistakes and apply it to my upcoming dental school experience. My advice: take out the minimum amount of loans; even of they offer you more for living expenses, try to take out less. I know you can do it! Also, when you have breaks (such as holiday breaks), see if you can get a seasonal job or do odd jobs if your school allows you to do it. Seriously, any amount of $ helps down the road when you are repaying your loans--don't have the same regrets as me!

When I was in law school, my mom owned a restaurant and always offered to have me work on weekends when I had breaks in law school. I thought I was "too good" for that, since I was going to be a lawyer, and I wanted my free time since I worked so hard during my semesters. Looking back, I probably could have made at least 30K or more over the 3 years in law school if I had worked when I really had free time, which translates into 50K or more after you factor in the interest you would have to pay on that money. On top of that, if I had taken out the 35K less in living expenses that I didn't need, that would translate to 65K-100K of real money (after taxes) that could go back into my pocket instead of loans and interest.

I've resolved to go about my dental school differently. I am really going to take out the minimum loans possible. I am going to only spend money on necessary expenses and nothing else. I am also going to continue working on my personal internet business a few hours a week (message me if interested in learning more), because I know I could spare that amount of time per week, especially if that saves me tens of thousands of dollars down the road. Also, if anyone offers me odd jobs along the way during vacation breaks, I will do that too, and I am not too proud to work for money since it will ultimately give me more financial freedom as a dentist. I know my life will be so much better as a dentist if I set myself up during dental school to have as little debt as possible.

Anyway, sorry for my little rant; I hope I helped some of you though! Feel free to message me if you ever want to talk or have any more questions. I really hope to help people learn from my mistakes and successes!

 

[Cello]

Not trying to rain on anyone's parade, but I was quite set on the military route as well. After talking to several dental residents at my local university hospital's dental clinic, that option is currently extremely competitive. One of the residents doing his GPR is currently on his second application cycle for the navy.

Edit: To go along with what tandem7 said, seasonal jobs can be enormously helpful in warding off debt. In fact, if you're male (sorry ladies) and have the work ethic, you may be able to scrape together $20,000 in a few months at an oil field if you can stomach the work and don't think it's beneath you. Multiply that by 2 or 3 and you've saved some serious dough!

 

[jenfromdablock]

How will we manage all this?? I'll be in about 400k+

 

[Cello]

I forget, what was the problem with IBR? Seems like everyone on SDN views IBR as a non-option and I don't remember why.

 

[Screwtape]

Not trying to rain on anyone's parade, but I was quite set on the military route as well. After talking to several dental residents at my local university hospital's dental clinic, that option is currently extremely competitive. One of the residents doing his GPR is currently on his second application cycle for the navy.

Edit: To go along with what tandem7 said, seasonal jobs can be enormously helpful in warding off debt. In fact, if you're male (sorry ladies) and have the work ethic, you may be able to scrape together $20,000 in a few months at an oil field if you can stomach the work and don't think it's beneath you. Multiply that by 2 or 3 and you've saved some serious dough!

I am confused, what is he applying to? If he is a already a dental resident then he cannot apply to the military HPSP. Is he trying to join the military and get loan repayment? Or is he trying to specialize through the military? Also, as far as the HPSP (which is what most people on here would be applying for) I don't think it is "extrememly competitive". As long as you apply early (well before your acceptance letter), have all your ducks in a row, got into dental school, I don't think getting the HPSP is super difficult (at least for Army). We have a few people in our class in Navy and AF as well, and they both seem to be a little more competitive-- but still not impossible. I would consider the NHSC a much more competitive scholarship program.

 

[CleverThought]

Yikes, didn't expect such a reaction.

Just to clarify, I grew up very, very poor. I know first hand what it's like to be in the debt dependency cycle. Did my family get out of the cycle? Yeah, but I don't think it's fair to out judgement on someone because of what money their family has or doesn't have. Chances are you don't understand what sacrifices that family went through to get there. I mean, quite literally my father would be gone for months at a time in china and Mexico trying to create a better life, you can't deny that's hard on a adolescent girl.

And to say I don't understand money is something I find ridiculous. I work 40 hours a week of overnight shifts, going to class often having been awake upwards of 24hours. I do this to pay my own bills, pay for my undergraduate education in cash, invest for my retirement, and fund my future dental education. Yes, I will have help with my dental education, but I've also worked my own tail off saving a good chunk of money for school, it's astonishing what strategic investing will grow you.

Also, for heavens sake I'm married to a financial advisor. Obviously, I don't understand to the extent he does, but I've got a pretty good understanding about things in the financial world.

I must also add, that I do not judge those who take out loans for education, mortgage, etc. I might question you if you choose a much more expensive school if you had a cheaper option, but I understand that for a majority of the population, loans are necessary means to an end. However, the fact that I don't agree with taking out debt, unless absolutely necessary, doesn't make me a horrible, senseless person. I've just lived on the other side of it.

 

[Cello]

I am confused, what is he applying to? If he is a already a dental resident then he cannot apply to the military HPSP. Is he trying to join the military and get loan repayment? Or is he trying to specialize through the military? Also, as far as the HPSP (which is what most people on here would be applying for) I don't think it is "extrememly competitive". As long as you apply early (well before your acceptance letter), have all your ducks in a row, got into dental school, I don't think getting the HPSP is super difficult (at least for Army). We have a few people in our class in Navy and AF as well, and they both seem to be a little more competitive-- but still not impossible. I would consider the NHSC a much more competitive scholarship program.

Yeah, definitely not HPSP, though I'm sure he wishes he had. I think he tried once, didn't make it, started his GPR and is now trying again. At least, that's my understanding of the situation. Would that entail going through officer accessions then OCS for Navy?

Good point though, I didn't think about the fact that most people will do HPSP.

 

[jenfromdablock]

I'm thinking about doing PAYE/IBR LOL

 

[Illfavor]

Ill have an average amount of debt from 5 degrees, 2 for my wife and 3 for me. I would call myself incredibly fortunate for that, after having borrowed so much for higher education. We are DINKs and we plan to pay it almost all off in 3-4 years, whether it's through NHSC or just paying off normally. Buying into private practice is a bit far away for any solid plans, but I would guess 2-4 years after graduation. But, the reality is that financial projections become pretty difficult at this point.

 

[Datooth]

I forget, what was the problem with IBR? Seems like everyone on SDN views IBR as a non-option and I don't remember why.

I'm thinking about doing PAYE/IBR LOL

The issue w/ IBR is that the entire amount forgiven is taxed. You end up having to paying a very large sum of money all at once that ends up being near the amount you would've normally paid had you not done IBR.

 

[jenfromdablock]

The issue w/ IBR is that the entire amount forgiven is taxed. You end up having to paying a very large sum of money all at once that ends up being near the amount you would've normally paid had you not done IBR.

Do we have another option to make/give modest sized monthly loans? The amount when "taxed" will probably be about 35% of your outstanding outcome which is about 180,000 or something.

 

[kmon]

You can kiss your retirement goodbye when you pay your forgiven loan tax