Loans vs. Residency

[megandupe]

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So I've been reading many comments regarding the struggle to decide whether to tackle a residency, or tackle student loans upon graduation. My question is what is your opinion regarding this matter?

If you take a residency, your salary is tight for a few years, and you'll be forced to make minimum payments on your loans, but you'll be qualified for a more satisfactory job and maybe more readily hirable.

If you skip the residency, you will hopefully get a better paying job post grad, and be paying off the loans immediately, and will not have to deal with supposed "lost income", although at the same rate you might have to move to Isolation, North Dakota to pay off those bills and not be entirely satisfied.

 

[Passion4Sci]

If you take a residency, your salary is tight for a few years, and you'll be forced to make minimum payments on your loans, but you'll be qualified for a more satisfactory job and maybe more readily hirable.

I wouldn't say a 'few' years - Pretty much everyone does 1 year of post-grad residency with very few 2nd year PGYs. IME, clinical/staff pharmacist positions for post-residency folks pay commensurately with retail so I'm not sure where you are coming from there. Perhaps it's different in other geographical areas but around here the starting pay for a pharmacist is about the same at Rite-Aid/Wags and hospitals.

If you skip the residency, you will hopefully get a better paying job post grad, and be paying off the loans immediately, and will not have to deal with supposed "lost income", although at the same rate you might have to move to Isolation, North Dakota to pay off those bills and not be entirely satisfied.

Well, truth be told, you might have to move to "isolation, north dakota" even with a residency under your belt. Residency is absolutely not a silver bullet to getting the gates of employment to stand open for you, you still have to work for it, like everyone else in the world right now.

Personal satisfaction is so personal that I try not to get involved. Some people would very much like to live in Isolation, ND...

 

[crazybob]

So I've been reading many comments regarding the struggle to decide whether to tackle a residency, or tackle student loans upon graduation. My question is what is your opinion regarding this matter?

If you take a residency, your salary is tight for a few years, and you'll be forced to make minimum payments on your loans, but you'll be qualified for a more satisfactory job and maybe more readily hirable.

If you skip the residency, you will hopefully get a better paying job post grad, and be paying off the loans immediately, and will not have to deal with supposed "lost income", although at the same rate you might have to move to Isolation, North Dakota to pay off those bills and not be entirely satisfied.

It really depends on what you want. I've been debating whether to do a residency or to just work at a chain or independent and get student loans paid off quickly.

Clinical pharmacists I've talked to say that they personally think that doing a residency was worth it.

I know you can figure out the pros and cons of each, and you personally have to decide if it's worth it.

 

[owlegrad]

I wouldn't let loans stop you from doing a residency, if that is your goal.

 

[ttopping]

I wouldn't let loans stop you from doing a residency, if that is your goal.

👍

Honestly, what's one year of paying the minimum (if that's what you need to do) and then going to town on the loans once you get a real job...in the scheme of things it really won't make that much of a difference. Don't let loans make a career decision for you.

 

[megandupe]

👍

Honestly, what's one year of paying the minimum (if that's what you need to do) and then going to town on the loans once you get a real job...in the scheme of things it really won't make that much of a difference. Don't let loans make a career decision for you.

Oh i'm not letting money make my mind at all. I actually intend on doing my phd, and then likely of post doc afterwards (which is only 40-50k for 2-5 yrs). I've just seen many ppl on here complain about how residencies are lost income, and I was just trying to understand their justification. job satisfaction is everything in the world to me and I've received a lot of criticism regarding my decision to pursue so much education. Money isn't everything ppl!

 

[pharmschooler]

Oh i'm not letting money make my mind at all. I actually intend on doing my phd, and then likely of post doc afterwards (which is only 40-50k for 2-5 yrs). I've just seen many ppl on here complain about how residencies are lost income, and I was just trying to understand their justification. job satisfaction is everything in the world to me and I've received a lot of criticism regarding my decision to pursue so much education. Money isn't everything ppl!

Are you pursuing a PharmD before a PhD?

Do what makes you happy, but your wants/needs might change as you age...and staying in school so long will mean that saving for the future will be much harder.

 

[crazybob]

Oh i'm not letting money make my mind at all. I actually intend on doing my phd, and then likely of post doc afterwards (which is only 40-50k for 2-5 yrs). I've just seen many ppl on here complain about how residencies are lost income, and I was just trying to understand their justification. job satisfaction is everything in the world to me and I've received a lot of criticism regarding my decision to pursue so much education. Money isn't everything ppl!

👍

You have to remember that there will always be people who will criticize you no matter what decision you make. You just have to ignore them and follow your dreams and think about your future job.

I agree that money isn't everything. I won't get into it about what I think because you already think the same thing.

 

[ttopping]

Oh i'm not letting money make my mind at all. I actually intend on doing my phd, and then likely of post doc afterwards (which is only 40-50k for 2-5 yrs). I've just seen many ppl on here complain about how residencies are lost income, and I was just trying to understand their justification. job satisfaction is everything in the world to me and I've received a lot of criticism regarding my decision to pursue so much education. Money isn't everything ppl!

Well at least you know what you want to do 👍. I was really just making a generalized statement as to what I thought about the "lost income", not necessarily directing my comment to you. Like bob said, you'll always hear criticism from people...I went 6 years without making much money, I think I can handle 40k for a year doing something I feel strongly about without feeling like I'm screwing myself financially...

 

[SHC1984]

Well at least you know what you want to do 👍. I was really just making a generalized statement as to what I thought about the "lost income", not necessarily directing my comment to you. Like bob said, you'll always hear criticism from people...I went 6 years without making much money, I think I can handle 40k for a year doing something I feel strongly about without feeling like I'm screwing myself financially...

The question is can you afford to pay your minimium payments on 40K a year? If you owe little to no money then you will be fine, but some people on here owe 150K to 200K....they'll be hard press to pay the minimium on that with 40K a year.

 

[crazybob]

The question is can you afford to pay your minimium payments on 40K a year? If you owe little to no money then you will be fine, but some people on here owe 150K to 200K....they'll be hard press to pay the minimium on that with 40K a year.

The bare minimum on 40K a year? Why not?

If you're getting only 40K per year as a resident, you'd adjust your lifestyle accordingly, and be able to make payments.

 

[SHC1984]

The bare minimum on 40K a year? Why not?

If you're getting only 40K per year as a resident, you'd adjust your lifestyle accordingly, and be able to make payments.

If you owe 150K or 200K isn't your minimum monthly payment like 3K or 4K a month? My loans are put on a 10 year plan....r you suggesting the resident put their loans on a 30 year plan to reduce their monthly payment? Or are you talking about IBR? I don't know how that works, but you can only use that for Stafford loans right?

 

[MeowMeowCAT]

The bare minimum on 40K a year? Why not?

If you're getting only 40K per year as a resident, you'd adjust your lifestyle accordingly, and be able to make payments.

$40k is perfectly doable. According to payscale.com that's around the range people are lucky to be getting with just a Bachelor's degree in the sciences.

 

[crazybob]

If you owe 150K or 200K isn't your minimum monthly payment like 3K or 4K a month? My loans are put on a 10 year plan....r you suggesting the resident put their loans on a 30 year plan to reduce their monthly payment? Or are you talking about IBR? I don't know how that works, but you can only use that for Stafford loans right?

3K or 4K per month minimum? How much do you think they regularly pay if they were making normal payments?

The minimum is usually much much lower. And they can afford to pay it off after they have done a residency, as long you don't try to live luxuriously and go shopping every weekend.

 

[SHC1984]

3K or 4K per month minimum? How much do you think they regularly pay if they were making normal payments?

The minimum is usually much much lower. And they can afford to pay it off after they have done a residency, as long you don't try to live luxuriously and go shopping every weekend.

If you owe 200K your minimum payment would be: (I did this on this website
http://www.finaid.org/calculators/loanpayments.phtml) Paying $2,300 when you are only making 40K IS pretty hard b/c you have to also pay income tax on that and your rent, food, and other stuff...but I guess it is possible you just have to find a ton of roommates and live like a college student for another year or two.

[FONT=ARIAL, HELVETICA]Loan Calculator.

[FONT=ARIAL, HELVETICA]Loan Balance: .[FONT=ARIAL, HELVETICA]$200,000.00 .[FONT=ARIAL, HELVETICA]Adjusted Loan Balance: .[FONT=ARIAL, HELVETICA]$200,000.00 .[FONT=ARIAL, HELVETICA]Loan Interest Rate: .[FONT=ARIAL, HELVETICA]6.80%.[FONT=ARIAL, HELVETICA]Loan Fees: .[FONT=ARIAL, HELVETICA]0.00%.[FONT=ARIAL, HELVETICA]Loan Term: .[FONT=ARIAL, HELVETICA]10 years.[FONT=ARIAL, HELVETICA]Minimum Payment: .[FONT=ARIAL, HELVETICA]$0.00 .
[FONT=ARIAL, HELVETICA]Monthly Loan Payment:.[FONT=ARIAL, HELVETICA]$2,301.61 .[FONT=ARIAL, HELVETICA]Number of Payments: .[FONT=ARIAL, HELVETICA]120.
[FONT=ARIAL, HELVETICA]Cumulative Payments: .[FONT=ARIAL, HELVETICA]$276,192.62 .[FONT=ARIAL, HELVETICA]Total Interest Paid: .[FONT=ARIAL, HELVETICA]$76,192.62 .
​

[FONT=ARIAL, HELVETICA]Note: The monthly loan payment was calculated at 119 payments of $2,301.61 plus a final payment of $2,301.03..

 

[crazybob]

If you owe 200K your minimum payment would be: (I did this on this website
http://www.finaid.org/calculators/loanpayments.phtml) Paying $2,300 when you are only making 40K IS pretty hard b/c you have to also pay income tax on that and your rent, food, and other stuff...but I guess it is possible.)

[FONT=ARIAL, HELVETICA]Loan Calculator.

[FONT=ARIAL, HELVETICA]Loan Balance: .[FONT=ARIAL, HELVETICA]$200,000.00 .[FONT=ARIAL, HELVETICA]Adjusted Loan Balance: .[FONT=ARIAL, HELVETICA]$200,000.00 .[FONT=ARIAL, HELVETICA]Loan Interest Rate: .[FONT=ARIAL, HELVETICA]6.80%.[FONT=ARIAL, HELVETICA]Loan Fees: .[FONT=ARIAL, HELVETICA]0.00%.[FONT=ARIAL, HELVETICA]Loan Term: .[FONT=ARIAL, HELVETICA]10 years.[FONT=ARIAL, HELVETICA]Minimum Payment: .[FONT=ARIAL, HELVETICA]$0.00 .[FONT=ARIAL, HELVETICA]
.[FONT=ARIAL, HELVETICA]Monthly Loan Payment:.[FONT=ARIAL, HELVETICA]$2,301.61 .[FONT=ARIAL, HELVETICA]Number of Payments: .[FONT=ARIAL, HELVETICA]120.[FONT=ARIAL, HELVETICA]
.[FONT=ARIAL, HELVETICA]Cumulative Payments: .[FONT=ARIAL, HELVETICA]$276,192.62 .[FONT=ARIAL, HELVETICA]Total Interest Paid: .[FONT=ARIAL, HELVETICA]$76,192.62 .​

[FONT=ARIAL, HELVETICA]Note: The monthly loan payment was calculated at 119 payments of $2,301.61 plus a final payment of $2,301.03..

That's if you start making FULL PAYMENTS.

As a resident, you could probably defer some of your loans, depending on the terms from your lender.

The minimum payment is usually $50 per month.

 

[Prof Farnsworth]

$40k is perfectly doable. According to payscale.com that's around the range people are lucky to be getting with just a Bachelor's degree in the sciences.

I think they were referring to being able to live on 40k pa. while still making payments to their loans (150-200k)
I'll be starting in fall, I've crunched the numbers and have started to contemplate whether I should be do a residency or not. After reading some of the posts I'm happy to see some of the supportive comments, but considering I will litterally be in a quater million dollars of debt (pending I don't work and start hacking away at the costs), it's going to be hard.

 

[ttopping]

The question is can you afford to pay your minimium payments on 40K a year? If you owe little to no money then you will be fine, but some people on here owe 150K to 200K....they'll be hard press to pay the minimium on that with 40K a year.

Depends on how you choose to pay it back. Payments will be higher if you use a standard plan with 150-200K for sure, but there are other plans to help you through that time if it would be too much. Don't live beyond your means and budget your money well and 40K should be plenty for a year. Other people find ways to make 40K work even with loans and car payments etc.

May not apply to everyone, and it could make things financially tight for a year (no denying that), but just saying, it can be done and it's not as big of a loss as people make it out to be.

Edit: Not to mention, most loans have a grace period of 6 months. That's 6 extra months of not having to make payments (if it would be an issue), making that 40K go a longer way during that first year before making a pharmacist salary

 

[Prof Farnsworth]

If you owe 200K your minimum payment would be: (I did this on this website
http://www.finaid.org/calculators/loanpayments.phtml) Paying $2,300 when you are only making 40K IS pretty hard b/c you have to also pay income tax on that and your rent, food, and other stuff...but I guess it is possible you just have to find a ton of roommates and live like a college student for another year or two.

[FONT=ARIAL, HELVETICA]Loan Calculator.

[FONT=ARIAL, HELVETICA]Loan Balance: .[FONT=ARIAL, HELVETICA]$200,000.00 .[FONT=ARIAL, HELVETICA]Adjusted Loan Balance: .[FONT=ARIAL, HELVETICA]$200,000.00 .[FONT=ARIAL, HELVETICA]Loan Interest Rate: .[FONT=ARIAL, HELVETICA]6.80%.[FONT=ARIAL, HELVETICA]Loan Fees: .[FONT=ARIAL, HELVETICA]0.00%.[FONT=ARIAL, HELVETICA]Loan Term: .[FONT=ARIAL, HELVETICA]10 years.[FONT=ARIAL, HELVETICA]Minimum Payment: .[FONT=ARIAL, HELVETICA]$0.00 .
[FONT=ARIAL, HELVETICA]Monthly Loan Payment:.[FONT=ARIAL, HELVETICA]$2,301.61 .[FONT=ARIAL, HELVETICA]Number of Payments: .[FONT=ARIAL, HELVETICA]120.
[FONT=ARIAL, HELVETICA]Cumulative Payments: .[FONT=ARIAL, HELVETICA]$276,192.62 .[FONT=ARIAL, HELVETICA]Total Interest Paid: .[FONT=ARIAL, HELVETICA]$76,192.62 .
​

[FONT=ARIAL, HELVETICA]Note: The monthly loan payment was calculated at 119 payments of $2,301.61 plus a final payment of $2,301.03..

BUT ... good news ...
The interest on the loan is tax deductible

 

[All4MyDaughter]

SHC, $2300 per month on 200K is not the 3 or 4K you claimed. And yes, people could extend the term of their loan to make lower payments during residency. Or use IBR, which is available for all Direct Loans, as far as I know.

I think the thing that matters in deciding to do a residency is whether someone WANTS to do a residency b/c it fits with their interests and career goals. That's the ONLY reason to do a residency. If someone wants to do it, they can make the loan situation work for them, no problem.

 

[SHC1984]

That's if you start making FULL PAYMENTS.

As a resident, you could probably defer some of your loans, depending on the terms from your lender.

The minimum payment is usually $50 per month.

Oh my bad. Okay. I only have Stafford loans, do they offer the $50 a month option?

Is it $50 a month for EVERYONE on Stafford loans or do the amount you owe also play a factor? The more you owe the higher the payments right?

 

[All4MyDaughter]

No, Direct Loans =/= Stafford Loans. www.google.com

I just wish that sometime, somehow, some way you would learn to stop speaking authoritatively about things when you don't know or don't have all of the information.

Also, if you hate Therapeutics, I think you'll hate doing a residency. Just saying.

 

[ttopping]

...Don't you want to do something like mail order anyway? I certainly wouldn't bother with a residency if you wanted to do something like that...

It's certainly not unheard of to get hospital jobs without a residency. Last job I worked at was a smaller hospital with ~15-20 pharmacists (a guess, I don't remember exactly). None of them had residency training. There were at least 4 who had even recently done distance learning just to upgrade to Pharm.D. A few had been hired within the past couple years straight out of school.

 

[SHC1984]

...Don't you want to do something like mail order anyway? I certainly wouldn't bother with a residency if you wanted to do something like that...

It's certainly not unheard of to get hospital jobs without a residency. Last job I worked at was a smaller hospital with ~15-20 pharmacists (a guess, I don't remember exactly). None of them had residency training. There were at least 4 who had even recently done distance learning just to upgrade to Pharm.D. A few had been hired within the past couple years straight out of school.

Yeah, I really would like a work at home mail order job. But I recently was looking into the different job options and LOOKING AT THE FUTURE and I want to do whats the MOST SECURE in the LONG RUN. Retail obviously offers the best SHORT TERM perks, like good pay and you don't have to do a residency etc. but in the long run retail looks like a dying profession that is unstable and will not last. I don't want a "short term" perk and then be screw over in the long run. I have always felt unsecure with retail b/c it is such a dying profession. I am begining to think the short term perks might not be worth the long term drawbacks. I would hate to work for 10 years and then lose my job and never be able to get another one. If you know what I mean. If I can get a hospital position without a residency I would LOVE that, but I also know someone that oversees a lot of hospitals and he told me that was truth a few years ago but now the market is saturated and you need a residency to get a hospital position. There are people with residencies that can't land jobs.

No, Direct Loans =/= Stafford Loans. www.google.com

I just wish that sometime, somehow, some way you would learn to stop speaking authoritatively about things when you don't know or don't have all of the information.

Also, if you hate Therapeutics, I think you'll hate doing a residency. Just saying.

Yeah I never looked much into loans, but my point was more of if you owe 200K wouldn't it MAKE YOU FEEL UNCOMFORTABLE? don't you want to pay that off ASAP? I have always been a major A-type person...so it would bother me if I had something like that over my shoulders and I would want to get that paid off ASAP. Also the fact that you have to adjust your lifestyle and live on 40k a yr would be hard too.

I don't hate all therapeutics just some of it. LOL.. Like lets talk about my Cardio therapuetics class, at first I liked it. I didn't mind talking about hypertension reading JNC7, I didn't mind reading NCEP ATPIII and learning about dyslipidemenia, I didn't mind Angina, VTE, Heart Failure, Acute Heart Failure, STEM, NSTEMI etc...all those topics were okay, it was when I started doing arrythymias...that I started hating it more...then we got to fluids and electroyles, kidney failure, acid/base, etc. all that stuff got more asbtract and there was TONS of memorization involved and its the end of the school year and I am burnt out...so I think that's why I hated it...and something about arrythymias...I realy do not like it. But it's just that one topic mainly and EKGs and A. Fib and Flutter...that crap is annoying too. lol...
BUt its worth looking into if it means long term job security. I do not want a job like retail in which it is dying and I might lose my job anytime.

 

[crazybob]

SHC, what about independents? Not good enough for you?

 

[SHC1984]

SHC, what about independents? Not good enough for you?

LOL...it's not that they are not good enough, it's just that like I mentioned before I don't want a job that is dying. I don't want to work at a place for a few years and have it go out of business or die off. I want a SECURE JOB, that's the reason why I went into pharmacy. I want a SECURE job that last a lifetime. Not one that is dying off any minute. I have a feeling retail is dying off slowly as it is right now. I don't want a short term perk of making 120K a year and then losing my job forever. Hospitals are the most secure, so I am looking into it.

 

[All4MyDaughter]

I'm sure your reasoning will make for a compelling LOI for your residency application.

 

[rxlea]

The best setup would be to get a residency where you can moonlight on weekends. Then you can make some additional cash to make higher payments on your loans. One of the residencies I am going to aim for allows you to moonlight. The issue would be finding the position. I wouldn't care where it was, really..although mail order is rather boring. Been there, done that. Don't like it. I could do pretty much anything else if I had to. Retail chain would be at the bottom of my list, though, only because of the stress that comes with it- especially at a busy store. Unfortunately, that's probably where the positions would be...but I would try my hardest to find something more laid back.

 

[pali Kaur]

Just curious, how much do one makes if he had done a residency vs one who hadn't done a residency?

The reason I am asking is if someone with a residency makes significantly higher, they can make higher payments later (after the residency,once they a have a nice job.)

 

[owlegrad]

The best setup would be to get a residency where you can moonlight on weekends. Then you can make some additional cash to make higher payments on your loans. One of the residencies I am going to aim for allows you to moonlight. The issue would be finding the position. I wouldn't care where it was, really..although mail order is rather boring. Been there, done that. Don't like it. I could do pretty much anything else if I had to. Retail chain would be at the bottom of my list, though, only because of the stress that comes with it- especially at a busy store. Unfortunately, that's probably where the positions would be...but I would try my hardest to find something more laid back.

Paradoxically, pharmacies are slower on the weekend, so less stress. That would work out well if those are your moonlighting days.

I say paradoxically because every other retail place I have ever worked is always busier on the weekends. So I was quite surprised when I started at CVS and the weekend shifts are so chill compared to say Monday.

 

[All4MyDaughter]

I don't think I'd work seven days a week for any amount of money. But especially not during residency where 10 to 12 to up to 16 hour days can be the norm at certain programs.

Of the programs I looked at, one outright prohibited moonlighting. Another had every other weekend staffing (with no days off during the week to compensate) so you'd essentially get 4 days off per month. I guess if you wanted to moonlight on those 4 days you could, but it hardly seems worth it. Plus it's not like you really have your weekends "off." My friends who are residents often use their off weekends for projects and research time.

The other factor to consider about moonlighting is whether you can even find anything. With more pharmacists and fewer jobs available, I think "extra hours" for moonlighting will become especially scarce. Who wants to hire a floater with limited availability when there are plenty of candidates who can float anytime or will take jobs as full time floaters?

Of all the pharmacy residents I know, none of them moonlight. But maybe its a regional thing. The program I matched with allows it, but I'm not super interested. I think I'd rather spend time with my family and friends and on silly activities like sleeping.

 

[MeowMeowCAT]

silly activities like sleeping.

 

[Trankuil]

How is retail dying? Changing yes, and probably for the worse...but dying? I doubt that highly.

 

[megandupe]

Just curious, how much do one makes if he had done a residency vs one who hadn't done a residency?

The reason I am asking is if someone with a residency makes significantly higher, they can make higher payments later (after the residency,once they a have a nice job.)

They tend to make about the same. There is a potential to make more, but ultimately its just a different field within pharmacy.

On the crazy side, I was considering doing my phd (pharmd/phd program), then maybe whisking it with a residency or fellowship. Just because my ideal job would be to head research in clinical pharmaceuticals, and I'm not only going to need my bench skills, but my patient/in-the-field skills. I'd feel really dumb saying that, but I've met ppl who've done a DO, then a DVM afterwards, and if anything I find ppl like that incredibly interesting. Besides some phd's are so skill limited and didactic, it drives me nuts!

 

[pharmschooler]

They tend to make about the same. There is a potential to make more, but ultimately its just a different field within pharmacy.

On the crazy side, I was considering doing my phd (pharmd/phd program), then maybe whisking it with a residency or fellowship. Just because my ideal job would be to head research in clinical pharmaceuticals, and I'm not only going to need my bench skills, but my patient/in-the-field skills. I'd feel really dumb saying that, but I've met ppl who've done a DO, then a DVM afterwards, and if anything I find ppl like that incredibly interesting. Besides some phd's are so skill limited and didactic, it drives me nuts!

Some who do research like you're mentioning are PharmD/MDs, I believe...just another possible path to consider.

 

[All4MyDaughter]

How is retail dying? Changing yes, and probably for the worse...but dying? I doubt that highly.

It's not dying. That's an exaggeration (shocking, I know). It is changing and becoming more numbers and production oriented. But I know people who thrive in that environment. One of my friends is kind of a "clean up artist" for a chain here. He's been PIC of about 4 different pharmacies since he graduated. He comes in to stores that are having difficulties, focuses on getting things back in line via staff training and development and then moves on to the next "problem store." He loves it and he's really good at it.

 

[spacecowgirl]

Note: The monthly loan payment was calculated at 119 payments of $2,301.61 plus a final payment of $2,301.03.[/I][/SIZE].

You can extend your repayment period for more manageable payments. Remember with a longer term you can always pay more to pay them off quickly. With a shorter term...well you can pay less on them but your lenders don't appreciate that.

That's if you start making FULL PAYMENTS.

As a resident, you could probably defer some of your loans, depending on the terms from your lender.

The minimum payment is usually $50 per month.

I deferred all but my private loan during residency.

BUT ... good news ...
The interest on the loan is tax deductible

Are you kidding or serious?

I think the thing that matters in deciding to do a residency is whether someone WANTS to do a residency b/c it fits with their interests and career goals. That's the ONLY reason to do a residency. If someone wants to do it, they can make the loan situation work for them, no problem.

👍

The best setup would be to get a residency where you can moonlight on weekends. Then you can make some additional cash to make higher payments on your loans. One of the residencies I am going to aim for allows you to moonlight. The issue would be finding the position. I wouldn't care where it was, really..although mail order is rather boring. Been there, done that. Don't like it. I could do pretty much anything else if I had to. Retail chain would be at the bottom of my list, though, only because of the stress that comes with it- especially at a busy store. Unfortunately, that's probably where the positions would be...but I would try my hardest to find something more laid back.

I worked every 3-4th weekend and it was enough extra $$$ to cover bills and a little spending money. I don't think I could have worked more than that. I need a lot of sleep.

 

[pharmschooler]

Are you kidding or serious?

I think he's serious, and correct (up to a limit, of course):
http://www.irs.gov/taxtopics/tc456.html

 

[megandupe]

I think he's serious, and correct (up to a limit, of course):
http://www.irs.gov/taxtopics/tc456.html

He is absolutely serious!!
I claim that every year on my taxes

 

[Prof Farnsworth]

Are you kidding or serious?

Both.
Serious in that it is true.
In jest because I would prefer to not be able to claim it 😉 (maybe 10 years after I graduate)

Not that I have ever paid income taxes in the US, but I'd like to think I have a good grip on the system.

 

[spacecowgirl]

I think he's serious, and correct (up to a limit, of course):
http://www.irs.gov/taxtopics/tc456.html

He is absolutely serious!!
I claim that every year on my taxes

Both.
Serious in that it is true.
In jest because I would prefer to not be able to claim it 😉 (maybe 10 years after I graduate)

Not that I have ever paid income taxes in the US, but I'd like to think I have a good grip on the system.

Kids. 😉 Of course I know it's true, but you won't be able to claim much, if any of it, unless you have a bunch of dependents and your spouse doesn't work. Not on a pharmacist's salary. See Pharmschooler's link. Plus, I sure as hell pay more than $2500 in interest per year.

It's definitely not worth mentioning as any sort of incentive, if you defer your loans, you're not paying the interest to deduct. Once you're out of residency and paying them, you'll make too much to deduct them.


Maximum benefit: You can reduce your income subject to tax by up to $2,500.

Limit on modified adjusted gross income (MAGI): $150,000 if married filing a joint return; $75,000 if single, head of household, or qualifying widow(er).

 

[SHC1984]

Kids. 😉 Of course I know it's true, but you won't be able to claim much, if any of it, unless you have a bunch of dependents and your spouse doesn't work. Not on a pharmacist's salary. See Pharmschooler's link. Plus, I sure as hell pay more than $2500 in interest per year.

It's definitely not worth mentioning as any sort of incentive, if you defer your loans, you're not paying the interest to deduct. Once you're out of residency and paying them, you'll make too much to deduct them.


Maximum benefit: You can reduce your income subject to tax by up to $2,500.

Limit on modified adjusted gross income (MAGI): $150,000 if married filing a joint return; $75,000 if single, head of household, or qualifying widow(er).

That's what I thought too. That's why I think it would be smartest to try to get your student loans pay off ASAP. I would work and use most of my paycheck to get those loans pay off before buying anything big. I don't understand why people would want to extend their payment or pay the minimium when the interest rates are so high. If you are doing a residency that's fine, defer for a year...but after that anyone would be foolish to not get that pay off ASAP. Especially with interest rates as high as 6.8%, it's crazy.

 

[spacecowgirl]

3/4 of my loans are 3.375 and 3% interest. All of my interest rates will drop by 1% when I reach 36 payments (July). I graduated at the end of the glory years of student loans.

ETA: I just checked again - I paid $5533 in interest last year. At the low rates I mentioned. ugh.

 

[pharmschooler]

That's what I thought too. That's why I think it would be smartest to try to get your student loans pay off ASAP. I would work and use most of my paycheck to get those loans pay off before buying anything big. I don't understand why people would want to extend their payment or pay the minimium when the interest rates are so high. If you are doing a residency that's fine, defer for a year...but after that anyone would be foolish to not get that pay off ASAP. Especially with interest rates as high as 6.8%, it's crazy.

Agreed. Debt at those rates will eat you alive if you don't take care of it fast.

 

[Prof Farnsworth]

3/4 of my loans are 3.375 and 3% interest. All of my interest rates will drop by 1% when i reach 36 payments (july). I graduated at the end of the glory years of student loans.

Eta: I just checked again - i paid $5533 in interest last year. At the low rates i mentioned. Ugh.

What I would do for 3% interest ...

Especially with interest rates as high as 6.8%, it's crazy.

The Unsubsized Stafford is capped at 6.8%. The Federal Graduate PLUS Loan is 7.8% fixed.
$21,754.00 in Graduate PLUS loans first year only = $1696.81 in pure interest. At this rate the interest gathered by the end of the 4th year on the Graduate PLUS loan alone = $16,968.10
($8.5k x4 of Stafford Subsidized loans kick in when you graduate, and UP TO 6.8% starting immediately of on the $24,500 x4 Unsubsidized Stafford)

Residency isn't looking too crash hot for folks who have to pay OOS. In reality I know it's going to cost me big bucks to do something I want to do, so I suppose it's worth it 😀

Clearly these numbers are my own, but anyone can plug in their own and cry with me :cry:

 

[SHC1984]

3/4 of my loans are 3.375 and 3% interest. All of my interest rates will drop by 1% when I reach 36 payments (July). I graduated at the end of the glory years of student loans.

ETA: I just checked again - I paid $5533 in interest last year. At the low rates I mentioned. ugh.

That's still $5533 DOWN THE DRAIN! I still says unless you have some sort of investment that guarantees earnings of MORE than 3% interest, it would still be wise to just put all your paycheck on that six figure debt until it is GONE. Paying interest is the same as just flushing money down the toliet.

 

[crazybob]

That's still $5533 DOWN THE DRAIN! I still says unless you have some sort of investment that guarantees earnings of MORE than 3% interest, it would still be wise to just put all your paycheck on that six figure debt until it is GONE. Paying interest is the same as just flushing money down the toliet.

Doesn't everyone do that at some point in their lives? I mean, really.

it would still be wise to just put all your paycheck on that six figure debt until it is GONE.

You have to save up for emergencies, possible fines, unexpected costs, etc.

 

[owlegrad]

Doesn't everyone do that at some point in their lives? I mean, really.



You have to save up for emergencies, possible fines, unexpected costs, etc.

Yes everyone does it, but it should still be keep to a minimum.

I am somewhat torn by the whole "rainy day" fund. Yes, it is wise to keep something for a rainy day, but my opinions on debt mirror SHC's quite closely. I hate debt and will do everything I can to eliminate it as much as I can. I just hate my money going to a lender instead of to me. 😀

 

[spacecowgirl]

You wouldn't want to know what we paid in mortgage interest last year then! We have a fairly modest house at a low interest rate, but we still pay over ten grand a year in interest. I fully advocate taking on the least debt possible but it's hard to avoid unless you don't buy a house for a long time. Life is expensive and we've had a rash of costly home and car repairs lately...you can't avoid that. I pay extra on my debts every month, have no consumer debts or car loans, have a good emergency fund and we put away a lot in retirement. Beyond that I really try not to think about it too much. It's the cost of the investment I made in my future.

 

[All4MyDaughter]

Yes everyone does it, but it should still be keep to a minimum.

I am somewhat torn by the whole "rainy day" fund. Yes, it is wise to keep something for a rainy day, but my opinions on debt mirror SHC's quite closely. I hate debt and will do everything I can to eliminate it as much as I can. I just hate my money going to a lender instead of to me. 😀

An emergency fund is essential. It's great to work on paying down debt, but if you don't have a few months worth of expense money in the bank, you could lose everything you own if you lose your job or get hurt/sick and can't work.