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Old 03-28-2015, 03:30 PM
 
1,162 posts, read 1,267,651 times
Reputation: 1629

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So I was listening to DR on the road this morning and a 12 year old girl asked Dave how anyone could complete medical school debt free.

My ears perked up, undergrad is easy enough to work around, but most non-science PhD's are going to cost ya.

Well DR offered three options:

1) Parents pay for med school...

the other two involved literally signing your life away:

2) sign on with a hospital group agreeing to practice X speciality in Y location for Z years

3) sign up with the military

His whole reason being to not rack up massive debt because not everyone makes it, but he ignores what happens if you don't make it under options 2 or 3, no one is just going to forgive your debt if you're not working for them.

And instead of being a slave to debt, you'll be an actual slave. How is that an improvement?
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Old 03-28-2015, 03:42 PM
 
Location: C-U metro
1,359 posts, read 2,628,954 times
Reputation: 1157
It's an improvement as you are getting paid for your time while you are working. During your school and residency, you live on your wages which will amount to about 20k a year. However, your school is paid for and then YOU can bank all the money you make while working off the contract instead of SENDING it to the bank.

Basically, he's trying to ween people off of going to the bank for every stupid thing which causes compound interest to work against you. You want compound interest to work for you by saving and investing.

My wife is also in your camp. She could get her employer to pay for her MS Nursing program but she'd be under contract for 2-3 years and work full time. She hates being under a contract although she has no qualms at all for me being under contract. Granted, my signing bonuses are larger than an RN's but I'm still under contract to work for that bonus or we have to pay it back.

I think DR is largely against any PhD that isn't in STEM unless you have the cash in hand to pay for it.
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Old 03-28-2015, 03:50 PM
 
Location: New York
1,096 posts, read 898,212 times
Reputation: 1066
He just wants you to think differently vs just going to get a loan for any form of education.
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Old 03-28-2015, 05:08 PM
 
1,162 posts, read 1,267,651 times
Reputation: 1629
I get what he's trying to do, but he is avoiding a 100% imaginary form of slavery for actually giving up personal freedoms.

You sign a contract to work in west Texas as a neurosurgeon, but then you realize in medical school that you hate surgery and aren't too keen on rural locales.

Or you sign a contract with the military and although you match the way you want you get sent to Ft Hood with a follow up at Ft Irwin, which makes you look forward to deploying because at least there are starbucks in the sand box.

And if you flunk out of med school you're going to be paying the debt, no matter if it was a loan or a promise. That rural hospital is going to want it's money back, as is Uncle Sam, as they'll still need to find a Doctor to fill the spot you didn't fill.

So Daves plan is worse than loans.

With loans you can still demand market rates upon finishing residency, move wherever you want, and qualify for IBR (get into a non profit residency and you'll just have to work at the VA for a few years to discharge a whole lot of debt, and there are VA hospitals everywhere).

It just seems silly to me to not actually mitigate the risk of not completing medical school and couple that with restrictions of freedom all in the name of not taking out loans.

Truly we need people to serve in the military, and to take care of rural areas, but the contractee is more a slave to the contractor than the debtor is to the creditor.
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Old 03-28-2015, 05:11 PM
 
16,502 posts, read 17,539,161 times
Reputation: 23570
Quote:
Originally Posted by MDrenter223 View Post
So I was listening to DR on the road this morning and a 12 year old girl asked Dave how anyone could complete medical school debt free.

My ears perked up, undergrad is easy enough to work around, but most non-science PhD's are going to cost ya.

Well DR offered three options:

1) Parents pay for med school...

the other two involved literally signing your life away:

2) sign on with a hospital group agreeing to practice X speciality in Y location for Z years

3) sign up with the military

His whole reason being to not rack up massive debt because not everyone makes it, but he ignores what happens if you don't make it under options 2 or 3, no one is just going to forgive your debt if you're not working for them.

And instead of being a slave to debt, you'll be an actual slave. How is that an improvement?
Because it has a expired by date.
You're working for x place at x pay for x time
Military also has a end date. However military pay isn't all that bad.

Now they may not be the funky fresh place to work at but it gets you debt free. I'll do two years incarceration if I'm debt free after and can demand more money. Two years vs 10-20 years of student loan debt

Debt from school loans can be forever debt. Which you're actually paying for far longer than the military or working at x place x time x money.
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Old 03-28-2015, 06:05 PM
 
24,738 posts, read 26,803,263 times
Reputation: 22723
Quote:
Originally Posted by Electrician4you View Post
Because it has a expired by date.
You're working for x place at x pay for x time
Military also has a end date. However military pay isn't all that bad.

Now they may not be the funky fresh place to work at but it gets you debt free. I'll do two years incarceration if I'm debt free after and can demand more money. Two years vs 10-20 years of student loan debt

Debt from school loans can be forever debt. Which you're actually paying for far longer than the military or working at x place x time x money.
^^This^^.

My sister has been out of grad school for more than a decade and is STILL paying down her student loans. Inconceivable to me.
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Old 03-28-2015, 06:31 PM
 
Location: The Triad (NC)
26,867 posts, read 57,900,981 times
Reputation: 29296
Quote:
Originally Posted by Electrician4you View Post
Now they may not be the funky fresh place to work at but it gets you debt free.
I'll do two years incarceration if I'm debt free after and can demand more money.

Debt from school loans can be forever debt.
Which you're actually paying for far longer than the military or working at x place x time x money.
A friend from home did his time with the Navy.
They paid for a great education and he now has a thriving Dental practice near San Diego.
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Old 03-28-2015, 06:51 PM
 
Location: New York
1,096 posts, read 898,212 times
Reputation: 1066
also some people listen to what he says likes it gospel...it is a live radio show...please remember that.
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Old 03-28-2015, 07:54 PM
 
Location: N/A
849 posts, read 1,500,189 times
Reputation: 920
His ideas are also to make a plan, put the work in, live like no other...so later you can live like no other. With good planning and good execution, there should be no failure. One shouldn't just wander into one of these fields without having the passion or drive for it.

Plan. Execution. Success. This is obviously the happy path, and sometimes adjustments are needed.

This applies to everything...money, finances, relationships, careers, weight loss, etc.
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Old 03-28-2015, 11:16 PM
 
16,502 posts, read 17,539,161 times
Reputation: 23570
Quote:
Originally Posted by jms493 View Post
also some people listen to what he says likes it gospel...it is a live radio show...please remember that.

Yeah some people do lisen to him like its gospel. Not everyone though. If he has a good idea and I can implement it great. If he doesn't have what I consider a good idea or I think it's detrimental to me then I kick it to the curb. He's not the end all be all to finances. I have no problem carrying some debt. I just carry what is advantageous to me.
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