Clarrain Posted September 12, 2015 Share Posted September 12, 2015 I would like hear some stories by currently employed PAs or by PA students about their financial status. Have you guys felt that your school loans have set you back from some major life decisions/purchases: like buying your first home, saving enough for retirement, having kids, saving up for your kids college, saving for emergency loans etc. Please share and let us know. I've always been curious how PAs have been willing to taken on the massive loans, and still be able to manage all those financial options that life tends to throw at us. :) Thanks! Link to comment Share on other sites More sharing options...
dchampigny Posted September 12, 2015 Share Posted September 12, 2015 You really don't want to open this can of worms. Link to comment Share on other sites More sharing options...
whoRyou Posted September 12, 2015 Share Posted September 12, 2015 You really don't want to open this can of worms. I hope I don't aquire a HUGE debt when it comes time Link to comment Share on other sites More sharing options...
Administrator rev ronin Posted September 12, 2015 Administrator Share Posted September 12, 2015 Needing to replace our minivan set my loan payoff by about 2 years. I made the decision to pay off the minivan first, because while it was at a lower interest rate, the interest was not tax deductible, nor could it be deferred if I lost my job. I cannot imagine how it would have been to manage a family of 5 on a bigger monthly student loan payment. Link to comment Share on other sites More sharing options...
camha92 Posted September 12, 2015 Share Posted September 12, 2015 I would also like to hear more about this. I'm about to take on a ~120k loan over the next 2 years and feel like it will take me at least a decade to pay back. Do I have to be VERY frugal for the next 10 years? how much would i have to pay each month to cover that loan over 10 years (i know it will vary, but a rough estimate/range would be nice)? I'm in my early 20s, so i do not have as many obligations such as children or mortgages. Link to comment Share on other sites More sharing options...
Administrator rev ronin Posted September 13, 2015 Administrator Share Posted September 13, 2015 Do the math... using the same payoff schedule I had, 120k would end up being about $1400/month for 10 years. The actual number will vary by your interest rate. I was very happy to spend out of my retirement account to keep the amount of loans to a minimum. Addendum: http://www.finaid.org/calculators/loanpayments.phtml Link to comment Share on other sites More sharing options...
FfIghter23 Posted September 13, 2015 Share Posted September 13, 2015 average salary for PA years 1-5 = 90-95k (that is an average could be higher if in certain specialty) A family of four can comfortably live off of 45k a year in many parts of the country. Take whatever is left after taxes and put it towards loans. You can own a modest home. Have kids. Be happy. And be debt free in around 5-6 years and then 90-100k will feel like you are a king and you can put a ton towards retirement/college funds/vacations/new house/etc. Being smart with your money takes discipline. Like anything you strive to achieve: make a plan and stick to it. Link to comment Share on other sites More sharing options...
skyfall Posted September 13, 2015 Share Posted September 13, 2015 I accrued ~70K loan from my 2 year program. I recently did a phone interview for a job position in a rural area that offers loan repayment up to 20K per year ( I will need to find out more details about how that even works in my site interview). I'm planning to budget until its all paid off. I heard from others from my school that they lived back at home and used every bit of their salary to pay back their loans and it took them around 2 years. Link to comment Share on other sites More sharing options...
Clarrain Posted September 13, 2015 Author Share Posted September 13, 2015 I would also like to hear more about this. I'm about to take on a ~120k loan over the next 2 years and feel like it will take me at least a decade to pay back. Do I have to be VERY frugal for the next 10 years? how much would i have to pay each month to cover that loan over 10 years (i know it will vary, but a rough estimate/range would be nice)? I'm in my early 20s, so i do not have as many obligations such as children or mortgages. That's exactly why I started this thread. I'm in my 20s as well, and I want to know what I'm getting myself into. Specially the financial aspect. What I'm mostly curious is if PA school loans will affect my ability to purchase a home in the future and saving up for my kid's college fund (if I end up deciding to have kids). I know it seems like so far into the future, but this stuff needs a lot of planning lol Finances is a sensitive topic, but it's so important to talk about it openly and honestly. Link to comment Share on other sites More sharing options...
whoRyou Posted September 13, 2015 Share Posted September 13, 2015 That's exactly why I started this thread. I'm in my 20s as well, and I want to know what I'm getting myself into. Specially the financial aspect. What I'm mostly curious is if PA school loans will affect my ability to purchase a home in the future and saving up for my kid's college fund (if I end up deciding to have kids). I know it seems like so far into the future, but this stuff needs a lot of planning lol Also I live in Los Angeles, so I've always been used to this high cost of living. Smart! Link to comment Share on other sites More sharing options...
Clarrain Posted September 13, 2015 Author Share Posted September 13, 2015 I accrued ~70K loan from my 2 year program. I recently did a phone interview for a job position in a rural area that offers loan repayment up to 20K per year ( I will need to find out more details about how that even works in my site interview). I'm planning to budget until its all paid off. I heard from others from my school that they lived back at home and used every bit of their salary to pay back their loans and it took them around 2 years. I've found a similar repayment program funded through the state of California. It stated that I can help repay my loans up to $50k just as long as I exchange 24 months of work in under privileged areas. Do you know how competitive these programs are? The application process seems like applying for a regular scholarship. Link to comment Share on other sites More sharing options...
skyfall Posted September 18, 2015 Share Posted September 18, 2015 I've found a similar repayment program funded through the state of California. It stated that I can help repay my loans up to $50k just as long as I exchange 24 months of work in under privileged areas. Do you know how competitive these programs are? The application process seems like applying for a regular scholarship. Haven't even looked into yet. I'm focusing on my PANCE, but I will do the research soon afterward. Link to comment Share on other sites More sharing options...
greenmood Posted September 21, 2015 Share Posted September 21, 2015 I'm really wary of sharing too much here, but here goes. If you have any specific questions I'm happy to answer through PM if you think it will help you. We currently owe $293,000 in student loan debt. I won't go into the gory details but we both attended state schools (myself on a partial scholarship) for undergrad and worked during school with no financial support from our parents. We both returned for masters degrees in our chosen fields several years after graduating. We are in our early thirties. We have a car payment. We have a house payment. We have a medically complex baby. We could (should) have waited to buy the house. We could (should) have bought a used car. I regret nothing about the baby. I make a very good salary for a PA two years out of school (115K). My husband works in a lower income field. We started taking Financial Peace classes, and my new (kinda harsh) friend Dave Ramsey says I should be able to pay off a good chunk of those loans in the next five years. If I had deferred the house and purchased a used car we would be in even better shape since we live in a very low cost of living area of the country. EDIT December 2019: Four years later. I get a lot of private messages about this post. Please keep them coming. I'm happy to chat with anyone who feels like they're drowning or just needs a little advice from someone with a large debt burden and the benefit of time/experience. Link to comment Share on other sites More sharing options...
Clarrain Posted September 23, 2015 Author Share Posted September 23, 2015 I'm really wary of sharing too much here, but here goes. If you have any specific questions I'm happy to answer through PM if you think it will help you. We currently owe $293,000 in student loan debt. I won't go into the gory details but we both attended state schools (myself on a partial scholarship) for undergrad and worked during school with no financial support from our parents. We both returned for masters degrees in our chosen fields several years after graduating. We are in our early thirties. We have a car payment. We have a house payment. We have a medically complex baby. We could (should) have waited to buy the house. We could (should) have bought a used car. I regret nothing about the baby. I make a very good salary for a PA two years out of school (115K). My husband works in a lower income field. We started taking Financial Peace classes, and my new (kinda harsh) friend Dave Ramsey says I should be able to pay off a good chunk of those loans in the next five years. If I had deferred the house and purchased a used car we would be in even better shape since we live in a very low cost of living area of the country. Thank you so much for sharing this. I feel that by the time I finish PA school I will be in a very similar position as yourself. You sound to be doing very well for yourself and your family. Link to comment Share on other sites More sharing options...
delco714 Posted September 23, 2015 Share Posted September 23, 2015 You want realism? My wife and I are in our-20s >2 years out from school. Went to the 3rd most expensive program in the country. We are electing to pay minimal and get forgiveness after 10 years. This has allowed us entire financial freedom. No kids currently helps. Link to comment Share on other sites More sharing options...
MT2PA Posted September 23, 2015 Share Posted September 23, 2015 You want realism? My wife and I are in our-20s >2 years out from school. Went to the 3rd most expensive program in the country. We are electing to pay minimal and get forgiveness after 10 years. This has allowed us entire financial freedom. No kids currently helps. Aren't there restrictions about what jobs (like underserved or govt) qualify for forgiveness? Truly curious. Link to comment Share on other sites More sharing options...
delco714 Posted September 23, 2015 Share Posted September 23, 2015 Yes. Non profit positions only Link to comment Share on other sites More sharing options...
greenmood Posted September 23, 2015 Share Posted September 23, 2015 I am also doing the public service loan forgiveness, like delco714. Just make a plan and be realistic. Sent from my iPad using Tapatalk Link to comment Share on other sites More sharing options...
bob_inski Posted September 23, 2015 Share Posted September 23, 2015 Mid 20s, living the DINK life (double income no kids). One year out of school for both of us (wife is ultrasound tech). Bought a house and two new cars, putting 3k towards student loans/mo and plan to have them paid off in five years. We rarely feel like money is tight. Link to comment Share on other sites More sharing options...
Glorious_Ignoramus Posted September 23, 2015 Share Posted September 23, 2015 The equation is a rather simple one in theory - set a budget and direct a good portion of your income toward the principle of your largest debt. My wife and I bought a new car back in April for $23,000 and will have it paid off by the time I start PA school next year, should we get accepted this cycle. I earn a below-average salary for my socioeconomic status and have a son. How will we pay off the car in a little over a year? It's all in the budget. We could afford a more expensive home, more expensive food, more expensive clothes, etc...but instead we are directing $1-2,000 per month toward the car. Having a down payment helped quite a bit also. We keep our insurance costs low, shop clearance aisles everywhere we go, rarely eat out, and shop eBay and Amazon for bargain basement deals for hobbies like cycling, music recording, gardening, etc. The wife is really good at couponing and keeping track of rewards programs. This is the same model that Dave Ramsey always preaches, and can be applied to any level of debt; it's a continuation of how we comfortably lived off of ~$20,000/year in southern CA during my underdrad. Learn to be frugal now and it will serve you well into the future. Link to comment Share on other sites More sharing options...
greenmood Posted September 25, 2015 Share Posted September 25, 2015 Thank you so much for sharing this. I feel that by the time I finish PA school I will be in a very similar position as yourself. You sound to be doing very well for yourself and your family. Haha, I would not say that. That's too much debt. It's a hard lesson to learn when you're 30. I don't even recall blinking once about taking on more and more student loans when I was in college though. There was this attitude that college would be worth it, but that really only pans out if you're smart about borrowing and get your degree in something useful.. Link to comment Share on other sites More sharing options...
camha92 Posted November 9, 2015 Share Posted November 9, 2015 when you enter a 10-year loan forgiveness plan and elect to pay the "minimum," what does "minimum" exactly mean? Would a 100k loan and 150k loan have the same minimum monthly fee? what about a 120k loan and 125k loan? Link to comment Share on other sites More sharing options...
greenmood Posted November 13, 2015 Share Posted November 13, 2015 If you're talking about the Public Service Loan Forgiveness, the monthly payment amount will be based on your income and degree of financial hardship. Link to comment Share on other sites More sharing options...
Maverick87 Posted November 14, 2015 Share Posted November 14, 2015 Here's what I did: 1) Got into PA school near my parents' house in my early 20s. 2) Got a military scholarship and joined up. 3) Stay single (not difficult, given where I was stationed) 4) Got some experience and am now leaving the military. In a few months, I'll be in my late 20s with absolutely no debt (student loan, credit, car payments, etc) with some experience. Because I have no family, I can literally move anywhere and do anything. I also have a ton of money saved up. In all honesty, this was mostly not related to good planning (though there was some of it). It was more dumb luck than anything else. Link to comment Share on other sites More sharing options...
PAtoB Posted January 4, 2016 Share Posted January 4, 2016 whatever you do with loans/finances/etc starting out after school, first and foremost set aside at least 12-14% of your pay for retirement/401(k) and never go lower than that. Link to comment Share on other sites More sharing options...
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