On these forums, there is much discussion about the burdens of student debt, especially in regards to choosing a medical school. But at the same time, there is not proportional discussion about what repaying/living with debt/loans actually means in a financial and practical sense. Therefore, I thought it would be helpful to start a discussion about how loan repayments actually work, what the timeline of repayment is for most physicians, and what students should think about in order to set themselves up for financial success.

For example: suppose a student takes out ~200k in loans and pursues a 4-year residency for an end attending salary of $300k. What does repayment/net balance actually look like...

For example: suppose a student takes out ~200k in loans and pursues a 4-year residency for an end attending salary of $300k. What does repayment/net balance actually look like...

- During medical school: I know that interest accumulates, but does not capitalize. So after 4 years, with the current interest rate of 4.3%, 200k becomes...? What does the math for this look like?
**Is this correct: (0.043/365) x 200,000 x 365 x 4 = 34,400 + 200,000 = $234,400 by graduation?**Probably could be lower if you borrow by-semester--let's say 25k per semester:- (0.043/365) x 25,000 x 182.5 = 537.5
- (0.043/365) x 50,000 x 182.5 = 1075
- (0.043/365) x 75,000 x 182.5 = 1612.5
- (0.043/365) x 100,000 x 182.5 = 2150
- (0.043/365) x 125,000 x 182.5 = 2687.5
- (0.043/365) x 150,000 x 182.5 = 3225
- (0.043/365) x 175,000 x 182.5 = 3762.5
- (0.043/365) x 200,000 x 182.5 = 4300
- Total = 19350 + 200,000 =
**$219,350**

- During residency: With a resident's salary, it would probably just be paying off the interest each month? Again
**what does the math look like?**I know your interest will now be compounded into your principal monthly. - Once an attending: Why do physicians enter 10+ year payment plans?
**Wouldn't it be better to pay off loans as quickly as possible in the first 2-3 years by living below your means and ultimately pay less overall?**

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