Money, Money, Money!!!

[Mr.Patel]

Hi guys and gals,

I am about to start Medical school in less then a month and have taken out 65k for the first year (tuition is 50k). I already have loans from undergraduate worth 25k. By the time I graduate, I am going to have loans of about 285k (assuming I take out 65k every year).

This seems like a lot and more then other people I know who have already graduated. I just want to know that this isn't uncommon and SOME of you are also taking out such crazy loans. Please tell me some happy stories of people taking out such loans and paying them back w/o selling their kidney! I guess I just need some assurance as it is scary taking out such money when you know you will be in training for about 10 years and won't make money for a long time. Thanks!

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[kcin]

Hi guys and gals,

I am about to start Medical school in less then a month and have taken out 65k for the first year (tuition is 50k). I already have loans from undergraduate worth 25k. By the time I graduate, I am going to have loans of about 285k (assuming I take out 65k every year).

This seems like a lot and more then other people I know who have already graduated. I just want to know that this isn't uncommon and SOME of you are also taking out such crazy loans. Please tell me some happy stories of people taking out such loans and paying them back w/o selling their kidney! I guess I just need some assurance as it is scary taking out such money when you know you will be in training for about 10 years and won't make money for a long time. Thanks!

I will be in a similar position. The plan is to live frugally (a little better than during residency, but not much) for a while after residency.

 

[The White Coat Investor]

Hi guys and gals,

I am about to start Medical school in less then a month and have taken out 65k for the first year (tuition is 50k). I already have loans from undergraduate worth 25k. By the time I graduate, I am going to have loans of about 285k (assuming I take out 65k every year).

This seems like a lot and more then other people I know who have already graduated. I just want to know that this isn't uncommon and SOME of you are also taking out such crazy loans. Please tell me some happy stories of people taking out such loans and paying them back w/o selling their kidney! I guess I just need some assurance as it is scary taking out such money when you know you will be in training for about 10 years and won't make money for a long time. Thanks!

Wow. That's scary. I'm not sure I can reassure you. That's a lot of debt. I owe nearly $400K. Of course, that's on a house worth $500K that provides shelter to my family. I find it hard to save money after paying all our expenses. I can't imagine how much harder that would be if I also had to make payments on another $285K in debt at twice the interest rate. Too late now to find a cheaper medical school. You might be able to do a little work on the side during your 1st, 2nd, and 4th years. If you are married have your spouse work. Don't go into pediatrics. Live like a resident until the loans are paid off.

 

[TAWS]

Problem is that your loan total won't be 285k when you graduate. It will balloon to higher than 300k due to accrued interest. It's the interest that kills you.

Use any extra cash you get while in medical school and apply it to your loan in order to cut down on interest as much as possible.