Aug 6, 2009
982
1
Status
Pre-Dental
I just looked in to loans today. I knew it was going to be expensive, but dang, this is robbery. The national loan is at 7.9%?!?!? that's higher than the going mortgage rates.

If I borrow 320k, at 7.9%, fixed over 25 years, I will have paid over 750k at the end of my loan. Over 400k paid towards interest.

Is there anyway around this? What are you guys doing about tuition?
 

AF11

10+ Year Member
Dec 7, 2008
82
0
Status
Pre-Dental
bah, I'm having a hard enough time trying to find a cosigner. But I was told that interest rates do go as high as 9%
I too am scared
 

cbizzle7994

5+ Year Member
Apr 20, 2010
139
8
Status
Dental Student
I just looked in to loans today. I knew it was going to be expensive, but dang, this is robbery. The national loan is at 7.9%?!?!? that's higher than the going mortgage rates.

If I borrow 320k, at 7.9%, fixed over 25 years, I will have paid over 750k at the end of my loan. Over 400k paid towards interest.

Is there anyway around this? What are you guys doing about tuition?
Not all of this is going to be 7.9%. We are eligible for 8,500 a year in subsidized Stafford loans which are at 6.8% and don't accrue interest while in school. We can also take out unsubsidized Stafford loans which are also at 6.8% but do accrue interest. I don't know exactly how much unsubsidized we can take though. Long story short, yea it's gonna be a ton of money. Pay it off as fast as you can and avoid paying interest. Continue living like a student for a few years after graduation and we should be fine.
 
Sep 14, 2010
211
1
Status
Dental Student
What a nightmare it would be if we took on all this debt and in 2015 unemployment and inflation continue to rise to levels where the middle class is eventually obliterated and dentistry suffers. I know there will always be a need for dentistry but the question is will people be able to pay top dollar for it? I worry to much :(.
 
Nov 22, 2009
126
0
Status
Pre-Dental
most people don't take 25 years to pay it off. You take out a "25 year" loan so that you have a manageable MINIMUM payment each month that way while you're getting you stuff together (be it your own practice, a partnership, what ever you are getting paid for), you don't have to be concerned with not making enough to pay back you loans.

That in mind, most (logical) people will do one of two things (or both eventually). Immediate solution is to pay in more each month than your minimum loan, this will obviously reduce the time your are in debt, effectively reducing total interest paid. Also, once your more permanently making more money and confident in your business/income you can refinance to officially shorten your loan which will reduce your interest rate if you do it right while also reducing payback time.

If you got a 25 year loan and paid back the loan with MINIMUM payments each month for 25 years you would pay 400k in interest. You'd also be a fool.

This knowledge brought to you by my best high school teacher who taught calculus :). Don't stress too much about it now. It looks daunting but you can do it.