Going to Medical school is a huge commitment both in time and finances and the decision should not be taken lightly. A large and often overlooked part of making the decision is if medical school will be financially worth it to you. To help you gain a better understanding of the costs let's run through a normal scenario.
The costs of medical school can be quite large. To start off with let's understand the costs of the first four years of medical school. Medical school tuition has actually been increasing quite steadily as the years have gone by. Last year there was an increase of 7.8 percent tuition for in-state and 6.3 percent for out of state residents.
The first thing that you should do is acknowledge that you have personal needs. While your first priority should be your schooling, it is unrealistic to assume that your needs can continue to take a backseat. Managing college is not about strangling your desires for sleep, food, or fun; it's about learning to incorporate everything into your schedule. So don't feel guilty for going out with friends and having a good time, just make sure that you do so responsibly and that you are in control over your schedule.
Be Ready to Sacrifice
In order to afford medical school you will need to take out some loans. Federal loans are limited to thirty thousand a year meaning that you will need to take out private loans at higher interest rates. The federal loan rate has fluctuated and can be anywhere from 3.5-7 percent. Private loans are a usually a few points higher if not more. For simplicity in the math we will take say that our total loans have an average interest rate of 8 percent (make adjustments for your own rates). After the four years (assuming you have not made payments) your total debt will be ~$350,000 if compounded annually. We do the same process again through the three years of residency that you will be going through. At the end of your education, again assuming no payments as well as no undergraduate debt you will have a total debt of ~ $438,000. Compounding interest can be terrible when it is not on your side.
The next thing you should consider as you look into your financial aid for your education is grants. Grants are usually awarded based on the needs of students. This means that grants are usually given to students who have financial needs. This kind of award, many like scholarships, does not need to be repaid, and is awarded without the intent of repayment.
We will take into account your age. Assuming you started college at 18 and left promptly at 12 you are around 22 when you start medical school. After seven years you are now pushing thirty. This means that at age forty you will be making less than $50,000 a year if you choose to pay off your school debt in ten year (fifty if you opt for twenty years). There are also additional debts of a home and cars that you will need to plan for. After you pay off the debt then you can start reaping the benefits. After age forty you will have over $150,000 or more dropping in your account each year (assuming taxes and raises). If you plan on working into your sixties you will be able to amass wealth to enjoy in retirement.
So does becoming a doctor make fiscal sense? The answer is more than likely no. There are many other ways to make more money with less investment. However, the financial benefits of becoming a doctor are not he reasons to seek this profession. There are many more things to consider such as the joy of helping individuals heal. There are also other downsides like limited amount of time with your family. The decision is up to you, but now you have a better understanding of the debt you will face as you choose a medical profession. Better to step into the future with your eyes open.
The costs of medical school can be quite large. To start off with let's understand the costs of the first four years of medical school. Medical school tuition has actually been increasing quite steadily as the years have gone by. Last year there was an increase of 7.8 percent tuition for in-state and 6.3 percent for out of state residents.
The first thing that you should do is acknowledge that you have personal needs. While your first priority should be your schooling, it is unrealistic to assume that your needs can continue to take a backseat. Managing college is not about strangling your desires for sleep, food, or fun; it's about learning to incorporate everything into your schedule. So don't feel guilty for going out with friends and having a good time, just make sure that you do so responsibly and that you are in control over your schedule.
Be Ready to Sacrifice
In order to afford medical school you will need to take out some loans. Federal loans are limited to thirty thousand a year meaning that you will need to take out private loans at higher interest rates. The federal loan rate has fluctuated and can be anywhere from 3.5-7 percent. Private loans are a usually a few points higher if not more. For simplicity in the math we will take say that our total loans have an average interest rate of 8 percent (make adjustments for your own rates). After the four years (assuming you have not made payments) your total debt will be ~$350,000 if compounded annually. We do the same process again through the three years of residency that you will be going through. At the end of your education, again assuming no payments as well as no undergraduate debt you will have a total debt of ~ $438,000. Compounding interest can be terrible when it is not on your side.
The next thing you should consider as you look into your financial aid for your education is grants. Grants are usually awarded based on the needs of students. This means that grants are usually given to students who have financial needs. This kind of award, many like scholarships, does not need to be repaid, and is awarded without the intent of repayment.
We will take into account your age. Assuming you started college at 18 and left promptly at 12 you are around 22 when you start medical school. After seven years you are now pushing thirty. This means that at age forty you will be making less than $50,000 a year if you choose to pay off your school debt in ten year (fifty if you opt for twenty years). There are also additional debts of a home and cars that you will need to plan for. After you pay off the debt then you can start reaping the benefits. After age forty you will have over $150,000 or more dropping in your account each year (assuming taxes and raises). If you plan on working into your sixties you will be able to amass wealth to enjoy in retirement.
So does becoming a doctor make fiscal sense? The answer is more than likely no. There are many other ways to make more money with less investment. However, the financial benefits of becoming a doctor are not he reasons to seek this profession. There are many more things to consider such as the joy of helping individuals heal. There are also other downsides like limited amount of time with your family. The decision is up to you, but now you have a better understanding of the debt you will face as you choose a medical profession. Better to step into the future with your eyes open.
About the Author:
The Stevens Henager Idaho Falls branch campus is designed to facilitate educational activities, social events, and career services. Stevens Henager College offers Internet access, tutors, and a supportive staff to assist students.
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