Paying school loans back?

[doclm]

Hello all you Pod'ers,

I was wondering if anyone has heard of any of the recent grads having a hard time paying back school loans. I know that residency options have changed over the past eight years. However, I know a DPM who graduated in 1998 and he told me about a couple of his buddies that couldn't afford to pay back their huge student loans and had to default on their federal loans.

Are the DPM's that graduate now making more $$$ than before? Also, do you have 7 years of forbearance before you start paying off the loans? One more thing, do you have to start paying back loans during your residency or is that included as education. Are MD's and DPM's treated the same with loan repayment options?

Thanks for your input.

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[krabmas]

Hello all you Pod'ers,

I was wondering if anyone has heard of any of the recent grads having a hard time paying back school loans. I know that residency options have changed over the past eight years. However, I know a DPM who graduated in 1998 and he told me about a couple of his buddies that couldn't afford to pay back their huge student loans and had to default on their federal loans.

Are the DPM's that graduate now making more $$$ than before? Also, do you have 7 years of forbearance before you start paying off the loans? One more thing, do you have to start paying back loans during your residency or is that included as education. Are MD's and DPM's treated the same with loan repayment options?

Thanks for your input.

I think they consider residency a time of econimic hardship and you will not have to make payments but I think the interest kicks in. so it is not the same as education where the interest is held on some of the loans.

it is always smart to pay off the interest if you can so it does not get compounded into the principle making your monthly payments higher later.

but remember - it does not matter if you ever payback your student loans. just pay the minimum each month. When you die whatever is left gets eaten up by the governemt.

 

[capo]

I think they consider residency a time of econimic hardship and you will not have to make payments but I think the interest kicks in. so it is not the same as education where the interest is held on some of the loans.

it is always smart to pay off the interest if you can so it does not get compounded into the principle making your monthly payments higher later.

but remember - it does not matter if you ever payback your student loans. just pay the minimum each month. When you die whatever is left gets eaten up by the governemt.

Krab, is this your plan? To have your loans outlive you? Hahaaaa. I do think though, that's what I'll do as will many other broke students.

 

[krabmas]

Krab, is this your plan? To have your loans outlive you? Hahaaaa. I do think though, that's what I'll do as will many other broke students.

I live a pretty adventurous life (snowboarding, skiing, cycling in NYC traffic) so I really do not expect to live long enough to pay them back while paying the minimum.

My only hope is that I do not end up on disability or social security b/c then the gov will take my loan payment out of my monthly check leaving me with negative dollars a month and owing yet even more money to the gov.

Oh, wait - I will not have to worry about the social security part b/c that will not exist by the time I retire. (I just like this toon)

 

[capo]

I live a pretty adventurous life (snowboarding, skiing, cycling in NYC traffic) so I really do not expect to live long enough to pay them back while paying the minimum.

My only hope is that I do not end up on disability or social security b/c then the gov will take my loan payment out of my monthly check leaving me with negative dollars a month and owing yet even more money to the gov.

Oh, wait - I will not have to worry about the social security part b/c that will not exist by the time I retire. (I just like this toon)

Haha. I think the Big Apple has rendered you out of your mind young lady!

Yeah not a good idea to end up on SSDI, etc. cuz you're right, the gov. WILL get their millions you owe them. But if you practice feet in Mexico or elsewhere, you can buy a nice shack and live rent free among the roaches. But hey, it's cheaper than NYC, correct?

 

[krabmas]

Haha. I think the Big Apple has rendered you out of your mind young lady!

Yeah not a good idea to end up on SSDI, etc. cuz you're right, the gov. WILL get their millions you owe them. But if you practice feet in Mexico or elsewhere, you can buy a nice shack and live rent free among the roaches. But hey, it's cheaper than NYC, correct?

I agree that I am out of my mind

but whether it happened before or after moving to NYC is debatable

 

[capo]

I agree that I am out of my mind

but whether it happened before or after moving to NYC is debatable

I'm sure it happened wayy before school was a thought. Choosing school proves you were out of your mind at the time, eh?

 

[PlainsPod]

Interestingly enough, I have not heard much out of recent grads in regard to paying back their loans. You wil hear some moans and groans from those who graduated in the early to mid-1990's, however this may be due to higher interest rates at that point in time.

 

[whiskers]

Well, this could be answered yes or no.

If you live within your means (I'm still trying to figure out if going to podiatry school fits that definition) and don't squander your borrowed money on expensive high top sneakers, purses, expensive rent, food, cars and generally the high life, you will probably be OK.

On the other hand, if, upon matriculation, you add to your 60k+ Ivy league educational loans a $30K car loan, a 1200/month pad, a $800 purse and a 4K computer to distract you during lectures.... and basically max out every form of credit known to the human race (which is seemingly pretty common), you probably won't be able to afford an internet connection to gripe about your bills on this forum.

~BUT~
"Oui, Oui mademoiselle, excellent choice! Will that be on visa master card or american express!?"

If you're going to go all out and really "enjoy" podiatry school, may I suggest expensive vacation packages, tons of new clothing, and hanging out drinking over priced drinks at trendy clubs to give you that satisfaction?

Enjoy that little golden 6.0 treasure that you stumbled upon, all you unemployed millionaires!!

 

[do-ca]

I thought that the loan companies would allow you to defer your payback until after your residency was done. They do this for every other type of doc.


Ugh...I'm glad Dad picked up the undergrad! Thanks Pops...lol

 

[IlizaRob]

I thought that the loan companies would allow you to defer your payback until after your residency was done.

This is correct. You can defer until after residency

 

[krabmas]

http://www.nytimes.com/2006/06/10/business/10money.html?ex=1150516800&en=6704cebf07170c99&ei=5087

read this article in the new york times. it is about saving money after graduation.

it is pretty good.

you might have to sign-up but it is free.

 

[thepodpod]

I know for some states that if you take out stafford loans for MD/DO/DPM school you can pay them back buy practicing in a rural part of that state after residency. So if you take out a stafford loan for 1 year of school (which covers the tuition for that year) you can pay it back by practicing (or owning/being part of a practice) in a rural/underserved part of for 1 year. This is a pretty good deal if you know you want to come back and practice in your home state (where you claim you are a resident in). Basically you would end up paying for your housing/living expenses and books/equipment.

 

[Dr_Feelgood]

There is a similar program working on Native American reservations.

 

[capo]

I know for some states that if you take out stafford loans for MD/DO/DPM school you can pay them back buy practicing in a rural part of that state after residency. So if you take out a stafford loan for 1 year of school (which covers the tuition for that year) you can pay it back by practicing (or owning/being part of a practice) in a rural/underserved part of for 1 year. This is a pretty good deal if you know you want to come back and practice in your home state (where you claim you are a resident in). Basically you would end up paying for your housing/living expenses and books/equipment.

You may want to check that. I'm not sure there is a program anywhere in the USA that pays for DPM's to practice rural pods. I know of a few Indian Reservation payback plans but none, to my knowledge, that just allow DPM's to practice in rural parts.

Correct if I'm wrong or if anyone knows the states that do this?

 

[Dr_Feelgood]

I know that their are several programs that have funding for rural areas. I had discussed this w/ a pod from Denver. He is paid to serve small towns in the Nebraska panhandle. He flies in and sees a few patients every week. He had 3 towns and a clinic in Denver. He told me he clear 600K after all of the special funding he got from state and national funds.

Granted, that is his account of everything but I don't know why he would lie to me. Maybe he wanted more cowbell.

 

[thepodpod]

You may want to check that. I'm not sure there is a program anywhere in the USA that pays for DPM's to practice rural pods. I know of a few Indian Reservation payback plans but none, to my knowledge, that just allow DPM's to practice in rural parts.

Correct if I'm wrong or if anyone knows the states that do this?

I shadow multiple podiatrists in NC and they have all told me the same thing. One of them has actually used this program. Others recommend this if I'm certain I want to come back to NC to practice.

 

[capo]

I shadow multiple podiatrists in NC and they have all told me the same thing. One of them has actually used this program. Others recommend this if I'm certain I want to come back to NC to practice.

Anyone have a link to these? W debt I have I need it!

 

[Dr_Feelgood]

Almost every state has a program for undeserved/rural health programs, you'd need to look it up by state. Again, the program may not be specifically for student loans; the money is for whatever you'd like.

I found this quick example from Alabama (http://www.alapubhealth.org/opcrh/default.htm#Background). They approve up to 15 specialty clinics a year. Basically, it is similar to a grant to open and operate the clinic. Then you get to charge for the patients you see.

 

[capo]

Almost every state has a program for undeserved/rural health programs, you'd need to look it up by state. Again, the program may not be specifically for student loans; the money is for whatever you'd like.

I found this quick example from Alabama (http://www.alapubhealth.org/opcrh/default.htm#Background). They approve up to 15 specialty clinics a year. Basically, it is similar to a grant to open and operate the clinic. Then you get to charge for the patients you see.

Thanks Feelgood. Do you think you'll do this in your home state? I'd love to find a payback program, that may help defer costs upon graduation and residency. It certainly helps to begin practice w/ financial help.

 

[Dr_Feelgood]

I might b/c I'm looking to head back to Omaha. If you are really interested in this program, get a pilot's license and watch the bucks roll in.

I wouldn't worry about the amount of money you owe. If you have 200K in loans it is about 2500 per month for 10 years or 1200 for 30 years. If make 100K in your first year, that means you bring home after taxes about 5800 per month. So, after your student loan you only have 3300 per month or 4600 per month or about 40-50K to live on a year; I hope you can manage.

 

[Catayst]

It's best to just live on less than you make for a few years after you finish residency. It's easy to get that first big check and go buy new couches and crap, but resist that urge and you got yourself a future millionaire.
Don't let Sallie Mae move in with you, kick that ho out!

 

[ProdPod]

Don't let Sallie Mae move in with you, kick that ho out!

I second that!

 

[doclm]

It's best to just live on less than you make for a few years after you finish residency. It's easy to get that first big check and go buy new couches and crap, but resist that urge and you got yourself a future millionaire.
Don't let Sallie Mae move in with you, kick that ho out!

DAMN STRAIGHT