U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 08-09-2009, 07:39 PM
 
298 posts, read 630,663 times
Reputation: 157

Advertisements

If you're a doctor, how many years, on average, of working does it take to pay off all your loans?
Reply With Quote Quick reply to this message

 
Old 08-09-2009, 08:43 PM
 
12,113 posts, read 12,928,337 times
Reputation: 4601
Shouldn't you be asking this more in another forum, like one more relevant to medical school? It all depends on how much loans the student takes out... some have parents that save every penny to put them through medical school whereas some take loans and get other forms of financial aid and even some have wealthy parents who provide a free ride. I know people who owe as much as 300k and I know people who owe $0... the typical student probably has around $120k (but I know a lot of people who owe lots more)... Interest rates right now are at 6.8% FIXED interest rates... most people will consolidate their loans over a period of 30 years... so to answer your question, it could be zero years, 10 years, or 30 years...
Reply With Quote Quick reply to this message
 
Old 08-09-2009, 08:55 PM
 
16,623 posts, read 16,488,528 times
Reputation: 11596
what he said ^

also depends on how long your residency is, and how much you will earn.
Reply With Quote Quick reply to this message
 
Old 08-09-2009, 08:59 PM
 
Location: Seattle
1,293 posts, read 2,115,046 times
Reputation: 1239
From what I understand...most medical students have about 200-250k in debt (4 years med school @ 30-40k each, 4 years living expenses @ 20-25k each, plus sometimes living expenses indebted through residency). I don't know how you want to calculate opportunity cost, but if you assume someone will earn 45k after undergrad with 6% salary increases every year (and you subtract out 40k a year for residency pay in years 5-8) that amounts to $285k in opportunity cost - I think that's a fairly conservative number for salary increases for someone talented enough to get an MD (assumes around 70k in salary 8 years out of college...I know I personally reached that point 4 years out of college and I know many many people who make way more than 70k in their 8th year out of school). So you have basically half a million dollars in opportunity cost + student debt. How long that takes back depends on things like discount rates, interest rates, how much money you make as a doctor...some doctors start at 90k others start at 200k. Some increase really fast to 400k and others stay in the middle 100s.

If you choose a specialty that doesn't really pay more than the 150s then you'll basically never make back that money. If you end up making 200k to start and go into the 400k range after a few years then you'll make it back within 5-7 years of graduation. Doctors pay has a huge variance. Also a lot of doctors burn out of high pay specialties because the lifestyle absolutely sucks (unless you're a Derm or some "non-emergency" type of physician).

Some things to consider: MDs will pay 40-50% tax rate, they often won't get to deduct their 200k student loan interest because they are "too wealthy" and they work overtime and they work funky hours. It can be a good deal but it's often not as good as people think it is. A lot of MDs don't make that much money (pediatricians, primary care, etc).

Last edited by drshang; 08-09-2009 at 09:10 PM..
Reply With Quote Quick reply to this message
 
Old 08-09-2009, 10:28 PM
 
10,764 posts, read 16,777,770 times
Reputation: 11769
There's always the option of working in a designated "underserved area" and having some loans written off. Also true in the military medical reserves in a "critical specialty," which might well include any MD, plus, you are automatically an officer.
Reply With Quote Quick reply to this message
 
Old 08-10-2009, 09:43 AM
 
Location: In the woods next to the ocean
4,225 posts, read 9,535,996 times
Reputation: 7109
If you charge the same rates as my doctors, you should have your debt paid off in about a week.
Reply With Quote Quick reply to this message
 
Old 08-10-2009, 10:01 AM
 
16,623 posts, read 16,488,528 times
Reputation: 11596
Quote:
Originally Posted by Fat Freddy View Post
If you charge the same rates as my doctors, you should have your debt paid off in about a week.
That's a strange thing to say.

In what country do you live? Do your doctors there not have costs, like medical equipment and malpractice insurance?
Reply With Quote Quick reply to this message
 
Old 08-10-2009, 02:13 PM
 
Location: Banana Republic, LA
378 posts, read 722,262 times
Reputation: 297
Quote:
Originally Posted by Fat Freddy View Post
If you charge the same rates as my doctors, you should have your debt paid off in about a week.
That is a strange statement. Personally I don't know how my doctor manages to pay her staff and bills, and still come out with decent earnings, off of what my insurance company pays her.

There are a lot of people in this country that I think are over-compensated. Doctors are not one of them.
Reply With Quote Quick reply to this message
 
Old 08-10-2009, 04:40 PM
 
Location: In America's Heartland
925 posts, read 1,287,282 times
Reputation: 1110
It depends on how serious the doc is in getting the student loan paid off. Do they want to start living like a doc immediately or are they willing to sacrifice and put most of the cash toward the loan. The latter would be the smart way to go.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $94,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads

All times are GMT -6.

2005-2015, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28 - Top