Will FM be a possibility for me?

[Lucylu123]

I am currently a 2nd year med student, and have always been interested in going to FM in the future. By the time all is said and done, I will probably have around 250-260K in debt. I just looked at finaid.org which told me that in order to pay back that debt in 10 yrs, I would need a salary of $359,000 and in order to pay it back over 30 years, would need $209,000 not to mention you end up paying so much more interest over time! HPSA loan repayment would not be an option for me, as my husband needs to be in a relatively populated area for his career, and the military is just not my thing. My husband will also pull in a salary, but I'm not sure that collectively we could make it to $359!

Does this mean that I have to shut the door on FP? What else do people do?

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[Dotsero]

First off those salary figures that FinAid come up with are way too high. So don't let that be your guide. There are many ways you could pay on that loan (particularly if your spouse works). You could save a couple of years and pay cash on a home and thus eliminate a monthly mortagage payment and then live modestly and sink every penny into the loans and you could have them paid off in 5-10 years.

You could also work as a FM doc for the VA for 10 years and take advantage of the public service loan forgiveness program (make a 120 payments while working for the VA and the loans are discharged tax-free).

There are lots of options. Thinks outside the box.

 

[GoodmanBrown]

I am currently a 2nd year med student, and have always been interested in going to FM in the future. By the time all is said and done, I will probably have around 250-260K in debt. I just looked at finaid.org which told me that in order to pay back that debt in 10 yrs, I would need a salary of $359,000 and in order to pay it back over 30 years, would need $209,000 not to mention you end up paying so much more interest over time! HPSA loan repayment would not be an option for me, as my husband needs to be in a relatively populated area for his career, and the military is just not my thing. My husband will also pull in a salary, but I'm not sure that collectively we could make it to $359!

Does this mean that I have to shut the door on FP? What else do people do?

You should look into Income-based repayment. It caps the amount per year you have to pay back based on your income. It's usually ~10% of your pretax income.

Speak to your school's financial aid folks to see if you're eligible and how it works exactly.

 

[McGillGrad]

It is sad that financial classes are not part of the med school curriculum.

Even without knowing anything about finance, plugging in your numbers in a financial calculator gives you realistic monthly payments to pay down your debt.

One example: You could pay back $225,000 over 10 years at 8% for only $2729.87 per month.

In a high tax state such as California, your NET for $140,000/yr is $7230 per month. That means you have $4500 left per month after paying off your monthly student loan payment. And that's a quick 10-year plan.

If you cannot live comfortably with $4500 per month, then you're doing it wrong.

 

[MLT2MT2DO]

It is sad that financial classes are not part of the med school curriculum.

Even without knowing anything about finance, plugging in your numbers in a financial calculator gives you realistic monthly payments to pay down your debt.

One example: You could pay back $225,000 over 10 years at 8% for only $2729.87 per month.

In a high tax state such as California, your NET for $140,000/yr is $7230 per month. That means you have $4500 left per month after paying off your monthly student loan payment. And that's a quick 10-year plan.

If you cannot live comfortably with $4500 per month, then you're doing it wrong.

Going off this statement and your Username, I'm guessing you weren't raised in america...at least current day america. How can one expect to have a brand new car every 3 years, and live in a 2500+sqft home preferrably with an indoor pool and shop at Sak's Fifth Ave every weekend on such a piddly sum of money?

 

[McGillGrad]

Going off this statement and your Username, I'm guessing you weren't raised in america...at least current day america. How can one expect to have a brand new car every 3 years, and live in a 2500+sqft home preferrably with an indoor pool and shop at Sak's Fifth Ave every weekend on such a piddly sum of money?

 

[GoodmanBrown]

Going off this statement and your Username, I'm guessing you weren't raised in america...at least current day america. How can one expect to have a brand new car every 3 years, and live in a 2500+sqft home preferrably with an indoor pool and shop at Sak's Fifth Ave every weekend on such a piddly sum of money?

Exactly. Especially when you have sacrificed your 20s and you deserve these things!

 

[cabinbuilder]

I am currently a 2nd year med student, and have always been interested in going to FM in the future. By the time all is said and done, I will probably have around 250-260K in debt. I just looked at finaid.org which told me that in order to pay back that debt in 10 yrs, I would need a salary of $359,000 and in order to pay it back over 30 years, would need $209,000 not to mention you end up paying so much more interest over time! HPSA loan repayment would not be an option for me, as my husband needs to be in a relatively populated area for his career, and the military is just not my thing. My husband will also pull in a salary, but I'm not sure that collectively we could make it to $359!

Does this mean that I have to shut the door on FP? What else do people do?

I'm FP. been out of residency for 2 years. I worked hard the first year to pay off all my credit cards/debt that has been with me through school. Paid off my personal loans and car.

My student loans are 220K and my payment is 1200/month. IT"S EASY to pay it. I also have two homes and have plenty left over at the end of the month for vacations and fun things. You are over worrying FP is fun and it pays the bills too.

 

[Lucylu123]

Thanks! That's good to hear - the estimates on finaid.org seemed ridiculous to me. Its strange they would publish those numbers on what seems like it should be a reliable source. I'm not a money hungry individual - I grew up with very little and am not accustomed to any certain lifestyle, I just don't want to put myself in a position where I would be struggling to pay off debt while raising a family.

I'm FP. been out of residency for 2 years. I worked hard the first year to pay off all my credit cards/debt that has been with me through school. Paid off my personal loans and car.

My student loans are 220K and my payment is 1200/month. IT"S EASY to pay it. I also have two homes and have plenty left over at the end of the month for vacations and fun things. You are over worrying FP is fun and it pays the bills too.