So many loans... feeling nervous

[Blake72221]

Hey guys, I was wondering if anyone could provide advice/guidance/insight about this...

I was accepted to one school with a tuition of ~55k and total cost of attendance ~75k per year, so it looks like I will have ~300k debt after 4 years. I received no need-based aid even though my family's income is less than 35k per year, and I just got all loans

I am honestly feeling scared looking at these numbers-- does anyone know if it is it uncommon for medical schools to offer much need-based aid in the first place? Has anyone ever been successful in asking for aid/institutional funds? Would an email or phone call be more practical to ask for aid, or if I even should try? Thank you so much for any help anyone has to offer!

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[pstrick]

I don't think it's a big deal.

Don't most students have 200k-300k in debt at the end of residency? It's just part of becoming a doctor.

 

[sehnsuchtsermedico]

Hey guys, I was wondering if anyone could provide advice/guidance/insight about this...

I was accepted to one school with a tuition of ~55k and total cost of attendance ~75k per year, so it looks like I will have ~300k debt after 4 years. I received no need-based aid even though my family's income is less than 35k per year, and I just got all loans

I am honestly feeling scared looking at these numbers-- does anyone know if it is it uncommon for medical schools to offer much need-based aid in the first place? Has anyone ever been successful in asking for aid/institutional funds? Would an email or phone call be more practical to ask for aid, or if I even should try? Thank you so much for any help anyone has to offer!

I think my TCA is like ~46k? I only got 1K need-based aid. I'm in the same family income bracket as you. I think it depends on the state/school funding? I already knew going in though, that loans may be the way about attending school. Yay debt!

 

[BombsAway]

Uncle Sam would be happy to help you out.

 

[3member]

family makes less than 25k and barely got scholarships

i don't think it's uncommon to not receive any aid based on income

 

[CharlieBillings]

They cap loan repayments based on salary in residency, so it's fine. And as an attending you'll make enough to pay them monthly and live quite well.

Only thing to worry about is not making it through.

 

[Giovanotto]

I remember being in your position and even making a thread about it. What did it all amount to? I came to the conclusion that if I were in your position I would not make the same choice, as in, I would not go to medical school. What kind of physician would I be with half a million in debt? A terrible one.

Luckily, I was able to receive a large sponsorship, and so I went to medical school. Think long and hard about it.... Don't listen to these half-schmucks giving terrible financial/life advice. Also, you won't be at 300k at the end of 4 years, try 350k, at least. Don't forget board exams, residency interview travel, god forbid you're at a DO school and have to live years 3 and 4 out of a backpack. Add ~4 years of residency, and you'd EASILY balloon to 425-475k. Good luck with that, nobody will care, nobody will bail you out, you'll pretty much be more or less on your own. Hopefully you're 21 and young, which gives you a good half-decade over most people in terms of repayment. If you're 25+, yeah, again, good luck.

 

[popopopop]

I remember being in your position and even making a thread about it. What did it all amount to? I came to the conclusion that if I were in your position I would not make the same choice, as in, I would not go to medical school. What kind of physician would I be with half a million in debt? A terrible one.

Luckily, I was able to receive a large sponsorship, and so I went to medical school. Think long and hard about it.... Don't listen to these half-schmucks giving terrible financial/life advice. Also, you won't be at 300k at the end of 4 years, try 350k, at least. Don't forget board exams, residency interview travel, god forbid you're at a DO school and have to live years 3 and 4 out of a backpack. Add ~4 years of residency, and you'd EASILY balloon to 425-475k. Good luck with that, nobody will care, nobody will bail you out, you'll pretty much be more or less on your own. Hopefully you're 21 and young, which gives you a good half-decade over most people in terms of repayment. If you're 25+, yeah, again, good luck.

Come on man....

 

[libertyyne]

I remember being in your position and even making a thread about it. What did it all amount to? I came to the conclusion that if I were in your position I would not make the same choice, as in, I would not go to medical school. What kind of physician would I be with half a million in debt? A terrible one.

Luckily, I was able to receive a large sponsorship, and so I went to medical school. Think long and hard about it.... Don't listen to these half-schmucks giving terrible financial/life advice. Also, you won't be at 300k at the end of 4 years, try 350k, at least. Don't forget board exams, residency interview travel, god forbid you're at a DO school and have to live years 3 and 4 out of a backpack. Add ~4 years of residency, and you'd EASILY balloon to 425-475k. Good luck with that, nobody will care, nobody will bail you out, you'll pretty much be more or less on your own. Hopefully you're 21 and young, which gives you a good half-decade over most people in terms of repayment. If you're 25+, yeah, again, good luck.

Lol.

 

[cactusman]

I remember being in your position and even making a thread about it. What did it all amount to? I came to the conclusion that if I were in your position I would not make the same choice, as in, I would not go to medical school. What kind of physician would I be with half a million in debt? A terrible one.

By this logic, an absolutely massive number of physicians are terrible.

 

[Giovanotto]

By this logic, an absolutely massive number of physicians are terrible.

Correct. However, note that physicians even 15 years ago did not come out with the same debt as us. We're a fairly recent cohort of students that think fairy dust is going to dissolve our quarter to half million dollar loans. I'm not sure what some people are thinking going into debt over a service oriented field.

 

[ace_inhibitor111]

I remember being in your position and even making a thread about it. What did it all amount to? I came to the conclusion that if I were in your position I would not make the same choice, as in, I would not go to medical school. What kind of physician would I be with half a million in debt? A terrible one.

Luckily, I was able to receive a large sponsorship, and so I went to medical school. Think long and hard about it.... Don't listen to these half-schmucks giving terrible financial/life advice. Also, you won't be at 300k at the end of 4 years, try 350k, at least. Don't forget board exams, residency interview travel, god forbid you're at a DO school and have to live years 3 and 4 out of a backpack. Add ~4 years of residency, and you'd EASILY balloon to 425-475k. Good luck with that, nobody will care, nobody will bail you out, you'll pretty much be more or less on your own. Hopefully you're 21 and young, which gives you a good half-decade over most people in terms of repayment. If you're 25+, yeah, again, good luck.

REPAYE makes things soooo manageable, even with the tax-bomb at the end. You can try calculating it. Let's consider the absolute worst scenario. Even with 600K debt past residency and 7% interest rate. Technically you'll end up with $1.2 million debt after 22 years, which sounds scary but it's really not.

Let's say you have a salary of $215,000. You pay $20,000 a year under REPAYE then save $18,000 for the tax-bomb. So that's $38,000 a year. You're after-tax income is $144,000, so you're left with $107,000 take home. That's considering a lower paying residency. You still have the opportunity to make $150,000-250,000+ take home if you get a high paying residency. It's only a "poor financial decision" if you had the chance of making that much money before medical school, which very few people really have the opportunity of doing.

 

[cactusman]

Correct. However, note that physicians even 15 years ago did not come out with the same debt as us. We're a fairly recent cohort of students that think fairy dust is going to dissolve our quarter to half million dollar loans. I'm not sure what some people are thinking going into debt over a service oriented field.

Not sure why medicine being service-oriented has anything to do with it. It still pays well enough to repay the loans and there are a lot of things to like about the career.

 

[IMakedThese]

I remember being in your position and even making a thread about it. What did it all amount to? I came to the conclusion that if I were in your position I would not make the same choice, as in, I would not go to medical school. What kind of physician would I be with half a million in debt? A terrible one.

Luckily, I was able to receive a large sponsorship, and so I went to medical school. Think long and hard about it.... Don't listen to these half-schmucks giving terrible financial/life advice. Also, you won't be at 300k at the end of 4 years, try 350k, at least. Don't forget board exams, residency interview travel, god forbid you're at a DO school and have to live years 3 and 4 out of a backpack. Add ~4 years of residency, and you'd EASILY balloon to 425-475k. Good luck with that, nobody will care, nobody will bail you out, you'll pretty much be more or less on your own. Hopefully you're 21 and young, which gives you a good half-decade over most people in terms of repayment. If you're 25+, yeah, again, good luck.

Posts like this are what make this site toxic
Certified douche.

 

[libertyyne]

If you think taking home 7K per month even paying for 450Kin debt. Even after , it is still higher than the take home income of most americans.

 

[BombsAway]

Adding my vote to support making prudent financial decisions. Don't take financial advice from anyone who uses the words "it'll be fine".

But seriously. Debt is real. Really think about it. Expect and plan for the worst case scenario. Don't count on government programs being around when you need them. Do plan on having to repay every dime you borrow, with interest.
The white coat investor would be a better resource for this sort of thing.

 

[Blake72221]

Thank you all so much for all the help, it has definitely made me feel a little better. I'm a traditional applicant with zero experience with loans, so honestly beginning this process is somewhat overwhelming. I will definitely look more into the resources listed in this thread! Thanks again

 

[cactusman]

Adding my vote to support making prudent financial decisions. Don't take financial advice from anyone who uses the words "it'll be fine".

Sometimes things actually are fine.

 

[ace_inhibitor111]

Adding my vote to support making prudent financial decisions. Don't take financial advice from anyone who uses the words "it'll be fine".

But seriously. Debt is real. Really think about it. Expect and plan for the worst case scenario. Don't count on government programs being around when you need them. Do plan on having to repay every dime you borrow, with interest.
The white coat investor would be a better resource for this sort of thing.

But the OP only has one acceptance. So his options are either to not become a physician, or learn to manage the debt.

Anyway we don't have to assume anything. IBR and REPAYE are not government programs, they are payment plans clearly delineated in the MPN. Regardless of what plan you choose, you will be paying the government more than what you borrow. However, when and how much more has some flexibility.

 

[ChymeofPassion]

Sometimes things actually are fine.

Sometimes* premeds aren't qualified to give potentially life-damning financial advice.

*Almost Always

Op, seek advice from a financial advisor

 

[cactusman]

Sometimes* premeds aren't qualified to give potentially life-damning financial advice.

*Almost Always

Op, seek advice from a financial advisor

People absolutely need to use smart financial strategies. Obviously "it'll be fine" isn't applicable to many situations, and I agree that people who are concerned should see a financial advisor.

But the whole "everyone needs a large scholarship to attend medical school, go on a site for premeds and panic about absolutely everything" isn't a smart financial strategy either, and I disagree that this anxiety-driven way of thinking is in the spirit of "making prudent financial decisions."

 

[Geo16]

View attachment 219626

View attachment 219627
If you think taking home 7K per month even paying for 450Kin debt. Even after , it is still higher than the take home income of most americans.

Quick question.. did you include your UG loan as well? Or all that accrued from Med school?

 

[libertyyne]

Quick question.. did you include your UG loan as well? Or all that accrued from Med school?

This assumed 450K at end of residency. There are large variations in interest rates, and types of loans (subsidized v unsubsidized) that makes a large difference. So if you accumulate say 100 from UG and 250 from Med school and undergo a 5 year residency and dont pay down anything during residency it would roughly be 457K @ 5.5 interest.

 

[cactusman]

This assumed 450K at end of residency. There are large variations in interest rates, and types of loans (subsidized v unsubsidized) that makes a large difference. So if you accumulate say 100 from UG and 250 from Med school and undergo a 5 year residency and dont pay down anything during residency it would roughly be 457K @ 5.5 interest.

Y!KES @ 100k from undergrad.

 

[Geo16]

This assumed 450K at end of residency. There are large variations in interest rates, and types of loans (subsidized v unsubsidized) that makes a large difference. So if you accumulate say 100 from UG and 250 from Med school and undergo a 5 year residency and dont pay down anything during residency it would roughly be 457K @ 5.5 interest.

Y!KES @ 100k from undergrad.

Definitely yikes.
Yeah, thought Med school alone couldn't make that number. I'm also asking because I have UG loan debt as well

Thank you for sharing your details with us! It's critically insightful.

 

[cactusman]

I just wanna say thank you so much not only to God but to Jesus for CollegeConfidential. That site is so effective for scaring students away from undergrad loans.

 

[Geo16]

I just wanna say thank you so much not only to God but to Jesus for CollegeConfidential. That site is so effective for scaring students away from undergrad loans.

LOL, having a less debt is a good thing to do. But I'm not afraid of loans. Nor should anyone be if they need it.

 

[cactusman]

LOL, having a less debt is a good thing to do. But I'm not afraid of loans. Nor should anyone be if they need it.

Yeah, I still have had to take out same. But that site, however neurotic it may have been, probably put me in a much better situation.

 

[Geo16]

Yeah, I still have had to take out same. But that site, however neurotic it may have been, probably put me in a much better situation.

Got 20k under my belt. About to take another 12k for the next year

 

[BombsAway]

I just wanna say thank you so much not only to God but to Jesus for CollegeConfidential. That site is so effective for scaring students away from undergrad loans.

I'll give a shout out to uncle sam and the taxpayers for hooking me up. Never met that Jesus guy, but i've heard good things.

 

[sweepsingle33]

Tbh the loans freaked me out a bit too. I recently did my loan counseling though, which actually made me feel a lot better about it. Assuming at least a $200k salary per year you get about 10-11K per month after taxes and $8,000ish-9,000ish per month to take home after loan payments depending on how you want to restructure your repayments. So even on the low end of the pay scale you still make an effective income of $100,000+ per year while you are paying back your loans, which is more comfortable than most Americans.

 

[McDreamy123]

Lol @ these threads. Just about everyone who doesn't have or get into their state school has to pay ~55k tuition + cost of living. So roughly $75k a year. That is $300k principle---pre-interest. I am stuck paying this as I didn't get into state program, am going private. But ask yourself if you don't go, what are your alternatives? For me it would be continuing working RA job making $16 per hour...lol. So am I better off financially taking out $300k to become physician or continue making $33k a year pretax as research assistant? Look at the MGMA salary info--everything else is way deflated. For me it wasn't even close.

Oh yeah and also I would take being in debt to be a physician --a job I aspire to have and feel I will love versus working some scut job I despise to avoid having debt over my head.

 

[BombsAway]

Lol @ these threads. Just about everyone who doesn't have or get into their state school has to pay ~55k tuition + cost of living. So roughly $75k a year. That is $300k principle---pre-interest. I am stuck paying this as I didn't get into state program, am going private. But ask yourself if you don't go, what are your alternatives? For me it would be continuing working RA job making $16 per hour...lol. So am I better off financially taking out $300k to become physician or continue making $33k a year pretax as research assistant? Look at the MGMA salary info--everything else is way deflated. For me it wasn't even close.

Oh yeah and also I would take being in debt to be a physician --a job I aspire to have and feel I will love versus working some scut job I despise to avoid having debt over my head.

You aren't getting residuals from Grey's anatomy? I figured you'd be set after that show.