Loan Question

[TheBoneDoctah]

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So I am compiling my list of schools to apply to this year. One question though. Am I being crazy for really focusing on cost as a significant factor? I heard there is loan forgiveness, which if true, would pretty much take away this factor because I wouldn't have to pay the entire loan anyways.

 

[Ismet]

Cost is a significant factor. Don't bank on PSLF or other loan forgiveness being there once you get to residency, those programs may not be around forever. There are also stipulations, such as having to pay on time for 10 years and work for a 501c3 or other requirements https://www.aamc.org/advocacy/meded/79048/student_loan_repayment.html

 

[ace12345]

Do not, in any manner, count on loan forgiveness being a factor in your financial planning (Unless you are dead set on primary care and willing to sign up for a commitment program today). It is impossible to tell what the financial climate in medicine will be like in 10 years. You are absolutely right for considering cost, and so should every other applicant.

Now that said, a lot of the most expensive schools will not be after financial aid is determined post-acceptance. Some of my seemingly most expensive schools became the cheapest after financial aid. Therefore, it might be good idea to look into the resources each school has, and how many students receive scholarships/aid. This can be found, generally, on the MSAR.

 

[LizzyM]

When looking at cost, do consider whether a school is friendly to OOS applicants. An inexpensive school that won't consider you because you are OOS is a wasted application.

I do concur that some seemingly expensive schools will not be so bad once the school throws merit or need based grants your way.

Do not get sucked into the idea that MD/PhD is the way to go unless you are a strong candidate for admission to a PhD program and can see yourself doing PhD work 80% time.

Do not get sucked into the idea that a military scholarship or enrollment in USUHS is a great idea unless you are sold on the idea of being a military officer.

 

[chenzt]

The quick and dirty way to guesstimate how cheap a school is is to go to MSAR and look at each school's average debt upon graduation number. Harvard/state schools are around 100k, top 20s are under 150k, mid tier under 200k, and low tier over 200k. Not true for every school but most follow this general trend.

There are some exceptions, such as Case Western College track's 32 full tuition scholarship skewing their number to <150k, which wouldn't be available to you if you were only accepted to their University track. Some school also have richer than average student body that contributes more and thus have less loan.

 

[TheBoneDoctah]

If the school was 50k a year but in my state (possibly leading to
Residencies here) would that 200k+ debt be too hard to pay off?

 

[Ismet]

If the school was 50k a year but in my state (possibly leading to
Residencies here) would that 200k+ debt be too hard to pay off?

Depends on what specialty you go into. A general pediatrician will have a much longer repayment period than an orthopedic surgeon.

 

[TheBoneDoctah]

Depends on what specialty you go into. A general pediatrician will have a much longer repayment period than an orthopedic surgeon.

Okay, so if I were in a surgical specialty and my wife is an RN, I shouldn't have problems paying back loans on a 50k a year school?

 

[lmn]

Okay, so if I were in a surgical specialty and my wife is an RN, I shouldn't have problems paying back loans on a 50k a year school?

Loan repayment is a lot more complex than how you are thinking about it. But in general, you will be able to pay off your loans as a physician if you take care to not live above your means and don't end up in an odd situation of having >$300k debt upon graduation and going into primary care in an extremely low paying area that doesn't have any forgiveness type programs.

 

[TheBoneDoctah]

What's a good cutoff number though? Like what amount of tuition is too much?

 

[kyamh]

Go to this site:

http://www.finaid.org/calculators/loanpayments.phtml

Enter in approximate loan amount ($200k, whatever) add $50k for unforeseeable extras and for interest during medical school, then select a term - 25 years is common. This program will give you your monthly payment to pay off the loan.

Can a current student give an example medical school loan interest rate? My undergrad loans are at 4.75% and 5.75%...not sure if that helps.

Edit: If you read further down on the site output, it gives you the annual income you should have to pay the loan off comfortably (10% of income goes to the loan). Keep in mind that 30% of your salary will go to taxes first 😉

 

[jm192]

What's a good cutoff number though? Like what amount of tuition is too much?

$179,831.27 Anything above this, and you'll never pay it off.

Seriously though, you're thinking about it wrong or way too much.

You're probably going to go into a lot of debt. If you want to be a doctor, it's coming.
Try to minimize the amount you have to take on. But, I wouldn't fall in love with any hard figure.

 

[IlDestriero]

Okay, so if I were in a surgical specialty and my wife is an RN, I shouldn't have problems paying back loans on a 50k a year school?

No.

 

[TheBoneDoctah]

$179,831.27 Anything above this, and you'll never pay it off.

Seriously though, you're thinking about it wrong or way too much.

You're probably going to go into a lot of debt. If you want to be a doctor, it's coming.
Try to minimize the amount you have to take on. But, I wouldn't fall in love with any hard figure.

It's hard for me because though I'm posting in the MD threads, I am most likely gonna end up at a DO school and most of them
Are 44k at least..

 

[Gauss44]

So I am compiling my list of schools to apply to this year. One question though. Am I being crazy for really focusing on cost as a significant factor? I heard there is loan forgiveness, which if true, would pretty much take away this factor because I wouldn't have to pay the entire loan anyways.

I cannot comment on your question about being crazy, although I've heard that asking about it is a sign of a self esteem issue.

Regarding the loans, I would try to find the terms and conditions of "loan forgiveness." "Loan forgiveness" can mean a lot of different things. From what I hear sometimes it means forgiving a great deal or all of the balance, other times it's as useless as 10% a year for agreeing to forgo almost half your salary.

 

[jm192]

It's hard for me because though I'm posting in the MD threads, I am most likely gonna end up at a DO school and most of them
Are 44k at least..

While I appreciate that, you're just overthinking it.

Either you want to be a doctor, and you can pay back loans over 25 years like countless before you have done.
Or you don't.

The debt is just part of it.

How many people have gone to DO school and paid 45K a year? 10's of thousdands? Hundreds of thousands?
You'll be able to pay back the loans and live comfortably.