I think the silence from the dental schools says it all: they don't have a plan. It will be interesting to see if students can get the private loans to cover or not. If they're rejected, we could get a mass exodus of incoming dental students.
Well, give it a while, or throw the grenade into Reddit or DAT Bootcamp forums... let's see what happens there.
i think this cycle is going to go on very long at a lot of schools as people drop out because they cannot get private loans...
Yeah, I could definitely see potential chaos ensuing. Let's hope that is the case. The sooner this system collapses the better.
It will be for the best. If American educational institutions can't educate our populace without bankrupting them, let them collapse.
Thanks for sharing this. I know we all look forward to hearing what your daughter reports back. Texas has the cheapest schools in the country so hoping your daughter gets into one of them!
They are probable clueless. These are the people who are used to getting the check from the government with zero accountability
Thanks for sharing your thoughts and experiences. A couple of responses.
Oh My! Farther upper-right!
That’s a “gotcha” that I doubt anyone is considering. The private loan underwriters would definitely include that in their risk assessment, which is one of the reasons I’m skeptical they will be willing to underwrite the size of loans needed for the most expensive schools. Also, from my understanding private loans can be discharged in court if someone can show hardship. It’s certainly feasible that these students could make this claim when their loan payments are over 50% of their after tax income and they are unable to make ends meet, buy a home, raise a family. I’m sure the private loan underwriters are well aware of this risk too. A judge would be likely to take pity on them and feel they were taken advantage of by predatory lenders.
The chaos and unintended consequences will be interesting to follow, say from an uninvolved party.
$100k per year?
Do NOT take out 100k in private loans on top of 200k in federal loans, my goodness.
No, in total.
I will be completely honest, but I will take them out if I get approved. I like dentistry and the alternatives are not appealing to me.
I assumed you would. When I was a pre dent, I would've done the same. I left with 200k and that was not financially worth it imo. I can't imagine had I tacked on an additional 100k in predatory PRIVATE loans. You've been warned.
Applicants seem to consistently underestimate their loan amounts. If you can keep it to $300k and willing relocate to higher demand areas, you should be fine. But you're at $350k+, obviously it becomes more challenging.
Dress up as the OBBB for Halloween with a sign that says this
Federal interest rates are 9.1%. Private are significantly higher than that from like 12-15% I believe.
Too scary haha
If they are given private loans, they will take them.
Well the processes have not changed - but what is going to happen at the point when someone needs to fork over money to cover the gap in federal loans?
Hopefully private lenders won't give you guys loans. I know it sounds harsh, but it's the best thing for you. You simply have no business taking on 400k+ in loans at 12-15% that this time you actually have to pay back (unlike federal loans).
I was going off COA. But anyway, I do plan on living with family a few years after graduation, knocking out the private loans ASAP, and saving some money to open a practice somewhere down the line.
Humor break...
How many years will it take you to pay off your loans?
Medical schools are not much cheaper. My kid has just gotten an acceptance offer from a private med school in the midwest. According to the school’s website, the cost of attendance for the first 2 years is $109/yr (the tuition alone is $69k/yr) and for the last 2 years is $114/yr. So the total cost for 4 years will be $446k, which is around the same cost as what many private med schools like USC, Georgetown, Vanderbilt etc charge their students. Public medical schools like UCLA are not that much cheaper either. According to the UCLA’s med school website, the total cost of attendance there is $417k (How Much Does Medical School Cost? | UCLA Medical School).
Oh, you haven't accounted for annual tuition & fee increases and interest accrual. Well, $350k+ is coming.
No no no no no...
Am I wrong to assume that physicians have an "easier" path to loan repayment? I see that dentists on average make less than them. Let me know if I am being naive? Although I do like dentistry a lot more and am currently in the HPSP application process..
If congressional R's are right, I won't have to worry about tuition increases.
Keep in mind that the physicians won’t start earning the high doctor’s income until they are in their early to mid 30s because they'll have to do 3-6 more years of residency/fellowship after med schools. The average age of first year medical student is 24 yo because many of them (75% of them) took 1-2 gap years to improve their stats before they applied for med schools. Many of them won’t get their MD degree until they turn 28-29 yo.
How do you figure? A loan at 12% interest, principal at $120k with 10-year repayment period results in $1722/month payment.
Brother if you really think taking out an extra 300K on your 550K dental degree at 15-20% is "only 1722" - I've got an igloo in Georgia to sell. No private interest is forebeared. Interest rates will be astronomical.
Last dance...maybe I misunderstood the amounts you were referring to. "You won't pay back dental school if your loans after 200K for a principal are 10-2% interest YoY." What is the actual amount? And I assumed you meant 10-12% interest YoY.
Definitely, 100% I would do likewise
