Author Topic: Best way to pay for dental school  (Read 2900 times)

BTDretire

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Best way to pay for dental school
« on: August 09, 2017, 08:21:22 PM »
I have a daughter hoping to get into dental school soon.
The 5 year cost will be $200k to $250k depending on which school she is accepted to.
I have no idea about student loans, interest rates, when interest starts, etc, etc.
We could pay as she goes, or have her take out loans and pay as she goes, or pay when she finishes.
Just looking for the best financial options, with the idea that she will have no debt when she graduates.
The plan is we will pay it off when she graduates. Maybe have an option to work in some under served area
to eliminate debt with each year served.
 Just want to know our options, with her having not have debt to pay.

Dr. Pepper

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Re: Best way to pay for dental school
« Reply #1 on: August 09, 2017, 09:52:33 PM »
Congrats! to her that is a really difficult thing to accomplish. 200-250k is pretty conservative. I'm not a dentist, but I was talking to a few recently who just finished training and were starting a 1yr residency. One guy I talked to told me he went to a pubilc university in south Carolina, and many of his co-dentists had graduated with 400-500k in debt. One option that come to mind, there is an Army scholarship HPSP which will pay 100% of the tuition and also give an living stipend (I think its around 2 or 3k a month) for living expenses. In exchange you have to serve as an active duty dentist for 4 yrs, at 03 pay with some additional special pays for dentists. If she is interested in this, there is a special recruiter who only works with medical/dental people.

Bucksandreds

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Re: Best way to pay for dental school
« Reply #2 on: August 10, 2017, 05:34:59 AM »
Most schools are in the $300,000- $400,000 range at graduation due to rising tuition and interest compounding from the day that the loans are dispersed. Best way to pay is to make a lot of money and live cheaply. Unless your daughter is interested in joining the armed forces, moving to Alaska, an Indian reservation or something similar then she will probably be stuck with the bill.  I'd say that she needs to know that for the first 10 years out of school she needs to live like a "factory worker" so that she can pay off her debt. If she thinks that she'll be able to live like a "doctor" from day one then she'll be in debt until she retires at age 70. 

Edit: Based off of your no debt decision, get ready to write a lot of checks.
« Last Edit: August 10, 2017, 05:51:16 AM by Bucksandreds »

meatface

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Re: Best way to pay for dental school
« Reply #3 on: August 10, 2017, 07:43:24 AM »
That's very nice of you to pay for her graduate school. Usually parents just pay for undergrad and let the kid pay their own grad school, because often it yields a higher-paying job in the end (physician, dentist, lawyer, scientist, consultant, etc).

I am therefore confused. If you are volunteering to pay for her grad school, then presumably you already have the money. If you don't already have the money, then it seems...odd (at least from a mustachian point of view)...for you to take on her debt.

If you have the money already, then either just pay it each year as tuition is due, or keep the money invested and pay it off at the end if tuition is interest-free until graduation. That way your money pile can keep growing in the meantime.

Am I missing something? Maybe I misunderstood your question?

schmerna

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Re: Best way to pay for dental school
« Reply #4 on: August 10, 2017, 08:06:35 AM »
Why will she take 5 years to finish dental school?  Most programs are 4 years.  In-state tuition at the state school is usually the best deal.  Is she planning work on campus during the academic year and in the summers to help pay some costs?

BTDretire

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Re: Best way to pay for dental school
« Reply #5 on: August 10, 2017, 08:20:58 AM »
That's very nice of you to pay for her graduate school. Usually parents just pay for undergrad and let the kid pay their own grad school, because often it yields a higher-paying job in the end (physician, dentist, lawyer, scientist, consultant, etc).

I am therefore confused. If you are volunteering to pay for her grad school, then presumably you already have the money. If you don't already have the money, then it seems...odd (at least from a mustachian point of view)...for you to take on her debt.

If you have the money already, then either just pay it each year as tuition is due, or keep the money invested and pay it off at the end if tuition is interest-free until graduation. That way your money pile can keep growing in the meantime.

Am I missing something? Maybe I misunderstood your question?

 We have the money to pay for her school, but my wife wants to continue working and hopefully
pay for most of the tuition from earnings, but it will be tight.
Quote
keep the money invested and pay it off at the end if tuition is interest-free until graduation.
That is one of my questions, when does interest start, I would like to see the my money grow for 5 years, if interest is not charged on the loan, but I doubt that could be true.

BTDretire

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Re: Best way to pay for dental school
« Reply #6 on: August 10, 2017, 08:22:51 AM »
Why will she take 5 years to finish dental school?  Most programs are 4 years.  In-state tuition at the state school is usually the best deal.  Is she planning work on campus during the academic year and in the summers to help pay some costs?
She wants to be an orthodontist, an extra year.
 I hope she gets into the state school for the lower tuition,
but she also has an interview with a private college next week.

BeardedLady

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Re: Best way to pay for dental school
« Reply #7 on: August 10, 2017, 08:38:26 AM »
Federal student loans for graduate programs are no longer subsidized as of 2011, meaning interest starts accruing immediately. At 6.8%, it is not worth taking out loans if you have the money to pay for school as you go. You could also consider what my parents did, and give your daughter a lower interest loan for part or all of the tuition. She will be able to pay it back easily on an orthodontist's wages, and then things are less tight for you.

***Edit: the current grad student loan rate is 5.31%, not 6.8%. I had to walk uphill in the snow both ways!
« Last Edit: August 10, 2017, 01:00:57 PM by BeardedLady »

Fishindude

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Re: Best way to pay for dental school
« Reply #8 on: August 10, 2017, 08:44:19 AM »
I think the military route would be much smarter than going into a bunch of debt, if you can't pay for it.

retiringearly

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Re: Best way to pay for dental school
« Reply #9 on: August 10, 2017, 08:51:22 AM »
I think the military route would be much smarter than going into a bunch of debt, if you can't pay for it.
Agreed.  Have her go through dental school on the Air Force's dime.  My cousin did med school courtesy of the Air Force.  He owed them 7 years after and then had no debt.  While in the AF, he owed them a certain # of hours on call each week at the base hospital, then he was able to moonlight at regular hospitals on his free time.  He chose the Air Force because it had the slimmest chances of a doctor seeing combat of any branch.

Valhalla

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Re: Best way to pay for dental school
« Reply #10 on: August 10, 2017, 11:36:02 AM »
I think the military route would be much smarter than going into a bunch of debt, if you can't pay for it.
Agreed.  Have her go through dental school on the Air Force's dime.  My cousin did med school courtesy of the Air Force.  He owed them 7 years after and then had no debt.  While in the AF, he owed them a certain # of hours on call each week at the base hospital, then he was able to moonlight at regular hospitals on his free time.  He chose the Air Force because it had the slimmest chances of a doctor seeing combat of any branch.
That sounds like a win win win... if I had to re-do my life I would have done this.

Bucksandreds

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Re: Best way to pay for dental school
« Reply #11 on: August 10, 2017, 12:30:31 PM »
Why will she take 5 years to finish dental school?  Most programs are 4 years.  In-state tuition at the state school is usually the best deal.  Is she planning work on campus during the academic year and in the summers to help pay some costs?
She wants to be an orthodontist, an extra year.
 I hope she gets into the state school for the lower tuition,
but she also has an interview with a private college next week.

I'm a dentist and am unaware of any ortho program that is just one year. Also remember that maybe the top 5-10% of her graduating class will have the grades that will allow them to specialize in ortho. If she is able to get into ortho then her income potential is so high that I wouldn't worry about paying her tuition. Literally, 2-3 years of her after tax income should take care of the entirety of her student loans.  If I were you I'd pay a chunk of tuition as it's due but would not cash flow an entire grad school. A little skin in the game for your daughter may actually be beneficial to her.