DC1979 Posted March 9, 2014 Share Posted March 9, 2014 I am considering a career change and I am on the very front end, but I am seeing lots of really, really high numbers for the amount of debt PA grads are coming out of school with 80k-100k +. I'm assuming that this is because people are financing living expenses throughout the 2-3 years of school. I am looking at two schools in my state (one is a CC) and the tuition and fees (for the whole program) seem to be more in the 40k-60k range. Am I missing something? Is it possible for someone to do PA school, possibly if a spouse covers all living expenses, and only have 50k in debt? Any perspectives on this? Link to comment Share on other sites More sharing options...
Moderator LT_Oneal_PAC Posted March 9, 2014 Moderator Share Posted March 9, 2014 Absolutely. Especially if attending a state school. Unfortunately, a lot of Pa schools are at private institutions or people attend at another state and have to pay OOS tuition. This causes the 70-80k you see in tuition alone. Link to comment Share on other sites More sharing options...
Moderator True Anomaly Posted March 9, 2014 Moderator Share Posted March 9, 2014 Agreed. Some state institutions that have PA programs allow you to get a real bargain in graduate education. I was definitely one of the beneficiaries of such a situation Link to comment Share on other sites More sharing options...
whoRyou Posted March 9, 2014 Share Posted March 9, 2014 Agreed. Some state institutions that have PA programs allow you to get a real bargain in graduate education. I was definitely one of the beneficiaries of such a situation Texas, I presume? Link to comment Share on other sites More sharing options...
UGoLong Posted March 9, 2014 Share Posted March 9, 2014 Absolutely. If you are lucky enough to have saved some money and have a spouse who works, then it might be doable without a loan. That assumes that you pick the right school to attend. Depending on your situation, you might also be able to cash in or borrow from an IRA or a 401(k). It's not like you are taking from your retirement to buy a sports car but rather investing in you. Link to comment Share on other sites More sharing options...
tariesen Posted March 9, 2014 Share Posted March 9, 2014 Keep in mind, though, that the PA profession has a good debt to income ratio. Meaning that yeah, you'll have ~$80-$90K in loans, but you should be making about that once you start practicing (state and job-dependent, of course). Link to comment Share on other sites More sharing options...
IdahoPA Posted March 10, 2014 Share Posted March 10, 2014 I think it also depends where you go to school. I chose a school in a major city and had to pay those costs. My local PA school would have had a much cheaper cost-of-living. That said, we're pretty frugal and we have some income so I won't be anywhere near $80K in debt when I graduate. (I don't think I'll even cross $50K.) Link to comment Share on other sites More sharing options...
Z PA-C Posted March 10, 2014 Share Posted March 10, 2014 Just to make sure my logic is sound. If I have a savings/scholarship I will be pulling from to pay for PA school and I will still need an additional 40K to pay for the program. Isn't it best to take out that 40K during Year 2 vs taking out 20K Year 1 and 20K Year 2 because interest will be accruing for longer with the second option? I have never taken out any loans so am really unfamiliar with this whole thing. Link to comment Share on other sites More sharing options...
JohnnyM2 Posted March 10, 2014 Share Posted March 10, 2014 I am considering a career change and I am on the very front end, but I am seeing lots of really, really high numbers for the amount of debt PA grads are coming out of school with 80k-100k +. I'm assuming that this is because people are financing living expenses throughout the 2-3 years of school. I am looking at two schools in my state (one is a CC) and the tuition and fees (for the whole program) seem to be more in the 40k-60k range. Am I missing something? Is it possible for someone to do PA school, possibly if a spouse covers all living expenses, and only have 50k in debt? Any perspectives on this? Yes, the numbers you see are higher because many (most?) PA students are also financing living expenses. I know one student starting school next year who will be moving to another city with two children (no husband). Not sure how she is going to make it work but many students are financing more than tuition alone. It all depends on your living situation. Frankly, I would rather graduate with an MPAS and $100+K in debt than with a BA in art appreciation (Does that actually exist?) and $30K in debt. Anything you can do to keep your debt level down you will appreciate later. Sent from my Kindle Fire HDX using Tapatalk 2 Link to comment Share on other sites More sharing options...
cinntsp Posted March 10, 2014 Share Posted March 10, 2014 Just to make sure my logic is sound. If I have a savings/scholarship I will be pulling from to pay for PA school and I will still need an additional 40K to pay for the program. Isn't it best to take out that 40K during Year 2 vs taking out 20K Year 1 and 20K Year 2 because interest will be accruing for longer with the second option? I have never taken out any loans so am really unfamiliar with this whole thing. Your thinking is correct. Interest begins collecting on loans the day they are disbursed and grad students are no longer eligible for subsidized loans where the govt pays the interest until you graduate. Link to comment Share on other sites More sharing options...
Z PA-C Posted March 10, 2014 Share Posted March 10, 2014 Your thinking is correct. Interest begins collecting on loans the day they are disbursed and grad students are no longer eligible for subsidized loans where the govt pays the interest until you graduate. Thanks wutthechris! My next question is how hard is it to find private student loans with interest rates lower than 5.41%. From what I understand Federal Direct will only pay $20,500/year so I would not be able to take out 40k in Federal Direct loans Year 2. What are some lenders that have offered you guys lower rates? I have perfect credit. Even when I took out a small car loan I only paid 0.9% interest so 5.41% sounds terrible to me. Link to comment Share on other sites More sharing options...
IDrunner11 Posted March 10, 2014 Share Posted March 10, 2014 Aviphung the private loans from Salli Mae, Discover and Wells Fargo start at 6.1% I believe and they go up to 9.5% or so. Not really a great deal. I find it really ironic that car loans, business loans and other types of loans have much better interest rates than student loans. It is just sad to see they are profiting out of students who will eventually contribute to society. Link to comment Share on other sites More sharing options...
cinntsp Posted March 10, 2014 Share Posted March 10, 2014 Thanks wutthechris! My next question is how hard is it to find private student loans with interest rates lower than 5.41%. From what I understand Federal Direct will only pay $20,500/year so I would not be able to take out 40k in Federal Direct loans Year 2. What are some lenders that have offered you guys lower rates? I have perfect credit. Even when I took out a small car loan I only paid 0.9% interest so 5.41% sounds terrible to me. You will be able to take out up to the cost of your program and living expenses(cost of attendance is determined by your finaid office) in grad plus loans. Keep in mind that private lenders do have lower rates sometimes(based on your credit of course) but the repayment terms are generally not as forgiving as federal loans. Sent from my Nexus 5 using Tapatalk Link to comment Share on other sites More sharing options...
lawrence14 Posted March 10, 2014 Share Posted March 10, 2014 You will be able to take out up to the cost of your program and living expenses(cost of attendance is determined by your finaid office) in grad plus loans. Keep in mind that private lenders do have lower rates sometimes(based on your credit of course) but the repayment terms are generally not as forgiving as federal loans. Sent from my Nexus 5 using Tapatalk Wutthechris, what do you mean exactly that the repayment terms are generally not as forgiving as federal loans? Link to comment Share on other sites More sharing options...
cinntsp Posted March 10, 2014 Share Posted March 10, 2014 Wutthechris, what do you mean exactly that the repayment terms are generally not as forgiving as federal loans? Federal loans are easily consolidated and offer things like income-based repayment and longer repayment terms(up to 25 years!). Link to comment Share on other sites More sharing options...
Z PA-C Posted March 11, 2014 Share Posted March 11, 2014 You will be able to take out up to the cost of your program and living expenses(cost of attendance is determined by your finaid office) in grad plus loans. Keep in mind that private lenders do have lower rates sometimes(based on your credit of course) but the repayment terms are generally not as forgiving as federal loans. Sent from my Nexus 5 using Tapatalk So is it still better to take out zero Year 1 and 40k Year 2 (20k at 5.41% and 20k at 6.41%) vs 20k Year 1 (at 5.41%) and 20k Year 2 (at 5.41%) ? Link to comment Share on other sites More sharing options...
Dunedain Posted March 11, 2014 Share Posted March 11, 2014 I am single and just banking TONS of cash as an RN working OT (hitting 100k...before taxes) in preparation for PA school. I think the key is to just have a plan. I would be leery of borrowing against my 401k especially when unemployed. Link to comment Share on other sites More sharing options...
ajnelson Posted March 11, 2014 Share Posted March 11, 2014 So is it still better to take out zero Year 1 and 40k Year 2 (20k at 5.41% and 20k at 6.41%) vs 20k Year 1 (at 5.41%) and 20k Year 2 (at 5.41%) ? I'd work out the numbers in the long run and look into the terms of some of the private loans you are considering. Even though you may be paying some interest from that first year, fees and the extra 1% interest on the private loan may end up being more than one year interest (assuming you pay that interest quarterly to prevent it from compounding). Link to comment Share on other sites More sharing options...
AREID Posted March 11, 2014 Share Posted March 11, 2014 My program was about 35 grand for both years. Best thing I coulda done. Took out an extra 20 grand for living expenses. If you have the opportunity. Do it that way Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
patobe13 Posted March 11, 2014 Share Posted March 11, 2014 does anyone happen to know if there are any private scholarships or sites?? Link to comment Share on other sites More sharing options...
JohnnyM2 Posted April 30, 2014 Share Posted April 30, 2014 So is it still better to take out zero Year 1 and 40k Year 2 (20k at 5.41% and 20k at 6.41%) vs 20k Year 1 (at 5.41%) and 20k Year 2 (at 5.41%) ?The following tutorial on student loans should be helpful to you and others: http://www.studentloannetwork.com/federal-student-loans/ With regard to your question, the answer depends on how long you take to repay the loans. If you are going to take 20 years to repay, it will cost less to take out $20,500 in years one and two at 5.41% than to take $41,000 in year 2 with half of that at 6.41%. Also, remember that, in general, you can't borrow more in one year than your school's total cost of education including housing, food, transportation, etc.. Sent from my Kindle Fire HDX using Tapatalk 2 Link to comment Share on other sites More sharing options...
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