Thread: How much debt are SGU graduates in after graduation?

This includes interest, etc.

No offense to Craigslist, but I need more opinion on this subject matter.

Can those who recently matched into residency or those who are in residency comment on the number of years it will take to pay off these loans?

I ask because they truly know the financial package SGU offers (and the HEFTY interest rate that accrues), resident salary, monthly spending, etc. (sorry, $40 is too low in my books, but then everyone is different)

Thank you!

Originally Posted by CANeh

It doesn't matter. You will get a financial planner when you finish high school that will encourage you not to pay off your student loan (cause of low interest) but instead make min payment. Take the money you can save and invest in retirement. You will end up making more money on the long run.

That used to be the case, not so much anymore. I know many Canadians can still get good rates, but us Americans are looking at 6.8% and 8.5% APRs. It would take some savvy investing to be able to continuously beat those marks. Add to that the possibility of yet another financial collapse and rampant inflation, I would rather just bite the bullet and pay off the loans ASAP.

Any financial adviser telling you to pay the minimum amount on a debt that accrues interest probably at greater than 8 percent even after consolidation should be fired and ran away from promptly. It is much better to bite the bullet and pay it off early under these circumstances. One other little risk factor to factor in is the possible divorce. If you have a big ole pile of cash sitting there she will most definitely get half of it. If you have paid off debts though, they won't make you borrow money to pay her half of it but they will take some amount of your pay and they would have done that anyway barring a prenupt and a spouse that makes more than you. Food for thought. Don't marry while you're young and stupid and this should be a moot point, however.

Oh, and to pay it off in 4 years, you will be paying in excess of 8 thousand dollars per month I'd imagine.

Originally Posted by livingandlearning

No offense to Craigslist, but I need more opinion on this subject matter.

Can those who recently matched into residency or those who are in residency comment on the number of years it will take to pay off these loans?

I ask because they truly know the financial package SGU offers (and the HEFTY interest rate that accrues), resident salary, monthly spending, etc. (sorry, $40 is too low in my books, but then everyone is different)

Thank you!

While I am currently not a resident, but I am insanely good with numbers. In reality, you will not be able to pay off much at all during residency. In fact you will not even be able to cover all of the interest and still be able to survive. The interest payment on $300,000 at 7% starts at $1750.00 a month. That is just to cover interest. There are plenty of different payment plans based on income and other criteria, so you can pay less during residency, but you would continue to increase your principle. Now after become an attending, that is a whole different bag of worms. This depends on specialty and lifestyle, so that would be impossible for me to say. Of course if you find a sugar-momma or daddy depending on your preference, then you are set.

I don't know what the interest rate is now. It was a lecture we had in clinics. Something about making more over the next 20 years and preparing for retirement and how student loan payments are tax credit of some sort. I personally would feel better not having student loans hanging over my head. Just marry in to a wealthy family. No need for love.

Originally Posted by ancienthistory

Oh, and to pay it off in 4 years, you will be paying in excess of 8 thousand dollars per month I'd imagine.

That sounds about right, might just be a little under that depending on the principle.

absolutely no idea

Originally Posted by CANeh

I don't know what the interest rate is now. It was a lecture we had in clinics. Something about making more over the next 20 years and preparing for retirement and how student loan payments are tax credit of some sort. I personally would feel better not having student loans hanging over my head. Just marry in to a wealthy family. No need for love.

Really? They said that? Wow, time for SGU to get some new financial advisers. Yes, there is tax relief on the interest you pay to the bank. However, you will only be able to collect the benefit during residency. As soon as you become an attending your salary will be high to receive tax credit.

Okay! It seems like it will indeed be for a few decades....how many decades? 10, 20, 30, or 40 years?

Let's say if I can only pay $500/month during residency and $5000/month post-residency. How long will it take? If the numbers are unrealistic, I apologize. I am just curious. Feel free to chime in with a realistic monthly debt payment amount.

Has other current SGU students given this some thought?