While student loans are a necessary financial tool for most of today’s future doctors, the process of repaying them can get complex due to the many types of loans and the accrual of interest. If you make the wrong move, you could wind up facing a costly error—one that may take years to recover from. The following five student loan mistakes are a few of the worst errors that you can make. Do what you can to avoid them.
“Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t, pays it.
Your Life Of Abundance
The first thing to note about your life the day after you finish residency is that, despite the fashionable whining of your peers, yours has been an existence of relative abundance: You have likely never driven a nicer car, earned a higher salary, or had greater autonomy.
In 2014, the average resident salary one year out of medical school was $51,000 (Medscape). For perspective, in 2014 the median U.S. household income was $53,657 (U.S. Census Bureau). Given that the median household size was 2.54, a new, single intern fared better than most families that year (Statista).
Are you experiencing clinician burnout? Do you bring your patients’ emotional and physical burdens home … Read more
Aside from long hours and lots of studying, the other guarantee in medical school is financial stress. Unless you are fortunate enough to have a spouse whose medical education is paid for and you have funds from family or a job that will cover both of your living expenses, you’ll be on a tight budget and accumulating massive amounts of debt. That debt will be large enough to change your financial planning and lifestyle both now and for years to come.
So how do we put ourselves in the best financial position now and plan for the future? And how do we still enjoy life now during these lean years? It’s worth it to start talking about finances now!
One of the most common mistakes young physicians make when taking a job is accepting … Read more
You’ve earned your medical degree, worked your way through your residency or fellowship program, and … Read more
Interviews are often stressful—even for those who have gone on countless interviews. The best way to reduce the stress is to be prepared. These tips will help you through the entire interviewing process and ensure that you not only impress your interviewer but also know if the facility is the right place for you.
Consider these three questions. First, what is a loan? Second, how is it typically is structured? Third, do you know how much you will be paying back if you borrowed x amount? I always wished someone had personally educated me and answered these very questions.
It has been almost 20 years since I chose my college (an expensive one), and almost 10 since I made my decision to pursue a career in pharmacy (a smarter choice, but still expensive one). I consider myself fortunate because my profession (for the most part) allows me to pay back the student loan I have accumulated and still enjoy a lifestyle I had imagined.
With loan debt for students in graduate health professions rising exponentially, the conversation around choosing the right student loan repayment option and/or opting for the public service loan forgiveness (PSLF) program is becoming much more popular. Instead of focusing on what repayment plan gives a graduate the lowest monthly payment or whether or not he/she should pursue loan forgiveness, why not focus on minimizing expenses and working hard to pay off the debt as fast as soon as possible? This will allow for moving on to other financial goals with more intensity and focus such as buying a home, saving for retirement, and giving to name a few…all without any student loan debt getting in the way.
Make sure to check out Part I here!
Today’s article takes a closer look at several key terms in employment contracts that can have a significant impact on a new physician – compensation methods, incentive compensation and outside work or “moonlighting”. Building on our first article that examined termination provisions, non-compete clauses, professional liability insurance and indemnification, we will identify key issues in evaluating compensation models and moonlighting and outline some of the questions to consider before signing on the dotted line.
I remember the sheer joy of ripping open the letter that granted me a medical school spot. Everything was roses and rainbows, and I was thrilled that my dreams were coming true. This cute little fantasy carried on until I received the tuition numbers a few weeks later . . . wow. I had no money, and I was being expected to pay how much? Regardless of what you hear from other people about how doctors make enough money to quickly pay back their debt, those five digits after the dollar sign per year are still scary.
Many medical students cheerfully expect to be earning a generous income as they begin their medical practice. But while it is true that that, according to the Medical Economics website that in 2014, 7 of the 10 top-paying jobs were in the medical profession, the issue of course is far more complicated than that. The American Association of Medical Colleges estimates that a four-year medical education at a private school today will cost around $278,455 dollars while a public one runs only slightly below that at $208,868. And the average medical student will be around $180,000 in debt at the time of their graduation. Around 20% will have debt in excess of $250,000.
These numbers can seem staggering. Fortunately, there are programs available to medical students which not only get them out from this monumental debt, but help underserved communities across the country and improve access to quality medical care for some very vulnerable patient populations.
The thrill and responsibility of holding someone’s life in your hands, the ability to act under pressure, and the satisfaction of doing good in the world—these are among the qualities that attract people to the medical profession. In a culture that’s quickly diminishing the value of established professions, there’s still a universal appeal to becoming a doctor.This doesn’t mean seeking a career in medicine is without its obstacles. The importance of a thorough education—at least four graduate years—cannot be understated. Add in the time it takes to complete an internship and a residency, and it’s easy to see why a medical path can be too daunting for many. On average, it takes about 11 years for a medical student to become an independent doctor. If students begin medical school in their 20s, they won’t begin to see patients as a physician until they’re in their 30s. Add to that an average price tag of $166,000 in student loans for medical school, and even the most gung-ho medical students begin to balk. Suffice it to say, a career in the medical field is a huge time and financial investment.
It’s a number newly-minted physicians or those in the process of becoming a doctor should know.
No, it’s not the average salary of those in the medical field or the cost of an average physician’s home.
It’s also not something fun like the price you can pay for a new Audi R8 when you graduate from medical school (although that would be super nice.)
Since the medical field is full of a wide variety of job opportunities, it is … Read more
In both hospital and group practice settings, physicians are regularly asked to sign employment contracts that the group or hospital may describe as “standard”. While physician employment contracts can define the terms of the employment relationship in helpful ways, they can and often do contain clauses and obligations that may have a long-lasting impact on the physician. When negotiating a contract with a potential employer, physicians are well advised to take a hard look at key contract terms, including termination provisions, non-compete clauses, professional liability insurance terms and indemnification obligations, and negotiate to remove or revise overly burdensome terms prior to the start of the employment relationship.
Memorial Day and Mother’s Day are May’s official holidays, but for millions, graduation day is May’s biggest celebration—as momentous as a wedding or birth. Graduation creates memories of a proud family gathering, celebrations with classmates, and the inspiring message from a charismatic commencement speaker.
I’ve had my share of graduations—high school, college at Cornell University, medical school at GW, grad school at Hopkins. Association of American Medical Colleges (AAMC) President Jordan Cohen addressed my medical school graduation. I had no idea who he was. A decade later, I went to work for him, and the AAMC has been my professional home ever since.
You’ve already done the hard part, you’ve made it into medical school! But how are you going to pay for it? Understanding how to manage your money is critical for financial success. Follow these eight basic tips to start your medical career off right.
About to head out on some interviews? First spend some time with these physicians as … Read more
Medical students deal with a lot of scary things: frequent do-or-die exams, looming USMLE or … Read more