Student Loans = Slavery: see the numbers at 1-9% for yourself

[Bobby Fischer]

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Members don't see this ad.

google "Loan Amortization Calculator":

350,000 student loan at 1%:
Number of Payments: 360
Total Interest Paid: $55,265.80
Total Paid: $405,265.80😎

350,000 student loan at 2%:
Number of Payments: 360
Total Interest Paid: $115,720.54
Total Paid: $465,720.54😳

350,000 student loan at 3%:
Number of Payments: 360
Total Interest Paid: $181,221.08
Total Paid: $531,221.08👎

350,000 student loan at 4%:
Number of Payments: 360
Total Interest Paid: $251,543.27
Total Paid: $601,543.27👎thumbdown

350,000 student loan at 5%:
Number of Payments: 360
Total Interest Paid: $326,395.24
Total Paid: $676,395.24😕

350,000 student loan at 6%:
Number of Payments: 360
Total Interest Paid: $405,433.66
Total Paid: $755,433.66😡

350,000 student loan at 7%:
Number of Payments: 360
Total Interest Paid: $488,281.14
Total Paid: $838,281.14😱

350,000 student loan at 8%:
Number of Payments: 360
Total Interest Paid: $574,543.36
Total Paid: $924,543.36😱

350,000 student loan at 9%:
Number of Payments: 360
Total Interest Paid: $663,824.50
Total Paid: $1,013,824.50

Today's government-academic monopoly on student loans is reducing the present and future population of America to nothing less than slavery...bondage at the barrel of the bank-academic complex...at best it might be argued its a return of 'indentured servitude":

Prior to the laws being changed over the last decade (for the sole benefit of the central bankers), in America this was illegal and referred to as USURY. RIP America.

Of course, the generation that is getting away with it wasn't subjected to it by their fore-bearers (specifically the baby boomers argh!!)

In my mid 30s I have learned the last thing to do is be caught with your proverbial pants down hoping for wholesome corrective change from this present government we the people under about age 50 are yoked with.

The present government is built upon the scheme of legalized counterfeiting via the so-called 'Federal' Reserve (private cabal of entirely private banks responsible for paying their debts with printed up funny money worth no more than the paper its been printed on)

Think about it. We go to school in america for decades and yet there is one thing NEVER taught. Here is a good start of an education in it:

https://www.youtube.com/watch?v=jqvKjsIxT_8

https://www.youtube.com/watch?v=Ssa5WNnbGsw

 

[TOMS90]

google "Loan Amortization Calculator":

350,000 student loan at 1%:
Number of Payments: 360
Total Interest Paid: $55,265.80
Total Paid: $405,265.80😎

350,000 student loan at 2%:
Number of Payments: 360
Total Interest Paid: $115,720.54
Total Paid: $465,720.54😳

350,000 student loan at 3%:
Number of Payments: 360
Total Interest Paid: $181,221.08
Total Paid: $531,221.08👎

350,000 student loan at 4%:
Number of Payments: 360
Total Interest Paid: $251,543.27
Total Paid: $601,543.27👎thumbdown

350,000 student loan at 5%:
Number of Payments: 360
Total Interest Paid: $326,395.24
Total Paid: $676,395.24😕

350,000 student loan at 6%:
Number of Payments: 360
Total Interest Paid: $405,433.66
Total Paid: $755,433.66😡

350,000 student loan at 7%:
Number of Payments: 360
Total Interest Paid: $488,281.14
Total Paid: $838,281.14😱

350,000 student loan at 8%:
Number of Payments: 360
Total Interest Paid: $574,543.36
Total Paid: $924,543.36😱

350,000 student loan at 9%:
Number of Payments: 360
Total Interest Paid: $663,824.50
Total Paid: $1,013,824.50

Today's government-academic monopoly on student loans is reducing the present and future population of America to nothing less than slavery...bondage at the barrel of the bank-academic complex...at best it might be argued its a return of 'indentured servitude":

Prior to the laws being changed over the last decade (for the sole benefit of the central bankers), in America this was illegal and referred to as USURY. RIP America.

Of course, the generation that is getting away with it wasn't subjected to it by their fore-bearers (specifically the baby boomers argh!!)

In my mid 30s I have learned the last thing to do is be caught with your proverbial pants down hoping for wholesome corrective change from this present government we the people under about age 50 are yoked with.

The present government is built upon the scheme of legalized counterfeiting via the so-called 'Federal' Reserve (private cabal of entirely private banks responsible for paying their debts with printed up funny money worth no more than the paper its been printed on)

Think about it. We go to school in america for decades and yet there is one thing NEVER taught. Here is a good start of an education in it:

https://www.youtube.com/watch?v=jqvKjsIxT_8

https://www.youtube.com/watch?v=Ssa5WNnbGsw

What's the interest rate for government based loan?

 

[Seahawk]

What's the interest rate for government based loan?

6.8 I believe

 

[sacapuntas]

Who is going to only pay the minimum payment for 30 years?

I guess whatever it takes to make your thread appear stronger...

 

[TOMS90]

are these rates for real????

I end up with 800k debt with 350k loan?????


WTF??????????/

 

[Bobby Fischer]

Who is going to only pay the minimum payment for 30 years?

I guess whatever it takes to make your thread appear stronger...

I am anonymous. What other interest would I have other than providing facts and information?

The way the economy is going in N. America (presently N. America is where Greece and Spain were, generally, about 10-15 years ago and N. America is catching 'up' fast. 'Up' being unemployment, national debt, bankruptcy, inflation, consumer debt, student loan debt, etc)

At these amounts, its deserving of slavery to not make an extremely careful examination of the detailed and larger picture including under the assumption of making minimum, maximum and everything in between payments.

 

[Seahawk]

I'm not a business major, but here is the way I have understood the situation after doing a bit of research. Someone please correct me if I am wrong.

Out of all the dental schools, based on the RESIDENT numbers...Only 6 out of 57 are 350k or higher. (http://forums.studentdoctor.net/showthread.php?t=954312)

The majority of dental schools as a RESIDENT are lower than 250k. (""")

The max term is 30 years.(http://www.finaid.org/loans/repayment.phtml)

Current interest rate is 6.8% (http://www.staffordloan.com/stafford-loan-info/graduate-stafford-loan.php)

You are assuming basically the most expensive school in the country and the longest repayment terms possible.

Let's say you go to one of the majority of dental schools, that is max 250k, and spend half the max repayment term of 15 years at 6.8%. (http://www.finaid.org/calculators/scripts/loanpayments.cgi)

You will have spent 400k in total....Which gets a smiley face from you.

 

[Bobby Fischer]

are these rates for real????

I end up with 800k debt with 350k loan?????


WTF??????????/

$821,425 to be more exact. (per earlier posts)

ahh, yes. The terrible secret (lie by omission, actually) the baby boomer generation doesn't want their grandchildren to know.

350,000 at 6.8% 30 year payback:
Number of Payments: 360
Total Interest Paid: $471,425.74
Total Paid: $821,425.74

 

[TOMS90]

$821,425 to be more exact. (per earlier posts)

ahh, yes. The terrible secret (lie by omission, actually) the baby boomer generation doesn't want their grandchildren to know.

350,000 at 6.8% 30 year payback:
Number of Payments: 360
Total Interest Paid: $471,425.74
Total Paid: $821,425.74

I am kind of clueless about this stuff but we can enroll in 30 year payment plant correct? so around 2500 a month. hmm thats still alot

 

[NDPitch]

are these rates for real????

I end up with 800k debt with 350k loan?????


WTF??????????/

Welcome to dental school. 🙂

And as for the rates being 6.8, that's only for the federal direct loans, which only allow 47k per year. You'll be taking the rest as a Grad PLUS loan at a whopping 7.9%, and a disbursement fee of 5% for each loan.

But as I said in the other thread on the dental board, the interest rates are not the problem. It's that the government has a strangle hold on the student loan industry. See my rant in the thread below.

http://forums.studentdoctor.net/showthread.php?t=977738

 

[Bobby Fischer]

I'm not a business major, but here is the way I have understood the situation after doing a bit of research. Someone please correct me if I am wrong.

Out of all the dental schools, based on the RESIDENT numbers...Only 6 out of 57 are 350k or higher. (http://forums.studentdoctor.net/showthread.php?t=954312)

The majority of dental schools as a RESIDENT are lower than 250k. (""")

The max term is 30 years.(http://www.finaid.org/loans/repayment.phtml)

Current interest rate is 6.8% (http://www.staffordloan.com/stafford-loan-info/graduate-stafford-loan.php)

You are assuming basically the most expensive school in the country and the longest repayment terms possible.

Let's say you go to one of the majority of dental schools, that is max 250k, and spend half the max repayment term of 15 years at 6.8%. (http://www.finaid.org/calculators/scripts/loanpayments.cgi)

You will have spent 400k in total....Which gets a smiley face from you.

250,000 at 6.8% 15 year payback
Number of Payments: 180
Total Interest Paid: $149,457.76
Total Paid: $399,457.76

250,000 at 6.8% 20 year payback
Number of Payments: 240
Total Interest Paid: $208,003.72
Total Paid: $458,003.72

250,000 at 6.8% 30 year payback
Number of Payments: 360
Total Interest Paid: $336,732.67
Total Paid: $586,732.67

In the present and future economy, who is going to be paying more than the minimum monthly and who is going to do it in less than 30

On top of that, I have heard that the present average, reasonable estimate for the dental school graduate salary is 50k for the first year (in a GPR and/or AEGD) and 110k for the first several years after that.

The idea that this loans are going to be paid off quickly and easily by most who have to take them out is simply laughable. Certainly there are exceptions but what about the boring old average which will define the paradigm? There is no successful sustainable socioeconomic precedent for this predicament that has enmeshed itself with a profession. What we are experiencing is uncharted in terms of public schools (required to attend one to practice dentistry) enslaving its graduates (in the last 200 years of N. American civilization at least).

This is a catastrophic problem that has mushroomed into existence in only the last decade (thanks to the baby boomer generation).

Watch this brilliant 12 year old explain it quite eloquently and simply:
https://www.youtube.com/watch?v=_ae7h8FioX0

 

[TOMS90]

Welcome to dental school. 🙂

And as for the rates being 6.8, that's only for the federal direct loans, which only allow 47k per year. You'll be taking the rest as a Grad PLUS loan at a whopping 7.9%, and a disbursement fee of 5% for each loan.

But as I said in the other thread on the dental board, the interest rates are not the problem. It's that the government has a strangle hold on the student loan industry. See my rant in the thread below.

http://forums.studentdoctor.net/showthread.php?t=977738

I think I have to say good bye to dentistry..

 

[AlbinoPolarBear]

How much are you spending a year to live like a student? 25k max?

Assuming an average of 120k/year for the first 5 years (very low average), and you live like a student for 5 years out of school, you can pay a huge chunk of the loans back.

120k, after taxes (depending where you live) will be approximately 85k. Live like a student the first 5 years out (pretend you're in residency), pay your loans back very aggressively, and you'll pay at least 300k of it.

I feel like everyone should pay it back aggressively, since you reduce the interest that you pay back.

That's the beauty of dentistry, there is no residency requirement in most states. Just use that time to pay back your debt.

Just my thoughts.

 

[NDPitch]

Assuming an average of 120k/year for the first 5 years (very low average), and you live like a student for 5 years out of school, you can pay a huge chunk of the loans back.

From all of the data I've seen, and all the dentists I've talked to, making an average of 120k for the first 5 years after dental school is actually very high, not very low.

 

[Ferneezy]

From all of the data I've seen, and all the dentists I've talked to, making an average of 120k for the first 5 years after dental school is actually very high, not very low.

where do they practice?

 

[Seahawk]

The problem with dooming and glooming like this is, dentistry is what you make it.

If I paid for my 4 years of tuition 100% with loans, I would only have to take out 200k in loans.

My state is on the higher end of the spectrum for salaries. The 25th percentile is making 125k. Average is 200k. (http://www.bls.gov/oes/current/oes291021.htm)

 

[sacapuntas]

250,000 at 6.8% 15 year payback
Number of Payments: 180
Total Interest Paid: $149,457.76
Total Paid: $399,457.76

250,000 at 6.8% 20 year payback
Number of Payments: 240
Total Interest Paid: $208,003.72
Total Paid: $458,003.72

250,000 at 6.8% 30 year payback
Number of Payments: 360
Total Interest Paid: $336,732.67
Total Paid: $586,732.67

In the present and future economy, who is going to be paying more than the minimum monthly and who is going to do it in less than 30

On top of that, I have heard that the present average, reasonable estimate for the dental school graduate salary is 50k for the first year (in a GPR and/or AEGD) and 110k for the first several years after that.

The idea that this loans are going to be paid off quickly and easily by most who have to take them out is simply laughable. Certainly there are exceptions but what about the boring old average which will define the paradigm? There is no successful sustainable socioeconomic precedent for this predicament that has enmeshed itself with a profession. What we are experiencing is uncharted in terms of public schools (required to attend one to practice dentistry) enslaving its graduates (in the last 200 years of N. American civilization at least).

This is a catastrophic problem that has mushroomed into existence in only the last decade (thanks to the baby boomer generation).

Watch this brilliant 12 year old explain it quite eloquently and simply:
https://www.youtube.com/watch?v=_ae7h8FioX0

If this post, specifically the bolded portions, are your true viewpoints you are being irrational and selfish for pursuing dentistry unless you aren't taking out loans. Since I remember you asking questions about the HPSP program, I assume you are taking out loans.

When making a career move at your age, why wouldn't you chose a route you could be more optimistic about? Or are you just trying to stir the pot?

 

[Bobby Fischer]

If this post, specifically the bolded portions, are your true viewpoints you are being irrational and selfish for pursuing dentistry unless you aren't taking out loans. Since I remember you asking questions about the HPSP program, I assume you are taking out loans.

When making a career move at your age, why wouldn't you chose a route you could be more optimistic about? Or are you just trying to stir the pot?

😛stirring the pot with a steady string of ad hominems? Not me. Not interested in such detours. In any event, I don't make the rules so its entirely pointless. Sorry if I disappoint.

Just the facts. Argue for/against the facts, please.🙂

 

[Bobby Fischer]

The problem with dooming and glooming like this is, dentistry is what you make it.

If I paid for my 4 years of tuition 100% with loans, I would only have to take out 200k in loans.

My state is on the higher end of the spectrum for salaries. The 25th percentile is making 125k. Average is 200k. (http://www.bls.gov/oes/current/oes291021.htm)

^^ Excellent link. Thanks👍

 

[NDPitch]

Amidst all of these financial hurdles (albeit, large ones), I still love dentistry and I'm excited to go into it. My posts about the finances are more to make other people aware of what they're taking on. I hate the thought of students getting in over their heads, and not having their expectations met. It's important to look over all aspects of the decision to spend the rest of your life in dentistry.

 

[sacapuntas]

Amidst all of these financial hurdles (albeit, large ones), I still love dentistry and I'm excited to go into it. My posts about the finances are more to make other people aware of what they're taking on. I hate the thought of students getting in over their heads, and not having their expectations met. It's important to look over all aspects of the decision to spend the rest of your life in dentistry.

This is a great post that helps me understand the motivation of you and possibly others that harp the debt aspect of dental school extensively. I was beginning to get sick of all of these posts by people who are going to dental school yet speak about it like its financial suicide to do just that. I apologize to bobby fischer for taking out some frustration on him.

I am in total agreement that the financial hurdle will be difficult, but I wouldn't be headed towards dental school if I wasn't confident in getting over it. It is good to help other people be aware of what they are getting into.

 

[NAVY DDS 2010]

Nobody intheir right mind would pay this off in 30 yrs. The difference between paying off a $350,000 loan at 7 % IN 10 YEARS VS 30 YEARS is right around $350,000 less in interest.

I advise everyone who is worried about the future finances meet up with a financial planner. You will get a b better idea how school will benefit you and how you can pay even a $350,000 loan up without paying nearly $500,000 in interest as Bobby is stating. You will eventually need to have one or more financial planners anyways, so why not get a little advice now.

 

[Bobby Fischer]

This is a great post that helps me understand the motivation of you and possibly others that harp the debt aspect of dental school extensively. I was beginning to get sick of all of these posts by people who are going to dental school yet speak about it like its financial suicide to do just that. I apologize to bobby fischer for taking out some frustration on him.

I am in total agreement that the financial hurdle will be difficult, but I wouldn't be headed towards dental school if I wasn't confident in getting over it. It is good to help other people be aware of what they are getting into.

👍😍 100% agree.

 

[dantemac]

This isn't slavery. People WILLINGLY do this lololololololol

 

[nondescriptive]

And not when your school has one of the lowest tuition in the nation. For some reason, state schools in the south are so much cheaper than the northeast.

 

[MTBer]

You sound like a libertarian. But you're right it's a crazy system and central banks are at the root of it all

 

[Bobby Fischer]

This isn't slavery. People WILLINGLY do this lololololololol

^^ on this one the pest spray can should read 'tuition & loan interest hike'

 

[emorypredent]

This isn't slavery. People WILLINGLY do this lololololololol

Indentured servitude a better term? Willingly get into debt then forced to work for repayment?

 

[shootingstar7]

If inflation continues at the current rate, in 30 years a 3,000 monthly payment will hit your checkbook as hard as a 1,000 payment would today.

Buuut I'm still going to pay mine off in 10. Hopefully 🙂

 

[predent12]

Seriously though? I find this disrespectful to people who actually have suffered the evils of slavery.

We are entering a highly profitable field with a lot of potential for growth. I agree that the costs associated are incredibly high but that is why it is important to plan financially and be careful. And we are choosing to do so, no one is forcing us.

While I appreciate the time people have taken to explain the finances involved, no need to be so melodramatic and ridiculous. If you don't think you can handle the finances and plan responsibly, then find another field.

 

[Bereno]

Something that a lot of people forget about loans is that the total paid IS NOT the important figure here. What is important is the monthly pmt. I cannot stress this enough. Since incomes go up over time, the most critical period is the first few years (first 2-3). If you cannot make the minimum pmt in those years, you are done, finished. If you can make them, and your income goes up, so can your pmt. Essentially, you really need to look at what your starting salary will be and what the minimum pmt will be. Once you earn more later on, you can then increase your pmts and pay it off a bit quicker. The key here is your cash-flows, not the total amount paid.

Also, as an aside, the average time to pay off a loan is about 15 years. Most never go above 25, but there are always those that do 🙂

 

[dantemac]

"How the overwork culture is controlling our lives"

That is exactly right. Capitalism and individualism in America has us all wanting to acquire the doctor title and the pay it comes along with. It's called hegemony, societal control.

 

[cwoodds]

"How the overwork culture is controlling our lives"

That is exactly right. Capitalism and individualism in America has us all wanting to acquire the doctor title and the pay it comes along with. It's called hegemony, societal control.

It could also be called ambition, aspiration, freedom, and liberty. Unfortunately, the current trend away from capitalism and individualism leads toward apathy, dispassion, dependence, and tyranny.

 

[UltimateHombre]

Something that a lot of people forget about loans is that the total paid IS NOT the important figure here. What is important is the monthly pmt. I cannot stress this enough. Since incomes go up over time, the most critical period is the first few years (first 2-3). If you cannot make the minimum pmt in those years, you are done, finished. If you can make them, and your income goes up, so can your pmt. Essentially, you really need to look at what your starting salary will be and what the minimum pmt will be. Once you earn more later on, you can then increase your pmts and pay it off a bit quicker. The key here is your cash-flows, not the total amount paid.

Also, as an aside, the average time to pay off a loan is about 15 years. Most never go above 25, but there are always those that do 🙂

Great post Bereno; still the SDN financial executive. People don't realize that if you can make the payment your first couple years, you will be fine. Your speed, skills, patients, and opportunities only go up from there.

Also Bobby, not sure if you got the chance to check out my thread on the subject a few weeks ago: http://forums.studentdoctor.net/showthread.php?t=970137

 

[Bereno]

Great post Bereno; still the SDN financial executive. People don't realize that if you can make the payment your first couple years, you will be fine. Your speed, skills, patients, and opportunities only go up from there.

Also Bobby, not sure if you got the chance to check out my thread on the subject a few weeks ago: http://forums.studentdoctor.net/showthread.php?t=970137

Yeah, these total $ paid posts are more about shell shock than anything... Why does nobody ever do this with your mortgage, or business loan? They seem to really like doing it with student loans haha

 

[Bobby Fischer]

Great post Bereno; still the SDN financial executive. People don't realize that if you can make the payment your first couple years, you will be fine. Your speed, skills, patients, and opportunities only go up from there.

Also Bobby, not sure if you got the chance to check out my thread on the subject a few weeks ago: http://forums.studentdoctor.net/showthread.php?t=970137

👍

 

[sacapuntas]

Something that a lot of people forget about loans is that the total paid IS NOT the important figure here. What is important is the monthly pmt. I cannot stress this enough. Since incomes go up over time, the most critical period is the first few years (first 2-3). If you cannot make the minimum pmt in those years, you are done, finished. If you can make them, and your income goes up, so can your pmt. Essentially, you really need to look at what your starting salary will be and what the minimum pmt will be. Once you earn more later on, you can then increase your pmts and pay it off a bit quicker. The key here is your cash-flows, not the total amount paid.

Also, as an aside, the average time to pay off a loan is about 15 years. Most never go above 25, but there are always those that do 🙂

Your wisdom for going from undergrad straight to dental school never ceases to amaze me. They did a nice job educating you up there in wash...that or you might just be blessed with a lot of common sense👍.

My first boss out of college gave me the great advice that 'cash flow is king', especially in your early years. It doesn't matter how much or little you make or what your obligations are, what matters is what is left over at the end of the month, and what you do with that. Although this was his way of not giving me a raise I was asking for, he instead showed me some ideas on how to increase my cash flow lol.

 

[pinpoint212]

Seriously though? I find this disrespectful to people who actually have suffered the evils of slavery.

We are entering a highly profitable field with a lot of potential for growth. I agree that the costs associated are incredibly high but that is why it is important to plan financially and be careful. And we are choosing to do so, no one is forcing us.

While I appreciate the time people have taken to explain the finances involved, no need to be so melodramatic and ridiculous. If you don't think you can handle the finances and plan responsibly, then find another field.

THIS. If you don't want to deal with the debt, get the hell out of this profession. Realize it is not about making the money, it is about helping the people. Go take your first world problems somewhere else.

 

[Bobby Fischer]

THIS. If you don't want to deal with the debt, get the hell out of this profession. Realize it is not about making the money, it is about helping the people. Go take your first world problems somewhere else.

If you don't have enough cash to own your own equipment, tools, etc you do not own yourself nor your profession. When you are not free the quality of service you can provide goes down proportionately.

There are plenty of third world dentists who can't provide the quality of care they would like because they are presently wasting their time wrestling with third world problems. It behooves socioeconomically viable and responsible profession to stay on top of 'first world problems' such as the topic of this thread (so you say anyways). If not, individuals and the collective profession will soon find itself wasting its resources and time dealing with second world problems...and third shortly thereafter.

You take your third world problems elsewhere. I, for one, plan on perpetuating the successful model which has provided first class dental care for N. Americans for several decades on now: i.e. owning my own capital and therefore remaining capable of providing top quality care to all my patients: especially the third world ones who escape from their squalor to seek care in a first class profession in N. America.

Your kind of sentiment is what is transforming every last vestige of first class excellence into the lowest common denominator of third world squalor. Take your devil may care mindset elsewhere: deep into the remotest outposts of third world perpetual slavery and indentured servitude where it belongs.

 

[Ferneezy]

ish just got real

 

[Bereno]

Your wisdom for going from undergrad straight to dental school never ceases to amaze me. They did a nice job educating you up there in wash...that or you might just be blessed with a lot of common sense👍.

My first boss out of college gave me the great advice that 'cash flow is king', especially in your early years. It doesn't matter how much or little you make or what your obligations are, what matters is what is left over at the end of the month, and what you do with that. Although this was his way of not giving me a raise I was asking for, he instead showed me some ideas on how to increase my cash flow lol.

Thanks for the kind words! Maybe a mix of both? If I had to pick, I would probably credit the education over my own insight haha.

I like that phrase "cash flow is king" - its catchy. I guess the thing about that saying is that cash flow is only "king" to the startup (as you mentioned), and is more like queen, or prince once your business is established and has a cash (or liquid working capital) reserve of sorts to pull from. Just don't forget that queens and princes are still pretty damn important haha.

 

[503224]

Even with the whole cash flow thing, it's obviously better to earn more and keep your spending (incl debt) low. Earning more + spending less = more left over at the end of the month, so saying that income doesn't matter is kind of misleading IMO.

 

[Bereno]

Even with the whole cash flow thing, it's obviously better to earn more and keep your spending (incl debt) low. Earning more + spending less = more left over at the end of the month, so saying that income doesn't matter is kind of misleading IMO.

I think you missed what I was trying to say. Maybe I need to rephrase. I was most definitely not saying income does not matter; quite the opposite. Income is a form of cash flow. As a matter of fact, it is your primary source of cash flows and the things that eat away at your positive monthly cash flows (income) are your monthly pmts. This means, that as long as you are earning more each month than you are spending, you will be OK. It is important to note that this is dependent on two things, your income, and your pmts. That is why so many people preach "earn more and spend less" because this will pad their cash flows. What your cash flows are not dependent upon is the sum of those pmts. This is a false concern, and unfortunately there are many people who think this is a valuable metric. It is not. It is merely a factoid lol. This said, reducing the overall paid is only relevant once your working capital is sufficiently large (and liquid) enough to sustain you for a while in the event of recurring and successive negative cash flows. Does this make sense? 🙂

 

[predent12]

There are plenty of third world dentists who can't provide the quality of care they would like because they are presently wasting their time wrestling with third world problems. It behooves socioeconomically viable and responsible profession to stay on top of 'first world problems' such as the topic of this thread (so you say anyways). If not, individuals and the collective profession will soon find itself wasting its resources and time dealing with second world problems...and third shortly thereafter.

Yes but the United States is not a third world country. We aren't even close to this. I don't even know how you could possibly try and draw an analogy to this.

You take your third world problems elsewhere. I, for one, plan on perpetuating the successful model which has provided first class dental care for N. Americans for several decades on now: i.e. owning my own capital and therefore remaining capable of providing top quality care to all my patients: especially the third world ones who escape from their squalor to seek care in a first class profession in N. America.

Really? Sounds to me like you are being whiny and melodramatic about an issue that doesn't really exist. Show me one- ONE- dentist who can't pay back his or her loans who has been reasonable about his/her payment plan. Then we'll talk.

As of now, we aren't even close to that! You sound melodramatic and uneducated about the subject.

 

[predent12]

P.S. Learn how to use a colon correctly.

 

[Blake1e]

My plan for when I eventually become a dentist is to devote a huge amount my income to repaying the 250k loan I will surely have. I'll do this by continuing living with my parents and practicing extreme austerity. Essentially I'll be living like minimum wage earning individual, only buying the bare necessities needed for survival, pretty much like I already do (my parents are middle class but with everything going on money is tight).

By my math I would be done repaying within 10 yrs or maybe in about 5 yrs if I dont start a family and I dont encounter any surprises.

Worst case scenario and the US goes the way of Greece: I'll go back to my home country in Eastern Europe where they wont extradite me for not paying the loans. Just kidding I would never do that!

 

[toothangel747]

google "Loan Amortization Calculator":

350,000 student loan at 1%:
Number of Payments: 360
Total Interest Paid: $55,265.80
Total Paid: $405,265.80😎

350,000 student loan at 2%:
Number of Payments: 360
Total Interest Paid: $115,720.54
Total Paid: $465,720.54😳

350,000 student loan at 3%:
Number of Payments: 360
Total Interest Paid: $181,221.08
Total Paid: $531,221.08👎

350,000 student loan at 4%:
Number of Payments: 360
Total Interest Paid: $251,543.27
Total Paid: $601,543.27👎thumbdown

350,000 student loan at 5%:
Number of Payments: 360
Total Interest Paid: $326,395.24
Total Paid: $676,395.24😕

350,000 student loan at 6%:
Number of Payments: 360
Total Interest Paid: $405,433.66
Total Paid: $755,433.66😡

350,000 student loan at 7%:
Number of Payments: 360
Total Interest Paid: $488,281.14
Total Paid: $838,281.14😱

350,000 student loan at 8%:
Number of Payments: 360
Total Interest Paid: $574,543.36
Total Paid: $924,543.36😱

350,000 student loan at 9%:
Number of Payments: 360
Total Interest Paid: $663,824.50
Total Paid: $1,013,824.50

Today's government-academic monopoly on student loans is reducing the present and future population of America to nothing less than slavery...bondage at the barrel of the bank-academic complex...at best it might be argued its a return of 'indentured servitude":

Prior to the laws being changed over the last decade (for the sole benefit of the central bankers), in America this was illegal and referred to as USURY. RIP America.

Of course, the generation that is getting away with it wasn't subjected to it by their fore-bearers (specifically the baby boomers argh!!)

In my mid 30s I have learned the last thing to do is be caught with your proverbial pants down hoping for wholesome corrective change from this present government we the people under about age 50 are yoked with.

The present government is built upon the scheme of legalized counterfeiting via the so-called 'Federal' Reserve (private cabal of entirely private banks responsible for paying their debts with printed up funny money worth no more than the paper its been printed on)

Think about it. We go to school in america for decades and yet there is one thing NEVER taught. Here is a good start of an education in it:

https://www.youtube.com/watch?v=jqvKjsIxT_8

https://www.youtube.com/watch?v=Ssa5WNnbGsw

Man. That is exactly why I am considering not to go to dental school. Where I am looking at 430k to be only the principle. I am looking at somewhere close to A MILLION dollar after my loans are paid off in 30 years.. ..... Maybe i should just chose another career.

 

[NAVY DDS 2010]

Man. That is exactly why I am considering not to go to dental school. Where I am looking at 430k to be only the principle. I am looking at somewhere close to A MILLION dollar after my loans are paid off in 30 years.. ..... Maybe i should just chose another career.

Threads like this is why it is so bad for young, impressionable predents to visit. These numbers are based on paying back in 30 years. Rarely does anyone ever do 30 yrs unless thy have an unbelievablely low refinance rate. Most people pay it off between 10 to 20 yrs. which is considerably less cost overall.

Plus, work your butt off in college and get accepted to a school where the tuition is cheaper so you don't even have to worry about $350,000 in student loans.

 

[HopefulDMD88]

I worked in the service industry fulltime (waiting tables) for 3 years in between undergraduate school and now starting dental school in the fall.

I completely supported myself (including buying my own health insurance) making less that $20,000 a year.

As long as you are willing to sacrifice some comforts (don't lease a brand new Lexus straight out of dental school) I see no reason why you can't be OK even with these ridiculous payment plans.

Get your first job (associate, corporate dentist, etc.), find out how much you will be making each month, calculate your monthly payments, and budget accordingly.

Every other citizen in this country has done this in numerous fields for decades. Welcome to adulthood.

 

[yappy]

Do you guys see anything wrong with this financial picture/plan?

Debt:

$200k total education debt @ 6.7% interest on 4 year repayment = $221,328.84 total
Total Interest paid = $21,328.84

Monthly payment: $6,148.02

Income

120k per year
Monthly net (with 2 fed allowances and no other deductions): $7,748.96

[Monthly Net Income] - [Monthly Loan Payment] = 1600.96.

New assumption:

NHSC Repayment @ 60k / 24 month period during four year loan repayment period (120k total).

60k installment will lower debt to 140k or $4,303.62 per month during the first two year repayment period. Therefore, $3445.34/ month take home.

I don't really know how to calculate the effect of the second 60k installment; however, it would seem at that point the loans would be fairly manageable.

NHSC seems like a decent option if you can find a suitable site.