Post-Step 1 Vacation with Loan Money?

[Lannister]

Hi all, just looking for some input into what other people would do in this situation.

I scheduled my step 1 so that I would have two weeks off afterwards, and was planning on going to Europe with my mom (who would be paying for the trip). However, that has fallen through, and my mom is no longer able to go.

I'm considering going by myself. However, I would have to finance the trip with loan money. I take out unsubsidized loans for tuition, and my parents/grandparents pay for my cost of living, so I am still eligible for another ~$10,000 or so in loans this semester.

I'm torn. Obviously, going on vacation with loan money is not the best financial decision. But on the other hand, I was really looking forward to this trip, and I can't help but think, "what's another few thousand dollars on top of the ~160k of debt I'll have after graduating?".

Any opinions?

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[HomeSkool]

Don't use loan money to pay for vacation, now or ever. Europe will still be there (probably) in a few years.

 

[Mad Jack]

Hi all, just looking for some input into what other people would do in this situation.

I scheduled my step 1 so that I would have two weeks off afterwards, and was planning on going to Europe with my mom (who would be paying for the trip). However, that has fallen through, and my mom is no longer able to go.

I'm considering going by myself. However, I would have to finance the trip with loan money. I take out unsubsidized loans for tuition, and my parents/grandparents pay for my cost of living, so I am still eligible for another ~$10,000 or so in loans this semester.

I'm torn. Obviously, going on vacation with loan money is not the best financial decision. But on the other hand, I was really looking forward to this trip, and I can't help but think, "what's another few thousand dollars on top of the ~160k of debt I'll have after graduating?".

Any opinions?

Go have some fun. $10,000 doesn't mean a whole hell of a lot in the grand scheme of a doctor's career, but you can never get two weeks of youth back.

 

[Lannister]

Hahah two conflicting opinions in the span of about 30 seconds, exactly what i expected.
And to be clear, I almost certainly would not need the full $10,000, that would just be my ceiling (approximately).

 

[HomeSkool]

To be fair, @Mad Jack is...well, mad.

 

[DokterMom]

What about something cheaper?

 

[Mad Jack]

Europe cost me about 4k/month plus flights when staying in hostels and going out each and every night. I partied like a legend for two months for less than 10k.

 

[sleepyhead22]

i would def do a trip, but I think i'd do a cheaper trip on loan money. since it sounds like nothing is fully booked yet, could you book cheaper places/go somewhere else?

 

[Scrubs101]

Do it! I would try and keep it under 2k if ya could tho, if you’re thinking something besides Europe you could do a week at a nice all inclusive in Mexico for under 1k if you look hard enough

 

[QueenJames]

I'm doing my Post Step decompression period like the great Lord always intended...

Cocaine and hookers baby!

WHOOOO! *RIC FLAIR voice*

 

[CyrusHabs7695]

Just go get ripped in vegas or mexico for 2k

 

[Nucleophile1]

Do it! And you definitely won't need $10k to go to Europe.

 

[Lannister]

Europe cost me about 4k/month plus flights when staying in hostels and going out each and every night. I partied like a legend for two months for less than 10k.

I was thinking around this range too, and it would only be ten days so maybe less. I wouldn't be partying, but I'm very big into things like biking, hiking, kayaking, etc. Some of that stuff can be expensive with rentals and everything but I'm sure there are a lot of cool free hiking things I could do. I'm going to look more into prices this weekend.

 

[BluegrassBuckeye]

I'd say do it for sure. That's a once in a life time experience and the memories you'll take away will likely be worth every penny. I've never been fortunate enough to travel outside of America, so I know I would jump at the chance if I could.

 

[jcorpsmanMD]

Do it.

 

[idkididk]

So I travel a lot on my own for fun. I've done it in medical school with loan money, and absolutely do not regret my decision. The way I look at it, you can always make more money, but you'll never have your youth back. I'd rather spend more money now on experiences and memories that I'll have forever than have more money in the bank, at this stage of my life. The debt we'll be in is already an absurd number, to the point where it's not even realistic to worry about adding a few thousand to the total. You will pay it off eventually.

Also you definitely won't need 10k - I spent 5.5k for 10 weeks (w/ flights, but also used some points..) across Asia/Europe the summer before I started MS1.

 

[libertyyne]

DO IT.

 

[bananafish94]

I'm 100% going on vacation on loan money after Step. I only have about a week and I don't know where, but it's definitely happening.


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[Lannister]

I'm glad SDN is so supportive of my poor financial decisions

And now that I've said I'm willing to pay for it myself, my mom is suddenly interested in going again hahah. So I'll be spending this weekend planning a vacation If anyone has been to Croatia and has any recommendations, lmk.

 

[jcorpsmanMD]

I'm glad SDN is so supportive of my poor financial decisions

And now that I've said I'm willing to pay for it myself, my mom is suddenly interested in going again hahah. So I'll be spending this weekend planning a vacation If anyone has been to Croatia and has any recommendations, lmk.

Croatia is lit

 

[Scrubs101]

I'm glad SDN is so supportive of my poor financial decisions

And now that I've said I'm willing to pay for it myself, my mom is suddenly interested in going again hahah. So I'll be spending this weekend planning a vacation If anyone has been to Croatia and has any recommendations, lmk.

Quite jello, might have to steal that idea of going to Croatia once I get to post step break. Congrats now you have something to look forward to after slaying the beast!

 

[zero0]

Do it. Some drunk redneck in a Chevy could wipe you off the face of the earth tomorrow. A couple thousand is nothing. Do it.

 

[zero0]

I'm glad SDN is so supportive of my poor financial decisions

And now that I've said I'm willing to pay for it myself, my mom is suddenly interested in going again hahah. So I'll be spending this weekend planning a vacation If anyone has been to Croatia and has any recommendations, lmk.

I have, I recommend Split

It's a beach nightlife hub, a lot of celebrities come through there, Tom Cruise was around when I went

 

[tymont12]

I went to Cuba after Step. Definitely worth it to travel after that nauseating exam.

 

[austintr]

I don't know why anyone would even entertain telling you not to when everyone knows a Lannister always pays their debts.

And the Iron Bank always gets their money anyways.

 

[Durty-Trixxx]

Too many variables to definitively push the decision "yay" or "nay"

I'm the kinda person who would prolly push you towards the "yay" side if you feel this vacation is a must-have for your inner happiness and a good mental recharge to get through the hellish years of M3 and M4. Like you said, adding a few thousand to a graduation debt load of 180K+ (principal) wont mean much in the grand scheme of things. Besides, you might be landing a hella sweet derm or ortho residency match so loan debt aint gonna cause you too many sleepless nights when you start raking in 400-600K yearly

The only reason I would push you towards a "nay" is if you're the kind of person who will "need" another $10K vacation after med school graduation so you can "decompress" before internship starts. I've seen too many cases where "delayed gratification" of med school becomes over-compensated by "obscene self-satisfaction" and it's not pretty what it does to your financial well being and credit score !!

Like others have mentioned, why not save a buttload of money and just indulge in a "hookers and coke" week in Vegas or Cabo for a couple K ??

 

[Lannister]

Too many variables to definitively push the decision "yay" or "nay"

I'm the kinda person who would prolly push you towards the "yay" side if you feel this vacation is a must-have for your inner happiness and a good mental recharge to get through the hellish years of M3 and M4. Like you said, adding a few thousand to a graduation debt load of 180K+ (principal) wont mean much in the grand scheme of things. Besides, you might be landing a hella sweet derm or ortho residency match so loan debt aint gonna cause you too many sleepless nights when you start raking in 400-600K yearly

The only reason I would push you towards a "nay" is if you're the kind of person who will "need" another $10K vacation after med school graduation so you can "decompress" before internship starts. I've seen too many cases where "delayed gratification" of med school becomes over-compensated by "obscene self-satisfaction" and it's not pretty what it does to your financial well being and credit score !!

Like others have mentioned, why not save a buttload of money and just indulge in a "hookers and coke" week in Vegas or Cabo for a couple K ??

Haha as for the derm and ortho thing, that's definitely not happening, but the speciality I'm most interested in has a decent salary. Plus, I'm also not sure that I want to get married/have children, so as a single person even the lower end of physician salaries probably wouldn't be too bad.

As for taking a post-med school vacation, my family really wants to do a big family trip which I wouldn't be paying for. So I think I should be okay there.

And I've already done Mexico quite a few times, and lived in South America for a few months, so I'm ready for something new. I might look into Costa Rica though!

Edit: also I gotta say, as a very heat intolerant person, June in Mexico sounds like a nightmare. It was like 100 degrees in playa del carmen when I went in last April and that was bad enough!

 

[raiderette]

Did a cruise with my SO using loan money. I feel no guilt after the studying I did, it could be considered a mental health maintenance fee.

 

[shisong]

I would do it for sure! give yourself a reward after a BIG exam

 

[Durty-Trixxx]

Edit: also I gotta say, as a very heat intolerant person, June in Mexico sounds like a nightmare. It was like 100 degrees in playa del carmen when I went in last April and that was bad enough!

Ayy-yah-yah ..... that is a good point, unless you're planning on spending your entire vacation in the pool and sippin' ice tea

Northern Europe is a lot more temperate in early June compared to Mexico!

 

[OneStepAhead]

come to Prague.......you will love it

 

[takeurmeds02]

You have a ceiling of 10k worth of loan money left over??

Edit: Oh just read the rest of the post lol - yea, I'm on the fence about it. You won't get your youth back but sheesh, taking out more money than you have to...

 

[toros102]

Hey! I did Europe last summer. Definitely do it, it's worth whatever money. I'd be shocked if you blew $10,000. Western Europe is about $100/day if you're staying in hostels, and still doing fun stuff, and Eastern Europe is about $50/day. So 10 days for 2 people in Croatia should be $1000. Let's say you rent a kayak every day for $50(?) then it would be 1,500. Have fun!

 

[QueenJames]

You have a ceiling of 10k worth of loan money left over??

Lmao right???

He's doing it wrong.

Go to Vegas.

Put $5,000 on Black and never look back.

Spend other $5,000 on hookers and blow.

COME ONNNNNN!

 

[The Physician Philosopher]

By end of residency (assuming 3 years of med school and 4 years of residency) thatll cost you around 16k if you spent 10k.

That said, I extremely personally finance minded now... Wasn't back then. I took a 4k trip to New York after Step 1 and don't regret it one bit. I don't think that was all loan but I certainly could have used that money to pay off 4k in loans.

My split personality (of who I was back then and who I am now) has a hard time giving you advice.

I guess I'd tell you to find out how to do it for the cheapest price (travel hacks, cheap stay, etc) or to find a comparable trip that excites you that also costs less less now and do the big trip later.

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[Brorthopedic]

Don't use loan money to pay for vacation, now or ever. Europe will still be there (probably) in a few years.

ha. gaaaaaay

 

[Lannister]

You have a ceiling of 10k worth of loan money left over??

Haha sorry, I really should have included this in the OP, but I don't plan on spending $10,000 on the vacation! I just have around that much loan money left over.

 

[HomeSkool]

ha. gaaaaaay

No thanks, I'm heterosexual. I'm sorry to disappoint you on Valentine's Day, but... Flattered? Yes. Interested? No.

 

[Brorthopedic]

No thanks, I'm heterosexual. I'm sorry to disappoint you on Valentine's Day, but... Flattered? Yes. Interested? No.

Judging by that joke, you're at least 40

 

[HomeSkool]

Judging by that joke, you're at least 40

Wrong again.

 

[dpmd]

I'd say do it for sure. That's a once in a life time experience and the memories you'll take away will likely be worth every penny. I've never been fortunate enough to travel outside of America, so I know I would jump at the chance if I could.

If you carefully manage your finances and make good decisions there is no reason why a foreign vacation needs to be a once in a lifetime opportunity for any physician. Doesn't mean OP shouldn't take a trip, but there is no need to blow a ton of money on it like it will be the only trip.

 

[Crayola227]

1) I've written elsewhere what you need in your budget for things that will not be covered by aid: costs for the steps and prep, residency interviews relocation, housing and living costs until you get first residency paycheck. Always want an emergency fund as well. Some of this you can get private loans, just factor all that in.
2) You're never as free as you are now. Provided you can take this time and it's not taking away too much time from things like the Step or research.
3) Parents and such don't live forever, so with free time always think about them too. My parent died during med school. I don't have too many regrets about how I balanced time all around so that one thing to think about. Sounds like there will be a trip with them in the near future.
4) Forget the debt. It's a drop in the bucket, on federal loans payback is all income based if you need in order to afford payments. Going to med school is like taking on a second mortgage, which you can afford in any case. You're mostly committed to having that for life (or being able to pay if off way sooner depending on how you live as an attending). Plus you could die at any moment and the debt dies with you. Don't let living for today suffer too much for that debt.

Here's a couple stories. One of our most loved attending was around 50 and had a spouse and 5 yr old child. Was telling us that just that year they had managed to pay off all that med school debt and what a treat that was. Was dx'd very shortly with cancer and dead a year later.

I hope that they didn't prioritize bringing that debt down, that debt that dies with you, so much that life wasn't lived to the full. There's so much more you want to leave your family with, like money saved, not all towards that debt. Like more time with them.

Another one is someone in med school who did an away rotation abroad. Not long after, they were struck with a mobility issue and will likely never afford or be able to ambulate for another similar travel experience for the rest of their lives.

Don't spend ALL that money, but take the trip now. While you can.

 

[Crayola227]

If you carefully manage your finances and make good decisions there is no reason why a foreign vacation needs to be a once in a lifetime opportunity for any physician. Doesn't mean OP shouldn't take a trip, but there is no need to blow a ton of money on it like it will be the only trip.

Personal experience tells me it could be. But I agree that there is no reason to blow a ton of money.

 

[Crayola227]

I was thinking around this range too, and it would only be ten days so maybe less. I wouldn't be partying, but I'm very big into things like biking, hiking, kayaking, etc. Some of that stuff can be expensive with rentals and everything but I'm sure there are a lot of cool free hiking things I could do. I'm going to look more into prices this weekend.

One time when I traveled I bought a super cheap bike for like $50 bucks and then sold it after the end of the trip for like $60. Might be cheaper than renting even if you give it away after.

I don't know if it applies to foreigners, although I think it's cheap for them too, but Scotland is trying to promote their nature areas by making entrance and "wild camping" (backpacking vs car camping) free or cheap, IIRC.

 

[Oh_Gee]

please take me with you

 

[mistafab]

Hit up the vacay - yes it will be worth it.

I’ll be heading out as well. #betterdayz

 

[Cath Up]

ha. gaaaaaay

Judging by that joke, you're at least 40

I'm not particularly proud to be part of the snowflake generation but there are pretty convincing reasons for this to no longer be part of your lexicon.

 

[Stagg737]

Something to keep in mind, interest hits and it can hit hard. $10k turns into $20k faster than you think, and it can turn into 30k if you take long enough to pay off your loans (20 year plans).

That also means that's money you don't have at the beginning of your career to invest toward such retirement. Let's assume you spend 10k and it turns into 16k at the end of residency as someone else suggested. If you'd invested that 16k for 30 years, you'd end up with 69k at 5% interest (which isn't a great return) or 91k at 6% interest. So not only did you end up paying 16k after interest, you don't earn 69k in investments, meaning your oppportuniy cost on that 10k vacation is actually 85k.

You may not be spending anywhere near 10k, but the point is whatever fed loan money you take out and spend now amounts to a much larger amount you won't have later. Also, it's actually technically illegal to use fed loan money for vacations, not that the gov is going to care since they'll make it all back in interest...

If you feel like you need it though, I'd probably go for it. I'd just advise to keep it as cheap as possible and try and live more sparingly before and after. As money spent/invested earlier is worth far more than money spent/invested later.

I might look into Costa Rica though!

Costa Rica is amazing. Atlantic and Pacific coasts within driving distance, a ton of rainforest, and some really nice lakes/hot springs near some volcanoes, and generally really cheap. Imo its one of the best places on Earth.

 

[Brorthopedic]

I'm not particularly proud to be part of the snowflake generation but there are pretty convincing reasons for this to no longer be part of your lexicon.

go away

 

[The Physician Philosopher]

Ended up writing a post on this coming out at end of February. Hint:: that 10k Europe trip costs a lot more than you think!

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