Is it possible pay off interest on your loans while in pharmacy school??

[CMUchicka]

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Is it possible to pay off interest during pharmacy school? My undergrad + pharm school loan ~ $240 K ( I KNOW IT'S A LOT )

My plan is to knock off loans ASAP (hopefully 3 years max post graduation)

In meatime, i am looking to at least get started on interest that has been building up.. How did you guys pays that off?? From saving or job pay??

And if anyone would like share some tips on how to live frugally while in pharmacy school, i will really appreciate that..

 

[ldiot]

If you have money sitting around to throw at interest it means that you took out too much in loans to begin with.

If you want to knock the loans out in 3 years you would need to make >120k a year. After taxes every cent that you have would have to go at student loans, meaning you would not be paying rent or buying food. So in order to realistically pay it in 3 years you will either be living off you parents or working two jobs. Not saying this to be discouraging but you have to look at the simple math and make an attainable goal.

How to live frugally in pharmacy school? The only things I spend money on is rent and food. I don't know what else you could possibly cut in expenses unless you want to share a condo with 4 people to cut down rent. Some people take out extra in loans and spend it on clothes, electronics, going out to eat, etc. None of those things are bad but that money they borrow is the highest interest money in their loan, seeing as additional money is the last money that you will pay off (increase balance -> increase time to pay off loan, so if you take an extra 5k it will be the "last" 5k that you pay off; subject to the highest duration of producing interest which could potentially be 4 years in school and 4-6 years after school - s0 10 years of interest you borrowed 1k for a laptop but paid back 2k for it)

 

[297point1]

If you have money sitting around to throw at interest it means that you took out too much in loans to begin with.

Indeed. Instead of paying off interest, take less in loans.

 

[PharMed2016]

Do the math: $240k multiply that by your APR and divide that by 12 to get the average monthly interest on the principle. ~ can't pay off interest during school

As for can you pay it off in three years: possible but you will likely need to work 60-80 hours a week but hours are harder to come by and you will be lucky to get 40 hours likely by the time of graduation.

My advice: go to a cheap pharmacy school and try to take out fewer loans

 

[MatCauthon]

Interest is $16k on 240k loan per year. Do you work enough to pay that off??
Paying 240k off in 3 years is possible but very difficult in practice. If you make 120k your takehome is only going to be about 75-80k (or less depending on state).
I would think you may need closer to 5 years due to the interest.

 

[CMUchicka]

If you have money sitting around to throw at interest it means that you took out too much in loans to begin with.

If you want to knock the loans out in 3 years you would need to make >120k a year. After taxes every cent that you have would have to go at student loans, meaning you would not be paying rent or buying food. So in order to realistically pay it in 3 years you will either be living off you parents or working two jobs. Not saying this to be discouraging but you have to look at the simple math and make an attainable goal.

How to live frugally in pharmacy school? The only things I spend money on is rent and food. I don't know what else you could possibly cut in expenses unless you want to share a condo with 4 people to cut down rent. Some people take out extra in loans and spend it on clothes, electronics, going out to eat, etc. None of those things are bad but that money they borrow is the highest interest money in their loan, seeing as additional money is the last money that you will pay off (increase balance -> increase time to pay off loan, so if you take an extra 5k it will be the "last" 5k that you pay off; subject to the highest duration of producing interest which could potentially be 4 years in school and 4-6 years after school - s0 10 years of interest you borrowed 1k for a laptop but paid back 2k for it)

No i don't have money lying around.. I am just trying to put some amount everyweek toward my loan interest so i can stop spending on stupid stuff..

I wish i could go to cheap pharm school but unfortunately, i can't wait one year any more. I know school i am going is expensive 3 year program but i applied there so that i can stay home and save on rent and food.. So i am only taking out loans for tuition purposes.

After graduating, i am either going to live home or plan to rely on fiance income for 3 years so i can pay up loans fast. my school isn't "new" and established in state and area, hoping i can find job.. All graduate/floaters i have met went to same school and said they didn't have hard time landing job... I live in midwest cost of living isn't bad .. Not sure if people get paid >$120k but heard its in 6 figures..

 

[CMUchicka]

Do the math: $240k multiply that by your APR and divide that by 12 to get the average monthly interest on the principle. ~ can't pay off interest during school

As for can you pay it off in three years: possible but you will likely need to work 60-80 hours a week but hours are harder to come by and you will be lucky to get 40 hours likely by the time of graduation.

My advice: go to a cheap pharmacy school and try to take out fewer loans

I wish i could go to cheap school.. i can't wait anymore.. I know i go to expensive 3 years program but i applied there so i can stay home and save money on rent, food and all other bills. I only take out loan for tuition but tuition rates are killer..

I am trying to put certain amout every week toward loan interest..i know its not lot and probably wont make much differnce but still. And it also will prevent me from making stupid purchases..

 

[CMUchicka]

Indeed. Instead of paying off interest, take less in loans.

how?? when your tuition is in 50 K range?? Unless someone is ready to help you pay tuition.

 

[CMUchicka]

Interest is $16k on 240k loan per year. Do you work enough to pay that off??
Paying 240k off in 3 years is possible but very difficult in practice. If you make 120k your takehome is only going to be about 75-80k (or less depending on state).
I would think you may need closer to 5 years due to the interest.

No i don't work much right now as i am in 3 year program but i plan to put something toward interest everyweek.

I know i am afraid i wont be pay off these loans in 3 years.. I just barely started pharm school, i already want to get rid of these loans ASAP..

 

[PharMed2016]

how?? when your tuition is in 50 K range?? Unless someone is ready to help you pay tuition.

My own advice is to live within your means and enjoy yourself. Put that extra time into learning what you need to for your future and that of your patients. A couple of extra grand in the end isn't going to make a difference. I too opted for an accelerated PharmD program but my tuition and expenses were probably less than half of yours.

 

[JMUDuke]

To the people saying take less loans, I get what you are trying to imply-- live within your means and spend less. However, the tuition is due upfront for each semester. This plan only works if you save the entire year and take less loans out on the following year to save on the origination fee. I haven't done the math, but I would think paying 6.1% over the year would be more costly than paying it down as you go. Also, money you don't have (money paid towards interest) is harder to spend than money you can see in your account.

 

[monkieez]

The reason to take out less loans is that loans often have originator fees and therefore it might be cheaper to take out less loans and save on fees rather than pay interest and have to take out more loans. Do the calculations to see for yourself.

 

[JMUDuke]

I'll leave that one to the OP. It just seemed like people saying take out less are forgetting that most students don't have the savings to put down the semester tuition. But I also didn't see the 240k in debt. Definitely seems like costs could be cut to be able to borrow less

 

[ldiot]

Well in my situation it costs 25k for the whole year including food and rent. I took 20k in loans since I have a part time job and will use the money I make working to cover the extra 5k. The alternative is to take 25k in loans and throw the money that you earn at interest. This is not as good of a plan because you are paying interest on the extra 5k, you have to pay a loan origination fee, and it is more tempting to spend the money that you make rather than putting it towards loans.

If you don't have to pay for rent/food then you are forced to take the full amount as a loan since it is due upfront. So in your case then yes it is a good idea to throw it at interest. In my situation the rent/food costs are monthly so I don't have to have the extra 5k upfront.

Hope this made sense. The real problem is that you are paying 50k a year in tuition to go an osteopathic pharmacy school.