Tax Reform 2017: Impact on number of residencies?

[SoyMedico20]

Has anyone heard of any fall out of the tax reform bill of 2017 will have on the number of residencies since they are paid for by Medicare?

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[MADD!!!]

loll, you mean the tax reform that Democrats keep stating they haven't even had time to read themselves before it got passed?!

 

[68PGunner]

The early words are cut to Medicaid, mainly for health coverage to the poor.

However, graduate education is about to become a hell lot more expensive. This is probably good for future physician wages.

DJT is about to go stone cold killer on COCA by limiting total federal loan limit to 250K for four years. The consumers for DO schools will now must take out 100-120 K in private loan at 8-9% min.

 

[Peach Newport]

The early words are cut to Medicaid, mainly for health coverage to the poor.

However, graduate education is about to become a hell lot more expensive. This is probably good for future physician wages.

DJT is about to go stone cold killer on COCA by limiting total federal loan limit to 250K for four years. The consumers for DO schools will now must take out 100-120 K in private loan at 8-9% min.

I can’t decide whether that’s a good thing or not. On one hand, it’s high time we stopped letting every center of higher education get a free all-you-can-eat meal at the federal student loans buffet on the backs of exploited students.

On the other hand, predatory lenders (Sallie Mae) will still exist. Like you said, they’ll still jack up tuition, and 22 year old college grads will stay take out any amount of loan to pay for a medical education. High school students in general give very little thought to their student loan debt when offered the prospect of 4 years of sex and alcohol.

Will it stop the enormous student loan bubble from growing... or bring it to critical mass?

 

[68PGunner]

I can’t decide whether that’s a good thing or not. On one hand, it’s high time we stopped letting every center of higher education get a free all-you-can-eat meal at the federal student loans buffet on the backs of exploited students.

On the other hand, predatory lenders (Sallie Mae) will still exist. Like you said, they’ll still jack up tuition, and 22 year old college grads will stay take out any amount of loan to pay for a medical education. High school students in general give very little thought to their student loan debt when offered the prospect of 4 years of sex and alcohol.

Will it stop the enormous student loan bubble from growing... or bring it to critical mass?

Dude, the reason why college tuition has grown ridiculously in recent years at all levels has been due to PUBLIC LOAN FORGIVENESS. Nobody cares about the price of the education if you end up not paying for it in the end. This is a game changer.

 

[Peach Newport]

Dude, the reason why college tuition has grown ridiculously in recent years at all levels has been due to PUBLIC LOAN FORGIVENESS. Nobody cares about the price of the education if you end up not paying for it in the end. This is a game changer.

I’m Suspicious of that claim for a few reasons.

1) every article I’ve ever read has said that it’s due to federal loans not capping. This just makes more sense to me.

2) public loan forgiveness isn’t exactly available to everyone... as far as I know it’s only for specific occupations for specific employers.

3) high school kids (who account for the vast majority of the student loan amounts) don’t exactly thoroughly research their student loan forgiveness options when they sign the MPN. I’d be surprised if 10% of college kids knew anything about their loan forgiveness options.

4) It seems to me as though the actual borrowing public has very little power in the borrowing process. With postsecondary training/education being a virtual requirement of an income over $9/hour, the schools have all the power. Students can either pay the going rate or get used to driving an Uber.

 

[Giovanotto]

I'm with Peach Newport on this one, it's a mixed bag for sure. Also, private lenders today, if we ignore public service forgiveness and what not, are offering equal or better rates than unsub grad plus loan rates. I know because that's currently my situation.

 

[68PGunner]

I'm with Peach Newport on this one, it's a mixed bag for sure. Also, private lenders today, if we ignore public service forgiveness and what not, are offering equal or better rates than unsub grad plus loan rates. I know because that's currently my situation.

Are you certain about this? Would you mind sharing your average rate? Last time that I checked, the best rate that Wells Fargo can offer for me is slightly higher than Fed loans.

 

[Giovanotto]

Are you certain about this? Would you mind sharing your average rate? Last time that I checked, the best rate that Wells Fargo can offer for me is slightly higher than Fed loans.

It's around 6% (sometimes less, others more, so think of it as an average).

 

[68PGunner]

I’m Suspicious of that claim for a few reasons.

1) every article I’ve ever read has said that it’s due to federal loans not capping. This just makes more sense to me.

2) public loan forgiveness isn’t exactly available to everyone... as far as I know it’s only for specific occupations for specific employers.

3) high school kids (who account for the vast majority of the student loan amounts) don’t exactly thoroughly research their student loan forgiveness options when they sign the MPN. I’d be surprised if 10% of college kids knew anything about their loan forgiveness options.

4) It seems to me as though the actual borrowing public has very little power in the borrowing process. With postsecondary training/education being a virtual requirement of an income over $9/hour, the schools have all the power. Students can either pay the going rate or get used to driving an Uber.

Do you we have a chart of the % of the federal loan rate for undergrad vs grad programs? Yes, I would agree that a cap will have a substantial effect on undergrad cost. However, most of the physicians, dentists, lawyers, etc... that I know are putting up w/ the outrageous annual 5% increase in COA on an annual basis despite a 3% annual inflation rate due to public loan forgiveness. In fact, on every school ppt for newly matriculate student is a slide about public service loan forgiveness.

 

[Giovanotto]

Do you we have a chart of the % of the federal loan rate for undergrad vs grad programs? Yes, I would agree that a cap will have a substantial effect on undergrad cost. However, most of the physicians, dentists, lawyers, etc... that I know are putting up w/ the outrageous annual 5% increase in COA on an annual basis despite a 3% annual inflation rate due to public loan forgiveness. In fact, on every school ppt for newly matriculate student is a slide about public service loan forgiveness.

AccessLex

 

[68PGunner]

I think a lot of the increase in cost originally is validated by parents of kids nowadays coming from an era in which a 4 year degree = a good stepping stone that will set you for life assuming a solid work ethic. While all parents want to think that their kids are special, the reality is that not all kids are born equivalent. For some people, it might be better for them just to go to trade schools. I think a cap in student loan for for undergrad will force parents and kids to think more deeply about pros and cons of attending a four year degree for Arts as an example.

I don't know if it will do anything about the cost. However, the cost of college education has always been ruled by supply and demand. If there aren't enough people who are willing to pay for the cost, schools will be forced to cut down the fat or close down.