Pay-back is a B#$@!

[Mo007]

I don't mean to offend anyone or anything, but what is it like to Pay-Back.... let's say $250,000 loan after you graduate?

How much of that will be coming out of your monthly pay-check as a qualified Dentist... say, with a 10/20 yrs re-payment plan? and what kind of interests will you face with the repayment?

Thanks.

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[The Candidate]

I don't mean to offend anyone or anything, but what is it like to Pay-Back.... let's say $250,000 loan after you graduate?

How much of that will be coming out of your monthly pay-check as a qualified Dentist... say, with a 10/20 yrs re-payment plan? and what kind of interests will you face with the repayment?

Thanks.

I am guessing:

10-yrs plan for $250,000 (not factoring in interests): $25,000/yr, or $2,083/month.

20-yrs plan for the same amount: $12,500/yr, or $1,042/month.

Ok, that's just the principal repayment. Interests will make it even more higher amount to repay per year or per month.

If the average income for that period is about ... let's say about $160,000/yr, or about $13,000 a month. After taxes, and other god-know-what deductions... and the school repayment plan, you might wish that you should've attended a cheaper dental school while you had the chance.

Just guessing.

 

[Kiluminati]

250k with a 2.77% interest rate would be $2387 a month at a 10 year repayment.

A 20 year would be $1357.

30 year would be $1023.

I have no idea if that interest rate would be accurate for the repayment of professional school loans.

 

[podarski]

250k with a 2.77% interest rate would be $2387 a month at a 10 year repayment.

A 20 year would be $1357.

30 year would be $1023.

I have no idea if that interest rate would be accurate for the repayment of professional school loans.

good luck finding a 2.77% interest rate! If you can I would take out all the loans you can wether you need them or not and invest it or use it to buy a practice Thats a lot lower then youll ever get anywhere else.

 

[Dr.BadVibes]

good luck finding a 2.77% interest rate! If you can I would take out all the loans you can wether you need them or not and invest it or use it to buy a practice Thats a lot lower then youll ever get anywhere else.

I think they were talking about Stafford educational loans which currently have that interest rate and what 99% of dental students use (gives 38,500/year)

Anyways, Im glad you guys will post up numbers, so people can see the reality of loan repayment with their very own eyes and might rethink about the attitude that going to an expensive school would be no problem

Oh yah, on top of heavy loan payments every month, remember that you also have to start a practice, so thats another loan....oh yah, and im assuming you wanna buy a house someday, so add in a mortgage...how bout a car? Wanna have kids???....gonna cost you!

But dont worry...not considering money when choosing a school, going to an expensive school and just assuming that since dentists make high incomes, it will be no problem....and Im sure you'll do fine

(Note: If you are Canadian, take every number and multiply it by two....what does it equal? Advice to goto the cheapest school you can get into or marry rich!)

 

[Mo007]

So let's say you have a debt of $250k from dental school, and few years after you graduate - you find yourself in a position to buy a practice with a loan of $200K. Your new life as a Dentist needs $400K (house, car, etc). That's pretty much is close to $1 million debt.

That's a serious financial hit that could take forever to recover from.

 

[RxTech]

The dentaltown forum has touched on this topic many times. I highly recommend this as a resource for anyone who thinks they might need assistance with managing their dental debt.

 

[Kiluminati]

good luck finding a 2.77% interest rate! If you can I would take out all the loans you can wether you need them or not and invest it or use it to buy a practice Thats a lot lower then youll ever get anywhere else.

Thats about what Stafford loans are bud. I don't know what kinds of interest rates private lenders would give you, as I have not had to deal with them just yet.

 

[jjw1983]

So let's say you have a debt of $250k from dental school, and few years after you graduate - you find yourself in a position to buy a practice with a loan of $200K. Your new life as a Dentist needs $400K (house, car, etc). That's pretty much is close to $1 million debt.

That's a serious financial hit that could take forever to recover from.

that's why I want to go to OSU.... waitlisted,sigh... so you decided to go to OSU instead of case??

 

[JavadiCavity]

Listen, from talking with dentists, I have it on pretty good authority that bankers print money especially to give to dentists when they need it.

But seriously, at UOP, which has a high price tag, the alumni default on their loans less than 1% of the time. They also take seven years on average to pay back their loan (this is probably longer than is needed since many students would rather pay the ultra-low interest rates right now and invest their income in other things--so they don't pay off their loans as quickly). Also, during our interview (and I realize this could just be Dr. Yarborough just blowing sunshine up are #$%&es) Dr. Yarborough said that alumni have no problem purchasing a practice and a home with a couple years of graduation. He also said that our student loans would be the smallest of the three loans we had out.

Ultimately, it's up to you what kind of lifestyle you want to have after graduation. Obviously buying a home, practice, and paying off debt is possible, but I'm sure cash flow is a lot tighter than it otherwise could be.

 

[Mo007]

that's why I want to go to OSU.... waitlisted,sigh... so you decided to go to OSU instead of case??

Are you stalking me?

I will make my final decision next week...

 

[jjw1983]

Are you stalking me?

I will make my final decision next week...

ooops, got caught. hehe Case is a GREAT GREAT school!!! hahaha j/k. I think even you are not going to OSU, I am not going to get in. It is sad that I have to choose school based on $$. To be honest, case is a good school. I might go there if not going to OSU.