Projected Debt after Graduation

[Futuredoctr]

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I know they have graphs out there, and statistics, but I wanted to hear it from by fellow SDNers... how much debt do you project you'll have when you recieve your DO degree (or MD if your viewing here)?

Personally, I think the cost of a medical education and the current state of our economy is getting a little outrageous. What do you think?

 

[studentDO]

I know they have graphs out there, and statistics, but I wanted to hear it from by fellow SDNers... how much debt do you project you'll have when you receive your DO degree (or MD if your viewing here)?

Personally, I think the cost of a medical education and the current state of our economy is getting a little outrageous. What do you think?

As a business major I can tell you it's all about money. My school prides itself on being debt free and having the latest and greatest everything. The loan companies love this because they don't care if you don't make a profit for the ten years you are paying them back all that interest, they are getting rich. I will be $300K in debt after school and even at the "Stafford" rate I will pay $155K in interest over ten years.

Some call it "paying your dues" I call it profiteering on education.

 

[Jamers]

As a business major I can tell you it's all about money. My school prides itself on being debt free and having the latest and greatest everything. The loan companies love this because they don't care if you don't make a profit for the ten years you are paying them back all that interest, they are getting rich. I will be $300K in debt after school and even at the "Stafford" rate I will pay $155K in interest over ten years.

Some call it "paying your dues" I call it profiteering on education.

Some call it "paying your dues" I call it profiteering on education--> Damn straight. I will also be 300+ in debt. Tried for a few scholarships but 3 grand here and there has made little impact.

 

[Iquitos]

Lets just hope that were medicaid/medicare/private insurance reimbursements will not plummet too much in the next 15 years so we'll have a chance to pay it all off. Who am I kidding? Were screwed!!!!! I'll just keep forgetting about it for now so I can get some sleep at night.😴

 

[studentDO]

Lets just hope that were medicaid/medicare/private insurance reimbursements will not plummet too much in the next 15 years so we'll have a chance to pay it all off. Who am I kidding? Were screwed!!!!! I'll just keep forgetting about it for now so I can get some sleep at night.😴

You're not kidding, I was originally going into geriatrics but two geriatricians in the north Texas area have already gone out of business with the latest Medicare changes.

 

[Scorcher31]

As unscientific of a survey as this is based on what I see I have no idea how i always hear people finacial aid people saying things like the average medical student has 120,000 in debt where it seems like on average it is so much mroe than that. My school was cheap as medical schools go and i bet it will still be 200k by the time i get it all payed off with interest.

 

[toothless rufus]

Wow, I finally actually figured out how much I'll owe. Looking at about $350,000 including undergrad at graduation. Whoopsie! I hope I can make this work! Really. Guess I could live real cheap for a year or two after residency and just hammer away at it!

 

[GreenShirt]

Wow, I finally actually figured out how much I'll owe. Looking at about $350,000 including undergrad at graduation. Whoopsie! I hope I can make this work! Really. Guess I could live real cheap for a year or two after residency and just hammer away at it!

According to this web-based loan repayment calculator
you'll need to make $1,226,364 to repay that amount in 2 years or about $339,000 for 10 years.....I hope your gunning for radiology or plastics.

 

[GreenShirt]

As unscientific of a survey as this is based on what I see I have no idea how i always hear people finacial aid people saying things like the average medical student has 120,000 in debt where it seems like on average it is so much mroe than that. My school was cheap as medical schools go and i bet it will still be 200k by the time i get it all payed off with interest.

I think those numbers are low because the majority of Allopathic students are either receiving in-state tuition or are on scholarships to private schools. In the Osteopathic world that'll cover only the tuition.

 

[Jesus DO]

Just look at the bell shaped curve of this poll 🙁.

 

[MikeyLu2010]

i'll be at around 200K or a little less..my parents have decided to loan me 40K to pay off my GradPLUS loan @ 8.5% so i dont get raped by interest...gonna spread out the rest of the loan as long as i can...

 

[It'sElectric]

i'll be at around 200K or a little less..my parents have decided to loan me 40K to pay off my GradPLUS loan @ 8.5% so i dont get raped by interest...gonna spread out the rest of the loan as long as i can...

Would your parents be willing to do the same for me? I'm good for it, I swear.

 

[toothless rufus]

According to this web-based loan repayment calculator
you'll need to make $1,226,364 to repay that amount in 2 years or about $339,000 for 10 years.....I hope your gunning for radiology or plastics.

Yikes! ANd that's not including interest in the intervening 3 years! Looks like I will be taking the 30 year repayment route!

 

[SOUNDMAN]

Yikes! ANd that's not including interest in the intervening 3 years! Looks like I will be taking the 30 year repayment route!

That's if you ONLY use 10% of your income to pay loans, which is ridiculous. You have the ability once right out of residency to put much more than 10% of your pay towards your loans.

 

[toothless rufus]

That's if you ONLY use 10% of your income to pay loans, which is ridiculous. You have the ability once right out of residency to put much more than 10% of your pay towards your loans.

True dat! Deep breath...deeeeep breath...ahhhh...

Anyone know if you should consolidate just your UG debt, or if that's even worthwhile? I've been trying to do some research, but its hard to find anything related directly. Or can someone point me the the right direction? Thanks!

 

[zmeister22]

True dat! Deep breath...deeeeep breath...ahhhh...

Anyone know if you should consolidate just your UG debt, or if that's even worthwhile? I've been trying to do some research, but its hard to find anything related directly. Or can someone point me the the right direction? Thanks!

Good luck with that one. I tried to consolidate my undergrad. Federal can sometimes get consolidated but most companies have suspended all consolidations due to interest rates being "artificially" low.

 

[HCE]

Good luck with that one. I tried to consolidate my undergrad. Federal can sometimes get consolidated but most companies have suspended all consolidations due to interest rates being "artificially" low.

However, they have no problem with consolidations when interest rates are "artificially" high. Well, can't blame them...they have had a green light on doing what they want for the past eight years...

 

[Milamber]

However, they have no problem with consolidations when interest rates are "artificially" high. Well, can't blame them...they have had a green light on doing what they want for the past eight years...

and the Dept. of Education isn't going to help at all. They want companies to keep offering student loans and in order to do so these companies want to see huge profits so they'll keep their fingers out of it and wait till the companies start offering consolidation again, I figure when interest is back in the 7% range or so.

 

[john133]

Have a nice time with that one.
-----------------------------------
John
Debt Consolidation

 

[UserNameNeeded]

What are the projections for total educational debt upon graduation 2 years later?

 

[avatarftw]

a

 

[ShyRem]

My total debt now that I have graduated (including undergrad when I went back):

$294,000.

I know folks in my class who are almost $500,000 in debt now. Many are over $400,000 due to undergrad loans. Several went into military just to avoid debt.

My recommendation: find yourself a really really good graduate loan financial advisor. The laws are complex and convoluted. They should also help you with your tax preparation if you're married, which is complicated by your debt and potentially your spouse's working. Your payments may also be affected by your tax returns if you choose to do an IBR.

 

[Slane]

I calculated mine the other day for LECOM. If I take out the maximum for all four years and defer all payments until after a four-year residency, the principal for my medical school debt will be just over $300,000 assuming 6% interest on all of the loans. That doesn't include the probably $50,000 I already have out for undergraduate and graduate loans. Talk about a rude awakening... All I have to say is it's a good thing we'll all have the ability to pay it off.

 

[UserNameNeeded]

How are you assuming 6% interest when graduate school staffords are fixed at 6.8% and the GradPlus loans are even higher? Are there some other loans with cheaper interest rates?

 

[avatarftw]

a

 

[Slane]

How are you assuming 6% interest when graduate school staffords are fixed at 6.8% and the GradPlus loans are even higher? Are there some other loans with cheaper interest rates?

Subsidized loans have the interested deferred, so I figured the 0.8% would work out somewhere around that. It was just much easier to use 6%, and I don't plan on taking out any more in loans than I need (Returning at the end of each semester any surplus.) I was just figuring out worst case scenario.

 

[BassCaster]

~250k for me.

Oh god...

I'm just going to move back home w/ mommy and daddy after residency at 33 y/o and use 100% of my income to pay back loans in 3 years...

But seriously, has anyone ever heard of people doing this? My dad brought it up as a joke, but now I'm considering his humorous offer.

 

[VCU07]

~250k for me.

Oh god...

I'm just going to move back home w/ mommy and daddy after residency at 33 y/o and use 100% of my income to pay back loans in 3 years...

But seriously, has anyone ever heard of people doing this? My dad brought it up as a joke, but now I'm considering his humorous offer.

I.am sctually going to be doing something similar when I begin school in August. My wife and I are renting our house and plan on using her income to save up while we live with my parents (for free) the next few years. Be it, she does not make enough to pay it all off, but even half would be nice. Having to move your family out of their home to your parents def. takes a toll though. I hope doing this will help is out significantly....just need to put up with them the next 4 yrs.

 

[VCU07]

Please excuse my errors above....trying to type from my crappy phone.

 

[mike1618]

Let's hope that the current administration keeps printing money and bailing out companies. Eventually we will recover and inflation will go rampant. Inflation will be our new best friend. 300k in today's dollars will be much less in tomorrow's inflated dollars.

I know who I am voting for...j/k

 

[Slane]

Let's hope that the current administration keeps printing money and bailing out companies. Eventually we will recover and inflation will go rampant. Inflation will be our new best friend. 300k in today's dollars will be much less in tomorrow's inflated dollars.

I know who I am voting for...j/k

That's one way to look at it 😛

 

[salazaar]

Thank God for HPSP.

 

[avatarftw]

a

 

[carboxylic acid]

According to this web-based loan repayment calculator
you'll need to make $1,226,364 to repay that amount in 2 years or about $339,000 for 10 years.....I hope your gunning for radiology or plastics.

I've used this loan repayment calculator before and the assumptions it uses always surprise me. Making 1.2 million a year, it should be easy to pay your loans off in less than a year. I also do not see why it should take someone 10 years to pay off $350,000 in loans making $339,000 a year.

I'm going to a very expensive school starting next year and have tried to calculate out exactly how much I will owe at the end. I have yet to see a comprehensive financial aid calculator on SDN (although I'm sure it has been created). If anyone is interested, I have created an excel file that should calculate the amount you will owe very closely. It takes into account interest rates for undergraduate loans and graduate loans at the correct levels depending on the loan. I also added in an income calculator which subtracts federal income tax along with a state loan repayment section (for those who would like to work in rural areas). You can also choose a 10, 15, or 30 year repayment plan.

Finally, what I see many people forgetting is that $350,000 in loans will accumulate interest over your residency. People tend to leave this out of their calculations. It adds up quickly.

Message me if you are interested in the calculator and I'll send it over.

 

[avatarftw]

a

 

[carboxylic acid]

One doesn't necessarily have to buy a big house with a mortgage during residency. You could just rent a small apartment.

If you have children or a spouse, however, it is different. If you have a spouse, they could support you with their salary. Also, if you are paying off a mortgage, you are building up an asset in your home; its not fair to just say that you are going more into debt without anything coming out of it during residency.

I agree with you completely. I wanted to add in one more to your list, moonlighting. I don't know much about this, but from the doctors I have spoken to, you could actually pay your loan throughout residency.

The point I was trying to make is that when calculating debt realistically you need to try and factor in all variables (and I see many on these boards not doing this).

I calculated my total debt at $500,000 after residency (without making payments of any kind in residency). It seems like a huge amount but when taking a starting physician salary (in family medicine) into account, as well as state loan repayment, it is very possible to pay this amount off in ten years. You will not be living a luxurious lifestyle, though.

 

[avatarftw]

a

 

[Igor4sugry]

The #s that are currently provided by admission counselors are quite old. I think their averages are based on those that entered school in early 2000.

The reality is that over the last 10 years cost of education has jumped so high it is mind numbing. The rise in tuition is so fast that the old numbers became obsolete almost over 5 years. Obviously we all know that few people graduate with ~100k dept; its more like ~200k these days.

Take a look at the AAMC Tuition & Student Loan Reports: http://services.aamc.org/tsfreports/

Take Case-Western -> tuition in 2000 = $33,170 (132,000 over 4 years)
tuition in 2010 = $47,290 (189,000 over 4 years) -> this is rise in tuition is faster than inflation.

 

[avatarftw]

a

 

[salazaar]

As far as the money is concerned, I would rather live comfortable through school with no worries about finances and get paid less for a few years than have to stress out about money all through school. I am considering going career with the military; we will see how it goes. If I hate it then I can peace out after a few years debt free and with life experience.

 

[avatarftw]

a

 

[salazaar]

Yes, absolutely. The military is not for everyone. Certain branches are better than others for matching into specific specialties. The air force is a poor choice if one wants to specialize because it has the fewest Billets to fill. The AF usually pulls specialized physicians from the other branches. Army has the most options for those seeking specialties where there is less demand. The catch is that the general feeling of lifestyle is army<navy<air force. I am strongly considering EM, Trauma Surgery, and the like which are definitely in demand for the army/navy. This is about way more than money or convenience for me, I have a genuine desire to serve our nations soldiers and provide humanitarian aid overseas. Despite the low pay, the Navy gives me stability, satisfaction, and life experience that I won't find in the civilian world. To each his own, I guess.

 

[avatarftw]

a

 

[salazaar]

Dude, flight surgeons in the Navy actually learn to fly planes. SO tight.

 

[avatarftw]

a

 

[kdhmed]

The way I think about it is most likely you're always going to be in debt. It's either a mortgage on that $300K house, that $20K car, the $15K pool you want to put in. You're always going to have bills, so what is one more? I don't plan on going crazy and taking out more than I need, or going out on the town every night throwing 100s down, but I'm not going to live a horrible life through med school bc I'm worrying about my loan money. We'll all be making at least 120K when alls done, which is a great income, and plenty enough to pay off your loans over time.

 

[avatarftw]

a

 

[Semicolon]

Medical Residents' Finances: A Strategic Approach to Debt Management

Very informative presentation. 😉

 

[HokieDO2014]

Here is something I created to estimate debt. All you have to change is the cost of attendance. Let me know what you think and if there are any errors.

Medical School Debt Calculator

 

[dozitgetchahi]

you'll need to make $1,226,364 to repay that amount in 2 years or about $339,000 for 10 years.....I hope your gunning for radiology or plastics.

This seems to be the key. Anyone who manages to match into the competitive and/or highly paid specialties will likely be in good shape.

As for everyone else....