Need sound advice! USC

[RCSDDS]

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I really want to go to USC. My mom is only a school teacher, and can't help me out financially. My father died and left me $300K. I tried to go military scholarship, but I have taken meds in the last year that disqualified me. Can I really afford to go to USC? I was planning on coming up with some combination of loans like stafford and grad plus, as well as using some of my own resources. Does this make sense? Thanks!

 

[DavesNotHere]

I really want to go to USC. My mom is only a school teacher, and can't help me out financially. My father died and left me $300K. I tried to go military scholarship, but I have taken meds in the last year that disqualified me. Can I really afford to go to USC? I was planning on coming up with some combination of loans like stafford and grad plus, as well as using some of my own resources. Does this make sense? Thanks!

There's a lot of info on this forum about USC and finances. USC is expensive, but the vast majority of people take out loans for dental school.

If you have 300k in an account you can save a lot of money by avoiding a lot of loans and paying in cash. Every school has multiple financial advisors available who vary in their abilities and knowledge...but are a great jumping off point...might be worth your time to find one of these individuals.

 

[sddat]

If I went to USC, I would do military.

If I went to UoP, I would not do military. That extra year allows you to work and start paying loans.

 

[cmcner]

If you have 300K you'll be fine because you won't have any interest in your first 3 years of school. The $26,000 living estimates is a high end estimate. Lots of people live for $700k a month or less for rent with a roommate meaning after your $8400 a year in rent you'd have to spend $17,600 on your other expenses to use it all. The cost of the tuition with all of the fees for the 4 years is $301,773 so you basically have all of it covered. You'd basically just have to take out living expenses. Financially you're much better off than almost everyone else here including myself.

 

[TwentyTwelve]

Just because your dad left you 300K does not mean you should blow it all on an overpriced education. If someone left you 80K and you needed a car would you buy a new BMW when a used Honda would do the same job for less? The issue here is the higher price tag doesn't even buy you BMW quality, when a cheaper price would buy you a Maserati (cheaper, but higher quality state school like UCLA/UW/UNC etc).

Metaphors aside, you are correct to think that USC is way too expensive. Think about what all you could do by NOT attending that school and blowing 300K. A state school on average costs around 250K with generous living expenses included. So, option one you could pay for all dental school and have 50K left over for a house payment, capital to invest etc. Option two, you could invest 200K of that money smartly and let it grow for 6-10 years. Using the left over 100K pay for years one and two of dental school since they gain the most interest over the course of dental school and have a low payment of around $900 a month to pay. By living within your means for the first few years out of school you could pay off your loan and then look to start your own practice debt free. This is where the sound investment made earlier comes into play. That 200K could have turned into 250K+ over 10 years and this is a nice chunk of change to invest in a practice.

And for those who keep saying that UOP is worth the extra money to "get done a year earlier," this is a ridiculous comment. Everyone acts like you are only allowed to work 25 years and then call it a career, thus by saving a year at UOP you can magically work 26 and make more money. It still costs around 400K to go to school there with living expenses, thus STILL leaving you with a $3,600 monthly payment for 25 years. Congratulations, you will just come to realize one year earlier that 120K salary is eaten up very quickly to 50K take home after taxes and loan repayments. Those with lower loan payments will be able to secure better loans, bigger loans, and do more with a potential dental practice that those who have huge loans. This translates into a much higher earnings potential and less stress/more monetary freedom/lower interest rates etc. for LIFE!

Anyway...good luck in your decision!

 

[cmcner]

Just because your dad left you 300K does not mean you should blow it all on an overpriced education. If someone left you 80K and you needed a car would you buy a new BMW when a used Honda would do the same job for less? The issue here is the higher price tag doesn't even buy you BMW quality, when a cheaper price would buy you a Maserati (cheaper, but higher quality state school like UCLA/UW/UNC etc).

Metaphors aside, you are correct to think that USC is way too expensive. Think about what all you could do by NOT attending that school and blowing 300K. A state school on average costs around 250K with generous living expenses included. So, option one you could pay for all dental school and have 50K left over for a house payment, capital to invest etc. Option two, you could invest 200K of that money smartly and let it grow for 6-10 years. Using the left over 100K pay for years one and two of dental school since they gain the most interest over the course of dental school and have a low payment of around $900 a month to pay. By living within your means for the first few years out of school you could pay off your loan and then look to start your own practice debt free. This is where the sound investment made earlier comes into play. That 200K could have turned into 250K+ over 10 years and this is a nice chunk of change to invest in a practice.

And for those who keep saying that UOP is worth the extra money to "get done a year earlier," this is a ridiculous comment. Everyone acts like you are only allowed to work 25 years and then call it a career, thus by saving a year at UOP you can magically work 26 and make more money. It still costs around 400K to go to school there with living expenses, thus STILL leaving you with a $3,600 monthly payment for 25 years. Congratulations, you will just come to realize one year earlier that 120K salary is eaten up very quickly to 50K take home after taxes and loan repayments. Those with lower loan payments will be able to secure better loans, bigger loans, and do more with a potential dental practice that those who have huge loans. This translates into a much higher earnings potential and less stress/more monetary freedom/lower interest rates etc. for LIFE!

Anyway...good luck in your decision!

It is a very big risk that the loans you will take to offset your stock investment will be equivalent or better than the 6.8-7.9% annual cost of interest that you will be accepting in return. I'm guessing the OP doesn't have admissions tickets to all of these low price schools, and if not I think it would be foolish to turn down a chance to go to a higher priced dental school for the off chance that a school that wasn't interested in the OP this year will change their mind next year. In all honesty it's more likely that USC won't give him a second acceptance than that another school will change their views toward this candidate, leaving the OP SOL. Most of us can't sport a 24/25/26 on our stat sheet.

 

[yappy]

Another option would be for the OP to go to USC and join the military for the scholarship. Then they could invest the inheritance and utilize some of the stipend money towards the retirement acct. This way he will graduate and have a great job and the 300k will build over the course of eight years (school plus service). Then he will be debt free and have a nice nest egg.

 

[cmcner]

Another option would be for the OP to go to USC and join the military for the scholarship. Then they could invest the inheritance and utilize some of the stipend money towards the retirement acct. This way he will graduate and have a great job and the 300k will build over the course of eight years (school plus service). Then he will be debt free and have a nice nest egg.

Not really the OP states that he/she is disqualified from the military.

 

[yappy]

Sorry, I didn't read it lol. OP: Get un-lame and join the military!

 

[TwentyTwelve]

It is a very big risk that the loans you will take to offset your stock investment will be equivalent or better than the 6.8-7.9% annual cost of interest that you will be accepting in return. I'm guessing the OP doesn't have admissions tickets to all of these low price schools, and if not I think it would be foolish to turn down a chance to go to a higher priced dental school for the off chance that a school that wasn't interested in the OP this year will change their mind next year. In all honesty it's more likely that USC won't give him a second acceptance than that another school will change their views toward this candidate, leaving the OP SOL. Most of us can't sport a 24/25/26 on our stat sheet.

Good points...the OP was not clear whether USC was the only choice, or even if he/she applied for the 2012 cycle or perhaps was preparing for 2013.

If you were only accepted to USC then yes, you could definitely use the 300K and pay for 3/4 of your education. However, you could wait a year and apply elsewhere while greatly strengthening your application in the meantime. One can easily get 200 shadowing, 100 dental volunteer hours, rework a personal statement, retake the DAT in one year to get more acceptances from other schools. You could do all this while working a full time job and making 25K.

I guess I just can't stress enough how important it is to minimize debt now, as it will have grave consequences that most pre-dental students can't, or don't want to consider until it becomes a reality at the end of dental school.

If you waited a year and got into a state school (assuming California) then you could use 250K and pay for all school and have money left over to begin your life. OR, you could use the 300K and go into 150K in debt (accrued interest in loans while in school plus costs not covered). To me, as someone who has worked in the business world for a bit, I know first hand the snowball effect of debt, and the constraints it puts on obtaining future loans for a dental practice, mortgage, or just managing stress levels. By waiting a year you would get out of school one year later but 200K in a better situation. This will quickly put you on a much more prosperous path than if you got out of school a year earlier.

Overall, if you just can't wait another year you are in a nice situation where you will be 300K ahead of your classmates at USC. I just feel that this money could be used is a better manner at a cheaper school when you receive the same product.

 

[toothfixeralex]

Just because your dad left you 300K does not mean you should blow it all on an overpriced education. If someone left you 80K and you needed a car would you buy a new BMW when a used Honda would do the same job for less? The issue here is the higher price tag doesn't even buy you BMW quality, when a cheaper price would buy you a Maserati (cheaper, but higher quality state school like UCLA/UW/UNC etc).

Pretty bold claim for someone who isn't even in d-school yet 😀. Assuming one school is better than another based off arbitrary criteria can be dangerous.

Is SC expensive, you bet!. The tuition costs don't include supplies, so know that. Having said that, I'd encourage you to apply again for a 3-year military scholarship, especially after starting dental school. Perhaps a waver will open up for your meds. Also, in case you can't get a waver, the Income Based Repayment system for government loans is pretty nice for an SC dentist (would most likely make it more financially sound to invest the $300k and take full loans at SC to repay using IBR). I was in your shoes 3 years ago and I decided to just go to SC. The education that you'll get there really is great and it's improving quite a bit each day. A new curriculum was implemented 2 years ago and you'll be starting your amalgam course day 1.

As for living expenses, they can vary quite a bit depending on the lifestyle you want. I use about $30k a year, but I live out in Culver City in a nice apartment with cable, internet, etc. while I have classmates that spend far less and live right down the road from SC.

If you have any questions, pm me.

 

[ucizotzot]

I really want to go to USC. My mom is only a school teacher, and can't help me out financially. My father died and left me $300K. I tried to go military scholarship, but I have taken meds in the last year that disqualified me. Can I really afford to go to USC? I was planning on coming up with some combination of loans like stafford and grad plus, as well as using some of my own resources. Does this make sense? Thanks!

USC is a great school. Having gone there, I can attest to the awesome clinical training we receive. Yes, it is expensive so plan accordingly. Look into NHSC scholarships. You may also consider working for a community clinic in the future.

 

[Wakaaa]

Whoever said going to UOP for 3 years..
Going to UOP and finish a year early will still allow you to work earlier, which means more experience and you can start your own office after one year of working for someone..