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Knowing I will be in debt, how long would it take to get out of debt after medical school?
I was to pursue in being a Pediatrician, maybe a surgeon, but I want to take in consideration of the time and money I am going to spend. #doctor #pre-med #doctorate-degree
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phillip’s Answer
Hello Phillip the time and money depends on how long and how much student loan you will need. If you can take as much class as you can through your local community college. Not sure what part of Dallas you are in, I know there are several great community colleges near you like Collin county and Dallas County. If you are going to be a surgeon, you should not have to worry about money. You can get scholarship and student loan to cover you while you are in school. After you graduate, you can start paying them off slowly. Most of the interest on your loan will be a tax write off. Good luck.
HI thank for this answer
Janaranjini
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Richard’s Answer
If you can keep your expenses down (live with parents, attend community college which can be free in some cities, complete your degree at an inexpensive public institution etc) debt doesn't have to be out of control. However the typical student does not do everything they can to decrease expenses then has to be stressed during their first years of practice.
Another unfortunate consequence of debt is limiting the student's choices after graduation. If a student has a passion for pediatrics, but crippling debt, they may be forced to apply to residencies with higher future earning potential.
A typical experience would be to complete residency and become an employee of a group. You aren't able to pay down your debt much because you are saving to become a partner. You buy into the group and then start making partnership money. That's when you are able to really tackle that debt.
So the answer depends on 1) how much debt 2) what specialty and 3) how long it takes to become partner.
But typically you are looking at 10-15 years to pay back your student debt.
On a side note, watch this video which compares a UPS driver to a physician. It makes a lot of assumptions about debt and saving/investment, but concludes that the average primary care physician doesn't become financially better off than a driver until age 53.
https://www.youtube.com/watch?v=2503XQU1feE
Another unfortunate consequence of debt is limiting the student's choices after graduation. If a student has a passion for pediatrics, but crippling debt, they may be forced to apply to residencies with higher future earning potential.
A typical experience would be to complete residency and become an employee of a group. You aren't able to pay down your debt much because you are saving to become a partner. You buy into the group and then start making partnership money. That's when you are able to really tackle that debt.
So the answer depends on 1) how much debt 2) what specialty and 3) how long it takes to become partner.
But typically you are looking at 10-15 years to pay back your student debt.
On a side note, watch this video which compares a UPS driver to a physician. It makes a lot of assumptions about debt and saving/investment, but concludes that the average primary care physician doesn't become financially better off than a driver until age 53.
https://www.youtube.com/watch?v=2503XQU1feE
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
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James Constantine’s Answer
Hello Phillip!
Navigating Medical School Debt and Repayment
Embarking on a career as a pediatrician or surgeon is a commendable and fulfilling journey, yet it carries substantial financial considerations. Grasping how long it will take to settle medical school debt requires understanding several elements, such as education expenses, earning capacity, repayment alternatives, and personal financial planning.
1. Expense of Medical Education
The initial step towards comprehending your impending debt is examining the expense of medical school. As of 2023, the typical cost of attending medical school in the U.S. varies from $200,000 to over $300,000 for four years of tuition alone. This estimate doesn't cover living costs, books, equipment, and other fees, which could add an extra $30,000 to $50,000 annually. Hence, total debt at graduation could easily surpass $300,000.
2. Earning Potential
Upon finishing medical school and residency (which could add another 3-7 years depending on your specialty), pediatricians generally earn between $150,000 and $250,000 per year. Surgeons usually have a higher earning capacity, ranging from $250,000 to over $500,000, depending on their specialty and location.
3. Loan Repayment Alternatives
Medical graduates can choose from several loan repayment alternatives:
Standard Repayment Plan: This plan typically lasts 10 years with fixed monthly payments.
Graduated Repayment Plan: Payments start low and increase every two years over a 10-year period.
Income-Driven Repayment Plans: These plans adjust monthly payments based on income and family size, extending repayment terms up to 20 or 25 years.
For instance:
If you graduate with $300,000 in debt under a standard repayment plan at around 6% interest, your monthly payment would be roughly $3,300 for ten years.
On the other hand, if you choose an income-driven repayment plan and earn about $200,000 annually after residency (with payments capped at around 10% of discretionary income), your monthly payments might initially be significantly lower but could prolong the repayment term.
4. Debt Repayment Duration
The duration of your loan repayment will hinge on your selected repayment plan and your post-residency salary:
Standard Plan: Roughly 10 years if you can manage high monthly payments.
Income-Driven Plans: Could range from 20 to 25 years depending on income growth over time.
Moreover, many physicians may be eligible for Public Service Loan Forgiveness (PSLF) if they serve in qualifying non-profit organizations or government roles post-residency. This program forgives remaining loan balances after ten years of qualifying payments.
5. Financial Management Tactics
To hasten debt repayment:
Consider adopting a frugal lifestyle during residency to save money.
Explore permissible side jobs within your training program.
Make extra payments whenever possible; even small amounts can decrease overall interest paid.
Conclusion
In conclusion, while the financial journey through medical school can be intimidating with potential debts surpassing $300,000 upon graduation, thoughtful planning around loan repayment strategies based on future earnings can significantly influence how swiftly you can become debt-free. Depending on your specialty choice and financial decisions made during training and early career stages, it could take anywhere from 10 to over 25 years to completely repay student loans.
Top 3 Reliable Sources Used:
American Association of Medical Colleges (AAMC) - Provides extensive data on medical school costs and student debt statistics.
U.S. Department of Education Federal Student Aid - Presents detailed information about federal student loans and repayment options available for graduates.
National Resident Matching Program (NRMP) - Offers insights into physician salaries across specialties, aiding in gauging potential earnings post-residency.
God Bless You!
JC.
Navigating Medical School Debt and Repayment
Embarking on a career as a pediatrician or surgeon is a commendable and fulfilling journey, yet it carries substantial financial considerations. Grasping how long it will take to settle medical school debt requires understanding several elements, such as education expenses, earning capacity, repayment alternatives, and personal financial planning.
1. Expense of Medical Education
The initial step towards comprehending your impending debt is examining the expense of medical school. As of 2023, the typical cost of attending medical school in the U.S. varies from $200,000 to over $300,000 for four years of tuition alone. This estimate doesn't cover living costs, books, equipment, and other fees, which could add an extra $30,000 to $50,000 annually. Hence, total debt at graduation could easily surpass $300,000.
2. Earning Potential
Upon finishing medical school and residency (which could add another 3-7 years depending on your specialty), pediatricians generally earn between $150,000 and $250,000 per year. Surgeons usually have a higher earning capacity, ranging from $250,000 to over $500,000, depending on their specialty and location.
3. Loan Repayment Alternatives
Medical graduates can choose from several loan repayment alternatives:
Standard Repayment Plan: This plan typically lasts 10 years with fixed monthly payments.
Graduated Repayment Plan: Payments start low and increase every two years over a 10-year period.
Income-Driven Repayment Plans: These plans adjust monthly payments based on income and family size, extending repayment terms up to 20 or 25 years.
For instance:
If you graduate with $300,000 in debt under a standard repayment plan at around 6% interest, your monthly payment would be roughly $3,300 for ten years.
On the other hand, if you choose an income-driven repayment plan and earn about $200,000 annually after residency (with payments capped at around 10% of discretionary income), your monthly payments might initially be significantly lower but could prolong the repayment term.
4. Debt Repayment Duration
The duration of your loan repayment will hinge on your selected repayment plan and your post-residency salary:
Standard Plan: Roughly 10 years if you can manage high monthly payments.
Income-Driven Plans: Could range from 20 to 25 years depending on income growth over time.
Moreover, many physicians may be eligible for Public Service Loan Forgiveness (PSLF) if they serve in qualifying non-profit organizations or government roles post-residency. This program forgives remaining loan balances after ten years of qualifying payments.
5. Financial Management Tactics
To hasten debt repayment:
Consider adopting a frugal lifestyle during residency to save money.
Explore permissible side jobs within your training program.
Make extra payments whenever possible; even small amounts can decrease overall interest paid.
Conclusion
In conclusion, while the financial journey through medical school can be intimidating with potential debts surpassing $300,000 upon graduation, thoughtful planning around loan repayment strategies based on future earnings can significantly influence how swiftly you can become debt-free. Depending on your specialty choice and financial decisions made during training and early career stages, it could take anywhere from 10 to over 25 years to completely repay student loans.
Top 3 Reliable Sources Used:
American Association of Medical Colleges (AAMC) - Provides extensive data on medical school costs and student debt statistics.
U.S. Department of Education Federal Student Aid - Presents detailed information about federal student loans and repayment options available for graduates.
National Resident Matching Program (NRMP) - Offers insights into physician salaries across specialties, aiding in gauging potential earnings post-residency.
God Bless You!
JC.
Updated
Rachel’s Answer
The best advice I received to limit debt was to "live like a resident" for a few years after finishing training. This means to live well below my means until debts are paid off. The White Coat Investor website has excellent advice on how to limit and pay off student debt.
https://www.whitecoatinvestor.com/what-to-do-if-you-have-monster-debt/
https://www.whitecoatinvestor.com/what-to-do-if-you-have-monster-debt/