You got it all wrong. Its about passion they have 🙂
The top 2 boys at my son’s high school declined the offers from the cheap local UC (Univ. of CA) schools and went to Duke and Northwestern….they didn’t care about the cost. Sadly, there are many of the top honor kids in HS who think like these 2 guys. They think they are too smart to go to these cheap local state schools. They want to go to schools far away from home so they can get the “college/life experience.” The tuitions at most cheap local state schools are only a fraction of what Duke and other expensive private schools charge their students. And if you are dirt poor like me (when I was a college student), you should be qualified for some government grants and your undergrad education should be almost free. If you live with your parents and eat at home, you shouldn’t have to borrow any loan. If you work full time, then you should make enough to pay for your undergrad education and not have to borrow any loan. I went to one of the UC schools in CA. I worked part time during my college years and I lived with my parents. And my undergrad loan was $0.
Bless you for the Kenny Rogers reference.
Good thing there's no way to file for bankruptcy and if I die, the loans will go to my family 👍
Shouts out @StudentLoans
*this* Being from NC I find it even harder to fathom that people choose Duke over other schools here or even out of state. I mean, my COA for this year is cheaper than the undergrad COA at Duke, that’s ridiculous.
Don't forget that selfie in the Duke hoodie!!
There was a recent story in The Chronicle, Duke's student newspaper, that Duke students have an average of 8.7 more followers on Instagram than UNC students. It would be interesting to see what extent the Duke hoodie selfie has on this.
Why am I giving Duke a hard time?! They don't even have a dental school. I need to get back to bashing NYU, USC, Midwestern, ASDOH...
It’s stupidly simple these days. Go to a school like UPenn for dental school and ortho residency and that’s easily pushing $800,000 to $900,000. Tack on a pricey undergrad and masters with some accrued interest sprinkled on top for good measure, and presto!
Hey hey Penn State
If they did it would almost certainly be as expensive as those lol
We're not talking orthopedic surgeon, we're talking orthodontist. Big difference. Our ortho is more likely making $220,000/year working at a corporate dental chain. They'll have to pay $85,000/year just to cover their interest to keep their loans from snowballing. Which means, they have to earn $110,000/year just for interest because Uncle Sam always takes his cut first. He's a greedy SOB that way. There is no way this ortho is ever going to touch their loan principal.
Probably this person wasn't competitive enough to get into cheaper schools. That's usually how it goes.
Right, and if they go for a loan forgiveness program (PAYE), they may end up having to pay 2 million or more as a tax bomb. This person is absolutely screwed. They'd be better off faking their own death and fleeing to Mexico rather than taking on 1.3 million in student loans.
I saw the Dave Ramsey video of Justin, another orthodontist who was 1 million in the hole.
if you die the loans are discharged
Good thing there's no way to file for bankruptcy and if I die, the loans will go to my family 👍
Shouts out @StudentLoans
I'd rather be neither
Ok yes then he is very screwed at 220k a year. 500k in student debt would be feasible with paye and just saving for a fat tax bill in 20 years. 1.3 million is still not a death sentence, but he will be working into his 70s to fund the same retirement of a 62 yo dentist
Close to it. This person is going to have to pay $115,000/year for TWENTY YEARS to pay this thing off. Can you imagine having to earn $150,000/year just for your student loans?! Never mind all of life's other expenses...
Incorrect. The government is very lenient on repayment. What I mean is they only require 10% of your income per year. Pay 10% a year for 20 years… then the remainder is forgiven (which is taxable income)
Yes, this is true, but only for government student loans. This does not apply to private student loans. If you are able to get the government alone to give you $300k+ in student loans and not deal with any outside lenders, please call me.
Where to start...
Yeah, when I was doing rough calculations I was figuring they'd likely pay over 2 million in a tax bomb. Plus 20k to 40k a year in minimum payments (10% of income). You looking at close to 3 million dollars that this person will have to pay when you add everything up. Basically their entire life's work will be going into paying student loans. What a sad, pathetic reality.
Well, actually the government WILL lend you the money for it. All of it. There is no restrictions on the amount of money you can borrow in student loans. The way it currently is, some genius could come along and charge $1,00,000 per year for an ortho residency, idiots would sign up, and the government would lend the money with no questions asked.
Hey maybe then op’s guy could pay his loans back if he did this. That’s the best shot he’s got
Because they're young, idealistic, likely never held a full time or even part time job, are impressionable so blindly follow the advice that they have to go to college, have no concept of money, etc. It's infinitely harder to financially dupe a 35 year old than an 18 year old.
So are we considering loans from independent financial organizations that have been assigned to me via FAFSA to be government backed? I'm actually serious, like are these considered gov't vs private?
It’s probably due to not having a clear plan as well. One must know that the pathway to become a dentist or a doctor is a very long (at least 7-8 years after HS), difficult (undergrad GPA of at least 3.5 + a good DAT score) and expensive one. Therefore, one needs to have a clear plan and set a goal on how to get there as early as possible… preferably during the junior/senior years in HS. You can’t just go any expensive college….living in a 1 bed apartment all by yourself….partying with friends…wasting many years to explore different career options…..and then finally, you decide that you want to become a dentist. A lot of time and money were wasted. The orthodontist in the OP’s story wouldn’t have wasted so much money if he/she obtained some advice and guidance from people who went through the same process before him.
One way to get out of this financial mess is to increase the income…..pay off debt and get out of the PAYE program ASAP. The orthodontist who only makes $220k/year at the corp probably doesn’t work there full time and doesn’t want to travel to work at more offices to make more. Most orthodontists I know travel to work at multiple offices. With the $1300/day pay, which is slightly below the national average, one can easily bring home $350k/year if he/she works 5 days/week…….2-3 times more if he/she owns an office + working P/T for corp office on the side.
I would also guess that income based repayment is likely the only way to go for this person
False. It's already been pointed out they could fake their death and flee the country.
You were definitely generous with the amount of money they would be making here toward the 20 year mark of their career. To make that kind of money, you likely need to be a practice owner, and I'm not sure if you could get a loan for that if you are 2 million dollars in debt. That's why my estimate of what this person would pay back is so much higher.
Thanks a lot! I sure hope so, lots of sacrifices these last 8 years to get here lol.
