Show of Hands - Total Debt

[Doctor Bagel]

Yep, hubby and I will have around $250,000 combined when I finish med school and he finishes grad school in 2008. *sigh*

Our plan is for him to try to get a higher paying job during my residency so that we can live on my resident salary and throw all of his salary at the loans. Then, once I finish residency 3 years later, we'll continue to live like poor people for a few more years so that we can get rid of the loans ASAP!!!

On the bright side, there are two people included in that debt total. A lot of us are facing that amount for us one person.

One note about the loans -- it might be a mistake to pay off those low interest loans (you know, the ones you took out before this year) before doing other things. A conservative expected return on investment would be about 6%, so if the loans are at a lower percentage than that, it likely makes sense to prioritize savings (namely retirement savings) over paying off the debt. One of my dumber financial decisions was to pay ahead on student loans at less than 3% interest instead of saving that money.

---

Members don't see this ad.

 

[Marigold]

On the bright side, there are two people included in that debt total. A lot of us are facing that amount for us one person.

One note about the loans -- it might be a mistake to pay off those low interest loans (you know, the ones you took out before this year) before doing other things. A conservative expected return on investment would be about 6%, so if the loans are at a lower percentage than that, it likely makes sense to prioritize savings (namely retirement savings) over paying off the debt. One of my dumber financial decisions was to pay ahead on student loans at less than 3% interest instead of saving that money.

Good call. We'll have to carefully examine the situation once we're in repayment.

One thing is for sure, though...those "above the budget" private loans we got out that are accruing somewhere around 9-10% interest as we speak? Yeah, those are getting paid off first.

 

[Allerian1004]

I have 0k debt from undergrad. I am thinking about attending NYMC next year. I'm crossing my fingers that my parents will help out with living expenses. So I'm looking at 160k atleast. My state school isn't much cheaper either.

 

[p9142]

I wonder if loan repayment programs will become more common for non primary care fields. It seems like offering to help new grads with debt would be a good way to lure people to work in less desireable areas. Right now, I don't see much for specialists, but maybe that will change.

 

[Doctor Bagel]

Good call. We'll have to carefully examine the situation once we're in repayment.

One thing is for sure, though...those "above the budget" private loans we got out that are accruing somewhere around 9-10% interest as we speak? Yeah, those are getting paid off first.

Yeah, that's a good plan.

 

[WhyIsThisSoHard]

So, I'm not in med school yet, but I have the option to go to Penn with no scholarship. The debt will probably be around +$250k - is that an impossible debt to deal with? Is there anyone out there who has a similar private med school debt that doesn't regret their decision to accept massive debt and go to that school? Is there anyone who does regret it? Conversely, is there anyone who decided against going to a private school to go to a school that was more financially-doable who does or doesn't regret that decision?

Will this debt ruin my life, or is it manageable? Does going to this school make me an idiot?

 

[AnEyeLikeMars]

So, I'm not in med school yet, but I have the option to go to Penn with no scholarship. The debt will probably be around +$250k - is that an impossible debt to deal with? Is there anyone out there who has a similar private med school debt that doesn't regret their decision to accept massive debt and go to that school? Is there anyone who does regret it? Conversely, is there anyone who decided against going to a private school to go to a school that was more financially-doable who does or doesn't regret that decision?

Will this debt ruin my life, or is it manageable? Does going to this school make me an idiot?

I'd love to here some answers to this question as well.

 

[lvScRb23]

Exactly!

 

[mountainman123]

Wow, I guess I am in the minority only owing about 100K when I am done with med school. Our in-state tuition is only about 17,000 and I get about 25K to cover some living expenses. I feel sorry for all of you.

 

[p9142]

Wow, I guess I am in the minority only owing about 100K when I am done with med school. Our in-state tuition is only about 17,000 and I get about 25K to cover some living expenses. I feel sorry for all of you.

17,000+25,000=$42,000/year
42,000x4=$168,000 total principle

$168,000 principle + ~$25,000 interest = $193,000 due upon graduation

 

[mountainman123]

17,000+25,000=$42,000/year
42,000x4=$168,000 total principle

$168,000 principle + ~$25,000 interest = $193,000 due upon graduation

No, I meant that I only borrow a total of 25,000/year. So it is considerably less at the end.

 

[Doctor Bagel]

No, I meant that I only borrow a total of 25,000/year. So it is considerably less at the end.

How do you live on $8k/year? I'm guessing someone's supporting you somewhere.

For most students at schools with $17k tuition, they borrow an extra $20k or so for living. I would bet lots of students at your school are still racking up pretty significant debt.