Paying loans

[chewbacca4321]

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Hi everyone!

I was wondering how hard it would be to pay off almost $200,000 in loans (after graduation) as an optometrist, assuming that you are single?

 

[ILOD]

Depends on your income, expenses, and overall interest rate of your loans. A rough estimate given the following assumptions:

Salaried income of 100K, the income taxes would run about 25K leaving an after tax income of 75K. If you could live on 3000 a month that would allow you to put $3250 a month toward the student loan of 200K with an average interest rate of 6.5%. You could pay this off in about 6 years. On a 30 yr. note the payment would be about $1300 per month. If you google financial calculators you will fine some tools to look at this closer

 

[NorthernStar13]

Didn't Obama implement a policy where if you still have an outstanding balance on student loans after 20 years, they would be pardoned? I have no readily available source, so this is anything but certain. However, I remember reading something like that online.

 

[Mewcakes]

I read that too, but the stipulation was something like...if you paid 10% (or some other percentage...not sure of #) of your salary every month/year to your student loans and STILL didn't have it paid off in 20 yrs, THEN it would be pardoned. So like...you can't just let 200K sit there for 20 yrs and expect it to be pardoned.

 

[ILOD]

On that 200K note at 6.5% on a 30 yr payback after 20 yrs you will pay about 303K in payments. If you pay approx. $3250 per month after 75 months the note is paid in full with total payments about 244K.

That $1300 a month school note is like a house payment. My recommendation is to take the least amount that you have to in loans because you have to pay them back, at least the first 20 years (will see how that pans out). Go as frugal as you can, and if you are lucky to get accepted to more than one school, consider the total cost of attending and choose the cheapest.

 

[Commando303]

The whole thing is absurd — 6.8% interest rates; subsidized loans that max. out at $8,500/year; direct loans, altogether, that max. out at $20,500.00/year. I'm sure we'll see programs in a few years that let graduates "work off" debt by taking employment with the government for an amount of time — must be why Stafford loans are now being disbursed directly by the U.S. Dept. of Education rather than through banks/lenders.

 

[VTECaddict]

I'm sure we'll see programs in a few years that let graduates "work off" debt by taking employment with the government for an amount of time

Already exists. http://www.goarmy.com/amedd/hpsp.jsp

 

[dontlikephysics]

Already exists. http://www.goarmy.com/amedd/hpsp.jsp

I read this program allows you to work as a private practice OD while being a member of the army reserve. Do you know how long is the service requirement if you do this?

 

[Louminater]

.

 

[Mewcakes]

I thought it was you had to serve for the same number of years that they gave you money for. So if they paid for 4 years of your schooling, you service 4 years. But you also have to do basic training and all that stuff WHILE you're at school. They pay fairly low while you're working for them unfortunately, so some people have argued that the money you could be making in a private practice situation would offset the low salary paid by the military while paying off the loans. Does I make any sense?

 

[JMU07]

Hmmm, this honestly seems like a great option. So they'll pay for your entire tuition, and give you roughly $2,000 a month which is enough for housing, food, and some entertainment.. And only have to work for them for 3 years afterwards, which is a much shorter time then it would require to pay off the loans... Anyone have any idea of what they pay once you're working for them?

Anyone have any knowledge about this, can they ship you overseas in a war-zone whenever they please, or can you choose to be stationed in America?

They send you wherever they need you. It's a great option, but you have to apply and be accepted for it. It's very competitive.

 

[Louminater]

.

 

[Commando303]

Hmmm, this honestly seems like a great option. So they'll pay for your entire tuition, and give you roughly $2,000 a month which is enough for housing, food, and some entertainment.. And only have to work for them for 3 years afterwards, which is a much shorter time then it would require to pay off the loans... Anyone have any idea of what they pay once you're working for them?

Anyone have any knowledge about this, can they ship you overseas in a war-zone whenever they please, or can you choose to be stationed in America?

I looked into the U.S. Army's (and Navy's and Air Force's) H.P.S.P. At least in 2010, the Army seemed to offer the best package: three years of money for three years of service. That is, you must serve at least three years, regardless of how many years' funding you accept, but the program will not pay you for more than three years — so, your only option, really, is three-for-three. The Air Force's deal (again, at least in 2010) is two years of education for three years of service (i.e., max. of two years' funding; min. of three years' service).

The (Army's) H.P.S.P. pays for three years of tuition, fees, books, and cost-of-living (e.g., housing); you get monthly stipends to use toward your expenses. Summers are spent with the Army, then, upon graduation, you work for them for three years. The pay did seem to be lower than that offered by, say, Costco. Your role is not meant to involve combat, but, of course, you're in the Army: if they need your services in the "green zone" of a warring nation, that's where you'll go. Also, you're a member of the national armed forces: I'd not suppose I could just "quit" if I didn't like it, then work at Walmart, earn the money, and pay back the government. They want your service more than they want your cash, which is why the program exists, to begin with.

 

[Mewcakes]

To be honest, basic training was a deal breaker for me. 😛. I'm way lazy.