kristin5792

@Miami, I know OH is different. That's why I added this:

(Yes, I know in some states, the difference between state and private schools isn't that much. And I know some students would shudder at the thought of going to their state school. But in general, it seems like your state's state school will be the least expensive provided you don't win lots of scholarships from private schools.)

Just to throw some numbers out there, in terms of tuition: private school in my state = $48k/yr x 4yrs = $192k, and my state's school = ($28k/yr x 2yrs) + ($30k/yr x 2yrs) = $116k. And to me, the savings of $76k (before interest!) is without question significant enough to guide my decision.

i_wanna_be_Brown

I didnt want to get into it but you are 100% right. In some places it's only a perceived difference but in other places (eg NYC) it is very much a real difference.

Also, just to make sure there is no confusion, I am talking about high school and below.

bigreddawgie

Looks like the Robin Hood Plan is still alive. I grew up in one of the districts that had its money distributed. always a heated debate about it

MiamiDAP

"A family that sends its kid to private school is paying a premium so that its kid can attend a better school than the one the government offers, but they're still "paying" for the public school too. " - Correct.
Huge input In D's decision to go to Private Med. School, was a very different Med. School program at her school vs most others. She liked that and the fact that she picked up from Second Look that students are primary focus, which has been proven correct so far....and as so usual for her, 2 hrs from home was a big plus, but publics were also close enough. Prices are the same as Kristin mentioned, except in 3rd and 4th year in our publics is the same price as at private, which makes the difference of about $30K+ in total, which I told her did not matter to us (we are still paying and praying every day for our jobs)

clonetox

Not sure if this was discussed, but if you have any loan amount wiped out via IBR, you have to pay taxes on the wiped out amount.

I would not take out more loans than your starting annual salary. If you are going to be a primary care physician, don't take out more than ~120k.

Many medical students will have 300k+ in loans by the time of repayment since they can't pay much on their loans during residency. Your monthly minimum payment, given the current 6.8 and 7.9 interest rates, for $300k will be around $3500+ a month for 10 years. Most people will want to pay off loans faster since the interest rates are high. You can save about half the interest if you pay down your loans in half the time.

I have 150k in loans (some college, some grad school) and make around 200k a year at a tech company. (I'm not in medicine so I didn't spend as much time in school.) My minimum payments are around 2k but I try to pay down 3k a month since interest rates are high. It is a struggle throwing all of this money towards loans for years. I would not take out more than 100k in loans if possible unless you go into the highest paying specialties. Even if it seems like you're making a decent amount of money, your loans will take away a good part of your salary and your life.

Go to college for free and go to the cheapest medical school you can get into. And my best advice is don't take out more than your first year starting salary.

mcat2

Only 100k in loans? For the majority of med school students, it may not be easy, unless they get subsidized by "Bank of Mom and Dad." (Is it true that about 20% of the students do not carry any loans?)

No wonder many med school students fight tooth and nails in order to get into high paying specialties, and many doctors prescribe procedures that may not be absolutely necessary.

MiamiDAP

"I would not take out more than 100k in loans if possible unless you go into the highest paying specialties. "
-So what is a trick? Printing money.....but then there is no reasons for loans at all. What kind of magic if there is nobody who can sponsor you? I do not think Med. Students can work. My D. absolutely cannot, she is studying, like most of the time, currently on break at home, just stuffing her head with academic material day in and day out. Choosing specialty according to pay may not be an option. These are very selective. You have stats/publication, you are in, many are very discouraged to even try. Some are taking a gap year to plish their credentials. No gap year here....have decided in HS, we are way too ancient for any gap year.....

kristin5792

This would be nice, but I imagine it isn't possible for the majority of med students.

clonetox

There isn't a trick but going to an in state school helps a lot. And I think before taking out 300k in loans, they should really consider their motivations for going to medical school in the first place. They shouldn't go to medical school, unless they really, really want to PRACTICE medicine (not just study it) and are okay with living like they have a 40k income for 10 to 20 years. From a financial perspective, they will be poorer than most people making 60-70k with no loans. I think most people who enter medical school, like many other professions, don't really have a clue what it is like to practice and are mainly drawn to the profession because of the income and job stability. And the income really isn't that good for many fields relative to the student loan debt they will have coming out. If you have 300k in loans but only make 120k as a family practitioner, you're going to be hard-pressed to be able to afford a mortgage, start a family, etc. on top of your loans. If you rely on IBR, you will have to pay taxes on the amount forgiven, so that's a good chunk of money depending on your loan amount since interest will accrue during the entire loan life. You will be an indentured servant to Uncle Sam for half of your life.

A recent Washington Post article says that physicians graduate on average with 160k in debt. Depends on what they mean by average, but if it's the mean, I bet a good chunk of students have parents paying full sticker for med school, pulling down the average.

kristin5792

From my school's FA website:

bigreddawgie

Taking out only 100k loan wont be feasible for most people, including those going to instate schools. Living expenses will already be at 80k.

clonetox

Kristin, is your school mainly comprised of in staters? Seems pretty cheap for medical school.

Well, whatever. It's feasible if you are in state and living at home or in a rural place. Depends on how much you want to be a doctor. 100k is a good rule of thumb. So is not taking out more than your first year salary. I don't think most students understand the burden of paying off six figure student loans. But if they want to practice that badly and are okay with living like they take home 40k (rent, food, utilities, car, car insurance, etc., if you have a family, a ton of other costs), then it's fine. Just don't expect to live that comfortably until you are well into your 40s. If you're making 120k with 300k loans, maybe even your 50s. So, for those of you untainted by debt, think about the financial sacrifice before you make the leap.

bigreddawgie

I do agree that most students dont really understand the real cost of taking out such big loan amounts.

clonetox

Nobody really lays out the real numbers to students (interest accrues during school for certain loans, so you're graduating with a lot more debt than you took out) and it's hard to grasp what debt really is until you are paying your loans off once you start working. It's also ironic that you will think about budgeting on a daily basis for food to save a few dollars, while your interest rate is 7.9% and your loans are earning 10k+ of interest a year.

WayOutWestMom

^^D1's medical school has a mandatory financial education seminar MS1s must attend during orientation. They talk about using credit cards responsibility, the advantages of having a roommate, how to not "over-borrow," how to open an IRA, and the disadvantages of putting loans in forbearance during residency.

Some past presentations are here:

http://hsc.unm.edu/som/finaid/docs/B...Group-20_1.pdf

http://hsc.unm.edu/som/finaid/docs/2...tInterview.pdf

I looked to see if there was a chart like from kristin's school. There wasn't but they did list median loan debt of a graduating student at D1's school at $124,000 (lower than the national average for public schools).