Well, look what you get with that price--a class size of dozens (so many opportunities to make friends! Squee!) and a 66% accredited match rate--I'll work really hard and I'm super sure I'll get an accredited internship. Plus it's Boston and you know that people can't wait to see a psychologist. I'll have em lined up around the block on opening day!
Oof. Anyone else catch that she paused before responding to the, "Are you a doctor or a lawyer?" question? She knows she has MD debt without a job that will earn an MD salary.
Dave Ramsey has other similar videos from physicians that I watched after the one in the OP.
Oh I'm aware, I listen to him all the time. The difference is that he also has a video of a physician being offered $850k for a rural gig Vs $350k for a city gig. There are no psychologist stories like that. The irony is that he wants her to go into PP. Take someone that did that and make them financially responsible for a business, seems like a poor fit to me.
That school pumps out dozens of grads a year, and many want to stay in greater Boston. Employers can find many generally trained psychologists that they can pay relatively little. There's a private practice psych on seemingly every corner in Newton/Wellesley. If she wants to stay in that area, she SOOL. Not sure why, William James "University" (formerly Mass School for Professional Psycholgy) doesn't put that in their marketing materials.
When I was like eight or nine, a friend told me his plan for getting rich. The founder of Wendy's, he said, dropped out of school and became wealthy. So, my friend also planned to drop out of school and by doing so become wealthy.
Ah, yes, cargo cult get-rich-quick schemes.
Actually a physician without a residency is qualified to do exactly nothing. If you don't match out of the Caribbean, you can't practice, so you've got the same career options as a kid out of undergrad with 400k in debt to show for it.
Nothing says "great financial planning" like declaring bankruptcy right before retirement.
20k doesn't even cover the interest she's accruing per year.
Mostly true, I knew one that worked at a medical device company and one at a pharmaceutical company. Most eventually match to something like family medicine in Kansas. That match rates for physicians are much better than those of psychologists at the bottom of the food chain.
True, but the loan repayment money gets paid directly to the principal. In my job, I make a multiple of what this young lady does, make payments on interest and principal over the year and get the extra untaxed money to directly pay down the principal. My first check was for 50k for the first two years. Of course it would be better to not have a lot of student debt and would have provided more flexibility and options, but when you do, you need to have a strategy to pay it down.
This is my generations mantra tho.
For balances not paid in full, the interest rate is the federal short-term rate plus 3%, and the additional percentage changes quarterly. However, interest compounds daily. That's not going into late payment penalties that still apply monthly because the full amount due was not paid on time. All of that adds up quickly.
Most people I meet on income based repayment really do not consider the tax burden when the loan is forgiven. That is where the hurt is.
Correct. I don't pay taxes on the money from the NHSC LRP. That is one of the benefits of the program.
