Only commit to HPSP or another service contract if you really think doing that job would be fun. Don't do it for the loans. Financially you will be better off scraping by and paying off loans post residency than going the HPSP route. This is because post residency you will make 2-3x more in private practice per year. Also, depending on your specialty you can often get hospitals or groups to help you with loan repayment (sometimes offered as sign-on bonuses). A study I read once said that only FPs came out even in the end no matter how they did it. So if that's the case why would anyone do HPSP? A few reasons really, they 1) want to serve anyway so why not get the money? or 2) have families and can't survive off loans alone.
About the loan amount....I personally just take what's offered without turning anything back, but I know of some people (especially those who have a working spouse) who make it off less. I'd say it's always better to take out more the first year because if you don't use it all you can let that amount roll over and take less the second year, whereas if you take less to begin with and get stuck you're...well.....
Hope this is somewhat helpful. Just my opinion.
HEY GUYS,
This is going to be expenisive, and I was just wondering if any of you are considering HPSP, FAP, or just the old (pay the loans off) method. I am thinking about FAP over HPSP, but not sure..... I just did taxes and FAFSA and was wondering what current students at DCOM are doing. Do they have any type of institutional assistance there at DCOM or what? Thanks for your help.
BTW - how much should the average person be taking out in loans per year? $50,000 ish ???
Hey doctorbean,
I am in the Navy, and it is definitely not a decision I made lightly, but there is a lot of misinformation out there. NP is right in that you definitely should not choose the military just to get your school paid for, otherwise you will get out and have the realization, "Oh my gosh, they actually want me to be in the military...it wasn't just a free ride!" I know that sounds kind of silly, but there are plenty of people with that attitude and they are all very unhappy.
Here's some reasons I chose the Navy: Travel (we have bases in Italy, Japan, Germany, etc.), no debt, awesome places to do residency and be stationed, the opportunity to treat those who give it all to protect our country, big fat 20k bonus, all expenses paid rotations at a Navy hospital (I will be going to San Diego and Virginia Beach)...and the list could be much longer.
About the amount of money: It is only true that a civilian doc would make more money than a Navy doc in very competitive fields (such as Ortho). Depending on your specialty you get very large bonuses to try to match what you would see in the civilian world...the military is not blind, they know that if they want to keep you, they have to pay you. Besides, the amount of money you make on paper is not everything. If you own your own practice you must provide your own health insurance and your own malpractice insurance, in the Navy, both are free. Think about how much that adds up to every year! We also get a tax-free allowance for housing (when you're active duty) and depending on where you live, that can be significant. I believe in a place like San Diego that is a couple of thousand dollars a month...TAX FREE!
As a resident, you make more than twice the amount that civilian residents make, so when your friends are scraping by on 35k/year, you'll be making roughly 90k (you can check online for the exact numbers). All of our residencies are dually accredited.
Last thing before I get off my soap box: NO ONE is going to spend 3/4 of their paycheck to pay back their student loans. After scraping by for that many years the first thing you're going to do is go out and get more debt...a big house, a nice car, etc. Meanwhile, your interest is piling up on your $200k worth of student loans. With interest around 5-10%, that's significant. You'll be paying those back for 30 years and by the time you're done, I guarantee you've paid back over double what you borrowed in the first place.
So...definitely don't join the military just for the money, but don't discount the money either, it's not as insignificant as many think.
By the way, ~55k is what the school will borrow for you every year, not to mention the credit card debt you will likely accumulate when you go to some of the amazing conferences that will be available to you. If you need any more info, or if you're interested, PM me and we'll talk more...that goes for anyone.
Has anyone received thier financial award letter yet or is it too early. I have already sent in all my stuff (FAFSA), taxes about a month ago. Just wondering. Thanx.
