Too much debt to specialize?

[sirdeadcat]

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Hello Everyone.

I was just wondering how much does debt factor into people's decision to specialize. I'm about to start school, and I did a little calculation. I'll probably be looking at around 350k worth of debt after 4 years.

I vaguely know that i would like to specialize sometime down the road, but I was worried that having that much debt would make it difficult do so. If there are people with large debt loads specializing, I would like to know your insight into this matter.

Thanks.

 

[omaralt]

The biggest problem is that many residency's don't only not pay a stipend but actually charge tuition. Oral surgery is the or exception where all residencies pay a stipend. Most dental school associated residencies charge the same tuition as the dental school. For example endo, perio, ortho, and pedo residenies at NOVA all charge ~$40K/yr. That's nuts. I cant imagine being over $500K in debt before interest. I would think it's not worth it at that point. However if u find one that pays a stipend it may be worth it

 

[The Hammer]

Hello Everyone.

I was just wondering how much does debt factor into people's decision to specialize. I'm about to start school, and I did a little calculation. I'll probably be looking at around 350k worth of debt after 4 years.

I vaguely know that i would like to specialize sometime down the road, but I was worried that having that much debt would make it difficult do so. If there are people with large debt loads specializing, I would like to know your insight into this matter.

Thanks.

How many years do you have to pay the $350K off?

 

[zriceman]

How many years do you have to pay the $350K off?

i believe its 25 years max

 

[NAVY DDS 2010]

i believe its 25 years max

It really depends on where and when you took out the loans. My wife was able to consolidate her loans from pharmacy school for 30 yrs at 3%.

 

[zriceman]

It really depends on where and when you took out the loans. My wife was able to consolidate her loans from pharmacy school for 30 yrs at 3%.

I see. If i recall correctly, students who took out loans before 2006 were able to consolidate at lower interest rates and get the 30 year loan repayment period.

After 2006? students can still consolidate but the lowest would be 6.8% which is identical to stafford loan rates.

I haven't looked into whether consolidation would still give us the 30 year plan.

 

[The Hammer]

$350K with 20-30 years at 3%? WTF!! Why are you worried about debt keeping you from specializing? That is NOTHING! It may seem like a lot now but trust me, once you get into private practice it is NOTHING. As a GP two years out of dental school I paid off about $400,000 in 5 years. When I was 9 years out of dental school I borrowed $600,000 and paid it off in 4 years. If I had been a specialist it wouldn't have taken me that long to pay it back. Seriously, if you want to specialize go for it, don't let this stop you.

 

[jay47]

$350K with 20-30 years at 3%? WTF!! Why are you worried about debt keeping you from specializing? That is NOTHING! It may seem like a lot now but trust me, once you get into private practice it is NOTHING. As a GP two years out of dental school I paid off about $400,000 in 5 years. When I was 9 years out of dental school I borrowed $600,000 and paid it off in 4 years. If I had been a specialist it wouldn't have taken me that long to pay it back. Seriously, if you want to specialize go for it, don't let this stop you.

I think the trick here is 3% Hammer. Loans now would be at 6.8%, much higher interest. Almost $700 a month difference between the rates if you take the full 20 years to pay it off. That's a lot of spending money- but I think you are approaching it from the practical standpoint- get the loan monkey off your back early by paying back the loans heavily to begin with.

 

[GTFOOMICT]

I think the trick here is 3% Hammer. Loans now would be at 6.8%, much higher interest. Almost $700 a month difference between the rates if you take the full 20 years to pay it off. That's a lot of spending money- but I think you are approaching it from the practical standpoint- get the loan monkey off your back early by paying back the loans heavily to begin with.

Some of mine are @ 8.6%!! Those are the first to go. Every year I defer, costs me $3k in new interest.

 

[The Hammer]

I think the trick here is 3% Hammer. Loans now would be at 6.8%, much higher interest. Almost $700 a month difference between the rates if you take the full 20 years to pay it off. That's a lot of spending money- but I think you are approaching it from the practical standpoint- get the loan monkey off your back early by paying back the loans heavily to begin with.

The ones that I had were 8% over 5 years and 7.8% over seven years, I didn't have the option of paying it off over 20-30 years. In fact I just borrowed $300,000 to buy a new practice at 6.6% interest over 10 years. My monthly payment IIRC is about $3421.72 which could be pretty scary for someone right out of dental school but trust me, it's doable👍

 

[zriceman]

The ones that I had were 8% over 5 years and 7.8% over seven years, I didn't have the option of paying it off over 20-30 years. In fact I just borrowed $300,000 to buy a new practice at 6.6% interest over 10 years. My monthly payment IIRC is about $3421.72 which could be pretty scary for someone right out of dental school but trust me, it's doable👍

Are you saying your "era" of dental students didn't have Federal Loans that covered 100% cost of attendance with a maximum of 25 years of repayment?

 

[The Hammer]

Are you saying your "era" of dental students didn't have Federal Loans that covered 100% cost of attendance with a maximum of 25 years of repayment?

I don't know. I had the good fortune to have my grandfather die and leave me enough money to pay for dental school. I had $186 when I graduated. My wife however had about $45,000 still in loans