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Paying for school


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As I'm gearing up for school to start next year, I'm trying to figure out the best methods of paying for school.  I will be attending one of the more expensive schools; tuition alone is slightly over $100,000 for the duration of the program.  

 

I am good at living frugally, and have a good chunk of savings; I could pay for about 1/3 of the tuition out of pocket (but this wouldn't leave a lot for living expenses or an emergency fund).  Should I do this, or plan on taking out more loans? I have very good credit, and no debit currently.   I could also borrow some money from family, definitely for living expenses (I am incredibly lucky in this regard).    

 

What are the chances I could get loan repayment through my job once I graduate?  Given this, or possibly loan forgiveness, I feel I may be remiss to not take out loans, and therefore not have the possibility of the "free" money later.   

 

Aside from advice from this forum, how could I find a financial adviser cognicent of PA school/ profession finances to talk to?   

 

Sorry for so many questions, any advice is greatly appreciated!

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https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service

 

Hold onto the cash. Hold onto it real tight. Speaking from the experience of graduating from PA school with 1k in the bank, truck needing repairs and only clothes and books to my name, a cushion is needed till get that first job.

 

Take up those family members on their offer for supporting living expenses. Consider it advance payment for all the medical advice they will solicit and then ignore.

 

Loan repayment vacillates based upon funds available through different agencies, local, state and federal. What is available now, may not in 2-3 years and vice versa. I have met PAs whom did not do loan repayment till they were 3-5 years into their respective careers.

Anecdotally, loan repayment can be a mixed bag, may entail moving and living in an area or working in a system you may not especially desire.

Loan repayment may also involve terms that are also limiting.

 

There has also been advice concerning taking retirement savings out of 401k, 403b or Roth IRA to pay for education. Tax advisor input is needed for that.

In your 20s, you can overcome this distribution in the long run but later in life, may be hard pressed especially if have to pay mortgage, kid associated expenses, spouse or significant others education or other debt, etc.

 

My take on this is if you are particularly debt adverse, then stay debt adverse, you likely will be fine. But I have benefited from leveraging with student loans, would not have been able to do school without them, also paid them off early due to well timed financial moves. Just have to pay attention to the details that are important to you.

 

Good luck.

G Brothers PA-C

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You can always take the loans and sit on the cash.  Things to know:

 

1. Unless you go straight into a residency you may need to support yourself for a few months until you get a job and a check.

 

2.  No matter where you go you will need a place to live.  I'm a big proponent of buying (in this economy) vs renting.

 

3.  Student loan interest rates are likely to be less than commercial based loans.

 

Live on the cheap during school so that you will have a lil cushion when you graduate. If you find a job soon after graduation and find that you don't need the cash you can always pay off the loans. That's my plan.  

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Take the loans, never again will you be able to have someone offer you six figures in loans with so little proof in your ability to repay them. (granted they are almost impossible to discharge in bankruptcy) As others have said, you will need some cushion before starting a new job and the loans stop they day you graduate. Also, you have multiple options for school loan repayment plans on top of a normal salary. No one is going to offer you an extra 20k a year on top of your salary to pay off your mortgage; however, if you don't need the loans for living expenses you can use them for that or anything else you may need. Better to have the money and not need it then need it and not be able to get it. The worst case scenario is you pay back the loans with some interest when you graduate to have the security of having them.

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