Considering that this country and society thrives on debt. Why not invest in a debt that is actually worthwhile? When I think of that, it makes me less queasy about how much money I will be oweing when I get out of school.
I graduated from medical school with nearly $200,000 in total debt. This degree of medical educational debt is common for graduates of private schools. To go to a state school, on the other hand, is often less than half this cost. When I graduated from medical school, I wasn't terribly bothered since I felt that over time I'd just pay it off as I practiced my career. Now nearly two years into residency, I have my job. In addition, I hear so often from many residents and attending physicians (those finished residency and now practicing) that they wish they could leave the practice of medicine because of all the various stresses. It runs the gamut from patient load to medical malpractice to long hours to institutional politics to a culture that is still very rigid, hierarchical and particularly unforgiving. But we can't afford to do anything else. There isn't another job that could pay us enough to cover our debts and feed ourselves and our families. We are literally shackled to this crazy trade. I talk to so many who are just "gutting it out" waiting for the day that they can make enough to pay down their debts to some reasonable amount that they could shoulder while doing some other non-medical job so that they can get off this crazy train life. On the other hand, if one had chosen a state school, the possibility of pursuing a non-clinical job might still be an option from the moment you finished residency, or sooner. It's just a thought. Sometimes life, or you, change. And $100,000 less debt is a significant amount of freedom.
Simply said, don't be afraid of paying a little extra for higher quality education. You will earn it back in the experience and knowledge that you gain, as well as likely in your paycheck. Be aware and cautious of your educational debt, but don't run from opportunities just because of the pricetag. Keep the big picture in mind.
Yes, you may be right about one thing: the difference in schools for med students. As I alluded to in my first post...again, it depends on your field of study. As far as med schools, I am not terribly familiar with the particulars. Now concerning your other point on student loans, I hope you are more accurate in surgery someday as a doc, cause you are dead wrong here. You ABSOLUTELY CAN still refinance student loans for UNDER 5%. That's better than any mortage company can give you right now on a secured loan. So, maybe readers shouldn't rely heavily on your advice about the importance (or lack there of) of their choice in med school.
A lot of my (fortunate) friends were debating between pricey out of state schools and cheaper in state schools for the M.D. program. In my opinion, it really doesn't matter when it comes to M.D. schools. There are not that many in the U.S. for a reason. The reason: it takes A LOT to be an accredited medical school, and no board is going to take on the task unless they are purely motivated to create an awesome, stable, and thriving educational environment. An M.D. is an M.D. Go to the cheaper school and blow them away with your creativity and drive by helping to establish the programs they might be lacking (compared to the more expensive school). The name of the school pales in comparison to what you accomplish there, when writing out your resume.
(And besides, student loans are NOT cheap anymore - with all of them pushing a 7% interest rate!!)
You know it is perfectly normal to doubt your decisions when faced with a huge bill. But you have to also consider the price of not choosing that first choice school. The price of the doubt if you had gone elsewhere- would you have learned more, been happier or had a better college experience if you had gone to that first choice school? So much of your education at any level is what you put into it. And when it comes to that sometimes attitude is everything. Therefore I say go where you want to be and where you will find your passion.
I am graduating from medical school in 5 months with a bill larger than the author's almost $90K. But I have no regrets. I have made an investment in my future and a good one at that. I went to a great medical school and thrived there. Did I pay a big price tag? Yes. But every cent was worth it. This was proven to me as I interviewed for residency during the last few months- my institution is well respected and as its product I am a great candidate. And I will become a great physician.
One can look at the debt in many ways, however, seeing it as another home is not really the best parallel. This is because the home as an investment has limited value to you for a)something you own that you can be proud of and can be used for your own personal benefit or b) as real property which may appreciate in value over a long period of time. Your investment in education affects not only who you are and the benefit to you, but also what you are able to produce financially and otherwise to the field you are in and also contributing to many others. Additionally, many people that pursue an education (1st generation for example) actually leave a lasting legacy for their children and grandchildren in terms of what they are able to achieve themselves. Knowledge can be priceless. Creativity even moreso. And that is why there are those who succeed greatly without education. As for those young people now, many may have profession specific knowledge but lack common-sense knowledge and may have a difficult time paying off debt. But most won't because generally with education(college level) comes a level of critical thinking that stems to all areas of life including finances. And lastly...why is every student I meet think along the same line: "...pay the school debt off quickly" My question to you is, why? Why do you NEED to pay it off so quickly? As I stated in the first post, it is VERY UNWISE to try and pay off student loan debt fast BECAUSE of the low interest! By you paying it off you are spending you are losing money that could be invested or used to purchase something like a home. The type of debt you WANT to pay off quickly is credit card debt and any high interest line of credit, but there are many sites that already deal with good credit decisions so I will leave it at that.
I appreciated reading this article, since I am asking myself the same question as I face $65,000 in debt for an accelerated nursing program at a top school.
Entering adulthood with with looming debt is intimidating. It may be equivalent to home loan debt, but then that means I'll have debt on TWO "homes" through my life unless I can pay the school debt off quickly.
This is the first time in history that so many young people have such high school loan debt, and I wonder how we'll all do. I think I will benefit from attending my top school, but big debt is a big deal and young people should be clear about that.
I think it was Isaac Newton that said 'Education is the best return on investment you'll ever make' You know, there is 'good' debt and 'bad' debt. School loans are considered good for many reasons that I won't explain here, but the most important concern of yours, it seems, is having 20 yrs of $90,000 to pay off. Most people in this country pay a much larger sum over a longer period (typically 30yrs) for a home! It's not seen as a debt to feel guilty or burdened with. When did you hear last about someone fretting about how long it was going to take them to pay off their house. I meet people all the time that are afraid of having a looming debt over their head after school. Furthermore, student loans have the lowest interest rate you'll ever get period on borrowed money! Your other concern is whether it was worth the extra cost to go to an ‘A’ list school. The answer varies. But if chosen wisely for the particular field of study, there can be a huge payoff. Oftentimes, it is something like having instant access to a network of colleagues in your profession that can send you to the top. You pay to play- basically you are paying for the resources you have available to you while attending and ever more so afterwards. At Stanford for example, you are pretty much explicitly told that once you graduate with an MBA, you will have personal contact info for people like Bill Gates and other very successful people in business. Other benefits can be simply going to a school that is doing cutting edge research and will allow you to put your skills to the real test and may get to contribute to finding a cure. Now, if you choose not to take advantage of these, then it is a waste. The bottom line is you should have no problem paying it back. Obviously, depending on your profession this may take a little longer or shorter. But student loans are not something to be concerned about. There are also some great ways students can start investing their cash now or even surplus loan money that can pretty much make things financially a lot easier. For more info I can be reached at adspore@hotmail.com. One more comment. Just don’t be late with a payment or neglect to contact your lender if you have problems making a payment(s). They can usually always find a way to give you a deferment. But once you default on these loans can get screwed permanently (garnish your wages and all that bad stuff) So if you get into a tight spot don’t hesitate to tell them what’s going on.
Perhaps the best school was not as good of a choice as the author thinks. It appears that the school's writing program did not teach students to avoid using words such as "I've" and "I'm," instead of "I have" and "I am," for published articles.
Considering that this country and society thrives on debt. Why not invest in a debt that is actually worthwhile? When I think of that, it makes me less queasy about how much money I will be oweing when I get out of school.
Oops. I meant "Now nearly two years into residency, I HATE my job"
Sorry 'bout that.
I graduated from medical school with nearly $200,000 in total debt. This degree of medical educational debt is common for graduates of private schools. To go to a state school, on the other hand, is often less than half this cost. When I graduated from medical school, I wasn't terribly bothered since I felt that over time I'd just pay it off as I practiced my career. Now nearly two years into residency, I have my job. In addition, I hear so often from many residents and attending physicians (those finished residency and now practicing) that they wish they could leave the practice of medicine because of all the various stresses. It runs the gamut from patient load to medical malpractice to long hours to institutional politics to a culture that is still very rigid, hierarchical and particularly unforgiving. But we can't afford to do anything else. There isn't another job that could pay us enough to cover our debts and feed ourselves and our families. We are literally shackled to this crazy trade. I talk to so many who are just "gutting it out" waiting for the day that they can make enough to pay down their debts to some reasonable amount that they could shoulder while doing some other non-medical job so that they can get off this crazy train life. On the other hand, if one had chosen a state school, the possibility of pursuing a non-clinical job might still be an option from the moment you finished residency, or sooner. It's just a thought. Sometimes life, or you, change. And $100,000 less debt is a significant amount of freedom.
Simply said, don't be afraid of paying a little extra for higher quality education. You will earn it back in the experience and knowledge that you gain, as well as likely in your paycheck. Be aware and cautious of your educational debt, but don't run from opportunities just because of the pricetag. Keep the big picture in mind.
response to : CMcquate
Yes, you may be right about one thing: the difference in schools for med students. As I alluded to in my first post...again, it depends on your field of study. As far as med schools, I am not terribly familiar with the particulars. Now concerning your other point on student loans, I hope you are more accurate in surgery someday as a doc, cause you are dead wrong here. You ABSOLUTELY CAN still refinance student loans for UNDER 5%. That's better than any mortage company can give you right now on a secured loan. So, maybe readers shouldn't rely heavily on your advice about the importance (or lack there of) of their choice in med school.
A lot of my (fortunate) friends were debating between pricey out of state schools and cheaper in state schools for the M.D. program. In my opinion, it really doesn't matter when it comes to M.D. schools. There are not that many in the U.S. for a reason. The reason: it takes A LOT to be an accredited medical school, and no board is going to take on the task unless they are purely motivated to create an awesome, stable, and thriving educational environment. An M.D. is an M.D. Go to the cheaper school and blow them away with your creativity and drive by helping to establish the programs they might be lacking (compared to the more expensive school). The name of the school pales in comparison to what you accomplish there, when writing out your resume.
(And besides, student loans are NOT cheap anymore - with all of them pushing a 7% interest rate!!)
You know it is perfectly normal to doubt your decisions when faced with a huge bill. But you have to also consider the price of not choosing that first choice school. The price of the doubt if you had gone elsewhere- would you have learned more, been happier or had a better college experience if you had gone to that first choice school? So much of your education at any level is what you put into it. And when it comes to that sometimes attitude is everything. Therefore I say go where you want to be and where you will find your passion.
I am graduating from medical school in 5 months with a bill larger than the author's almost $90K. But I have no regrets. I have made an investment in my future and a good one at that. I went to a great medical school and thrived there. Did I pay a big price tag? Yes. But every cent was worth it. This was proven to me as I interviewed for residency during the last few months- my institution is well respected and as its product I am a great candidate. And I will become a great physician.
Response to posting :Jen
One can look at the debt in many ways, however, seeing it as another home is not really the best parallel. This is because the home as an investment has limited value to you for a)something you own that you can be proud of and can be used for your own personal benefit or b) as real property which may appreciate in value over a long period of time. Your investment in education affects not only who you are and the benefit to you, but also what you are able to produce financially and otherwise to the field you are in and also contributing to many others. Additionally, many people that pursue an education (1st generation for example) actually leave a lasting legacy for their children and grandchildren in terms of what they are able to achieve themselves. Knowledge can be priceless. Creativity even moreso. And that is why there are those who succeed greatly without education. As for those young people now, many may have profession specific knowledge but lack common-sense knowledge and may have a difficult time paying off debt. But most won't because generally with education(college level) comes a level of critical thinking that stems to all areas of life including finances. And lastly...why is every student I meet think along the same line: "...pay the school debt off quickly" My question to you is, why? Why do you NEED to pay it off so quickly? As I stated in the first post, it is VERY UNWISE to try and pay off student loan debt fast BECAUSE of the low interest! By you paying it off you are spending you are losing money that could be invested or used to purchase something like a home. The type of debt you WANT to pay off quickly is credit card debt and any high interest line of credit, but there are many sites that already deal with good credit decisions so I will leave it at that.
I appreciated reading this article, since I am asking myself the same question as I face $65,000 in debt for an accelerated nursing program at a top school.
Entering adulthood with with looming debt is intimidating. It may be equivalent to home loan debt, but then that means I'll have debt on TWO "homes" through my life unless I can pay the school debt off quickly.
This is the first time in history that so many young people have such high school loan debt, and I wonder how we'll all do. I think I will benefit from attending my top school, but big debt is a big deal and young people should be clear about that.
I think it was Isaac Newton that said 'Education is the best return on investment you'll ever make' You know, there is 'good' debt and 'bad' debt. School loans are considered good for many reasons that I won't explain here, but the most important concern of yours, it seems, is having 20 yrs of $90,000 to pay off. Most people in this country pay a much larger sum over a longer period (typically 30yrs) for a home! It's not seen as a debt to feel guilty or burdened with. When did you hear last about someone fretting about how long it was going to take them to pay off their house. I meet people all the time that are afraid of having a looming debt over their head after school. Furthermore, student loans have the lowest interest rate you'll ever get period on borrowed money! Your other concern is whether it was worth the extra cost to go to an ‘A’ list school. The answer varies. But if chosen wisely for the particular field of study, there can be a huge payoff. Oftentimes, it is something like having instant access to a network of colleagues in your profession that can send you to the top. You pay to play- basically you are paying for the resources you have available to you while attending and ever more so afterwards. At Stanford for example, you are pretty much explicitly told that once you graduate with an MBA, you will have personal contact info for people like Bill Gates and other very successful people in business. Other benefits can be simply going to a school that is doing cutting edge research and will allow you to put your skills to the real test and may get to contribute to finding a cure. Now, if you choose not to take advantage of these, then it is a waste. The bottom line is you should have no problem paying it back. Obviously, depending on your profession this may take a little longer or shorter. But student loans are not something to be concerned about. There are also some great ways students can start investing their cash now or even surplus loan money that can pretty much make things financially a lot easier. For more info I can be reached at adspore@hotmail.com. One more comment. Just don’t be late with a payment or neglect to contact your lender if you have problems making a payment(s). They can usually always find a way to give you a deferment. But once you default on these loans can get screwed permanently (garnish your wages and all that bad stuff) So if you get into a tight spot don’t hesitate to tell them what’s going on.
Perhaps the best school was not as good of a choice as the author thinks. It appears that the school's writing program did not teach students to avoid using words such as "I've" and "I'm," instead of "I have" and "I am," for published articles.