What would you do?

[shinaim]

I am looking for advice and would love your input.

I am really worried about taking on debt for dental school. Even though I know that the earning potential of a dentist makes it worthwhile, I have a slightly unique situation because I want to live overseas. I know that I will not make as much as a dentist practicing in the US does. In the country that I want to live in dentists earn an average $75k/year.


Here are my options:

1. My state school which will cost ~$150k for four years.

OR

2. A dental school in the country that I want to eventually live in. Tuition is ~$2000/year for six years.


What are some of the things I should take into account?

I know that I wouldn't be able to practice in the US with a foreign degree but that doesn't really bother me. Is two extra years of school worth the money?

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[whlee84]

Are you sure the tuition in your country is $2000 per year?? Cause that's dirty cheap...if that's the real tuition, and you want to eventually practice in that country, go with option 2 without a doubt!

 

[Daurang]

If you take out a private loan from a USA creditor and then leave the USA to practice outside the USA, you can default on your loan and there's nothing they can do. Education loan debt stays with you forever and they will go after you even 30 years later; don't practice in the USA or they'll garnish your wage. Basically, you're going to school for free so debt is no longer a factor.

 

[UndergradGuy7]

What country (just curious)?

 

[shinaim]

If you take out a private loan from a USA creditor and then leave the USA to practice outside the USA, you can default on your loan and there's nothing they can do. Education loan debt stays with you forever and they will go after you even 30 years later; don't practice in the USA or they'll garnish your wage. Basically, you're going to school for free so debt is no longer a factor.

Thanks for that. Interesting perspective but I would never take out a loan with no intention of paying it back.

 

[Gitana]

I just received some communication from my student loan lender TODAY about the different repayment options and one of them came to mind when reading your post, it's called "Income Based Repayment" (not Income Sensitive, that's a different one). Basically you extend your payments over 25 years and every year you have to submit your financial statement and payments are adjusted so that they don't go over 15% of your discretionary income. After 25 years of payments whatever balance there is will be forgiven.

Like I said, this information is very up to date, I received the letter today. What I'm not sure is if living out of the country would affect it in some way because your discretionary income is adjusted according to the federal poverty line. You might want to look into that.

 

[youknowthedrill]

If you take out a private loan from a USA creditor and then leave the USA to practice outside the USA, you can default on your loan and there's nothing they can do. Education loan debt stays with you forever and they will go after you even 30 years later; don't practice in the USA or they'll garnish your wage. Basically, you're going to school for free so debt is no longer a factor.

I'm glad most dentists have ethics, because you certainly don't.

 

[mike3kgt]

I'm glad most dentists have ethics

Don't know where you are getting your source from but I don't know if I would be quoted as saying "most" but "many" is more appropriate.

I was surprised to see that his comment was in the second response to the OP's question. Gotta love America.

 

[shinaim]

I just received some communication from my student loan lender TODAY about the different repayment options and one of them came to mind when reading your post, it's called "Income Based Repayment" (not Income Sensitive, that's a different one). Basically you extend your payments over 25 years and every year you have to submit your financial statement and payments are adjusted so that they don't go over 15% of your discretionary income. After 25 years of payments whatever balance there is will be forgiven.

Like I said, this information is very up to date, I received the letter today. What I'm not sure is if living out of the country would affect it in some way because your discretionary income is adjusted according to the federal poverty line. You might want to look into that.

Great point.

I found some really good information on IBR here: www.ibrinfo.org for anyone else who may be interested.

 

[allover]

I just received some communication from my student loan lender TODAY about the different repayment options and one of them came to mind when reading your post, it's called "Income Based Repayment" (not Income Sensitive, that's a different one). Basically you extend your payments over 25 years and every year you have to submit your financial statement and payments are adjusted so that they don't go over 15% of your discretionary income. After 25 years of payments whatever balance there is will be forgiven.

Like I said, this information is very up to date, I received the letter today. What I'm not sure is if living out of the country would affect it in some way because your discretionary income is adjusted according to the federal poverty line. You might want to look into that.

so on the IBR calculator Id need to put my net income (after taxes)?

 

[Gitana]

Unless you have one of those special situations I would use the gross.