How much will debt screw me in the long run?

[imable24]

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I recently got off the waitlisted at a mid ranked(40) school and my financial aid package is about $30K more in loans than my unranked state school.

I wasn't very keen about going to my state school, but I'm worried about the extra debt I'll take on about 120K.

My question is how much will taking on 120K screw me? Will I be able to get a house loans or a car loan? Is it possible to do get a hardship deferral during residency and still get a car loan or even a house loan?

How much of a sacrifice will I be making if I take on the extra debt?

 

[StrengthDoc]

120k certainly won't break you, but you didn't state what the original loan amount would be. If this is 120k more than an already substantial sum, then it could definitely be more of a factor in specialty choices, residency, etc.

From a non-financial standpoint, does not being keen on the state school equate to not being happy with your decision if you went. Knowingly taking on additional debt to go somewhere you will be happy and excel is money well spent if it won't be too much of a burden (as mentioned above).

 

[imable24]

Is it possible to have about 150K loans at the end of medical school and still get loans for a car or a house during residency?

 

[etf]

Is it possible to have about 150K loans at the end of medical school and still get loans for a car or a house during residency?

you'd be surprised how much leverage that M.D. affords you.

 

[Bobblehead]

It sounds like you would prefer going to your mid-ranked school. If that's so and you'll have a better time there over 4 years I'd accept the added cost. A lot of things can change over 4 years and you may not wish to immediately burden yourself with an additional house payment (house poor) right away. Also a car loan may not be the smartest thing if you're willing to just buy something cheap and reliable with cash instead of taking on added consumer debt.

 

[The White Coat Investor]

I'd go to the state school. That mid-ranked school ain't $120,000 better. Remember that by the time you pay it back that $120K will be 250K. Plus, as you take on more debt, the loans become less and less favorable to you. It will simply take longer for you to get out of debt and start building assets. Now, if you were choosing between going to the Caribbean or a D.O. school or a school where the clinical experience may not be adequate, I might reconsider. But choosing between your state school and a mid-tier school....easy choice for me.

But I wouldn't worry about being able to get car loans or mortgage loans. Why would you want a car loan anyway? Do you not like money?