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Thread: Paying down debts, something to consider before you decide

  1. #1
    Michael10101 is offline Member
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    Paying down debts, something to consider before you decide

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    Howdy everyone. I'm writing this after spending a long time away from the forum. I'm a graduate from back in 2008. I'm boarded in Family Medicine. I'm writing this after visiting the website and seeing how expensive Ross has become. Back when I started at Ross, May 2004 the first 4 semesters were about 12K, and the last 6 were about 15K. I took full student loans to pay plus an extra 10K to pay for things like a board prep coarse and a little fun time. The grand total on my loans was about 250K with my average interest being just under 6%. I deferred my payments for the 3 years I was in residency, and when I came out into the "real world" my total debt with interest had accrued to just over 350K. The reason I'm writing this is to have you take a moment and realize the mountain of debt you are going to accumulate with the cost of Ross. I don't know what interest rates are now but I'm guessing they're about 6.8% or higher. Those of you who are taking loans for the whole thing are looking at well over 500K in debt when you get out. Now fam med isn't the richest field to be in but I'm in the top 10% of fam earners and the amount that I pay to Sallie Mae is daunting. I've been in private for about 2.5 years and have been paying 3k for the first 1.5 years 5K for a month for the past 12 months to Sallie and my debt has gone from 350 to 280. In other words I alot about $85,000 pre-taxed income towards student loans in order to pay them off in about 8 years. If you're planning on doing what I'm doing the cost you will have to come up with is well over 8K a month... AFTER taxes.

    I'm sorry I'm a little long winded, but I just want people to be aware of the mountain they are about to climb.
    thxleave and WindsorGirl91 like this.

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    thxleave is offline Elite Member 7201 points
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    Quote Originally Posted by Michael10101 View Post
    Howdy everyone. I'm writing this after spending a long time away from the forum. I'm a graduate from back in 2008. I'm boarded in Family Medicine. I'm writing this after visiting the website and seeing how expensive Ross has become. Back when I started at Ross, May 2004 the first 4 semesters were about 12K, and the last 6 were about 15K. I took full student loans to pay plus an extra 10K to pay for things like a board prep coarse and a little fun time. The grand total on my loans was about 250K with my average interest being just under 6%. I deferred my payments for the 3 years I was in residency, and when I came out into the "real world" my total debt with interest had accrued to just over 350K. The reason I'm writing this is to have you take a moment and realize the mountain of debt you are going to accumulate with the cost of Ross. I don't know what interest rates are now but I'm guessing they're about 6.8% or higher. Those of you who are taking loans for the whole thing are looking at well over 500K in debt when you get out. Now fam med isn't the richest field to be in but I'm in the top 10% of fam earners and the amount that I pay to Sallie Mae is daunting. I've been in private for about 2.5 years and have been paying 3k for the first 1.5 years 5K for a month for the past 12 months to Sallie and my debt has gone from 350 to 280. In other words I alot about $85,000 pre-taxed income towards student loans in order to pay them off in about 8 years. If you're planning on doing what I'm doing the cost you will have to come up with is well over 8K a month... AFTER taxes.

    I'm sorry I'm a little long winded, but I just want people to be aware of the mountain they are about to climb.
    yeah SGU had a financial talk too, basically saying what you are recommending to do..... they mention that your debt isn't compounded, but once you graduate the interest is added onto the principal... so the smart advice is to either pay your interest now, or have family help you pay the interest lump sum before it's added to your principal.
    devildoc8404 likes this.

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    Michael10101 is offline Member
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    I looked at Ross again as I had heard news that they were moving to Barbados. I'm bringing my concern about the cost of school up again as I just can't stress how important it is to understand what you're getting into. I have done the math and can tell you exactly what your payments are based on a number of assumptions. The first is, the interest rate is 6.8%. You're spending 10k/semester for room and board. Next, and this one is extremely important is you're going straight through school without a break or pause in semesters. I.E, you start fall semester and are out in 10 semesters and into residency. The last is that you aren't paying interest while in residency. Some people may say, I'll pay interest in residency, but you will be accruing interest at about 30k a year. So unless you've got a rich spouse, I seriously doubt you will. Based on these variables your monthly payments will be as follows.
    10 years = 5801.33
    15 years = 4490.98
    20 years = 3873.76
    30 years = 3324.17

    These are real numbers. You can't declare bankruptcy to get free from these debts. Military service, low income areas with loan programs will be the only options for you to get out from underneath this kind of debt. I make 21k a month. After taxes, health insurance, and retirement my spendable cash is just under 13k. Then another 4k goes to loans. Leaving 9k for bills and other stuff. I'm on the 9 year plan for my loans and I've got another 1.5 years. You may think that 9k is a lot of money, but I work about 60 hours/week. That translates to about 35/hour. It's probably more like 45, cause I'm not calculating taxes in the mix. But it's not a lot for the amount of work an effort you do.

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    axiomofchoice is offline Senior Member 6116 points
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    and thats why people don't go into family medicine

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    WilliamW123 is offline Junior Member 510 points
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    That's true.People don't use to go

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