Paying Off Med School Debt After AUC

[Kermit]

I was curious for those who are currently at AUC and are in good academic standing and are confident they are going to graduate and pass USMLE, have you started to think about the timeframe that is required to pay off your medical debt?

For example, if you rack up 250k in debt once you are finished with AUC, and you make $38k per year for three years during residency, following this period how long do you think it will take to pay off your debt? i.e. I will be a <fill in blank> kind of physician and I will make <fill in blank> dollars per year plus <fill in blank> dollars per year moonlightining and if I put <fill in blank> amount of my income towards my debt I can be debt free in <fill in blank> years.

Have any of you thought through this or is it just too depressing?:P

Thanks,

Kermit

[teratos]

I'm but an internist, and I'm making the payments on my $200K + loans just fine. I'm also doubling up on my mortgage, maxing out my 401K and managing to buy some stocks. Not really a big problem. G

[microphage]

I'm but an internist, and I'm making the payments on my $200K + loans just fine. I'm also doubling up on my mortgage, maxing out my 401K and managing to buy some stocks. Not really a big problem. G

Don't forget ur Star Wars collection.

[stateofequilibrium]

Don't forget ur Star Wars collection.

And his guns.

[teratos]

And his guns.

My guns have been good investments. Some have appreciated nicely. I don't have much Star Wars stuff. Never really got into collectables. G

[stateofequilibrium]

My guns have been good investments. Some have appreciated nicely. I don't have much Star Wars stuff. Never really got into collectables. G

Speaking of which, I used up luggage space to bring and assemble a model of an ISD here on the island. Hahaha

So you spend money on star wars, guns, computers.. what does your wife get?!!

[teratos]

Speaking of which, I used up luggage space to bring and assemble a model of an ISD here on the island. Hahaha

So you spend money on star wars, guns, computers.. what does your wife get?!!

Please recall what she drives.....;)

[Macgyver1]

A little math can help.
Example: 250,000 debit.
250,000 at 5% interest (probally get lower) = 12,500
Total Repayment: 262,500 (again saying you don't make any EXTRA payments only 1 month)
If I recall you can have 20 years to repay this.
262,500/240 months(20years) = Roughly 1100.00 a month

Most payment plans don't require to pay until you finish your residency.
Avg starting pay for an attending: ball park 120,000.00 I think (correct me if im wrong)

This is not including Moonlighting, or being a Pharmaceutical Stooge at convention=lecture=500.00

There are many ways to generate "extra income" to pay back your loan quicker. Its all in what you want in life. If you naturally like what your are doing, you will excel and become the BEST. This is not only in medicine, but in any job you want. I will never forget this quote I heard somewhere that I believe with everything I am. "If you find something you love doing, and can be paid for it. You will never have to work a day in your life."

[Chianti]

My cousin graduated from Ross 5 years ago.

He's an IM doc who made $180,000 last year from his 9-5 job and then taking call one night a week and one weekend a month. He graduated with $280,000 in cumulative debt (undergrad and med). His loans will be paid off in 10 years. He has a large house and both he and his wife (a teacher) drive nice cars. He lives very comfortably.

Point of the story= don't worry. You'll easily pay off your loans.

[jjb1980]

My cousin graduated from Ross 5 years ago.

He's an IM doc who made $180,000 last year from his 9-5 job and then taking call one night a week and one weekend a month. He graduated with $280,000 in cumulative debt (undergrad and med). His loans will be paid off in 10 years. He has a large house and both he and his wife (a teacher) drive nice cars. He lives very comfortably.

Point of the story= don't worry. You'll easily pay off your loans.

As long as you graduate! But that won't be a problem for any of us. . . I hope anyways. . . well, at least I know about myself. . . lol

[Lil786]

What is moonlighting?

[DrShikima]

What is moonlighting?


You won't get to do it until after 3 yrs of residency as a FMG.

[MDXRS22]

I'm but an internist, and I'm making the payments on my $200K + loans just fine. I'm also doubling up on my mortgage, maxing out my 401K and managing to buy some stocks. Not really a big problem. G


uh uh!
What about your gold coins collection?????

Brother please:)

[YODA]

its working a side job to earn extra cash form your main job, like working 2 nights a month at a comunity clinic or a ER in the sticks.

bad news is that for most states FMGs can not moonlight untill their third year or residnecy

later
YODA

[DrShikima]

A little math can help.
Example: 250,000 debit.
250,000 at 5% interest (probally get lower) = 12,500
Total Repayment: 262,500 (again saying you don't make any EXTRA payments only 1 month)
If I recall you can have 20 years to repay this.
262,500/240 months(20years) = Roughly 1100.00 a month

Most payment plans don't require to pay until you finish your residency.
Avg starting pay for an attending: ball park 120,000.00 I think (correct me if im wrong)

This is not including Moonlighting, or being a Pharmaceutical Stooge at convention=lecture=500.00

There are many ways to generate "extra income" to pay back your loan quicker. Its all in what you want in life. If you naturally like what your are doing, you will excel and become the BEST. This is not only in medicine, but in any job you want. I will never forget this quote I heard somewhere that I believe with everything I am. "If you find something you love doing, and can be paid for it. You will never have to work a day in your life."


Ok, based on the same $250,000 of debt, becomming $262,500 while in medical school.... did you compound it and compound it again for 3 yrs while in residency? And sallie mae says that while out of school it's Prime + 2.4% and while in school it's Prime + 1.9%.....

Crunch those numbers! AND BE QUICK ABOUT IT...... or you get no pudding!

[microphage]

You won't get to do it until after 3 yrs of residency as a FMG.

not true...

arkansas, Wisconsin, Iowa lets u do ur moonlighting at PGY-2 as a FMG. Most other states are PGY-3s if not PGY-4

[DrShikima]

not true...

arkansas, Wisconsin, Iowa lets u do ur moonlighting at PGY-2 as a FMG. Most other states are PGY-3s if not PGY-4

Well, on this note, I'm glad to be wrong!!!:cool:

[McGillGrad]

Interest is compounded daily and charged monthly so it will be more than a mere lump sum. It is 5% x total divided my month and added to the payment.

Something like 250,000 being paid off at 10 years will be 250,000 divided by 120 times 5% and that is the interest per month.

Something like $105 per month in interest if you make a $2000 payment per month but it is compounded so it ends up significantly more in the end.

[opnr2k2]

Whats the rush to payback loans?
I mean you will still be able to get a loan for a home and ur car and wutever other small items you need in life.
The more loans u have, the less uncle sam takes from you.
If your living in California the equity alone you will gain from your home will pay your loans off with breaking a minor sweat.:)
Thats what im doing....

[Macgyver1]

Ok, based on the same $250,000 of debt, becomming $262,500 while in medical school.... did you compound it and compound it again for 3 yrs while in residency? And sallie mae says that while out of school it's Prime + 2.4% and while in school it's Prime + 1.9%.....

Crunch those numbers! AND BE QUICK ABOUT IT...... or you get no pudding!

Thats why the word roughly is in there. Im no banker...probally why Im in med school. :D

[DrShikima]

Whats the rush to payback loans?
I mean you will still be able to get a loan for a home and ur car and wutever other small items you need in life.
The more loans u have, the less uncle sam takes from you.
If your living in California the equity alone you will gain from your home will pay your loans off with breaking a minor sweat.:)
Thats what im doing....

The problem with delaying in paying loans is that you give the bank *MORE* of your money because you're paying more in interest.

[tylertexas]

this is my favorite thread today, because i found out today that for the privelege of selling off my a-long-way-from-paid-for car, i'm still gonna have to eat 7 grand, (not to mention the cost of buying one of those shiny, sleek luxurious island cars i've been reading about on these forums) and i'm thinking crap, crap, crappity, crap, i'll be in debt till the end of time. 20 years sounds much more plausible.

[ChanceCount]

this is my favorite thread today, because i found out today that for the privelege of selling off my a-long-way-from-paid-for car, i'm still gonna have to eat 7 grand, (not to mention the cost of buying one of those shiny, sleek luxurious island cars i've been reading about on these forums) and i'm thinking crap, crap, crappity, crap, i'll be in debt till the end of time. 20 years sounds much more plausible.

Is it American?

[tylertexas]

2002 isuzu axiom xs

[grace]

Whats the rush to payback loans?
I mean you will still be able to get a loan for a home and ur car and wutever other small items you need in life.
The more loans u have, the less uncle sam takes from you.
</p>Very true, especially considering the fact that most home and car loans have higher interest rates so you'd be better off paying off those loans first. You also hit on the fact that student loans can be used as a tax ride-off.

[DrShikima]

</p>Very true, especially considering the fact that most home and car loans have higher interest rates so you'd be better off paying off those loans first. You also hit on the fact that student loans can be used as a tax ride-off.

mmm, I think the tax write-off on loans has a max amount (what that amnt is, I dunno) per tax season.

[microphage]

mmm, I think the tax write-off on loans has a max amount (what that amnt is, I dunno) per tax season.

I've heard 130k... but I have no source

[DrShikima]

I've heard 130k... but I have no source

Total or per tax year?

[grace]

I've heard 130k... but I have no source

Hey Micro, I thought you were supposed to find it in the literature. :D

[teratos]

I think it is 1500 in interest......
I haven't done my taxes yet, though. G

[DrShikima]

I think it is 1500 in interest......
I haven't done my taxes yet, though. G

Of course.... Obi Wan Teratos always knows the scoop on finances and taxes! It sits next to his O'Rielly Factor books and NRA manuals.

[teratos]

Of course.... Obi Wan Teratos always knows the scoop on finances and taxes! It sits next to his O'Rielly Factor books and NRA manuals.

I'm trying to get rid of all debt so I can retire....then I can post on VMD full time. G

[MedicRN]

Actually you should set up a corporation. As a full time employee of your corporation, you get an amount of lets say $50,000 a year towards tuition repayment as a fringe benefit. This is a direct business expense. Then your corporation can also provide you with a car, meal expense, health insurance, 401k, child college contributions, dry cleaning etc etc. The idea here is for your corporation to use up all its money by the end of the year, and put less taxable income in your pocket. Now, corporate taxes are higher, so at the end of the year if your business has any money left, you give it to yourself as a christmas bonus, because you as a person pays a lower tax percentage than your corporation.

Then a corporation has to have a board of directors and monthly meetings. So one month it is in Aspen, the next month in Orlando. All a write off for your corporation. And if you put your wife and family on the board you all get "free" vacation every month. Now remember, you CANNOT create income. All you are doing here is keeping the money you would normally pay in taxes. Did I mention the beach house in North Carolina used for "employee of the month" retreats?

Its amazing the stuff you can LEGALLY do and not give 33% of your income to Uncle Sam.

MedicRN

[teratos]

Hmmm.....that is tempting. G

[Chianti]

When talking about paying back loans, you should think about your federal and private loan amounts. When I finish, I'll have $138,000 in federal debt and about $100,000 in private. The federal debt is locked in at like 2.77% interest, which is fantastic. The private is at about 8%.

When I finish residency, I will pay off the private debt as soon as possibly (I'm talking payments of $3,000-$4,000 a month). Since I have no desire to live in a huge house or drive expensive cars, this shouldn't be a problem.

The federal debt is a different story. At an interest rate of 2.77% there is no rush at all to pay it off, espicially when you take inflation into account. With an interest rate that low it actually is a better idea to float it as long as possible- i.e., if you were thinking about paying $1500 a month towards the federal debt, it would be a much better idea to make the around $800 minimum payment a month and then invest the remaining $700, since when you take inflation into account and % return from the investment long-term-wise you make more money rather than paying the debt off quickly.

[stateofequilibrium]

I need to marry rich.

[Laurie S]

I think it is 1500 in interest......
I haven't done my taxes yet, though. G

I thought you could write off $2,500 of interest per year. But I haven't checked either so I may be wrong. :)

[ChanceCount]

I need to marry rich.

You should probably avoid mentioning you are the "Captain of Posterior Fornix" on dates then, amongst other things.

[teratos]

I thought you could write off $2,500 of interest per year. But I haven't checked either so I may be wrong. :)

It may be $2500. I always forget.

I have my federal loans locked in at under 2%. That will be the LAST thing I ever pay off. If you have good sense, you'll pay off your highest interest lonas first, be that a car loan, credit card, mortgage, etc. If I have any extra money, I would rather invest it than pay off a loan I have locked in at 2%. I bet I can make more than 2% interest on any money I invest. G

[Laurie S]

Wow! Less than 2%! I'm jelous! :) The best I could get was 2.875%.

My private loans are another issue. :(

[FOID]

You should probably avoid mentioning you are the "Captain of Posterior Fornix" on dates then, amongst other things.

i think he should be proud that he's the captain of posterior fornix. it's a difficult job to reach that position. so good job SOE. congrats.

[Rob White]

One of the things you can consider is working in a underserved area can pay up to $25000/year in school debt plus your normal salary $120,000/year more or less. The military also has $50,000 debt repayment with $30,000 sign on bonus as well. There are all kind of options, the truth of all decisions is that you have to look at your school as an investment that will pay off more than you could ever borrow. The return is incredible compared to the amount of money you take out in loans. So in reality, your debt is really not a factor if you are doing what you are called to do, it will pay for itself over and over.

[Chianti]

I would be very wary of any military repayment or serving a underserved area program. I looked into these and most of these programs offer very, very low salaries compared to what you would normally make, even when you take the loan repayment into account.

Thinking about your med school education as an investment is a great idea. Even if you graduate with $250,000 in debt, you should easily make about 65% of that a year ($150,000). 65% is a hell of a return on any investment.

[DrShikima]

I would be very wary of any military repayment or serving a underserved area program. I looked into these and most of these programs offer very, very low salaries compared to what you would normally make, even when you take the loan repayment into account.

Thinking about your med school education as an investment is a great idea. Even if you graduate with $250,000 in debt, you should easily make about 65% of that a year ($150,000). 65% is a hell of a return on any investment.

It all depends on that person and how they see their life honestly.... I really respect those that want to give back to underserved communities or serve their country because they feel that calling.

Your right, it is a good return on that kind of investment and the loan can be easily paid off in 3ish yrs....

[stateofequilibrium]

i think he should be proud that he's the captain of posterior fornix. it's a difficult job to reach that position. so good job SOE. congrats.

Difficult for you, I'm sure

[levator]

Quote:
Originally Posted by flickingoffidioticdrivers
i think he should be proud that he's the captain of posterior fornix. it's a difficult job to reach that position. so good job SOE. congrats.


Difficult for you, I'm sure

you two get a room!!!:rolleyes:

[stateofequilibrium]

you two get a room!!!:rolleyes:

If they didn't want us to so flagrantly use such terminology, they shouldn't have taught it to us like it was the next best thing to sliced bread.