Ultimate123 Posted April 15, 2013 Share Posted April 15, 2013 I am hoping to start PA school next year and I am thinking about ways I may fund tuition, etc. I am fine with taking out loans as I know I will have to, but I really despise being in debt. I have finally managed to clear all debts from my wife and I and I am not that excited about more. Has anyone used retirement to pay for PA school? Where I work now, the state contributes to retirement and I will have a decent chunk at the start of PA school (around 35k or so). I know "mathematically" its better to leave my money in retirement to let it grow, but I just want to avoid as much debt as possible. Is it possible? A pain? Etc. Link to comment Share on other sites More sharing options...
cinntsp Posted April 15, 2013 Share Posted April 15, 2013 A better option would be to look into loan repayment. Link to comment Share on other sites More sharing options...
ap1249 Posted April 16, 2013 Share Posted April 16, 2013 You will most likely face hefty taxation if you withdraw your retirement account early. It might end up being more than the interest rate on a loan. If you are serious about this plan, you should probably get some tax and financial advice from a CPA or the like. Good luck! Link to comment Share on other sites More sharing options...
crank Posted April 16, 2013 Share Posted April 16, 2013 Hello Ultimate123, If you have enough money to start a PA school, then use them or else go for loan repayment. Make sure that you use an agreement for loan repayment. Now a days, we can't trust the people. Link to comment Share on other sites More sharing options...
jdobbs Posted April 17, 2013 Share Posted April 17, 2013 Im not familiar with your state retirement but this is how it works for other common retirement accounts. You can borrow up to 50% of your 401k/roth without tax penalty for school expenses. The 403b currently does not have that same option. You're right, money earned vs. money saved will likely equal out and your going to have to take out a loan anyways unless $17000 is enough for first year.... So it's a wash. I would lean towards 100% loans just because they're easy. Link to comment Share on other sites More sharing options...
jdobbs Posted April 17, 2013 Share Posted April 17, 2013 I meant to also reinforce that you have to pay the money back that you borrow from 401k... No interest, just lost profits. Link to comment Share on other sites More sharing options...
Ultimate123 Posted April 17, 2013 Author Share Posted April 17, 2013 Thanks for the advice!! Link to comment Share on other sites More sharing options...
Administrator rev ronin Posted April 29, 2013 Administrator Share Posted April 29, 2013 Most of the above advice is wrong. I took money out of my retirement, and here's how: 1) Roll your retirement over into an IRA when you quit your job. 2) In the following tax year, when you have pretty much no other income, withdraw money from your IRA sufficient to pay whatever tuition and living expenses are listed as covered in your financial aid letter. As long as you have those records, your IRA withdrawals are not subject to a 10% withdrawal penalty, and are simply taxed as ordinary income in the tax year in which you make the withdrawal. Loan repayment is a one-way ticket to a minimum two-year obligation in a place where you will get a lousy salary and work with incredible variation in opportunities with essentially no opportunity to escape. If you're young and don't care, then by all means, take your chances, roll the dice, and you may be very, very happy with where you end up. Or you may not be--but either way, you need to hand over your destiny to others. One PA faculty member I know personally went to a loan-repayment-approved site.... but they didn't file the paperwork on time, and she didn't get anything for that year. If that's really what you want to risk, be my guest. Link to comment Share on other sites More sharing options...
jts Posted May 9, 2013 Share Posted May 9, 2013 Not true, Rev Ronin. I am a NHSC Scholar who works with many other scholars and loan repayers, both PAs and MDs. The salary is not lousy and my benefits are great. And by the way, I started PA school in my 50s...second career. I retired from teaching and didn't want to touch my retirement money. So I am in a community health clinic, love my job, and am totally debt free. It's an option that is worth looking into, Ultimate123, and I would be glad to answer any questions you may have about the sites. Link to comment Share on other sites More sharing options...
jts Posted May 9, 2013 Share Posted May 9, 2013 Not true, Rev Ronin. I am a NHSC Scholar who works with many other scholars and loan repayers, both PAs and MDs. The salary is not lousy and my benefits are great. And by the way, I started PA school in my 50s...second career. I retired from teaching and didn't want to touch my retirement money. So I am in a community health clinic, love my job, and am totally debt free. It's an option that is worth looking into, Ultimate123, and I would be glad to answer any questions you may have about the sites. Link to comment Share on other sites More sharing options...
Administrator rev ronin Posted May 10, 2013 Administrator Share Posted May 10, 2013 If you're going to correct me, please cite the specific part of my post you find "not true". If you mean the "lousy salary" bit, you'd be wrong that I'm wrong, because "lousy" is a matter of opinion, and all the salaries for all the eligible (read: high need) areas I've seen don't cut it. In my mind, they need to pay me MORE to live somewhere where I have to drive hours to see a first run movie, etc. You are absolutely entitled to like the bucolic life... but I'd still love to see any data that NHSC-approved sites do, in fact, pay comparable salaries with non-NHSC practices. Link to comment Share on other sites More sharing options...
Administrator rev ronin Posted May 10, 2013 Administrator Share Posted May 10, 2013 If you're going to correct me, please cite the specific part of my post you find "not true". If you mean the "lousy salary" bit, you'd be wrong that I'm wrong, because "lousy" is a matter of opinion, and all the salaries for all the eligible (read: high need) areas I've seen don't cut it. In my mind, they need to pay me MORE to live somewhere where I have to drive hours to see a first run movie, etc. You are absolutely entitled to like the bucolic life... but I'd still love to see any data that NHSC-approved sites do, in fact, pay comparable salaries with non-NHSC practices. Link to comment Share on other sites More sharing options...
jts Posted May 10, 2013 Share Posted May 10, 2013 I don't like or live the bucolic life. I was born and raised in NYC so I prefer to be in or near an urban area. I am serving in a city that meets these needs. I graduated in Fall 2012 and yes, my salary is comparable to what my classmates are making in NYC. There is no need to get touchy. My point is that the NHSC is a viable choice for some of us students who are apprehensive about mounds of debt. Unfortunately, there is so much misinformation out there about the NHSC. As in other job offers, the applicant must weigh out the area, the offer, and the possible relocation. When I started to investigate this route, I "met" several on this forum who helped me navigate the terrain. I decided that it was a good option for me. I'm just trying to pay it forward. Link to comment Share on other sites More sharing options...
jts Posted May 10, 2013 Share Posted May 10, 2013 I don't like or live the bucolic life. I was born and raised in NYC so I prefer to be in or near an urban area. I am serving in a city that meets these needs. I graduated in Fall 2012 and yes, my salary is comparable to what my classmates are making in NYC. There is no need to get touchy. My point is that the NHSC is a viable choice for some of us students who are apprehensive about mounds of debt. Unfortunately, there is so much misinformation out there about the NHSC. As in other job offers, the applicant must weigh out the area, the offer, and the possible relocation. When I started to investigate this route, I "met" several on this forum who helped me navigate the terrain. I decided that it was a good option for me. I'm just trying to pay it forward. Link to comment Share on other sites More sharing options...
Administrator rev ronin Posted May 10, 2013 Administrator Share Posted May 10, 2013 NYC is NOT a good measure of acceptable PA salary--I daresay it's got the worst salary to cost of living ratio for any market. NHSC and other obligated service programs, as I said above, are good for people who don't mind being led around by the nose, and having essentially an indentured servitude after graduation. But it's not free money by any stretch of the imagination. If the salaries were adequate, NHSC wouldn't need to pay extra money for practitioners to *be* there. But for every pro-NHSC cheerleader like you, I've heard horror stories from people who couldn't move, were stuck practicing medicine with alcoholic SP's, and were otherwise backed into hellish situations because of their obligation. And yes, you do find my tone a bit harsher when you open your post by calling me a liar (not true => intentional falsehood, incorrect => mistaken), especially when nothing I said is remotely incorrect. Link to comment Share on other sites More sharing options...
Administrator rev ronin Posted May 10, 2013 Administrator Share Posted May 10, 2013 NYC is NOT a good measure of acceptable PA salary--I daresay it's got the worst salary to cost of living ratio for any market. NHSC and other obligated service programs, as I said above, are good for people who don't mind being led around by the nose, and having essentially an indentured servitude after graduation. But it's not free money by any stretch of the imagination. If the salaries were adequate, NHSC wouldn't need to pay extra money for practitioners to *be* there. But for every pro-NHSC cheerleader like you, I've heard horror stories from people who couldn't move, were stuck practicing medicine with alcoholic SP's, and were otherwise backed into hellish situations because of their obligation. And yes, you do find my tone a bit harsher when you open your post by calling me a liar (not true => intentional falsehood, incorrect => mistaken), especially when nothing I said is remotely incorrect. Link to comment Share on other sites More sharing options...
jts Posted May 10, 2013 Share Posted May 10, 2013 I never called you a liar. I simply disagreed with you. However, I do find your latest post interesting....especially since I have had such a wonderful experience with the NHSC. I would love to hear from other scholars or loan repayers who have had problems with them or with their sites. In my site I have met and continue to work with at least 7 or 8 scholars/loan repayers (PA, NP, & MD) and not one of them has a complaint with the process or the site. We don't feel like servants; we are all grateful to be in our chosen professions debt-free. My main point, again, is that it is a great option for some. Link to comment Share on other sites More sharing options...
jts Posted May 10, 2013 Share Posted May 10, 2013 I never called you a liar. I simply disagreed with you. However, I do find your latest post interesting....especially since I have had such a wonderful experience with the NHSC. I would love to hear from other scholars or loan repayers who have had problems with them or with their sites. In my site I have met and continue to work with at least 7 or 8 scholars/loan repayers (PA, NP, & MD) and not one of them has a complaint with the process or the site. We don't feel like servants; we are all grateful to be in our chosen professions debt-free. My main point, again, is that it is a great option for some. Link to comment Share on other sites More sharing options...
Longmire86 Posted May 10, 2013 Share Posted May 10, 2013 I cannot imagine using my hard-earned retirement savings for PA School. Granted, I am in my late 20s but in 25 or so years I don't think it would even be a consideration for me. But this exchange has me thinking about the loan repayer program and whether it is an option for me. My debt is staggering and I would be willing to be that indentured servant for two short years to pay some of this off...so thank you jts, for extending yourself and getting the word out to others who are nervous about the debts we are drowning in . Link to comment Share on other sites More sharing options...
Longmire86 Posted May 10, 2013 Share Posted May 10, 2013 I cannot imagine using my hard-earned retirement savings for PA School. Granted, I am in my late 20s but in 25 or so years I don't think it would even be a consideration for me. But this exchange has me thinking about the loan repayer program and whether it is an option for me. My debt is staggering and I would be willing to be that indentured servant for two short years to pay some of this off...so thank you jts, for extending yourself and getting the word out to others who are nervous about the debts we are drowning in . Link to comment Share on other sites More sharing options...
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