Military Scholarship: Worth It?

[Theta1]

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I'm a bit leery about serving in the armed forces, but was wondering if any of you are on, have graduated, or planning on going to dentistry school on a military scholarship(especially the ladies! 🙂)

Do they pay in full the tuition for all four years? If so, how many years do you need to serve upon graduation?

I figure being in debt for service is not too different from being in debt from loans, as the time frame of serving and earning money upon graduation would some how even out.

Your thoughts?

 

[jcdent27]

I'm a bit leery about serving in the armed forces, but was wondering if any of you are on, have graduated, or planning on going to dentistry school on a military scholarship(especially the ladies! 🙂)

Do they pay in full the tuition for all four years? If so, how many years do you need to serve upon graduation?

I figure being in debt for service is not too different from being in debt from loans, as the time frame of serving and earning money upon graduation would some how even out.

Your thoughts?

I was also interested in the military, and I actually spoke with a Navy recruiter about the specifics over the summer. As far as I understand it, they do pay your full tuition over the four year period. This not only includes tuition but also books, instruments and any other school stuff required. They also pay you ~$1600 stipend per month for living expenses. It is a year for year payback with a 2 year minimum (I think..It may be 3 year min.) This just means, they pay for 4 years of d-school and you owe the military 4 years. If you want to specialize however, you will owe more time in the military. The "deals" vary by branch but they are all pretty similar.
Something to remember though, is that while it sounds like a good deal up front, you really have no say during the 4 years following graduation. Also, while you only earn ~$60,000 in the military as a dentist you may be earning up to twice this in the civilian world. So depending on your school's tuition it may not be worth it to have the military pay for it.
Im sure there is someone else who knows a lot more of the specifics, but hopefully this helps. Also, you should refer to the Military thread right below the Pre-dental thread. There is a lot of good information there (ie. pros and cons to joining the military).

 

[Shunwei]

I'm a bit leery about serving in the armed forces, but was wondering if any of you are on, have graduated, or planning on going to dentistry school on a military scholarship(especially the ladies! 🙂)

Do they pay in full the tuition for all four years? If so, how many years do you need to serve upon graduation?

I figure being in debt for service is not too different from being in debt from loans, as the time frame of serving and earning money upon graduation would some how even out.

Your thoughts?

I am an older applicant so my feelings might be biased, but I think freedom and time is more important than debt. I don't like the feeling of being an indentured servant.

 

[makushin]

Financially speaking, if you pay out of state or private tuition, it is hard to top the scholarship. Here's how you can figure it out:

((total value of the military scholarship + (4years military compensation - taxes))/4) = average after tax income you will need your first 4 years out of dental school.

Be sure to account for interest accrual, and income taxes. If you actually work this out including everything I have mentioned, you will see the value of the military scholarship is very high. Alot of people don't account for interest accrual or the massive differences in tax liability; two factors which greatly affect the total value. However there is a loss in having to establish private practice 4 years late.

 

[tinman831]

moving to military dentistry. 🙂

 

[OSU_DentGirl]

Hi guys. I am on the Army scholarship (and I am a "girly-girl"). They pay for all 4 years of school, give me a stipend of $1605 per month (it is going up to $1905 next year!), pay for all books and equipment. Even loupes that cost a grand! I feel like I don't have to worry about things that my classmates on loans worry about. I can afford everything I need, whereas those classmates worry about paying for lunch. That lets me worry about school, instead of things like money!
When you graduate and work as a dentist in the Army, you will make about $60,000, but you won't have malpractice insurance to worry about, loan payments or any start up fees. People always say I will have no freedom in the Army, but what do you think it will be like when you start out at a dental office? You can live on base or off, you have the opportunity to travel if you want and you DO get to choose where you go when you graduate. And my husband can come with me, in most cases.
I think I made a good choice and I encourage everyone to explore it. It's not for everyone, but it's worth a look.
Hope this helps someone!

 

[reapply2007]

Isn't there a tax issue with having the military pay off your loans? As I understand it HPSP is basically a loan with forgiveness in exchange for work.

It seems like you could be responsible to pay taxes, once you are active duty, on your loan forgiveness on a yearly basis as it is an experienced gain. If D school costs $160K paid by the military over four years then every year they "forgive" over four years would be $40K on which you would owe taxes of the approx 33% (approx $13.3K out of pocket) for each of your first four years in service.

 

[jmick101]

Let me rephrase the question as it really means: is the scholarship worth having to do a tour in Iraq for 15 months or on a boat for 6 months? Put in those terms, and some serious soul searching, you will find if the military is for you. Me, I don't mind doing a tour (for various reasons) and can accept the possibility. If you are single, why not? Debt free pretty much and an adventure that will put hair on your chest. If married I would advise against it if a) your marriage is weak or b) your wife will simply not be able to function without you (cant pay the bills, stay sane with kids, etc).

To put things into perspective the scholarship will pay all your tuition and fees(at Pacific that is 200K), and give you a monthly stipend that will be around 1700 after taxes. $1700x 48=$81000. Add in some money that you get for the 45 days that you in reality wont be serving on Active Duty every year (depending on what school you go to) and you are close to 300K that the military is saving you IN PRINCIPAL. Take that and spread it out over 30 years with interest and you are pretty close to 450K that the military is saving you. Pretty compelling numbers if I have it right.

The military occasionally sucks. I know that from three years of active duty enlisted. It is also pretty cool sometimes. You will get lots of time off and they will keep you in shape. The military is also an opportunity to step right into a job seeing a patient an hour five days a week with specialists all around. What a great way to increase your confidence and skills fresh out of school eh?

Right out of school some people line up good associateships that pay well. Many, many others dont. Some count themselves lucky to get a gig that will pay 500 a day (100k a year). Life in private practice isnt the rosy world we all hope it to be. The nagging weight of massive school loans is pretty heavy for some and loads of stress in and of itself. You are crazy to think that it will not tempt you to compromise the quality of care that you give patients ("you really oughta replace those crowns, let me take care of that... and those ugly, poisonous silver fillings...). Imagine having a boss constantly on your back to always increase production with house, car, malpractice insurance, health insurance, and school loan payments hanging over your head, and you can bet that you will come up with some "creative" treatment plans.

So yes, the military scholarship has its ups and downs, but so does private practice with loads of debt.

 

[blankguy]

You should also include what experience you get in the military versus the civilian office. I've heard of people who have improved their skills and speed tremendously while in the military. Let's face it if you are fresh out of dental school you are very green and raw. In the civilian world you are thrown into the fire of trying to repay loans while at the same time you are trying to build up experience. The advantage of the military is that you can focus on building up the skill. I am figuring that for the first few years I am not going to miss much but as time goes on the civilian world will look more lucrative especially as I build up experience. Another concern is that if you want to go into residencies you are at the mercy of what is available within the military.

 

[OSU_DentGirl]

Isn't there a tax issue with having the military pay off your loans? As I understand it HPSP is basically a loan with forgiveness in exchange for work.

It seems like you could be responsible to pay taxes, once you are active duty, on your loan forgiveness on a yearly basis as it is an experienced gain. If D school costs $160K paid by the military over four years then every year they "forgive" over four years would be $40K on which you would owe taxes of the approx 33% (approx $13.3K out of pocket) for each of your first four years in service.

The HPSP doesn't pay off loans. They pay tuition directly. I have never seen a bill. So, I don't think there are any issues with loan taxes. I think there is some kind of loan repayment thing available, though I'm not the person to ask.

 

[shamrock2006]

I've seen an answer to questions like these a few times before..and it seems that the most common response is as follows: If you know you want to specialize then the HPSP might not necessarily be the best way to go..although that has been debated. However, if you know for a fact you want to be a GP..you really cant beat the deal offered by the HPSP.

 

[BuckeyMcGee]

Isn't there a tax issue with having the military pay off your loans? As I understand it HPSP is basically a loan with forgiveness in exchange for work.

It seems like you could be responsible to pay taxes, once you are active duty, on your loan forgiveness on a yearly basis as it is an experienced gain. If D school costs $160K paid by the military over four years then every year they "forgive" over four years would be $40K on which you would owe taxes of the approx 33% (approx $13.3K out of pocket) for each of your first four years in service.

There are no tax issues at all, you don't take loans out on the HPSP, the military covers it directly through the school. They've paid for my loupes, laptop (which I had to buy), instruments - about 7000 dollars first year and 5000 dollars second year, living (nice 1600 dollar stipend) and you can even get them to buy extra instruments needed to work in the lab if required and you save the reciepts. I would weigh the option more carefully if you are going to a state school but for those entering a private school, it makes sense financially.

 

[rambo2006]

A recruiter came to our school for an ASDA lunch and learn, and said that if u join for the money only, u r in the wrong place and u might regret it. He said, the money is merely a way of showing our appreciation for those who join and do so because they are joining outta principle and that it is not meant compensate for the lower pay in the military (as compared to the private sector) . I havent looked at the numbers and tried crunching them, but what he had to say. So crunch the numbers, ask ppl already in how it is, and read EVERYTHING u sign or u might get FUDGED.

 

[nemo11]

for those who are going to do the HPSP or are already doing it, did your parents nag and beg you not to? ...because i'm having that issue.

 

[jim85213]

for those who are going to do the HPSP or are already doing it, did your parents nag and beg you not to? ...because i'm having that issue.

My wife and family have been very supportive but I understand your parent's reservations. Some people hear military and automatically jump to the conclusion that you are going to go to Iraq and be killed by an IED (I literally had someone say that to me). Life is much, much different in the military for medical/dental officers than for those that enlist. However, it is still the military and they own your ass. I do know a dentist in my area that went to Baghdad but he volunteered to do so. Someone mentioned earlier that you should do it for all reasons EXCEPT money and I would agree with that full heartedly. I wanted to enlist out of high school but was denied due to medical reasons. Military dentistry has given me a chance to serve and that has been my motivation. Ultimately, you're an adult and sometimes you have to make decisions against your parent's wishes. Good luck and if you do decide to do it...go with the Navy (just because I said so).🙂

 

[jmick101]

I've seen an answer to questions like these a few times before..and it seems that the most common response is as follows: If you know you want to specialize then the HPSP might not necessarily be the best way to go..although that has been debated. However, if you know for a fact you want to be a GP..you really cant beat the deal offered by the HPSP.

I havent heard this debate at all. In fact, if you want to specialize then joining the military might be the easiest way to go. The selection rates are common knowledge (the respective branches publish them) and from the looks of things it seems relatively easy to get. In 2005 the Army had 18 applicatants for 11 OS slots. Thems pretty good odds if you ask me.

 

[BuckeyMcGee]

There are lots of reasons to join, and finances should be a huge decision factor for you. Applicants should want to serve the country but they are also looking for a way to finance their education without taking out tons of loans. Yeah the military will own you and control you but you'll gain a ton of experience in the 4 years in which you can later decide to start your own practice or stay in. Either way, as a new graduate with a bunch of loans, you'll likely be working for someone and they'll tell you what to do at work. 😀

 

[blankguy]

I havent heard this debate at all. In fact, if you want to specialize then joining the military might be the easiest way to go. The selection rates are common knowledge (the respective branches publish them) and from the looks of things it seems relatively easy to get. In 2005 the Army had 18 applicatants for 11 OS slots. Thems pretty good odds if you ask me.

I am not quite clear on how many apply for the residencies and get them. It was stressed that even in the military it is about as competitive as civilian. If you make the military a career then specialization is a must. In fact the military will push you to specialize.

 

[shamrock2006]

I havent heard this debate at all. In fact, if you want to specialize then joining the military might be the easiest way to go. The selection rates are common knowledge (the respective branches publish them) and from the looks of things it seems relatively easy to get. In 2005 the Army had 18 applicatants for 11 OS slots. Thems pretty good odds if you ask me.

I was talking more along the lines of right out of school...sorry for the confusion. Yes the army had 18 applicants for 11 OS slots..but I would think that many of them already had been active for at least a year or so. You probably wouldnt find too many fresh grads applying..and if you did, they probably didnt get picked up. That was really what I was trying to say.

 

[CannonD]

Hi, guys i have few questions. first, My girlfriend and I are planning to get military scholarship, and after we graduated from D-school, Can we go together to serve in the same place? or they put you randomly for the deployment. Thank You

 

[blankguy]

Hi, guys i have few questions. first, My girlfriend and I are planning to get military scholarship, and after we graduated from D-school, Can we go together to serve in the same place? or they put you randomly for the deployment. Thank You

I don't think they can guarantee that. You could get split up.

 

[jmick101]

I don't think they can guarantee that. You could get split up.

They do it all the time. It is very unlikely that would get split up. If they tried it, I would call your congressman and get that fixed.

 

[jmick101]

I was talking more along the lines of right out of school...sorry for the confusion. Yes the army had 18 applicants for 11 OS slots..but I would think that many of them already had been active for at least a year or so. You probably wouldnt find too many fresh grads applying..and if you did, they probably didnt get picked up. That was really what I was trying to say.

Actually quite a few of them were LTs (which means Dental Student).

 

[dentwannabe]

For the military people, I have some questions, because I hear there is a lot of "fine print" in this agreement.

so let me get this straight.. If they send me to a base in Germany.. can my family come? And where do most people get based? In the U.S. or OUT. Do you have a choice?

On the air force site they say, ". While on scholarship you'll spend 45 days on active duty in the Air Force and once you graduate you'll serve active duty: four years for a four year scholarship and three years for a three year scholarship."
What does "active duty" mean? Are you physically involved in the war -- on an aircraft carrier or air force base in the middle east or in europe? How is 45 days possible in the life of a dental student??

Can they send you in to fight during any time in the scholarship (during or while in "repayment")?

Do you have ANY commitments after the four years (if they paid for all 4) are up?

Lastly, what does it entail? Basic training, monthly training?

I'd appreciate all the help.

Thanks.

 

[Theta1]

What would the transition be like from military to civilian private practice after serving for 4 years? I would have to eventually start from scratch as an associate or I guess I could have saved up enough to start my own practice, but I would be lacking the business knowledge/skills that I could have racked up as an associate(non-military route).

Thanks for your input....keep them coming! 😀

 

[fishermaneric]

Hi, guys i have few questions. first, My girlfriend and I are planning to get military scholarship, and after we graduated from D-school, Can we go together to serve in the same place? or they put you randomly for the deployment. Thank You

I am a military dentist and unless you are married they will not promise you anything. Chances are you would not get the same location. It could happen but probably wouldn't.

 

[CannonD]

i'm kind of confused...how come you owe 8 years on active duty while you only take 4 years of military scholarship. Do you count the time in D-school and the time on active duty also??

 

[Smills91]

i'm kind of confused...how come you owe 8 years on active duty while you only take 4 years of military scholarship. Do you count the time in D-school and the time on active duty also??

Your commitment is EIGHT years AFTER dental school...it's year for year (3 for 3 or 4 for 4 + the difference to 8.) Meaning after you pay back your ACTIVE duty of 3 or 4 years, you would then have 5 or 4 years, respectively, to pay back as INACTIVE duty. Inactive basically means, IF the military NEEDS you they can call you back at any time DURING that time. It's possible, but not that common for them to call you back DURING your inactive time.

 

[BQuad]

I am a military dentist and unless you are married they will not promise you anything. Chances are you would not get the same location. It could happen but probably wouldn't.

It's true, unless you are married the Army will not care. If you are married your chance of getting stationed at the same base is very good, but you will most likely be at a larger base with multiple clinics.

Deployments however are a different story. If one of you is in a field unit than they would deploy with them, the other could volunteer to go at the same time in a PROFIS position (filling in an empty deployment slot) to avoid deploying after the other returns, but the chances of being deployed to the same place is probably slim. You could try to be assigned to a dental field unit together and that may give you a better chance of deploying together.

 

[reapply2007]

There are no tax issues at all, you don't take loans out on the HPSP, the military covers it directly through the school. They've paid for my loupes, laptop (which I had to buy), instruments - about 7000 dollars first year and 5000 dollars second year, living (nice 1600 dollar stipend) and you can even get them to buy extra instruments needed to work in the lab if required and you save the reciepts. I would weigh the option more carefully if you are going to a state school but for those entering a private school, it makes sense financially.

But the recruiters very clearly state that if you either don't make it through school or you don't show up for training/get a different job that you must pay back the money with penalties. This sounds more like loan:work - with financial gain for every year service which results in a tax problem.

 

[BuckeyMcGee]

I have not heard of a student on the HPSP fail out of school or quit on their own accord. I was however curious upon fully accepting the scholarship and asked that question, the reply was: failure is not an option. Fortunately I'm doing just fine here but it would be a large burden if you are struggling in school.

 

[BQuad]

We actually have a SGT here in the reserves that decided he couldn't cut it in dental school and quit his third year. His reserve time was his choice, not required, but he does have to pay back the Army for the full amount he was given while on the scholarship. I'm not sure if he also has to pay back additional interest or penalties, but I can ask.

I'm not sure why you think there is a big tax issue. This is a scholarship paid directly to the school and has no tax liability, your stipend and reimbursements are processed through the the Army pay system and the appropriate taxes are taken out.

 

[reapply2007]

We actually have a SGT here in the reserves that decided he couldn't cut it in dental school and quit his third year. His reserve time was his choice, not required, but he does have to pay back the Army for the full amount he was given while on the scholarship. I'm not sure if he also has to pay back additional interest or penalties, but I can ask.

I'm not sure why you think there is a big tax issue. This is a scholarship paid directly to the school and has no tax liability, your stipend and reimbursements are processed through the the Army pay system and the appropriate taxes are taken out.

What is potentially taxable is the debt cancellation when the government forgives a potion of your loan in exchange for a year of work. The government has relieved you of the financial burden of repaying the loan. However, according to the IRS-link and text follows- it looks like the HPSP is likely a qualifying loan with cancellation in exchange for work.

http://www.irs.gov/publications/p970/ch05.html

Student Loan Cancellation
Generally, if you are responsible for making loan payments, and the loan is canceled (forgiven), you must include the amount that was forgiven in your gross income for tax purposes. However, if your student loan is canceled, you may not have to include any amount in income. This section describes the requirements for tax-free treatment of canceled student loans.

Qualifying Loans
To qualify for tax-free treatment, your loan must contain a provision that all or part of the debt will be canceled if you work:

For a certain period of time,
In certain professions, and
For any of a broad class of employers.

The loan must have been made by a qualified lender to assist the borrower in attending an eligible educational institution.

Qualified lenders. These include the following.
The government—federal, state, or local, or an instrumentality, agency, or subdivision thereof.

 

[Smills91]

What is potentially taxable is the debt cancellation when the government forgives a potion of your loan in exchange for a year of work. The government has relieved you of the financial burden of repaying the loan. However, according to the IRS-link and text follows- it looks like the HPSP is likely a qualifying loan with cancellation in exchange for work.

http://www.irs.gov/publications/p970/ch05.html

Student Loan Cancellation
Generally, if you are responsible for making loan payments, and the loan is canceled (forgiven), you must include the amount that was forgiven in your gross income for tax purposes. However, if your student loan is canceled, you may not have to include any amount in income. This section describes the requirements for tax-free treatment of canceled student loans.

Qualifying Loans
To qualify for tax-free treatment, your loan must contain a provision that all or part of the debt will be canceled if you work:

For a certain period of time,
In certain professions, and
For any of a broad class of employers.

The loan must have been made by a qualified lender to assist the borrower in attending an eligible educational institution.

Qualified lenders. These include the following.
The government—federal, state, or local, or an instrumentality, agency, or subdivision thereof.

It's not a loan, it's a scholarship with strings attached. Splitting hairs, sure, but there's a difference.

 

[eric275]

What is potentially taxable is the debt cancellation when the government forgives a potion of your loan in exchange for a year of work. The government has relieved you of the financial burden of repaying the loan. However, according to the IRS-link and text follows- it looks like the HPSP is likely a qualifying loan with cancellation in exchange for work.

http://www.irs.gov/publications/p970/ch05.html

Student Loan Cancellation
Generally, if you are responsible for making loan payments, and the loan is canceled (forgiven), you must include the amount that was forgiven in your gross income for tax purposes. However, if your student loan is canceled, you may not have to include any amount in income. This section describes the requirements for tax-free treatment of canceled student loans.

Qualifying Loans
To qualify for tax-free treatment, your loan must contain a provision that all or part of the debt will be canceled if you work:

For a certain period of time,
In certain professions, and
For any of a broad class of employers.

The loan must have been made by a qualified lender to assist the borrower in attending an eligible educational institution.

Qualified lenders. These include the following.
The government—federal, state, or local, or an instrumentality, agency, or subdivision thereof.

There is never a loan taken by the student, so no loans are forgiven. It is a payment made directly from the government to the school.

These scholarships have been going on for quite awhile with no tax liability incured by students and I'm sure that the IRS and Government that created these scholarships know the tax laws pretty well.. You've been on this rant now for some time, so get off it already because quoting tax codes is really not impressing anyone and still does not change the fact that there is no tax liability.

Do you eriously think that if there was a tax liability some past disgruntled scholarship recipient wouldn't be shouting it from the roof-top? Just as with "allowances" paid to military members are tax exempt, the government has quite a bit of leverage when it comes to compensating its members.

 

[BQuad]

Agree, it's a scholarship, not a loan so the quoted tax law doesn't apply. The US Army is not a qualified lender that checks your credit history and gives you a loan and repayment schedule.

 

[marylene]

For the HPSP scholarship, i have been put in a list called "Merit List". I was not selected for the scholarship though. What do you think that means?😕
Does anyone know how long this list stays active?
Thanks so much!🙂

 

[realgraverobber]

"house, car, malpractice insurance, health insurance, and school loan payments..."

I'm going to be homeless after dental school and pay the bills quicklike. Educational-interest debt is tax deductible.

OMG, pay off my $2000 car. Not a worry.

If your dental employer doesn't give you health insurance, it's the first I've ever heard of.

A friend of mine started at a chain in Oregon, $150,000 with benefits for the first year.

 

[jim85213]

"house, car, malpractice insurance, health insurance, and school loan payments..."

I'm going to be homeless after dental school and pay the bills quicklike. Educational-interest debt is tax deductible.

OMG, pay off my $2000 car. Not a worry.

If your dental employer doesn't give you health insurance, it's the first I've ever heard of.

A friend of mine started at a chain in Oregon, $150,000 with benefits for the first year.

So what's your point?

 

[BuckeyMcGee]

You can be sure his job security there is at a minimum and his salary will likely not increase by working at a chain mill - underneath someone who is going to be making much more. I'd say 70,000 is a more accurate figure for the starting military dentist, not 60. For people like me who went to an extremley expensive private school (Nova) for their education, the scholarship makes a lot of sense. If I had gone to UF (dirt cheap for school and public), my undergrad, I still would have considered the scholarship based on the fact that I'd get good experience in the military and if I'm going to be anyones biatch for 4 years, I'd rather be my country's. Try getting a loan to open your own practice coming right out of Nova with over 300,000 in debt - it just isn't possible. The 300,000 doesn't just include tuition, its the cost of living in South Florida as well. Four years is a small investment to come out debt free and with a lot more experience then you can learn working for a single dentist on the outside. In the military, you are working in an environment with specialists and other dentists right next door, you will learn a lot...not just one dentist's view on how to run a practice. I'd say do the scholarship if you want to get good experience, serve the country, and are worried about all that debt you'll accumulate at some expensive private school.😎

 

[shamrock2006]

You can be sure his job security there is at a minimum and his salary will likely not increase by working at a chain mill - underneath someone who is going to be making much more. I'd say 70,000 is a more accurate figure for the starting military dentist, not 60. For people like me who went to an extremley expensive private school (Nova) for their education, the scholarship makes a lot of sense. If I had gone to UF (dirt cheap for school and public), my undergrad, I still would have considered the scholarship based on the fact that I'd get good experience in the military and if I'm going to be anyones biatch for 4 years, I'd rather be my country's. Try getting a loan to open your own practice coming right out of Nova with over 300,000 in debt - it just isn't possible. The 300,000 doesn't just include tuition, its the cost of living in South Florida as well. Four years is a small investment to come out debt free and with a lot more experience then you can learn working for a single dentist on the outside. In the military, you are working in an environment with specialists and other dentists right next door, you will learn a lot...not just one dentist's view on how to run a practice. I'd say do the scholarship if you want to get good experience, serve the country, and are worried about all that debt you'll accumulate at some expensive private school.😎

Totally agree. It makes sense for a lot of different reasons..many of which you highlited. the part about starting a practice right out of school w/ the debt you have is something i've also brought up to people. You are fresh out of school w/ almost 300k in loans...do you think any bank is going to loan you ANOTHER 400k+ to help you start a practice? You have no experience, credit probably isnt the best, not many possessions (house, car, etc..). And if they do, you can bet the interest rate is going to be out the a$$. And these are just arguments you can use for people who look at it solely as a financial decision. The whole "no debt" thing is just an awesome bonus...i'm looking forward to eventually getting out and serving anyway.

 

[bass for less]

If the merit list means the list of alternatives, then I guess it will stay active until dental school starts. I'd stay in touch with your recruiter and check out other branches as well.

For the HPSP scholarship, i have been put in a list called "Merit List". I was not selected for the scholarship though. What do you think that means?😕
Does anyone know how long this list stays active?
Thanks so much!🙂

 

[MaximusD]

Isn't there a tax issue with having the military pay off your loans? As I understand it HPSP is basically a loan with forgiveness in exchange for work.

It seems like you could be responsible to pay taxes, once you are active duty, on your loan forgiveness on a yearly basis as it is an experienced gain. If D school costs $160K paid by the military over four years then every year they "forgive" over four years would be $40K on which you would owe taxes of the approx 33% (approx $13.3K out of pocket) for each of your first four years in service.

This is incorrect. HPSP is not loan repayment. FAP is loan repayment. Do some googling or just scan these forums.

 

[Aceofspades]

Is it worth it is a loaded question. Many things besides financial factors come into play, but from a pure financial standpoint the answer seems to be yes.

I made a spreadsheet trying to compare the two. Many variables come into play so I had to make some broad assumptions. Feel free to let me know if you have any more accurate figures.

While liquid assets may be close from years 1 - 8, the military dentist banks 30k more per year for years 9 - 14 for an overall gain of 180k. I did not factor in common costs that both dentists would see because it is not necessary in a direct comparison.


SEE ATTACHMENT

 

[jfitzpat]

Is it worth it is a loaded question. Many things besides financial factors come into play, but from a pure financial standpoint the answer seems to be yes.

I made a spreadsheet trying to compare the two. Many variables come into play so I had to make some broad assumptions. Feel free to let me know if you have any more accurate figures.

While liquid assets may be close from years 1 - 8, the military dentist banks 30k more per year for years 9 - 14 for an overall gain of 180k. I did not factor in common costs that both dentists would see because it is not necessary in a direct comparison.


SEE ATTACHMENT

I think the biggest problem with your assumptions (aside from not accounting for any earnings growth) is that a dentist coming straight out of the military is going to make the same as one who has been in private practice for four years.