Medical School Loan Advice

[CreoleDoc]

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For those of you who plan on taking out loans to pay for medical school, how much do you all think you will end up borrowing/year? At my school for 2011-2012 tuition jumped from 35,080 to 37,080. They estimated on the budget they gave us that living expenses were something like 26k... So thats ~63k per year. Granted if you live a modest lifestyle you can cut corners on that budget and save maybe 5k max, but thats still ~55k+ per year, assuming you have no income. Google says average med school debt is like 100-150k after four years. Those must be old figures or for public schools. With the numbers I just put down its going to be more like $220k debt after four years. Let me know what you all think about these numbers, and any strategies you all have thought of to save $$ in the end. bear in mind my numbers may be a bit higher as I have a wife and infant child. We will all be docs one day, but debt is debt... Let me know your thoughts please.

 

[kcin]

As you said, 100-150k sounds low unless you get one of the nice public schools. I'll probably end up taking a little more than you, but perhaps not. The only thing you can do is sit down and draw up a budget, and stick to it. I believe you can return some money if you end up not needing it, so go safe for your first year.

 

[Sinfest]

I plan on maxing out my loans for first year and see how it goes. If I end up spending less than I borrow, I'll return the extra and then I'll know how much to borrow for the following year.

 

[kcin]

I plan on maxing out my loans for first year and see how it goes. If I end up spending less than I borrow, I'll return the extra and then I'll know how much to borrow for the following year.

Yep. This is my plan as well.

 

[GainesvilleOwl]

Yep. This is my plan as well.

Same... at least for the first two years.

We should expect to re-evaluate it for third and fourth year separately. In the clinical years I may have to rotate OOS, especially with the preference given to residency applicants who have done audition rotations on-site. Plus you have to take into account the costs of taking the COMLEX (Step 1 = $485) and possibly USMLE ($505), plus what it costs to apply to residency programs, which I got from another thread in 2007:

ERAS fees:
Release of USMLE transcripts $50
First ten programs $60
Second ten $8 each = $80
Third ten $10 each = $100
Each program above 30 $25
NRMP match fee $55

They seemed to indicate anywhere between $2,500-$10K is "normal", even with residency programs taking the tab for one night hotel stay. Not sure how that will be represented by your school's MS4 budget but it's certainly something to keep in mind.

 

[TornadoChaser]

Keep in mind gas prices are supposed to hit $5/gal, which will increase your living expenses tremendously. I'd definitely take the max. I'm going to be full-time for my pre-reqs beginning in the fall, and that's what I plan on doing.

 

[SoulinNeed]

I have to ask, because this has been bugging me, but how are you guys planning on paying off these loans? Anything above 180K (including interest, which I don't know if you guys are factoring in your total loan calculations), and you're paying more than 2K a month in repayment.

 

[jd1031]

I don't plan on taking out more than $180,000. I plan on repaying loans over a 10 year period after residency.

 

[CreoleDoc]

I have to ask, because this has been bugging me, but how are you guys planning on paying off these loans? Anything above 180K (including interest, which I don't know if you guys are factoring in your total loan calculations), and you're paying more than 2K a month in repayment.

I understand that when you start tacking on interest to these already outrageous loans you must factor in alot more, however... Unless you have family who is going to take on part of your expenses during med school than i dont really how you it can be done any other way? If you have someone who will pay for your living expenses and that way you will just have to take out enough for your tuition and fees thats one thing. Me... I could ask my father who is a physician for a lot of help, but since this is the first major step in my life toward my future career, i figure I can put on my big boy pants and bite the bullet. Debt is going to suck, but living comfortably and happily, not in cardboard box eating ramen noodles everyday, will help me stay in good morale so i can make it through med school a bit easier. I dont think ill have time to work, and I am not going to let other ppl care for my daughter when she is less than a year old while my wife is at work. I am young <25 i'll be ok with a little bit (hah) of debt. Unfortunately, its not always feasible to take the cheaper route 😡

 

[SoulinNeed]

I understand that when you start tacking on interest to these already outrageous loans you must factor in alot more, however... Unless you have family who is going to take on part of your expenses during med school than i dont really how you it can be done any other way? If you have someone who will pay for your living expenses and that way you will just have to take out enough for your tuition and fees thats one thing. Me... I could ask my father who is a physician for a lot of help, but since this is the first major step in my life toward my future career, i figure I can put on my big boy pants and bite the bullet. Debt is going to suck, but living comfortably and happily, not in cardboard box eating ramen noodles everyday, will help me stay in good morale so i can make it through med school a bit easier. I dont think ill have time to work, and I am not going to let other ppl care for my daughter when she is less than a year old while my wife is at work. I am young <25 i'll be ok with a little bit (hah) of debt. Unfortunately, its not always feasible to take the cheaper route 😡

Oh, I completely understand. I'm just wondering how you're going to pay off $300K (what it will be closer to after interest is calculated). Will you defer during your residency? Maybe do a special program that helps with debt? I'm really asking because I'm looking for insight into how I will pay off the debt, lol.

 

[Sinfest]

Live like a resident even with an attending's salary 🙁

 

[MightyMoose]

Same... at least for the first two years.

We should expect to re-evaluate it for third and fourth year separately. In the clinical years I may have to rotate OOS, especially with the preference given to residency applicants who have done audition rotations on-site. Plus you have to take into account the costs of taking the COMLEX (Step 1 = $485) and possibly USMLE ($505), plus what it costs to apply to residency programs, which I got from another thread in 2007:

ERAS fees:
Release of USMLE transcripts $50
First ten programs $60
Second ten $8 each = $80
Third ten $10 each = $100
Each program above 30 $25
NRMP match fee $55

They seemed to indicate anywhere between $2,500-$10K is "normal", even with residency programs taking the tab for one night hotel stay. Not sure how that will be represented by your school's MS4 budget but it's certainly something to keep in mind.

I'm not sure where you got that info, but I don't think most residency programs cover your night stay prior to your interviews. They do for many PhD programs, but I think it would be a rarity for residency programs.

Live like a resident even with an attending's salary 🙁

Bah, just pretend your paying off an imaginary half a million dollar beach house in Tahiti that you can never visit and it vanishes once the tab is paid...

In all honesty I expect to owe 400k when all is said and done, but I think with a modest budget and no going crazy with extravagant purchases after landing a spot in a practice, I will be able to pay it off in a reasonable amount of time. This is a far cry from living like a resident for 10+ years. At least that's my take.

 

[jd1031]

Oh, I completely understand. I'm just wondering how you're going to pay off $300K (what it will be closer to after interest is calculated). Will you defer during your residency? Maybe do a special program that helps with debt? I'm really asking because I'm looking for insight into how I will pay off the debt, lol.

Besides the deposit, I'm planning to put more money down for my 1st year, since interest from 1st year will be accumulating longer than loans taken out for years 2-4. I think my money will be allocated better against federal loans at 6.8% interest than in an account giving me a ~1% ROI. During residency, I plan on paying interest only in order to maintain a (relatively) comfortable lifestyle. I don't want to defer completely.

 

[MightyMoose]

Besides the deposit, I'm planning to put more money down for my 1st year, since interest from 1st year will be accumulating longer than loans taken out for years 2-4. I think my money will be allocated better against federal loans at 6.8% interest than in an account giving me a ~1% ROI. During residency, I plan on paying interest only in order to maintain a (relatively) comfortable lifestyle. I don't want to defer completely.

This also gives you some nice tax benefits.

 

[nfsonpowday]

http://forums.studentdoctor.net/showthread.php?t=707469

I understand that those who are disgruntled are likely to be the ones giving negative feedback but on the above posted link in the resident's forums, you will find out what residents and attendings have to say about medical school debt in relation to today's medical environment; it is a "if I had to do it over again would I do the same thing" thread.

That being said, I know that this is the only path for me but I do not want to be paying of my school loans well in to my 50's. I have decided to apply for the hpsp (military scholarship) -people make decisions based on finances and for me this is one of those. I will hopefully be accepted and if I am not then I will try to work in a rural area to help with loan repayment. If I was going to my state school then this would not be as much of an issue but I am not and the debts I will acquire (including undergrad and interest) will be in the 400 K range.

 

[scpod]

....Plus you have to take into account the costs of taking the COMLEX (Step 1 = $485) and possibly USMLE ($505), plus what it costs to apply to residency programs....

You can take out a speparate residency and relocation loan during your fourth year and into your first year of residency-- not a federal loan. I borrowed some extra for interviews and moving expenses.

 

[scpod]

I'm not sure where you got that info, but I don't think most residency programs cover your night stay prior to your interviews. They do for many PhD programs, but I think it would be a rarity for residency programs....

I interviewed at 14 places. 10 paid for a nice room and good meals. Several gave some pretty cool gifts as well. It may be a regional thing but I only interviewed in the southeast.

 

[scpod]

....During residency, I plan on paying interest only in order to maintain a (relatively) comfortable lifestyle. I don't want to defer completely.

You should speak to a financial advisor that specializes in physician loans. I did and they do wonders for me for a pretty small yearly fee. All I do is sign a few papers now and then. They handle my loans, consolidations, taxes, financial and estate planning and insurance.

There are way too many pitfalls and dangers that you won't know about if you don't have a professional look at this for you. Plus, you may not fully realize the benefits that really are available to you.

 

[Postal]

You should speak to a financial advisor that specializes in physician loans.

That's a really good idea. I think I'll do that.

My plan is to work in an underserved area and hopefully find someone to pay my loans off in return for my service.

 

[MightyMoose]

I interviewed at 14 places. 10 paid for a nice room and good meals. Several gave some pretty cool gifts as well. It may be a regional thing but I only interviewed in the southeast.

Hmmmm, maybe this is also specialty dependent. What specialty were you interviewing for?

You should speak to a financial advisor that specializes in physician loans. I did and they do wonders for me for a pretty small yearly fee. All I do is sign a few papers now and then. They handle my loans, consolidations, taxes, financial and estate planning and insurance.

There are way too many pitfalls and dangers that you won't know about if you don't have a professional look at this for you. Plus, you may not fully realize the benefits that really are available to you.

This is a great idea. How much do you pay for this service? Who do you use?