Salary to Debt Analysis

[FitnessDoc2012]

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I Attached an example of a Salary to Debt Analysis....feel free to post any questions or concerns. Hopefully this helps clear up some questions everyone has concerning the DPT debt.

 

[DancerFutureDPT]

well done. thanks for doing that and sharing!

(Just out of curiousity, what is the tuition at the school you used for your calculations? My brain is too fried to try to figure out the yearly tuition based on the loan amounts lol.)

And this is assuming no undergraduate debt, correct?

You are fabulous for doing this. 👍

 

[NoleGirl4DPT]

Dancer, it's near the top, in teeny weeny writing. Said the tuition was ~75K, housing ~36K, misc ~36K for a total of $147,000 🙂

 

[johncronejr]

I can't open the file for some reason, but I did want to make a comment based on the last post. I am not sure I agree with factoring in housing and misc. with cost. Doing this implies that you would only have these costs if you went to PT school, when actually you will have them even if you just get your bachelors and take a job. This would seem to skew the results in my opinion. Now, if you factored in the difference in housing and misc. while attending PT school versus your current housing and misc. costs (provided you aren't talking living with the parents for free), I could see adding the figures.

 

[DancerFutureDPT]

Dancer, it's near the top, in teeny weeny writing. Said the tuition was ~75K, housing ~36K, misc ~36K for a total of $147,000 🙂

Oops! Thanks. Like I said my brain is fried (the lumbosacral plexus makes me want to crawl in bed, hide under the covers, and never come out).

 

[DancerFutureDPT]

I can't open the file for some reason, but I did want to make a comment based on the last post. I am not sure I agree with factoring in housing and misc. with cost. Doing this implies that you would only have these costs if you went to PT school, when actually you will have them even if you just get your bachelors and take a job. This would seem to skew the results in my opinion. Now, if you factored in the difference in housing and misc. while attending PT school versus your current housing and misc. costs (provided you aren't talking living with the parents for free), I could see adding the figures.

I think it's wise to do that, because at least our school factors in cost of living into the "cost of attendance" figures...most people in my class are using student loans to pay for housing, so therefore it's wise not to overlook that when figuring out debt. It's just like in undergrad with "room and board" fees....you have to have someplace to live, and something to eat, and beer money to go out, so it has to come from someplace.

Since PT students aren't working (most of them, anyway), most don't have money to pay for rent so they use loans. If they were working a regular 9-5 job with their undergrad degree, they'd have a salary to pay for these things...they wouldn't be using student loans (and thus interest) to do so.

I gave the student financial aid presentation at our open house this year, and we were trying to stress that you don't want to use your loans for anything you don't have to...I initially took out a $3000 "emergency" fund in loans, but gave it back because I decided it'd be better to use $3000 of my savings in an emergency rather than $3000 that I'd be paying 7.9% interest on. Some students don't realize that if they use loan money to buy a $500 couch, and $100 worth of drinks every month at the bar, they're really paying much more in the end (without doing the math, maybe that couch becomes more like $900 and those drinks become $150 by the end of the loan period). But like I said, students need money from someplace, so if they don't have it from their savings, or from a salary they're going to use loan money to do so, so it's important to think about that when factoring out total debt numbers.

 

[maxwell0]

For anyone with alot of debt, it would be wise to do the income-based repayment plan, and then take advantage of the public service loan forgiveness after ten years (or 120 payments).

A single person with no dependents making an AGI of $75000 with 200,000 of debt would pay about $750.00/month on the IBR plan. The payment goes down as dependents are added. The remaining balance is forgiven after 120 payments, and does not have to claimed as income.

On the standard repayment plan, same scenario, payment goes up to about $2300.00/month.

 

[Eforma]

For anyone with alot of debt, it would be wise to do the income-based repayment plan, and then take advantage of the public service loan forgiveness after ten years (or 120 payments).

A single person with no dependents making an AGI of $75000 with 200,000 of debt would pay about $750.00/month on the IBR plan. The payment goes down as dependents are added. The remaining balance is forgiven after 120 payments, and does not have to claimed as income.

On the standard repayment plan, same scenario, payment goes up to about $2300.00/month.

Could you please elaborate more on the "public service loan forgiveness"? I've heard tell about it, but what I understand, is that you are locking yourself into a job for a certain amount of years, which, not everyone may want to do. If you could share more information on how that works, I'd appreciate it.

 

[maxwell0]

Could you please elaborate more on the "public service loan forgiveness"? I've heard tell about it, but what I understand, is that you are locking yourself into a job for a certain amount of years, which, not everyone may want to do. If you could share more information on how that works, I'd appreciate it.

You do have to be employed full-time (which I believe they consider as at least 30 hours/week), but you don't have to be employed at the same organization during that time. Any not-for-profit organization (most large hospitals are, I think), applies. But this only applies to federal Stafford and PLUS loans, not private loans. Here is a document from www.studentloans.gov: