Loan Rates for 2024 Hit Highest Rate In Over A Decade

[Pablo Sanchez]

BUYER BEWARE: Interest rates on federal student loans for the 2024-2025 school year hit 8.08% for graduate students. This is VERY high. If you are a D1 starting at an expensive school like USC this August your estimated cost of attendance is $174k for the year. By the time you graduate that $174k for the first year alone will balloon to $237k at 8.08%. Add in $211k for year two, $190k for year three, and $130k for year four. You’re talking over $750k in debt when you graduate. At 8.08% you’d have $62k in interest alone that first year. Stupid. Don’t do it. If you take a bad job out of school making $120k you’ll take home $87k after taxes. You’ll owe $62k just to prevent your loan from growing. This leaves you just $25k to live on and you’re making no progress in paying back your loan. If you specialize the loan amount will only grow larger.

Limit your debt as much as you can. You don’t need to live a life of luxury in dental school. Go to the cheapest school. Definitely consider options like the SAVE plan when it comes time to pay back should you have a high amount of debt.

I graduated in 2022 and paid off my loans in just over a year. It CAN be done. What did I do? I didn’t blindly take loans. That would have been STUPID. I lived at home and commuted to dental school. I graduated and worked hard. Don’t be dumb. 8.08% will haunt you.

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[Bigjt1420]

I cannot believe schools like USC will have a ECOA of $174k....for the FIRST YEAR!!!!! Oh my god. This is INSANE. I guess inflation (AKA Corporate Greed) is trickling down to dental schools, huh? To everyone reading the post above, LISTEN TO THAT ADVICE. Dentistry is not worth it if you're owing $750k when you graduate. Honestly, I'm so shocked right now it's hard for me to process it. Unbelievable.

 

[Ivy.ch]

And that rate is not going down anytime soon. “Sticky inflation” is political speech for “we don’t have inflation under control”. The fed wants to avoid rate cuts.

25k left to live on? Jesus. Health insurance for a family of 4 costs 18k. You would never afford a house on that salary. You’d struggle to pay rent on that salary. That’s $462 a week.

To the “cost doesn’t matter because my parents are paying for school” crowd - If your parents can shell out $500k for dental school, if they instead threw it into index funds, you would have $20k every year for the rest of your life without effort. All without the hell of going through dentistry. Don’t burn their money - go to your state school.

 

[Mr.Smile12]

To the “cost doesn’t matter because my parents are paying for school” crowd - If your parents can shell out $500k for dental school, if they instead threw it into index funds, you would have $20k every year for the rest of your life without effort. All without the hell of going through dentistry. Don’t burn their money - go to your state school.

Just adding, even if your parents delve into hedge fund/venture cap/crypto, they may want to take a close look to research this investment.

 

[mst0330]

Very scary, i'm so glad i got into my cheap state school, i don't think i'd pursue this path with those rates at a private school

 

[Blueshirts]

There was a time 10 years ago when I started to come to this forum where 250k-300k in debt was frowned upon and the agreed upon absolute maximum anyone should end up graduating with lol

 

[Ryxndek]

Holy, that's insane

 

[charlestweed]

And that rate is not going down anytime soon. “Sticky inflation” is political speech for “we don’t have inflation under control”. The fed wants to avoid rate cuts.

25k left to live on? Jesus. Health insurance for a family of 4 costs 18k. You would never afford a house on that salary. You’d struggle to pay rent on that salary. That’s $462 a week.

To the “cost doesn’t matter because my parents are paying for school” crowd - If your parents can shell out $500k for dental school, if they instead threw it into index funds, you would have $20k every year for the rest of your life without effort. All without the hell of going through dentistry. Don’t burn their money - go to your state school.

I'd rather spend $5-600k for my kids to go to dental (or med) school. I want them to work hard .....to put in the effort. They have good enough work ethic, perseverance, and responsibility to get into (and then to graduate from) dental (or med) school; they will be fine in the long run. I don't want to give my kids the money without seeing them putting in any effort.

To me, this is a much safer way to invest for my kids' future than throwing it into index funds. Dentistry and medicine are great professions when one has zero student loan

 

[lussekatte]

Just adding, even if your parents delve into hedge fund/venture cap/crypto, they may want to take a close look to research this investment.

Seconding this! I've given my extra money to my parents to put in a S&P500 fund since high school and it's already grown.
Not to hijack the thread but does anyone have advice/insights on HPSL or similar federal loan options? I'm applying soon and I hate looking at OOS schools because CoA estimates these days... I'll apply anyway but

 

[MisterMolar]

At 8.08% you’d have $62k in interest alone that first year. Stupid.

You know what the crazy part is? This is an underestimation of the cost. Normal federal student loans only cover up to around $40,000 annually. Every dollar borrowed after that is a grad PLUS loan, which has an interest rate of 9.08%!!! Absolutely bonkers.

 

[askadds]

dont worry, either biden will forgive your loans and interest or as charles from above will tell you, its all good...be the 0.1% of docs and you will be all good.

 

[D1Bound]

dont worry, either biden will forgive your loans and interest or as charles from above will tell you, its all good...be the 0.1% of docs and you will be all good.

Charles just says to work hard. While there’s a reality of things just costing more and insurance reimbursements decreasing, you have to work harder. Here’s the key: NO ONE WANTS TO WORK 🤣

 

[Big Time Hoosier]

Big Hoss

 

[Big Time Hoosier]

Here’s the key: NO ONE WANTS TO WORK

Maybe not no one…

Big Hoss

 

[charlestweed]

Charles just says to work hard. While there’s a reality of things just costing more and insurance reimbursements decreasing, you have to work harder. Here’s the key: NO ONE WANTS TO WORK 🤣

Yup. Work harder + KEEP THE OVERHEAD LOW. Buy used equipments, hire fewer staff, do your own hygiene, learn to take x rays, clean your own office etc. Build a small office....don't waste spaces on things like the staff lounge and doctor's private office. You can easily build a 3 chair office in a sub 1000 sf space.

I still use alginate and the total cost to make a set of upper/lower essix retainers is $10. And this is in 2024.....not 20 yrs ago. The use of scanner + 3D printer would cost the doctor at least $100 to make the same set of retainers. And these 2 often require frequent maintenance and repairs. Alginate mixing bowl and spatula require zero maintenance.

Save your money. Stop listening to the so-called office construction experts and the sale reps.

 

[D1Bound]

Yup. Work harder + KEEP THE OVERHEAD LOW. Buy used equipments, hire fewer staff, do your own hygiene, learn to take x rays, clean your own office etc. Build a small office....don't waste spaces on things like the staff lounge and doctor's private office. You can easily build a 3 chair office in a sub 1000 sf space.

I still use alginate and the total cost to make a set of upper/lower essix retainers is $10. And this is in 2024.....not 20 yrs ago. The use of scanner + 3D printer would cost the doctor at least $100 to make the same set of retainers. And these 2 often require frequent maintenance and repairs. Alginate mixing bowl and spatula require zero maintenance.

Save your money. Stop listening to the so-called office construction experts and the sale reps.

But but but…All of that seems HARD!!! I see all these people on instagram that have it easy! Dentistry was supposed to be my 4 day easy work week! You mean I have to work?? Inconceivable