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Looking at 200k debt - am I crazy?


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I'll be applying to PA schools this spring and I'm having a lot of anxiety over the amount I'll owe once I'm done. I'm from the NE, and a state that does not have an instate program. I have about 100k in undergrad debt (nuts, I know). My parents are going to help me with half of that, but I'm not going to bank on that 100%. I'm applying to programs near where my parents live so I'll be able to live with them while I'm in school. Most programs up here run 80k for tuition alone, putting me at around 180k - 200k in loans once I'm done. I've been working with a recruiter to apply to HSCP but I'm not 100% sure I'll be eligible due to a potential medical DQ. I'm trying to be as practical as I can about PA school finance-wise, but I'm still nervous about the insane amount of debt I'll accumulate. 

 

Am I setting myself up for financial hardship later on? I can't really see myself doing anything else for a career but I'm having a hard time wrapping my head around this much debt that will follow me around for years and years. 

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That's the thing: Not a whole lot of people HAVE done it your way, before.  The cost has skyrocketed over the last few years, and given the relative difference in cost between PA school and medical school, I'm not sure so sure it's as good an economic deal as it used to have been.

 

If you're GOING to get yourself in debt for 10+ years so bad you have to obligate service and/or are forced to go rural and have essentially no control over your life, why WOULDN'T you go MD instead?

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If you're willing to live life so austerely that you can pay off 140k in debt on a new grad PA salary in 3 years, why not just do med school plus a residency?

 

Is the personal choice to pursue PA school based on its own merits not good enough? 

 

Call me crazy, but if a family of 4 can live comfortably on a salary of <40k/year in Boston...I have no excuse not to live comfortably with a new grad PA salary.

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OP- have you considered working full time for a while before applying?  Pay down some of that undergrad debt before you take on grad school?

 

I know in the long term working as a PA would make you more money than working as XYZ now, which is hard to deny, but that does mean a big chunk of debt.  Since you haven't applied yet, can you find a good HCE job, live with your parents, and pay down some undergrad loans for a few years?  

 

There actually aren't that many PA scholarships out there, so please don't count on that.  NHSC is very competitive and also shouldn't be counted on.  There are a few loan repayment plans out there and those might be more likely, but again, no guarantees.  

 

I highly recommend the studentloan.gov site which has a loan repayment calculator and let's you estimate your monthly payments.  For me, seeing it in that form helped (and was terrifying).  I know roughly what I spend each month, can estimate a general salary as a PA, and then throw a loan payment in and it puts things in a more realistic number for me to deal with than the overwhelming, in my case, $240k.  When you realize that $200k worth of debt (before interest!) is like  $2k/month of loan payments - it might make you pause.  

 

Yes, there are those of us that are doing it.  And we are crazy.  And at times terrified of the financial hole we will be in.  And we know we will be living frugally and possibly be working more than 1 job to help pay things off.  It's a choice.  Only you can decide what is right for you.

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Thanks for your replies. I have thrown around the idea of medical school a few times, but I think that being a PA would fit my personality and lifestyle goals the best. Plus, I'm afraid of taking on even more debt, and having my $100k in deferment gathering interest for another 4 years. I plan on moving in with my boyfriends parents once I graduate which will significantly lower my expenses per month. I'd say I live comfortably on 20k/yr and that's with ~$800 in rent with a little to save each month. I'm taking a gap year (or maybe two) and hopefully will be able to land a job and throw some money into my loans. 

 

My state has a loan repayment program where PAs can get up to $25k per year for 2 years (primary care only), but I'm not entirely sure if this is competitive or not. Has anyone had any experiences with these kinds of programs? 

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May I ask what your degree is in? Like MT2PA mentioned, why not work in the field with your BS/BA to help you pay off some of that debt before pursuing pa school?

I can say from experience that this isn't that easy to do. I have about the same amount of undergrad and grad loans (previous master's that is in a low-hiring field). Even making decent money like I do now, there is not enough left over to make a dent in loans. I am struggling with this as well. It seems like the more I pay on my loans, the more I have to put on CCs... A PA in the practice I work in (I'm an applicant) tried the same thing to no avail. I don't know what the right answer is, but I'm trying to work it out too! 

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I can say from experience that this isn't that easy to do. I have about the same amount of undergrad and grad loans (previous master's that is in a low-hiring field). Even making decent money like I do now, there is not enough left over to make a dent in loans. I am struggling with this as well. It seems like the more I pay on my loans, the more I have to put on CCs... A PA in the practice I work in (I'm an applicant) tried the same thing to no avail. I don't know what the right answer is, but I'm trying to work it out too! 

Yea it definitely depends on your degree and other factors like living with parents, etc.  In my field, working nights was a perk bc not only did you make a nice differential, but I slept all day and thus didn't spend a lot of money.  I saved so much that one year it was insane.

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May I ask what your degree is in? Like MT2PA mentioned, why not work in the field with your BS/BA to help you pay off some of that debt before pursuing pa school?

I will be getting my degree in biology. Where I live the job market is really saturated and I doubt I could get a job making more than 25-30k/year. I'm debating just trying to find the highest paying job I can get and do some healthcare work on the side to pick up more HCE or maybe even picking another career. I love working in medicine but I already made one financial mistake and I'm really leery of making another.

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I will be getting my degree in biology. Where I live the job market is really saturated and I doubt I could get a job making more than 25-30k/year. I'm debating just trying to find the highest paying job I can get and do some healthcare work on the side to pick up more HCE or maybe even picking another career. I love working in medicine but I already made one financial mistake and I'm really leery of making another.

Depending on the state you're in, if you have any interest in laboratory....you could get in the door there.  Not the *best* HCE, but can make more like $50-60k/yr.  Some states require a license, though, which means a 1 yr internship and national exam.  If you happen to be near a Mayo clinic, they are one of the employers I know of that will hire bio majors and train them and don't require the license.  Look for BIG employers that can't afford to strictly hire licensed techs (there just aren't enough to fill their rosters).

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That's the thing: Not a whole lot of people HAVE done it your way, before.  The cost has skyrocketed over the last few years, and given the relative difference in cost between PA school and medical school, I'm not sure so sure it's as good an economic deal as it used to have been.

 

If you're GOING to get yourself in debt for 10+ years so bad you have to obligate service and/or are forced to go rural and have essentially no control over your life, why WOULDN'T you go MD instead?

 

I graduated from PA school in 2012. The total tuition and fees (not counting anything else) was about $70k at that time. I just checked by school's website and the cost has increased to $90k.

 

$20k increase in 3 years. Absolutely insane.

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I graduated from PA school in 2012. The total tuition and fees (not counting anything else) was about $70k at that time. I just checked by school's website and the cost has increased to $90k.

 

$20k increase in 3 years. Absolutely insane.

 

I think so many people want to become PAs now that schools can pretty much charge whatever they want - two private NEW programs near my parents charge $90k for tuition alone and have no PANCE scores to back anything up. I'm sure they're fine programs but still! With no state schools they are my "cheapest" options.

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In short, Yes. 

 

But the answer is more complicated... how old are you?  Single or married?  Willing to relocate?  Good with managing your money?  Willing to sacrifice a LOT in order to pay off your loans more quickly?   Willing to take a job you may not particularly want just for loan repayment?  Only you can answer all of this.  And to complicate things - the answers to some of these questions may change by the time you graduate PA school.

 

My plan was to pay off my loans in 5 years.  Boy, was I naive.  There are posts on this forum about folks who have been very successful making huge dents in their student loans.  I applaud and envy them.  If I had to do it all over again, some days I'm not sure I would. 

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In short, Yes. 

 

But the answer is more complicated... how old are you?  Single or married?  Willing to relocate?  Good with managing your money?  Willing to sacrifice a LOT in order to pay off your loans more quickly?   Willing to take a job you may not particularly want just for loan repayment?  Only you can answer all of this.  And to complicate things - the answers to some of these questions may change by the time you graduate PA school.

 

My plan was to pay off my loans in 5 years.  Boy, was I naive.  There are posts on this forum about folks who have been very successful making huge dents in their student loans.  I applaud and envy them.  If I had to do it all over again, some days I'm not sure I would. 

I'm young, only 22 and have lived with my boyfriend for 2.5 years. We're willing to move (he works from home and can go anywhere). I would say I'm good with managing my money for my age group. How much am I willing to sacrifice to pay my loans off quickly? I'm not 100% sure - I don't plan on having a family any time soon (8+ years) and I can live comfortably on 20k/year but I'd also like to have some fun and get my life going eventually once I'm out of PA school, not be a slave to my loans. If my parents help I will have about 50k in debt, so after PA school would be about 150k, which is what I'm seeing as around what others have and most likely more manageable. I'd like to work a year or two to pay down some loans, but I'm also worried that tuition will go up basically negating what I've paid down. 

 

If you don't mind me asking was your debt around what I would have or less? I would say 5 years would be the target for me to pay them off, but I guess that might be wishful thinking! 

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I've been looking into the public service loan forgiveness. If you have a lot of federal loans and make the income based repayment on them for 10 years while working for a non-profit, the rest of the loan balance gets forgiven. I believe it is tax-free. I haven't even started school yet, so take what I say with a grain of salt, but that is my current plan. I'm also looking into the National Health Service Corps, but that is hard to get so this is my backup plan.

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  • 2 weeks later...

I'm young, only 22 and have lived with my boyfriend for 2.5 years. We're willing to move (he works from home and can go anywhere). I would say I'm good with managing my money for my age group. How much am I willing to sacrifice to pay my loans off quickly? I'm not 100% sure - I don't plan on having a family any time soon (8+ years) and I can live comfortably on 20k/year but I'd also like to have some fun and get my life going eventually once I'm out of PA school, not be a slave to my loans. If my parents help I will have about 50k in debt, so after PA school would be about 150k, which is what I'm seeing as around what others have and most likely more manageable. I'd like to work a year or two to pay down some loans, but I'm also worried that tuition will go up basically negating what I've paid down.

 

If you don't mind me asking was your debt around what I would have or less? I would say 5 years would be the target for me to pay them off, but I guess that might be wishful thinking!

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I had around 130K (all PA school) when I graduated. My monthly payments are $1700 on the 10 year plan. I'm not trying to be discouraging, I just see a lot of posts from people who think it will be easy to pay off their debt. I get it, I thought so too when I applied to school but then reality hit. My student loans are the biggest stressor in my life. I have a full time job that pays well and I still work a second job. But everyone's circumstances are different. I'm approaching 40 so I have to make sure I'm saving for retirement, etc. Good luck.

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I graduated with 185,000K in loans. I've worked and paid loans for a year and balance now is 160,00K, just got a raise and plan to pay off the rest in <6 years by refinancing half my remaining debt on a 5 year term. It's not easy but is doable. I will be paying 2600 per month towards loans. You have to weigh the options and do what's best for you. Despite paying so much on loans, I enjoy my life much more as a PA than I did as a student or working a "starter" HCE job, so I don't regret taking on so much debt. It's also good to be flexible with your repayment strategy -- mine may change once the total debt gets to a number I am more comfortable with. May choose to hang on to loans for longer and contribute more to retirement accounts instead. 

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