Student Loans

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zmkelchn

patagomate
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  1. Pre-Health (Field Undecided)
For those who are residents and practicing podiatric physicians, has it been fairly easy to pay back student debt? Coming out around $150,000 in debt, it’s a bit intimidating to come out at twenty-five years old and have so much to pay back. This is not a direct salary question, but to most podiatric physicians feel as if they make enough to pay back loans while still living comfortably? While the salary may be slightly lower than some other medical specialties, I feel that at an average of $176,000 reported, student loans could be paid off comfortably, especially if one chooses to specialize in one area of podiatry. Any help and/or insight would be great!
 
It depends a lot on your "game plan" so to speak...

If you want to pay off your loans fast and have plenty of patients right off the bat, take a good salary/benefits job with variable productivity incentives in academics or patient care with a major corporation: hospital system, medical care center, VA, contracting health provider that will set you up for NH/WC/etc assignments, etc. Buy-in/out opportunities are obviously about zero, though; you are a hired gun and ceiling is consequently limited.

If you want a comparatively low salary but probably good bonus incentives once you get productive and some serious buy-in possibilities that are within reach, work with some other DPMs in a group. This is what the vast majority of residency grads nationwide seem to do.

If have good surg residency training and want a higher salary, better cases, and maybe higher bonus or signing incentives than most DPM groups will offer (but probably trading that for a sky high buy-in... if a buy-in opportunity at all), then try an ortho group or multispec physician group.

If you want a very low initial salary - probably additional debt instead of profit - but the sky as the limit with potentially exponential income down the line, then start your own practice or buy out an existing one, build the facilities and grow the patient base, and hire staff/associates/partners as you go.

There are pros and cons to each.... Whatever you do, get a good lawyer and an accountant to negotiate and help you understand your options. Nobody can really comment intelligently on each possible DPM career avenue since nobody's been down them all. You have to pick what suits you, but it's great that we have options. If you go to Barry, you'll have a great practice management course which gives an overview of contracts, job types, billing basics, etc. At any pod school, you can also join a student chapter of AAPPM (dot org).
 
For those who are residents and practicing podiatric physicians, has it been fairly easy to pay back student debt? Coming out around $150,000 in debt, it’s a bit intimidating to come out at twenty-five years old and have so much to pay back. This is not a direct salary question, but to most podiatric physicians feel as if they make enough to pay back loans while still living comfortably? While the salary may be slightly lower than some other medical specialties, I feel that at an average of $176,000 reported, student loans could be paid off comfortably, especially if one chooses to specialize in one area of podiatry. Any help and/or insight would be great!

Come out at 25? I didn't even start pod school until I was 26. It was hard for me the initial couple of years since I started my own practice and didn't have any income for the first six months, but after my income got steady it wasn't a problem.

What's the student loan interest rate? 6.8%?
http://www.salliemae.com/get_student_loan/apply_student_loan/interest_rates_fees/#Stafford

Here's an amortization table:
http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx

$150,000 at 6.8% on a 10 year note = $1726/month
$150,000 at 6.8% on a 30 year note = $978/month
 
There are pros and cons to each.... Whatever you do, get a good lawyer and an accountant to negotiate and help you understand your options. Nobody can really comment intelligently on each possible DPM career avenue since nobody's been down them all. You have to pick what suits you, but it's great that we have options. If you go to Barry, you'll have a great practice management course which gives an overview of contracts, job types, billing basics, etc. At any pod school, you can also join a student chapter of AAPPM (dot org).

Just to add to this bit of info that Feli provided, OCPM now has a 4-year practice management course that is sponsored by the AAPPM and funded by the founder of Powersteps. I believe all of the other schools are working to start classes like this in the relatively near future as well.

To the OP, I am still in school and cannot speak to the 'ease' of repayment, but I can tell you that in this day 150k probably puts you at a little less than the average loan debt for graduating students and at 25, you'll be one of the younger graduating students, so if you set your goals and work hard you should be 'OK.'
 
Another potential option is to apply for a position in the Indian Health Service (IHS). Through this government program you sign up for a 2 year commitment working with a particular Native American tribe/reservation as a DPM. In addition to drawing a salary you'll also be given $20,000 each year that goes toward paying down your student loans. Unfortunately, I'm not sure what the salary ranges are (though I'm sure they vary by factors such as the tribe/reservation and geographical location), you still at least are contributing a sizable chunk of money toward your loans early on in the repayment process, thus avoiding large interest accumulation. Plus, you can even apply to stay on with the IHS after your 2 year commitment and continue drawing both a salary and the $20,000 toward your loans for each year you work for them.

My MPH adviser spent a few years working with the IHS, he payed down his loans from medical school much quicker than the average graduate, and he thoroughly enjoyed his experience.

Just another option to think about 🙂
 
👍Thanks for all the input! Feli, I did see that some schools are starting practice management courses at well. It's too early for me to know what kind of practice I will be in, but I would like to specialize. It's good to hear some thoughts form residents and practicing podiatrists. I guess I will be one of the younger ones, although I'll be around 29 when I get out of residency. Ill also have to look into that government service mentioned, that sounds very interesting and helpful for paying off debt. Best of luck to everyone!
 
...Coming out around $150,000 in debt, it's a bit intimidating ...

...I feel that at an average of $176,000 reported, student loans could be paid off comfortably...
Waydumminit! Just pay off your loans the first year out...

If you figure $176k minus $150k, then you still have $24k to spare. Problem solved, thread over. Sure, you might have to eat some mac and cheese, drink Milwaukee's Best, and live in a studio apt or your parent's couch during that year, but it's only for a year. 😎
 
Waydumminit! Just pay off your loans the first year out...

If you figure $176k minus $150k, then you still have $24k to spare. Problem solved, thread over. Sure, you might have to eat some mac and cheese, drink Milwaukee's Best, and live in a studio apt or your parent's couch during that year, but it's only for a year. 😎

:laugh: I hear evading the IRS isn't nearly as hard as it used to be, too. 😉
 
Waydumminit! Just pay off your loans the first year out...

If you figure $176k minus $150k, then you still have $24k to spare. Problem solved, thread over. Sure, you might have to eat some mac and cheese, drink Milwaukee's Best, and live in a studio apt or your parent's couch during that year, but it's only for a year. 😎

True, Great idea!! I have a good size tent and a warm sleeping bag, so that should do it haha...really though, if you really live below your means (not this much though :laugh:), you should be able to pay off a considerable about I would think. Furthermore, I’m sure salary IN GENERAL will go up with more surgical and fellowship training.
 
A question for Feli and other current residents...are you making payments on your loans currently? Or did you enter forbearance? Or did you jump through the economic hardship hoops (is that still an option)? Just curious as to what you and others are personally doing...
 
A question for Feli and other current residents...are you making payments on your loans currently? Or did you enter forbearance? Or did you jump through the economic hardship hoops (is that still an option)? Just curious as to what you and others are personally doing...

Good question...I was wondering that too. Must you start paying off loans during your first year of residency? I know personally, I would want to start as early as possible, but just wondering if there are many options.
 
Good question...I was wondering that too. Must you start paying off loans during your first year of residency? I know personally, I would want to start as early as possible, but just wondering if there are many options.

For the HPSL and even the Perkins loans (depends on when you got the Perkins loans), you will be able to defer these loans through residency. For majority of the Stafford Loans (with exception of very very few lenders), residency training is not a criteria for deferring loan payments. The only way to delay your repayment is to apply for forebearance or deferment via economic hardship. However, you can only do the economic hardship for so many years. Remember, deferment means that the subsidized portion of the Stafford Loans will not accrue interest, while the unsubsidized portion will still accrue interest. If you consolidate your loans together, only the subsidized portion will not accrue interest and everything else will accrue interest. In forebearance, everything accrues interest. You will be given the option to pay off the interest. If you don't, the interest will be added to your principle loan amount. Hence, you will be paying interest on accrued interest later.

In terms of the private loans, you will need to find out with those private lenders if you can defer loans repayment during residency training.

Hopefully, this helps.
 
A question for Feli and other current residents...are you making payments on your loans currently? Or did you enter forbearance? Or did you jump through the economic hardship hoops (is that still an option)? Just curious as to what you and others are personally doing...
I'm in residency/fellowship forebearance... they are rolling interest.

My residency pays pretty well and is in an area with low cost of living, but I'm currently saving any extra money I have to pay down higher interest debts (credit card expenses from residency relocation, etc) or just banking some as a likely downpayment on a larger loan that I'll probably use to buy in/out or start up a practice after residency.

Paying the interest on your student loans is a good idea during your residency if you have no higher interest debt. I really doubt many residents can afford to pay past the interest and even into the principle, but maybe some could? Whatever you choose, just make sure you always have the scheduled payments or paperwork in on time so you keep your credit score good. 👍
 
If you figure $176k minus $150k, then you still have $24k to spare. Problem solved, thread over.

Great idea. If you find a way to keep from paying nearly half of your income in taxes let me know. Otherwise if you could live off 24k you would probably only have 80k to pay towards that loan debt after taxes.
 
Another potential option is to apply for a position in the Indian Health Service (IHS). Through this government program you sign up for a 2 year commitment working with a particular Native American tribe/reservation as a DPM. In addition to drawing a salary you'll also be given $20,000 each year that goes toward paying down your student loans. Unfortunately, I'm not sure what the salary ranges are (though I'm sure they vary by factors such as the tribe/reservation and geographical location), you still at least are contributing a sizable chunk of money toward your loans early on in the repayment process, thus avoiding large interest accumulation. Plus, you can even apply to stay on with the IHS after your 2 year commitment and continue drawing both a salary and the $20,000 toward your loans for each year you work for them.

My MPH adviser spent a few years working with the IHS, he payed down his loans from medical school much quicker than the average graduate, and he thoroughly enjoyed his experience.

Just another option to think about 🙂

Here's something I found:

http://www.ihs.gov/jobscareerdevelop/careerCenter/Vacancy/pdf/37662-09212009102701.pdf
 
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