Tuition vs. Reimbursement

[ToldYouSo]

Hey guys! I am going to be a college freshman and I'm also going to be attending NYUCD in 2013. I'll have about 15-20k in undergraduate loans, NYU's tuition is super high now, I don't even want to think of how it will be in 3 years.


I've only sparsely read some threads about the possible changes of healthcare reimbursement under Obama. Is it possible that tuition will keep rising (I know this WILL happen) while sometime in the future salaries/reimbursements go down? Punching in the numbers makes me slightly worried.

---

Members don't see this ad.

 

[TedyBearSuicide]

You already got into NYU dental school?

Nothing is definite about Obamacare as of yet, but up to this point it seems like dental care is not included in his bill.

 

[ToldYouSo]

Thx for your answer! I am in a joint degree program.

 

[xhamburgersamx]

You'll probably owe between 400-500k by the time you finish NYUCD in 2017

edit: actually probably closer to 500k or more because a lot of my friends graduating this year owe around 380-400k

 

[ToldYouSo]

You'll probably owe between 400-500k by the time you finish NYUCD in 2017

edit: actually probably closer to 500k or more because a lot of my friends graduating this year owe around 380-400k

ughhhh, No house or practice for a while X)

 

[BiomajorPreDent]

Nah, you will be fine..doctors are graduating with $300,000+ every year..and none of them are starving.

You can get government loans and consolidate everything into low interest payments when you graduate. Also..one good thing about this Obama stuff is the new repayment plan on student loans, they will be locked at like 3.5% AND you will only have to pay back based on a percentage of your income.

Consolidating, you will have low payments and you will be able to buy a practice and a house, and then pay off the rest of your loans once you start making big $.

Think of it as good debt, because you will be building great credit as you pay it off.
Income Contingent Repayment

(not available for parent PLUS loans)
This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:

1. the amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or
2. 20% of your monthly discretionary income*.

If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized.
The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.

http://www.ed.gov/offices/OSFAP/DirectLoan/RepayCalc/dlindex2.html

 

[xhamburgersamx]

Nah, you will be fine..doctors are graduating with $300,000+ every year..and none of them are starving.

You can get government loans and consolidate everything into low interest payments when you graduate. Also..one good thing about this Obama stuff is the new repayment plan on student loans, they will be locked at like 3.5% AND you will only have to pay back based on a percentage of your income.

Consolidating, you will have low payments and you will be able to buy a practice and a house, and then pay off the rest of your loans once you start making big $.

Think of it as good debt, because you will be building great credit as you pay it off.
Income Contingent Repayment

(not available for parent PLUS loans)
This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:

1. the amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or
2. 20% of your monthly discretionary income*.

If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized.
The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.

http://www.ed.gov/offices/OSFAP/DirectLoan/RepayCalc/dlindex2.html

Do your research before you post information like this. ICR is for public service jobs that are low paying. Private practice does not count ..lol

If you owe 400k, you will end up paying that 400 + whatever interest accumulates and capitalizes over the years. While it is good debt, it is a debt nonetheless.

 

[TedyBearSuicide]

If you owe 400k, you will end up paying that 400 + whatever interest accumulates and capitalizes over the years. While it is good debt, it is a debt nonetheless.

Listen buddy, giving away part of your salary is no big deal when you are "making big $"

 

[xhamburgersamx]

Listen buddy, giving away part of your salary is no big deal when you are "making big $"

lol, never claimed it was a big deal, and what the OP never claimed what big $ was...

 

[AuFox]

You'll probably owe between 400-500k by the time you finish NYUCD in 2017

edit: actually probably closer to 500k or more because a lot of my friends graduating this year owe around 380-400k

How are people graduating with that much debt!? I thought most dental school tuition is generally in the realm of 100k-150k total for the 4 years. So lets say 20k/yr for living expenses (which I think is extremely generous). I see 230k total. How are you getting 500k?

 

[lphiewok]

How are people graduating with that much debt!? I thought most dental school tuition is generally in the realm of 100k-150k total for the 4 years. So lets say 20k/yr for living expenses (which I think is extremely generous). I see 230k total. How are you getting 500k?

actually NYU comes out to be about 100K each year.

if you go to their website, their education fees is about 64K/yr and living expenses is about 30K/yr. so it's about 100K/year and for 4 years it'll definitely come out to 400-500K.

do little research

 

[AuFox]

actually NYU comes out to be about 100K each year.

if you go to their website, their education fees is about 64K/yr and living expenses is about 30K/yr. so it's about 100K/year and for 4 years it'll definitely come out to 400-500K.

do little research

First off, I meant the average dental school. It didn't have to be NYU (which is on the expensive side). Secondly, I just go to predents.com and look at their 4 year tuition total for schools and MOST dental schools were between 100-150k for 4 years tuition. So I wouldn't say I've researched it, but I didn't just make the numbers up.

Edit: Looking through more predents more thoroughly shows median is between 150-175k. I'll compute an actual average from predents info for OOS 4 yr tuitions.

 

[AuFox]

Avg based on predents 4 yr tuition total for OOS students is $154,978.27.

 

[TedyBearSuicide]

First off, I meant the average dental school. It didn't have to be NYU (which is on the expensive side). Secondly, I just go to predents.com and look at their 4 year tuition total for schools and MOST dental schools were between 100-150k for 4 years tuition. So I wouldn't say I've researched it, but I didn't just make the numbers up.

Edit: Looking through more predents more thoroughly shows median is between 150-175k. I'll compute an actual average from predents info for OOS 4 yr tuitions.

Average dental school cost is irrelevant in this thread. Here we are discussing only NYU and other dental schools with similar cost.

 

[burnzee06]

Avg based on predents 4 yr tuition total for OOS students is $154,978.27.

but your average tuition does not include cost of living for four years. considering that almost all students have to use loan money for living expenses, i would say the more realistic average is closer to $200,000.

 

[BiomajorPreDent]

http://studentaid.ed.gov/PORTALSWebApp/students/english/IBRPlan.jsp

That was just one example, you dont need to work in the public sector for all of the programs..thats why I gave you the link to the website

As with this one above, the ten year public service is optional

 

[xhamburgersamx]

http://studentaid.ed.gov/PORTALSWebApp/students/english/IBRPlan.jsp

That was just one example, you dont need to work in the public sector for all of the programs..thats why I gave you the link to the website

As with this one above, the ten year public service is optional

Regardless of these programs, you will still end up paying more than you borrowed.

And this thread is for NYU specifically, most public schools are far less expensive. However, even the cheapest public schools with no financial support is going to run 200K+ with all your expenses and living costs calculated in.

 

[AuFox]

I guess I never thought a person would need to go into 400-500k of debt. I suppose it will be paid back considering dentists make a good salary.

I haven't taken out a loan yet. Is it easy to come by student loans that need to be that large? Or do you have to go to an actual bank?

 

[BiomajorPreDent]

Regardless of these programs, you will still end up paying more than you borrowed.

And this thread is for NYU specifically, most public schools are far less expensive. However, even the cheapest public schools with no financial support is going to run 200K+ with all your expenses and living costs calculated in.

Yes you will pay back more than you borrowed, but its over long term with low payments..Since the OP said he wouldnt have enough money to buy a practice and a house. So that is just one way to do it.

Another way would be to live like a bum for several years and dump everything you make into your loan repayments.

Whatever floats your boat.

Also, OP I think Obama's reforms are going to affect the MD's more than Dentists. Especially considering there are dentists that (once they are established ofcourse) take cash only and dont even deal with insurance.

 

[BiomajorPreDent]

I guess I never thought a person would need to go into 400-500k of debt. I suppose it will be paid back considering dentists make a good salary.

I haven't taken out a loan yet. Is it easy to come by student loans that need to be that large? Or do you have to go to an actual bank?

There are student government loans or you could go to a bank, but I dont know how deferring payments while your in school works with a bank.

 

[AuFox]

There are student government loans or you could go to a bank, but I dont know how deferring payments while your in school works with a bank.

Would you be able to take out 200k+ with government loans though?

 

[BiomajorPreDent]

Would you be able to take out 200k+ with government loans though?

You can take out quite a bit from the govt

http://www.gradloans.com/stafford_loan/

Its wierd..it says first and second years you can only take out $20,500 but then it goes on to say that the maximum total from stafford is about $138,000, only approx 65,000 of which can be subsidized, the rest is unsubsidized.

Subsidized means that the govt pays the interest while your in school, and unsubsidized means you pay all the interest, although I believe you can still defer your interest until after you graduate. I dont know much about it

Also there is the grad plus

http://www.gradloans.com/graduate-plus-loan/

It says there that it will pay for your cost of attendance minus any other financial aid you recieve, so thats a good deal too.

That gradloans website is pretty informative

 

[xhamburgersamx]

For my school, I'll jsut let you guys know that I am allowed to borrow the max subsidized stafford loan of $8500 per year and $36,444 of unsubsidized.

Gradplus covers the rest so in NYU's case close to 60k extra if you need it but it's adjusted to a "max" by your total financial need based on your school's cost of attendance.

You can always take out more private loans if you need extra cash but I doubt it unless you have a family or kids to support.

 

[ToldYouSo]

The replies make me feel much better. I seriously like the idea of going to a public in-state D-school for less $$$, but I don't want to deal with the whole app-process. Plus, the year of schooling I save more then makes up for it, thanks guys!

 

[lnsip9reg]

w/ say $400K in debt coming out of school, definitely do the 30yr repayment. in 10/20/30yrs time, inflation will consistently outpace your interest rate, and what you pay monthly will be less and less in today's dollars as time goes by.

i'll probably come out of school w/ about $220K in loans. i'm hoping to consolidate when i get out, but even if i can't i'm comfortable w/ my average rate of 6.8% as real inflation will still outpace that =).

 

[xhamburgersamx]

w/ say $400K in debt coming out of school, definitely do the 30yr repayment. in 10/20/30yrs time, inflation will consistently outpace your interest rate, and what you pay monthly will be less and less in today's dollars as time goes by.

i'll probably come out of school w/ about $220K in loans. i'm hoping to consolidate when i get out, but even if i can't i'm comfortable w/ my average rate of 6.8% as real inflation will still outpace that =).

Good post but the price of a dental education is worth it, just not in the very first couple of years of working =P

 

[ToldYouSo]

w/ say $400K in debt coming out of school, definitely do the 30yr repayment. in 10/20/30yrs time, inflation will consistently outpace your interest rate, and what you pay monthly will be less and less in today's dollars as time goes by.

i'll probably come out of school w/ about $220K in loans. i'm hoping to consolidate when i get out, but even if i can't i'm comfortable w/ my average rate of 6.8% as real inflation will still outpace that =).

Wow this is rly good advice. Inflation and consolidating at a lower interest rate seems like the best on a 30 year repayment schedule.

 

[BiomajorPreDent]

+1 yep

 

[ToldYouSo]

I was looking at different loan repayment plans, and the ICR (Income Contingent Repayment) looks great. Under even an extended plan I would end up paying over 3k + per month.

 

[BiomajorPreDent]

dont forget, your payments go down as time goes on, and (assuming you build a successful practice) your income goes up as time goes on.

 

[ToldYouSo]

dont forget, your payments go down as time goes on, and (assuming you build a successful practice) your income goes up as time goes on.

Encouraging, thx!