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AAMC Study
According to this study (page 15), if you owe $200,000 at the end of residency, your monthly payment is roughly $2,200 assuming a 10 year repayment and 2.82% interest. Obviously the payment gets higher as interest rates increase, but lets go with these assumptions for now.
If $2,200 is too burdonsome for you, you can consolidate your loans and stretch them out for 30 years. Your monthly payment will be about $1000 for 30 years.
I will be anywhere from 37 - 40 years old when I finish residency. If I want to retire before I turn 70, there is a distinct possibility that I will still be paying my student loans when I retire.
Worse case scenario: I have $23,000 in undergraduate debt now. Say I go to Wake Forest and rack up another $200,000. I will owe $223,000 at the start of residency. By the end it will be more, but I don't know how much more. $300,000 maybe? $250,000? Anyway, lets say that by then interest rates have gone back up to 8.5% like they were in 2000. In this case, I will have to consolidate (even if I'm a radiologist) because the payment would be like half of my salary. If this happens, I may be paying $2,000 per month into retirement.
What do you guys think?
MD/PhD, Military, Primary Care in Underserved Area Scholarships might be great for some, but what about the rest of us?
According to this study (page 15), if you owe $200,000 at the end of residency, your monthly payment is roughly $2,200 assuming a 10 year repayment and 2.82% interest. Obviously the payment gets higher as interest rates increase, but lets go with these assumptions for now.
If $2,200 is too burdonsome for you, you can consolidate your loans and stretch them out for 30 years. Your monthly payment will be about $1000 for 30 years.
I will be anywhere from 37 - 40 years old when I finish residency. If I want to retire before I turn 70, there is a distinct possibility that I will still be paying my student loans when I retire.
Worse case scenario: I have $23,000 in undergraduate debt now. Say I go to Wake Forest and rack up another $200,000. I will owe $223,000 at the start of residency. By the end it will be more, but I don't know how much more. $300,000 maybe? $250,000? Anyway, lets say that by then interest rates have gone back up to 8.5% like they were in 2000. In this case, I will have to consolidate (even if I'm a radiologist) because the payment would be like half of my salary. If this happens, I may be paying $2,000 per month into retirement.
What do you guys think?
MD/PhD, Military, Primary Care in Underserved Area Scholarships might be great for some, but what about the rest of us?