Will be graduating with 300k debt with private loans...HELP

[NEU2014]

Hi guys,

I am a student in a 6 year PharmD program... I had no other way to pay for my loans then to take out loans. I'm paying around 50k a year for 6 years. I'm currently in the 3rd year and wondering if there is anything I can do to make my future any better.

Also, my loans are from Bank of America (private). When I went to get my loans, my family just suggested I go to the bank and get them. I didn't think of it too much. Is this bad, why so?

What can I do to mend this? Are there any scholarships, federal loans..anythinggg else? How does one go about getting these? Is every student entitled to federal loans? I'm kind of dumb when it comes to these things, but I was just told by a friend on this site that there might be something I could do about this...



-Any help will be appreciated.

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[rph3664]

Hi guys,

I am a student in a 6 year PharmD program... I had no other way to pay for my loans then to take out loans. I'm paying around 50k a year for 6 years. I'm currently in the 3rd year and wondering if there is anything I can do to make my future any better.

Worst thing... My loans are from Bank of America (private). When I went to get my loans, my family just suggested I go to the bank and get them. I didn't think of it too much. Is this bad, why so?

What can I do to mend this? Are there any scholarships, federal loans..anythinggg else? How does one go about getting these? Is every student entitled to federal loans? I'm kind of dumb when it comes to these things, but I was just told by a friend on this site that there might be something I could do about this...



-Any help will be appreciated.

Talk to your school's financial aid office. They have one, don't they?

 

[Momus]

Moonlighting when you graduate, and live like a hermit for 4 years to get it down to $100k at least...

At $300k, a 6% interest, you will be paying additional ~$1500/month in interest only over the life of the loan... That's higher than getting a mortgage nowadays at 4.3%...

Reduce it to $100k, you'd be saving $1000/month...

 

[NEU2014]

Talk to your school's financial aid office. They have one, don't they?

I wish they were helpful as I would have hoped.

 

[NEU2014]

Moonlighting when you graduate, and live like a hermit for 4 years to get it down to $100k at least...

At $300k, a 6% interest, you will be paying additional ~$1500/month in interest only over the life of the loan... That's higher than getting a mortgage nowadays at 4.3%...

Reduce it to $100k, you'd be saving $1000/month...

Yeah, my loans are at 7%...I put it into a loan calculator and assuming I make 70k take home pay after I graduate...It will take me 8 years to pay it off assuming I can somehow live off 15k/yr for those 8 years.

Now, I know I'm in the rough, just wondering if theres any scholarships or ways I can somehow mend this as much as possible.

 

[nafcillin]

not that I know of, sorry. How did it get all the way up to 300k? did you go to a private school? that would overwhelm me!

 

[NEU2014]

not that I know of, sorry. How did it get all the way up to 300k? did you go to a private school? that would overwhelm me!

private school, 50k x 6 = 300k! my parents are paying the interest while im in school, but once i graduate, its all me! believe me, i'm VERY overwhelmed...

 

[Allure]

Is there a reason why you are not qualified for financial aid? If you are not an international student and your school is not a brand new stand alone pharmacy school, you should be able to apply for fafsa and get some loans through the government.

 

[Its Z]

you must be out of ur mind to have made that stupid financial decision. pharmd education aint worth 300k investment worthy. go to med school and become a plastic surgeon.

good rule of thumb is to borrow bout annual salary of the profession.

u will be screwed financially rest of ur life to go through with it.

 

[rxforlife2004]

you must be out of ur mind to have made that stupid financial decision. pharmd education aint worth 300k investment worthy. go to med school and become a plastic surgeon.

good rule of thumb is to borrow bout annual salary of the profession.

u will be screwed financially rest of ur life to go through with it.

I have the same thoughts, too...very dumb...indeed.

 

[NEU2014]

you must be out of ur mind to have made that stupid financial decision. pharmd education aint worth 300k investment worthy. go to med school and become a plastic surgeon.

good rule of thumb is to borrow bout annual salary of the profession.

u will be screwed financially rest of ur life to go through with it.

Thanks for the kind words.

and that's why I'm posting on here. I'm upset enough, I'm looking for ways in which I can hopefully make it better, not the other way around. Is there some kind of scholarships that I may be eligible for? Is it worth it to switch to federal loans (assuming I qualify) ?

 

[Caverject]

transfer to ohio state or ohio northern if your a state resident...

 

[Its Z]

Thanks for the kind words.

and that's why I'm posting on here. I'm upset enough, I'm looking for ways in which I can hopefully make it better, not the other way around. Is there some kind of scholarships that I may be eligible for? Is it worth it to switch to federal loans (assuming I qualify) ?

seriously dood, the issuue is the gouging tuition for the product thats not woth it. its like this. consider pharmd as a honda civic which dealers are selling for 20k. then theres a dealer selling it for 40k and ur buying it. change the course and opt for a higher paying profession if ur gonna borrow that much.

theres no free money for pharmd.

 

[Its Z]

shoot..for 300k i would buy a small mcdonald franchise..

 

[Filler]

Hi guys,

I am a student in a 6 year PharmD program... I had no other way to pay for my loans then to take out loans. I'm paying around 50k a year for 6 years. I'm currently in the 3rd year and wondering if there is anything I can do to make my future any better.

Worst thing... My loans are from Bank of America (private). When I went to get my loans, my family just suggested I go to the bank and get them. I didn't think of it too much. Is this bad, why so?

What can I do to mend this? Are there any scholarships, federal loans..anythinggg else? How does one go about getting these? Is every student entitled to federal loans? I'm kind of dumb when it comes to these things, but I was just told by a friend on this site that there might be something I could do about this...



-Any help will be appreciated.

Does the 50K include housing/living expenses also? What I don't understand is, if it's a 6 year program aren't the first two years considered the "pre-professional" years? They still managed to charge you full price tuition on that? I was always under the assumption that the first two years were cheaper compared to the last four years.

 

[Its Z]

holy crap...so private loan at 7 percent for 6 years at 50k per year is 61k in interest only while ur in school....then 300k amortized for 30 years....thats like 3 quarters of a million...

oh hell no.

 

[NEU2014]

shoot..for 300k i would buy a small mcdonald franchise..

well, im in my third year now...already down about 130k...got around 150k left for the rest of my pharmd...it makes more sense to go through with it now then quit or switch to premed. I was just thinking there was something I could do, maybe I was mistaken... eitherway I appreciate the input.

 

[homeslice]

Just the title of this thread made me cringe.

 

[NEU2014]

Does the 50K include housing/living expenses also? What I don't understand is, if it's a 6 year program aren't the first two years considered the "pre-professional" years? They still managed to charge you full price tuition on that? I was always under the assumption that the first two years were cheaper compared to the last four years.

50k includes everything including living expenses and housing and all other costs. My program costs the same for the first 5 years, and then its 1/2 tuition for the last year.

pre-professional and professional years have the same tuition.

 

[type b pharmD]

dude, dont worry, stay calm. just work for a university, military, public health service, indian health service, or a non profit hospital.

all loans forgiven after 10 years, and you only pay like 12% of your after tax income on payments during that time

 

[Its Z]

what kind of bastard scums of the earth think its ok to charge that kind of money for pharmacy education???

bring back pulic stoning

 

[N974]

Step one.....RELAX
You will be fine.
First thing you need to do (right now) is to get FEDERAL FINANCIAL AID. The first 7k or so of a Stafford Loan is INTEREST FREE FOR EVERYONE, until you graduate. The rest of it will be 7% or so. The best thing about FEDERAL loans is there are many more options for repayment, and hardship deferrals. You can still get federal loans for this year.

Longer term I would be looking hard at a pharm tech job over the summers at a place with loan repayment. I would also consider working while you are in school.

The good news is with all your interest you will owe very little if any federal income tax when you graduate. That will help pay down your loans. Your 6 year program just turned into an 8 year program, with the final 2 years you working as a full fledged pharmacist, but living like you are still in college, a couple roomates, junky car etc. Take the best paying job anywhere, and room with people from the nearest college wherever that may be.

GOOD LUCK!

After those 2 years you should be down to 170k or so, and you will be in the same boat as many other people.

 

[NEU2014]

dude, dont worry, stay calm. just work for a university, military, public health service, indian health service, or a non profit hospital.

all loans forgiven after 10 years, and you only pay like 12% of your after tax income on payments during that time

does that work with private loans?

 

[SHC1984]

OP, there are jobs out there that pay MORE money and don't even require much schooling. Please don't go through with the 300K loan. That isn't worth it. There are people that make more money than pharmacists and don't have any student loans.
Work smart, not hard!

I will be 80K in the hole when I graduate and I think that is too much! So you will be INSANE if you go through with 300K!

 

[NEU2014]

OP, there are jobs out there that pay MORE money and don't even require much schooling. Please don't go through with the 300K loan. That isn't worth it. There are people that make more money than pharmacists and don't have any student loans.
Work smart, not hard!

I will be 80K in the hole when I graduate and I think that is too much! So you will be INSANE if you go through with 300K!

I understand, although I'm already 130k in debt. If i quit now, ill be 130k in debt with no degree. I understand it may not have been the smartest move, but as a high school grad, i was naiive. The only thing I saw was the shining pharmd at the end of the tunnel and didn't care how much $$ it would cost back then. If I could do it again, I probably would go to my state school and then apply to pharm school after I got my bachelors, although theres no point in looking back now.

-Thanks for your input

 

[Sparda29]

I'm in a similar situation but most of it is federal loans. I've been told that if you work in the public sector, student debt will be forgiven after 10 years of service.

 

[Its Z]

thank goodness there are unlimited amount those high paying public sector jobs!!

 

[Sparda29]

thank goodness there are unlimited amount those high paying public sector jobs!!

All I'm going to say is family connection.

 

[rxforlife2004]

get out...go back to PA school. I know a college offering an AS degree in Physician Assistant and the whole program (2 yr) costs only 50K. Do that NOW and you'll thank me later. 300K with a Pharm.D? Lol...what a joke.

 

[Theta16]

300K!!!

I'm currently paying around $14000/year for my PharmD and I thought that I was spending too much. You need to start applying for loans through FAFSA. Also take a look into the military. I'm not too familiar with that path, but there are a lot of helpful threads in this forum that can give you great information.

 

[type b pharmD]

thank goodness there are unlimited amount those high paying public sector jobs!!

doesnt have to be high paying. hell if i cant find a pharmacy job i'll go home and work for some $10/hr public university cafeteria job (loan payment at that income level is like $20/month) for 10 years. .bam. govt picks up the $250k tab after $20,000 in payments or so.

then again, money is pretty much meaningless to me. i'm aiming for an indy nuclear job (aka fairly low paying compared to in-demand retail chain) at this point and live like a student and pay off my 170k in ~5 ish years, but if that doesnt turn out, im sure i'll be fine. In my hometown its reasonable to get food, rent, and utilities all paid up for $500-550 a month. then again most people on here probably cant be expected to enjoy living in a studio, taking the bus, and spending $20 a week on food.

Point: you dont have to make lots of money to get by and enjoy life. as a pharmacist if you're taking home $5000-7000 a month.. live off $1500 a month.. you can pay off 300k in under 10 years.

 

[NEU2014]

get out...go back to PA school. I know a college offering an AS degree in Physician Assistant and the whole program (2 yr) costs only 50K. Do that NOW and you'll thank me later. 300K with a Pharm.D? Lol...what a joke.

Where does PA school come in here? I never mentioned PA school. I'm interested in pharm school, not PA school. I'm not interested in body fluids/diagnosing/blahh...I'm interested in pharmacy. My boyfriend is getting his masters as a PA, so I am certainly aware of the pros/cons associated with being a PA, but it's not for me, I'd rather be a pharmd.

I'm already halfway through pharm school, no way I'm quitting now

300K!!!

I'm currently paying around $14000/year for my PharmD and I thought that I was spending too much. You need to start applying for loans through FAFSA. Also take a look into the military. I'm not too familiar with that path, but there are a lot of helpful threads in this forum that can give you great information.

I contacted my financial aid office again, hopefully theyre more receptive this time around; military is not an option for me.

Step one.....RELAX
You will be fine.
First thing you need to do (right now) is to get FEDERAL FINANCIAL AID. The first 7k or so of a Stafford Loan is INTEREST FREE FOR EVERYONE, until you graduate. The rest of it will be 7% or so. The best thing about FEDERAL loans is there are many more options for repayment, and hardship deferrals. You can still get federal loans for this year.

Longer term I would be looking hard at a pharm tech job over the summers at a place with loan repayment. I would also consider working while you are in school.

The good news is with all your interest you will owe very little if any federal income tax when you graduate. That will help pay down your loans. Your 6 year program just turned into an 8 year program, with the final 2 years you working as a full fledged pharmacist, but living like you are still in college, a couple roomates, junky car etc. Take the best paying job anywhere, and room with people from the nearest college wherever that may be.

GOOD LUCK!

After those 2 years you should be down to 170k or so, and you will be in the same boat as many other people.

Thanks! It's quite depressing to see everyone just pound down on you, so itcertainly sounds good to have someone trying to give constructive criticism. I am going to aggressive seek out federal loans...I have no problem living like a college student, for say the first 5 years even... My parents just said ok loan, so lets go to the bank. I can't blame them either, they went to school in another country, so I guess now I can just do whatever I can to make my future better. Once again, thanks for the constructive advice, its quite a rarely on here

 

[TonyRx]

Sucks, but it's not the end of the world. You just have a tough tough hill to climb.

If you are able to take home around ~75k a year once you graduate, then you will have to buckle down and live off ~30k a year. At that pace you can throw a big chunk of money at it every year, in about 6-8 years you can knock it out.

Now that's not counting if you can also supplement your income with a 2nd job and/or have a wife or fiancee that works and can chip in too. A spouse that can take home 30-40k a year would be huge. You are just gonna have to take it very easy for a while, and tighten the financial screws until you can see the light again.

 

[TemSirolimus]

doesnt have to be high paying. hell if i cant find a pharmacy job i'll go home and work for some $10/hr public university cafeteria job (loan payment at that income level is like $20/month) for 10 years. .bam. govt picks up the $250k tab after $20,000 in payments or so.

then again, money is pretty much meaningless to me. i'm aiming for an indy nuclear job (aka fairly low paying compared to in-demand retail chain) at this point and live like a student and pay off my 170k in ~5 ish years, but if that doesnt turn out, im sure i'll be fine. In my hometown its reasonable to get food, rent, and utilities all paid up for $500-550 a month. then again most people on here probably cant be expected to enjoy living in a studio, taking the bus, and spending $20 a week on food.

Point: you dont have to make lots of money to get by and enjoy life. as a pharmacist if you're taking home $5000-7000 a month.. live off $1500 a month.. you can pay off 300k in under 10 years.

QFT
I don't care about money either. I must be one of the few that genuinely did not go into pharmacy for money, and thankfully, have not invested that much into it financially(lucked out and got some scholarships here and there).

If I can't get a pharmacy job, I will chalk it up as 'oh **** happens' and get the next job in line and be just as content.

 

[NEU2014]

wait, so can I do the IBR/forgiveness thing with private loans?

 

[VancTheTank]

does that work with private loans?

No, which is why you need to look at federal loans as soon as possible. Assuming you have not yet received the funds for the rest of your program, federal aid will offer you better repayment options for your last few years.

Also, do you own research on IBR. I think many people make it out to be more than it is.


Good luck!

 

[VancTheTank]

wait, so can I do the IBR/forgiveness thing with private loans?

Nope.

http://studentaid.ed.gov/students/attachments/siteresources/IBRQ&A_template_123109_FINAL.pdf

 

[NEU2014]

No, which is why you need to look at federal loans as soon as possible. Assuming you have not yet received the funds for the rest of your program, federal aid will offer you better repayment options for your last few years.

Also, do you own research on IBR. I think many people make it out to be more than it is.


Good luck!

Nope.

http://studentaid.ed.gov/students/attachments/siteresources/IBRQ&A_template_123109_FINAL.pdf

Thanks for your help. I will look into federal loans ASAP.

 

[VancTheTank]

And on the topic of IBR, it bugs me that someone making a pharmacist salary can possibly qualify for this. If you can't make the payments don't take out the loan. The rest of us don't want to pay it off for you. (not directed at the OP, just a rant)

 

[owlegrad]

And on the topic of IBR, it bugs me that someone making a pharmacist salary can possibly qualify for this. If you can't make the payments don't take out the loan. The rest of us don't want to pay it off for you. (not directed at the OP, just a rant)

I agree. Aid should be for the less fortunate, not the top 10%.

 

[SHC1984]

And on the topic of IBR, it bugs me that someone making a pharmacist salary can possibly qualify for this. If you can't make the payments don't take out the loan. The rest of us don't want to pay it off for you. (not directed at the OP, just a rant)

I agree with this 100%. There should be no such thing as loan forgiveness...how is that fair to the people that pay for their tuition all by themselves or if their parents paid for it? It's not fair to those people at all.

 

[owlegrad]

I agree with this 100%. There should be no such thing as loan forgiveness...how is that fair to the people that pay for their tuition all by themselves or if their parents paid for it? It's not fair to those people at all.

Way to take it to the opposite extreme...

 

[SHC1984]

Way to take it to the opposite extreme...

I just don't see how that is fair to the people that actually paid for their tuition straight out of their own pockets. Loan forgiveness means you are using OTHER people's hard earn money to benefit yourself...I don't see how that can possibly be fair at all.

And yes I think Obama is an idiot with all his new laws, but that's getting off topic! lol...

 

[carmel2r]

its sad that someone posts for help and out of all the posts only one of them is helpful (N974)

I agree with N974 in that you need to seek financial aid. My worry is that you may be an international student? because you should have been filing FAFSA out every valentine's day and once you fill fafsa if you qualify for any federal aid, a reward letter is sent to your school.
The other case is FAFSA bases your aid on your parents income if you are considered a dependent ( age 23 or younger and other cases qualify you as a dependent ).
After you find out how much aid you can receive( you won't know until spring semester ) then you can decide what to do with your private loans. What people don't know is that you don't have to take the private loans money or all of the money. So lets say that your federal aid covers you tuition and living expenses for the next 3 years, you won't have to take the private loans money anymore but can still defer payments of the first 3 years that you already spent.
another case is the federal aid might not FULLY cover your tuition/ living expenses. Take the minimum amount you need from the private loan and give back the rest. You can also talk to bank of america and re-negotiate for a smaller amount etc.
The other option is to stop continuing using the private loan and only use federal aid and get a job or work at school or etc. (which is hard in pharmacy school but possible)
anyway good luck. either way when you graduate from pharmacy school, even if you have huge or small amount of loans, we should all be spending smartly and working to pay down our loans asap.

 

[owlegrad]

I just don't see how that is fair to the people that actually paid for their tuition straight out of their own pockets. Loan forgiveness means you are using OTHER people's hard earn money to benefit yourself...I don't see how that can possibly be fair at all.

You have the same definition of fair as a second grader. What about someone who becomes disabled? Or works a low paying job that somehow benefits society (social worker for example)? Or is just down on their luck and cannot get a job? To say that their should be no forgivness AT ALL is just... I cannot come up with a word for it.

 

[NEU2014]

I'm a US citizen born and brought up right here in Massachusetts, fyi

 

[owlegrad]

And yes I think Obama is an idiot with all his new laws, but that's getting off topic! lol...

lol indeed

 

[VancTheTank]

its sad that someone posts for help and out of all the posts only one of them is helpful (N974)
.

I think the rest of us are trying to help as well... Although this is a situation best addressed by prevention as a few others have expressed in not so kind terms.

To supplement some of the other advice in the above posts, remember that the ability to deduct loan interest phases out at higher income levels. Most full time pharmacists are not eligible to deduct loan interest. Another example of an incentive that is not intended for high earners.

To the op: minimize additional private loans, take federal loans if you are able, and work when you can to reduce the amount you need to borrow. And above all, start taking steps now to secure a position after graduation.

 

[Sparda29]

I just don't see how that is fair to the people that actually paid for their tuition straight out of their own pockets. Loan forgiveness means you are using OTHER people's hard earn money to benefit yourself...I don't see how that can possibly be fair at all.

And yes I think Obama is an idiot with all his new laws, but that's getting off topic! lol...

Yes because, if you can't pay tuition, you shouldn't be able to go to college.

Higher education is a right not a privilege.

 

[pharm B]

I think the rest of us are trying to help as well... Although this is a situation best addressed by prevention as a few others have expressed in not so kind terms.

To supplement some of the other advice in the above posts, remember that the ability to deduct loan interest phases out at higher income levels. Most full time pharmacists are not eligible to deduct loan interest. Another example of an incentive that is not intended for high earners.

To the op: minimize additional private loans, take federal loans if you are able, and work when you can to reduce the amount you need to borrow. And above all, start taking steps now to secure a position after graduation.

Would it also be prudent to advise the OP to look into public service options? The military and similar organizations usually have some form of loan repayment plans. Granted, they won't cover you entirely, but every penny you don't have to pay (with interest) is worth considering.