Great video, one aspect I wish was harped on me during my exit interview at medical school was the importance of getting on the IDR as soon as possible. I waited since I didn't understand (or it wasn't explained) that the grace period =/= no interest accrual, and by the time I submitted the IDR I had accrued 5 months of interest.
Great video. I do have a general finance question for medical school: I am a career changer, currently making about 130k per year and currently have an acceptance to medical school. I don't have a ton saved because I finished clearing out some loans last fall after several years of working at them. Because of the forecasted cost of attendance, I've been tempted to defer my acceptance for a year so that I can save up some money prior to starting. I'd potentially be able to cut my total medical school debt almost in half if I were to do so. With these new programs, is that even a good idea anymore?
Thanks! It all depends on your situation and what you value most. Delaying med school for a year ultimately means that you're delaying doctor pay for a year. Is a 'guaranteed' $130k now worth more to you than a 'probable' $300-500k in the future? If one year's pay now will cut your med school cost in half, then one year's pay in the future will likely pay it off completely. Money isn't the only factor, of course, but it is a big one. If you're likely to go for some type of forgiveness, then mathematically you're better off paying as little as possible towards your student loans. Good luck to you!
this was a wonderful video!! I have a quick question that I can’t seem to get an answer to. I am currently now enrolled in the SAVE program, and I continue to see my interest grow every day. Is this normal? I was under the impression that my principal would not be collecting any more interest, but I may be misunderstanding it. Thanks for all that you do for us!
SAVE can help cover your unpaid interest in a subsidy and your principal balance should never grow. The interest is not waived until the end of the month. We are seeing loan servicers take time to implement SAVE as it is a new program. Here's an idea of how SAVE is going to work. If interest is $1000/month and your payment is $200/month, $800 of interest is waived.
Also on the morale hazard thing, I've seen many articles discussing physician shortages and low enrollment for physicians. People are not wanting to go to college due the costs. If only they could put some regulations on tuition rates or something. If not we are gonna be in some trouble. People aren't seeing the benefit of college as much anymore.
Great video, one aspect I wish was harped on me during my exit interview at medical school was the importance of getting on the IDR as soon as possible. I waited since I didn't understand (or it wasn't explained) that the grace period =/= no interest accrual, and by the time I submitted the IDR I had accrued 5 months of interest.
Great video. I do have a general finance question for medical school: I am a career changer, currently making about 130k per year and currently have an acceptance to medical school. I don't have a ton saved because I finished clearing out some loans last fall after several years of working at them. Because of the forecasted cost of attendance, I've been tempted to defer my acceptance for a year so that I can save up some money prior to starting. I'd potentially be able to cut my total medical school debt almost in half if I were to do so. With these new programs, is that even a good idea anymore?
Thanks! It all depends on your situation and what you value most. Delaying med school for a year ultimately means that you're delaying doctor pay for a year. Is a 'guaranteed' $130k now worth more to you than a 'probable' $300-500k in the future? If one year's pay now will cut your med school cost in half, then one year's pay in the future will likely pay it off completely. Money isn't the only factor, of course, but it is a big one. If you're likely to go for some type of forgiveness, then mathematically you're better off paying as little as possible towards your student loans. Good luck to you!
this was a wonderful video!! I have a quick question that I can’t seem to get an answer to. I am currently now enrolled in the SAVE program, and I continue to see my interest grow every day. Is this normal? I was under the impression that my principal would not be collecting any more interest, but I may be misunderstanding it. Thanks for all that you do for us!
SAVE can help cover your unpaid interest in a subsidy and your principal balance should never grow. The interest is not waived until the end of the month. We are seeing loan servicers take time to implement SAVE as it is a new program. Here's an idea of how SAVE is going to work. If interest is $1000/month and your payment is $200/month, $800 of interest is waived.
i understand now! okay, makes perfect sense, thank you so much for that😁
Also on the morale hazard thing, I've seen many articles discussing physician shortages and low enrollment for physicians. People are not wanting to go to college due the costs. If only they could put some regulations on tuition rates or something. If not we are gonna be in some trouble. People aren't seeing the benefit of college as much anymore.