Need Advice

[PocoCalypsoQH]

---

Members don't see this ad.

My friend needs some advice. Background, 1st app cycle applied to and rejected from IS school. 2nd app cycle, waitlisted @ IS school, waitlisted @ Iowa, interviewing @ Illinois, still waiting to hear back from Michigan state. Friend is looking at costs of out of state schools again and thinks they can't afford it now. 25K a year for 10 years to pay off student loans seems like too much to handle. What do you think they should do?

 

[turnandburn]

I agree, OOS tuition is ridiculous. I only applied to my IS school. It took me 3 years but I finally got in! I'd wait and reapply.

 

[amom427]

Look into schools that accept a high amount of OOS students that also let you become a resident after the first year. For example: Ohio State. There are others but this is the only one I applied to that meets both of those criteria. Also keep in mind the high costs of continuing to reapply and see if in the long run it is worth it. Just because your friend is waitlisted this year does not mean they will get in next year or be waitlisted again.

 

[projekt]

I personally feel that out-of-state schools are too expensive for realistic people. There is a lot of sacrifice in taking on $230k of debt instead of $115k.

But it is possible. Let's say your friend took on $230k of debt and you had $138,500 in Direct Stafford Loans (6.8% APR) and $91,500 in DirectPLUS Loans (7.9% APR). The dept of education has four ways of paying that back:

In 10 years, fixed payments: at $2,699/month
In 10 years, graduated payments, starting at $1,866/month

In 25 years, fixed payments, at $1,661/month
In 25 years, graduated payments, starting at $1,386/month

If you assume that someone making $70,000 starting out, which will be in the low end of associate pay when you graduate, is making $5,833/month, your friend would be paying something like 24% of your gross pay using the graduated plan, or 46% using the standard plan. The interest gets deducted from taxable income, but still, after all is said and done, there won't be a lot to live on.

The only way to really get out from under all that debt is to become a practice owner as soon as possible. Your friend could then be making upwards of $175,000 per year. In the VBMA, this is what we are trying to get people to understand.

 

[zeebra44]

I personally feel that out-of-state schools are too expensive for realistic people. There is a lot of sacrifice in taking on $230k of debt instead of $115k.

But it is possible. Let's say your friend took on $230k of debt and you had $138,500 in Direct Stafford Loans (6.8% APR) and $91,500 in DirectPLUS Loans (7.9% APR). The dept of education has four ways of paying that back:

In 10 years, fixed payments: at $2,699/month
In 10 years, graduated payments, starting at $1,866/month

In 25 years, fixed payments, at $1,661/month
In 25 years, graduated payments, starting at $1,386/month

If you assume that someone making $70,000 starting out, which will be in the low end of associate pay when you graduate, is making $5,833/month, your friend would be paying something like 24% of your gross pay using the graduated plan, or 46% using the standard plan. The interest gets deducted from taxable income, but still, after all is said and done, there won't be a lot to live on.

The only way to really get out from under all that debt is to become a practice owner as soon as possible. Your friend could then be making upwards of $175,000 per year. In the VBMA, this is what we are trying to get people to understand.

Or you can choose your OOS schools wisely. I've been accepted to Missouri, and they allow students to pay in-state tuition after paying one year of OOS tuition. We were given a quote of roughly 86k upon graduation in tuition and fees. You don't necessarily HAVE to go to your IS school. For some people, that isn't even possible..for example, residents of New Jersey. And you can also specialize to make more money without necessarily owning your own practice. I just feel that if you truly want to become a veterinarian, then nothing should really stop you. I know I wouldn't be happy working some menial job just because I don't have to pay off any student loans.

 

[projekt]

Or you can choose your OOS schools wisely. I've been accepted to Missouri, and they allow students to pay in-state tuition after paying one year of OOS tuition. We were given a quote of roughly 86k upon graduation in tuition and fees. You don't necessarily HAVE to go to your IS school. For some people, that isn't even possible..for example, residents of New Jersey. And you can also specialize to make more money without necessarily owning your own practice.

True, that's an option at some schools. And woe to the NJ residents.

I will say this about specialization: yes, it does increase your earnings, but if you have $230,000 in debt, and of that only $34,000 is subsidized, the remaining $196,000 is still accumulating interest during your four years of internship and residency without being paid back at all. That's like another $50,000 to be paid back when all is said and done.

 

[turnandburn]

Or you can choose your OOS schools wisely. I've been accepted to Missouri, and they allow students to pay in-state tuition after paying one year of OOS tuition. We were given a quote of roughly 86k upon graduation in tuition and fees. You don't necessarily HAVE to go to your IS school. For some people, that isn't even possible..for example, residents of New Jersey. And you can also specialize to make more money without necessarily owning your own practice. I just feel that if you truly want to become a veterinarian, then nothing should really stop you. I know I wouldn't be happy working some menial job just because I don't have to pay off any student loans.

Not being able to buy a house, afford a decent car, or do other things you enjoy probably won't make you very happy either! 🙁 Just something to think about.

 

[zeebra44]

Not being able to buy a house, afford a decent car, or do other things you enjoy probably won't make you very happy either! 🙁 Just something to think about.

I've definitely thought about it! My IS school is A&M, and I would NOT be happy there. I grew up in Texas, and it's just not for me. I am going to attend Mizzou as an OOS resident for cheaper tuition then, and marry a sugar daddy. 😎 In all seriousness though, I plan to head into laboratory medicine, where the pay is a little higher than just working in a small animal clinic. And I also will be living like a pauper through vet school, no steak dinners for me. I don't have much debt from undergrad either, which helps. I'm just saying that if you have dreams, there are options (military, for one). Just make sure you definitely think everything through..because I certainly want to be able to buy a house and a decent car.