How much student debt should you expect?

[soccerkid9]

On school websites, many schools say that the average indebtedness of their students is about 150K-180K. However, living expenses are consistently 55K-70K a year. This would mean that students should come out with debts of about 220K-280K.

What is causing this difference? Is that due to schools providing scholarships and tuition waivers? Or is that from parents paying for tuition? I am trying to get a sense of how much debt to expect.

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[Hotshy]

On school websites, many schools say that the average indebtedness of their students is about 150K-180K. However, living expenses are consistently 55K-70K a year. This would mean that students should come out with debts of about 220K-280K.

What is causing this difference? Is that due to schools providing scholarships and tuition waivers? Or is that from parents paying for tuition? I am trying to get a sense of how much debt to expect.

I would like an answer to this as well, I don't really understand how the number is brought down so much from the actual cost.

 

[popopopop]

What state is this that living expenses are 55k a year?

 

[bayarea15]

55k for living expenses? Lol. That's sad.

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[blizzah]

I think he means tuition + living expenses.

A lot of students don't need to take on debt for school. That lowers the average drastically.

 

[NickNaylor]

On school websites, many schools say that the average indebtedness of their students is about 150K-180K. However, living expenses are consistently 55K-70K a year. This would mean that students should come out with debts of about 220K-280K.

What is causing this difference? Is that due to schools providing scholarships and tuition waivers? Or is that from parents paying for tuition? I am trying to get a sense of how much debt to expect.

Scholarships, grants, rich parents, MSTP, etc..

 

[soccerkid9]

Sorry, I meant tuition plus living expenses

 

[soccerkid9]

Scholarships, grants, rich parents, MSTP, etc..

Do you know how much of that is due to rich parents and how much is due to scholarships/grants? I know how much my parents will be able to contribute. I am trying to get a better idea of what to expect in terms of assistance from an average medical school for an average applicant.

 

[Slack3r]

Do you know how much of that is due to rich parents and how much is due to scholarships/grants? I know how much my parents will be able to contribute. I am trying to get a better idea of what to expect in terms of assistance from an average medical school for an average applicant.

Not a lot.

 

[TACMON]

if you're worried about debt, which most are, your first thought should be "is this really for me?"

but to be quite honest, debt is a small factor...in fact I hardly think about it (but keep making interest payments )

also, go for the lowest cost school to attend

 

[aSagacious]

I always say hope for the best and plan for the worst. Heading into this mess make the assumption that you will get zero outside help (parental support, scholarships, etc). Considering that the national average for tuition is ~$45k and a generous annual living expense for a single is $25k. So, at worst (though in truth it could be much worse) you're looking at $280,000 in principal, neglecting any undergraduate debt.

 

[NickNaylor]

Do you know how much of that is due to rich parents and how much is due to scholarships/grants? I know how much my parents will be able to contribute. I am trying to get a better idea of what to expect in terms of assistance from an average medical school for an average applicant.

I would assume that you're going to pay full price unless you have received a scholarship beforehand. Will you end up paying full price? Depending on the school(s) you're considering, probably not. But that's really the safest way to plan until you get financial aid info.

 

[pkwraith]

Calculate the Cost of Attendance, subtract what you can contribute. Don't assume any scholarship or assistance.

Work from that number, and plan your life around that. If you get a scholarship, great, you end up ahead. Don't plan for it. Don't use it in your calculations.

 

[bassvp]

If you're trying to compare schools, I would just compare their tuition cost and the cost of living from http://www.bestplaces.net/col/. You probably already know how much it costs you to live where you're already at, so just translate that into where you plan on moving for med school and consider any additional expenses that med school may present that you're not currently facing.

 

[MT Headed]

On school websites, many schools say that the average indebtedness of their students is about 150K-180K. However, living expenses are consistently 55K-70K a year. This would mean that students should come out with debts of about 220K-280K.

What is causing this difference? Is that due to schools providing scholarships and tuition waivers? Or is that from parents paying for tuition? I am trying to get a sense of how much debt to expect.

This number does not include debt-free students, but it does include financially savvy students that max out their subsidized loans and then simply pay them back in full the minute those loans begin to accrue interest. There are a suspiciously large number of students that have a total debt load of $34,000 after four years of medical school.

Since subsidized loans are not available starting in 2012 (dang, missed it by that much!), expect the average debt load of debt-carrying students to rise dramatically over the next four years to more realistic levels. I verified all this with several financial aid officers when I was interviewing.

To respond to your last sentence, YOU should expect your debt to be 220K to 280K.

 

[catzzz88]

From MSAR: of newly entering medical students, median parental income is $100K (double estimated U.S. median) and one in 6 students have parents that earn over $250K per year.

Fewer than 20% of entering students have parents that make below 50K per year.

This is why the "average debt" is so low. I will be paying every penny of school and living all by my lonesome not because my family won't help pay, but because they can't. Anyone else in the same boat? Not sure how I will make it, but heres to luck!

Best,
C

 

[Bacchus]

From MSAR: of newly entering medical students, median parental income is $100K (double estimated U.S. median) and one in 6 students have parents that earn over $250K per year.

Fewer than 20% of entering students have parents that make below 50K per year.

This is why the "average debt" is so low. I will be paying every penny of school and living all by my lonesome not because my family won't help pay, but because they can't. Anyone else in the same boat? Not sure how I will make it, but heres to luck!

Best,
C

Yes. My potential salary will easily be 3X-4X my parents combined salary.

 

[bayarea15]

I don't have any parents, and if I did, they couldn't help anyhow.

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[bayarea15]

However, I am pre vet, not pre med, so my salary won't be as grand as the future mds.

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[MinitorV]

Expecting 50K a year so 200K before interest. Haven't calculated but guessing when its all said and done 250K

 

[Starlightembers]

From MSAR: of newly entering medical students, median parental income is $100K (double estimated U.S. median) and one in 6 students have parents that earn over $250K per year.

Fewer than 20% of entering students have parents that make below 50K per year.

This is why the "average debt" is so low. I will be paying every penny of school and living all by my lonesome not because my family won't help pay, but because they can't. Anyone else in the same boat? Not sure how I will make it, but heres to luck!

Best,
C

If I do end up succeeding in the application process when it comes time to apply, I will be in a similar boat. My father does make decent money ($>=78-90k, last time he flaunted it); however, he is drug addicted and not involved. My mother made <=$30k (with 30k being our best year; most of the time, it was much lower) and helped whenever she possibly could in the midst of coping with her own storms and trying to feed herself; however, she died on Feb. 15th. As I have no assets or savings, I will end up paying for medical school, as I have with undergrad, with all grants, loans and any money I can save up from Social Security checks (I started college early and, thus, am still a minor and eligible for survivor payments from Social Security). And, yes, here's to luck.

 

[poohbear12345]

On school websites, many schools say that the average indebtedness of their students is about 150K-180K. However, living expenses are consistently 55K-70K a year. This would mean that students should come out with debts of about 220K-280K.

What is causing this difference? Is that due to schools providing scholarships and tuition waivers? Or is that from parents paying for tuition? I am trying to get a sense of how much debt to expect.

I think its because the distribution is bimodal. The lower half is probably people with scholarships, grants, parents helping them out. So the median seems relatively low. And that the size of that debt ballons like none other in residency. If your not pulling down at least 120K after Taxes (about 250K before), you have long odds of doing anything other than IBR and hoping that Public Service Loan Forgiveness bails you out. (the 25 year forgiveness is considered taxable income, so unless youve got enough cash to pay a 1 mil tax bill in 25 years, you better hope they change that law). Basically either get Loan Forgiveness, hope your future employer pays it off, or they change the law. Feels like the gov't is lending us money at high interest rates so they can force us to work 501 3c's Medicaid- Medicare accepting hospitals.

 

[FrkyBgStok]

Plan on $250k. If it is more, you were pretty close. If it is less, win!

 

[mvenus929]

On school websites, many schools say that the average indebtedness of their students is about 150K-180K. However, living expenses are consistently 55K-70K a year. This would mean that students should come out with debts of about 220K-280K.

What is causing this difference? Is that due to schools providing scholarships and tuition waivers? Or is that from parents paying for tuition? I am trying to get a sense of how much debt to expect.

A lot of people don't pay anything. They count as $0. A lot of people take out the full amount (at my school, that would be about $280K. Since more people take out the full amount than pay it all off, the average is more towards the upper value.

I will be paying every penny of school and living all by my lonesome not because my family won't help pay, but because they can't. Anyone else in the same boat? Not sure how I will make it, but heres to luck!

My mom makes a decent income, but she's also a single mom raising two teenagers. She helps me out with some of my living expenses (she pays my car insurance, and the car is hers, and she pays for maintenance on it as well), but it doesn't work out to that much in the long run. So, I'm taking out about $50K per year. I probably should be more worried about paying it back, but I don't think my costs of living are going to skyrocket once I graduate, which means if I budget carefully, I shouldn't have any issue paying it all off in 10 years.

 

[MT Headed]

A lot of people don't pay anything. They count as $0. A lot of people take out the full amount (at my school, that would be about $280K. Since more people take out the full amount than pay it all off, the average is more towards the upper value

These means do not include those with $0 debt. They are only the average of students that take out debt.

With the loss of subsidized staffords, expect a lot more students to take out zero debt, and see the mean student indebtedness to rise to more closely match the median student indebtedness.

 

[EBTrailRunner]

What were subsidized stafford loans maxed at before they were discontinued?

 

[MT Headed]

What were subsidized stafford loans maxed at before they were discontinued?

According to the history books, $8,500 a year. Must have been nice.

 

[EBTrailRunner]

According to the history books, $8,500 a year. Must have been nice.

Yeah, sigh...

 

[Praefectus]

In general, do most students who can't afford to pay out of pocket receive only loan dollars? I'm curious.

 

[Bacchus]

In general, do most students who can't afford to pay out of pocket receive only loan dollars? I'm curious.

Yes. And at the amount I'm at now, I've could have purchased my parents' house twice. Yay?

 

[dd128]

From MSAR: of newly entering medical students, median parental income is $100K (double estimated U.S. median) and one in 6 students have parents that earn over $250K per year.

Fewer than 20% of entering students have parents that make below 50K per year.

This is why the "average debt" is so low. I will be paying every penny of school and living all by my lonesome not because my family won't help pay, but because they can't. Anyone else in the same boat? Not sure how I will make it, but heres to luck!

Best,
C

I was in that same boat. You can live just fine. Obviously you'll want to be smart and not live in the nicest places and careful about staying within your means. I'm coming out with nearly 200K and will be deferring most of it for a lot of residency starting in a few months. I'm concerned about my debt of course, but ultimately it will be manageable. It sucks having so much debt sometimes compared with my non med friends with the same amount of debt but houses and nice cars, but oh well. Don't fret about the money aspects ultimately.

 

[NickNaylor]

In general, do most students who can't afford to pay out of pocket receive only loan dollars? I'm curious.

Yes, though if you're going to a particularly expensive and/or not as resourced school, you might still be left with some cost to cover after you receive all of the "traditional" aid (basically federal loan programs). At Michigan, for example, my financial aid package left me with a significant portion to pay - something like $6k/year.

 

[octupus]

Yes, though if you're going to a particularly expensive and/or not as resourced school, you might still be left with some cost to cover after you receive all of the "traditional" aid (basically federal loan programs). At Michigan, for example, my financial aid package left me with a significant portion to pay - something like $6k/year.

Does traditional aid include GradPlus loans? Where do they expect you to get $6k a year from?!

 

[LUV29]

I am going to be in the same situation as most. I have a single parent who makes decent amount. Approximately 60+ thousand a year, but she also has bills (house, car, and PHD classes) to worry. If I do succeed in the application process then I guess I will just have to live in denial and take whatever financial aid I can get. Also since I am taking a year off, hopefully I can find a decent Job and save almost enough to cover for my living expenses.

I am not aware of the work load in med school and if being able to work is a possibility. But really who wants to work in the first two years when you have Anatomy, Physiology, and a bunch of other hardcore classes to take.

 

[JJMrK]

The simple explanation is that we're dealing with a negatively skewed, or maybe even bimodal curve.

A lot of schools will tell you that they don't include kids with zero debt in these statistics, which can be confusing. What you need to realize is that many students with parents that can fund their education take out subsidized loans because interest doesn't accrue; it's basically free money to invest so long as you pay it back immediately after you get out. This means that the average is dragged way down by a bunch of students with only 20-30k in debt.

Bottom line: If you are financing your entire education, plan on a figure greater than average. Don't take out the maximum amount you can though, because that will put you WAY higher than average.

 

[blub1212]

Averages don't mean anything when it isn't a normal distribution. You will need to look at the cost of attendance for the school you are going to, add your undergrad debt, minus any contributions you will get from family/what you have saved (you can't work during med school). That will tell you what your debt will be after you graduate (don't ever plan on a scholarship until it has been offered). For me, it will be around $320k.... But, I will be attending a private med school, and as a nontrad, I will have to max loans due to owning a house, car payment, etc.

 

[mvenus929]

In general, do most students who can't afford to pay out of pocket receive only loan dollars? I'm curious.

Depends on your school. Mine happens to be pretty good and provides large grants/scholarships to out-of-state students, as well as subsidized loans on a need-based system. So while my COA is about $70K per year, I only take out about $50K in loans, and a good chunk of that is subsidized, even when the government takes away their subsidized loans.