According to the Association of American Medical Colleges (AAMC), the average first-year medical student paid $37,556 for tuition, fees, and health insurance to attend a public medical school during the 2019-20 academic year. If you view your education as an investment, you’re paying 200-300k for a 200-300k salary for 30 years. I blogged about this years ago (when I though one day I could be a superstar blogger like you and WCI etc). The maximum per-year cost for tuition, fees and health insurance was $99,622, paid by non-resident students attending public medical schools.. After accounting for taxes, the resident will take home $52,000 a year, and the internal medicine physician will make $171,000 a year after taxes are paid. I have no idea what it is with engineers but I imagine it is longer. And neither would an engineer making 6 figures. The doctor might not have been able to live as frugally as he did and pay off his loan in 4 years. If you chose medicine, was it worth it for you? We make these useless financial comparisons because we are all shaped by the capitalist society and we think currency defines success and happiness. Federal Student Aid. Please note: In November 2019, the Alberta Government ended the provincial freeze on tuition. 2. That’s a bit of a raw deal…. Again, this is anecdotal, but coming from a program in the midwest (typically higher paying than east/west coast) that is what a PGY-7 makes. Earn easy 1099 income with quick surveys for healthcare professionals with InCrowd. Student Financial Assistance. Prescription for Financial Success. The math was complicated for estimating the payback for the physician’s loan. Tuition and general fees are set by main campus. For the three years of residency following medical school, the resident will have $52,000 – $25,000 = $27,000 to throw at his loan. Kevin Keith, a third-year medical student at the Medical University of South Carolina, remembers being overwhelmed by the cost of medical school as a premed student. 1/2 tuition scholarship. Overall, 73% of medical school grads leave school with student debt in tow., If you're considering student loans to pay for medical school, start with your federal loan options. Therefore, the engineer has 9 years of saving before the doctor starts doing so. [04:15] The Cost of Medical School Secondary Applications. Happy 4th. There are several options to pay for medical school. At the highest end, the cost reaches $398,488. Well, to someone who thinks $200,000-$500,000 in debt is a lot of money, it might seem that way. Why no undergrad debt? Since the doctor makes more than the engineer, though, eventually he’ll catch up. The costs of medical school are rising at an alarming rate. "Consumer Expenditures--2019." Being pre-med in college, I consistently heard horror stories about the crippling debt medical school put its students in. The assumption that residents will live frugally on 25k a year + not have a dependent spouse/kids is being kind (or naive?). So in that sense, the docs will never catch up. Even the “worst” schools have acceptance rates under 20%. You could use a combination of direct unsubsidized loans and direct PLUS loans. Also, the loan interest rates might be different. Welcome bonus of 60,000 points worth at least $750 when used to book travel (after a $4,000 spend in 3 mo) and other great perks you can learn about here. income after taxes – cost of living = savings rate, Doctor yearly savings (starting at age 32) = $171,000 – $25,000 = $146,000, Engineer yearly savings (starting at age 23) = $82,000 – $25,000 = $57,000. To answer whether being a doctor is worth it, you should research from a different perspective other than finances, but from a perspective of happiness, health, longevity and humans as a species on the backdrop of our current environment, society and the future as we aim to shape it. Accessed Sept. 25, 2020. A longer timeframe (10+ years) seems more likely to me. 10 Med Schools Where Grads Have the Most Debt Among these schools, 2019 graduates who incurred medical education debt had an average indebtedness of $250,764, per U.S. News data. Some schools charge significantly more for tuition. Thirty years ago, medical students graduated with an average of $32,000 in student loan debt —that’s about $70,000 in today’s dollars if you adjust for inflation.. According to the Association of American Medical Colleges (AAMC), the average cost of medical school for the 2019-2020 academic year for first-year students is $32,520 at a public institution. Let’s assume a student starts medical school when he is 24 years old, the average age of entering medical students.And, let’s also assume that after four years of school, he will rack up the average amount of medical school debt, $190,000. Multiply the average lost earnings by four, and you end up with $229,216. Knowing these two things, how long will it take the physician to pay down the initial $190,000 medical student loan? Why is the leading cause of death in cardiologists still heart disease, isn’t that sad irony?! I estimated that the interest rate for this loan will probably be around 6.6%, the current federal direct unsubsidized loan interest rate for graduate students. At minimum, it will take you four years of medical school and three years of residency training. FYI I live in the same town as one of Intel’s facilities. Upon graduation from medical school in 2013, I owed approximately $180,000 in student debt — what might seem an outrageously high number that is … As a condition of the scholarship, you have to work in an area with a health professional shortage for a set number of years, based on the duration you received the scholarship. Promising much less debt and high salaries, people spoke as if software engineering was a superior option to medicine. Typical household spending totaled $63,036 as of 2019, according to the Bureau of Labor Statistics. Living in a cheaper city while attending medical school could bring your cost of living below average, but this may involve a trade-off if it means you're not able to attend your dream school. Interesting simulation and you’re right, there are lots of things you can’t include in your calculation. Physician Assumptions . Regardless of your specialty, anticipate that becoming a doctor will cost … Money is an important consideration, but not necessarily the most important. But, this doesn’t really seem to be the case. AAMC. Specialties such as radiology have had RVUs cut dramatically and thus doing the same thing pays less. Originally I was scared the physician’s debt would be a huge burden. Below, I’ve outlined some assumptions (for engineers and physicians) that I needed to do this. Would the same have been true if I had pursued a career like software engineering? There are a lot of variables here. According to Medscape's 2019 Physician Compensation Report, the average overall physician salary is $313,000. Its then you solve for the number years to breakeven. Accessed Sept. 25, 2020. Physicians definitely appear to have it better financially. Finally, I assumed that this resident/doctor will need $25,000 a year to cover other things necessary in life (housing, food, etc). This is a good high level analysis. Easy access to cash and loans make purchases and debt increases more likely in many cases. Most doctors sacrifice their youth and vitality for their careers. And, the doctor starts saving when he is 32 years old (after he has paid down his debt). I used the following algebraic equation to find the age (a) at which the engineer and doctor have saved the same. She specializes in divorce, death, career changes, and caring for aging relatives. And all the while you will have been using $25-$50 of your student loans on a monthly basis to pay the minimum payment. Great travel protection and perks, plus new Lyft & DoorDash perks for 2020! Humans are designed for love, movement, compassion, reproduction, etc. Specialist and subspecialists tend to make significantly more money than primary care physicians (although they oftentimes have longer residencies). 6. The debt of a medical student varies widely by school. However, it’s nice to have a base estimation to go off of, and it appears that doctors have it significantly better financially in the long run. Regarding #1, the AAMC survey does not include students with 0 debt in the numerator or denominator. [PoF: Another factor that would change the math is having the software engineer work physician-like hours. I genuinely wanted to become a doctor but was hesitant to do so because of the financial burden it would place on my shoulders. I think the best thing it does is refute this idea that it’s not, “worth” going to med school. I may be leaving the profession, but I don’t have any regrets with the choices I’ve made. All of these things could have significantly affected the calculation and conclusion above, and therefore it’s really hard to say with certainty how much more financially lucrative being a physician is over an engineer. Getting into any US medical school is a huge accomplishment. I like what you are trying to do here and I think your conclusion is correct but I think the specifics would be different. "This is a $300,000 investment that’s probably as important as buying your first home." Private loans may offer fixed or variable interest rates and rather than being need-based, your ability to qualify hinges largely on factors such as your income and credit score. Obviously, you shouldn’t be going into medicine for the money. And, to be completely honest, this really scared me. Your return is determined by time in the market and your time in the market if you start stashing at 30 yields a much bigger end of life projected nest egg (say age 90) compared to the same stash starting at 35, again out to say age 90. if you retire at 57 after stashing the same amount all those years and then start withdrawing at 57 your age 90 total portfolio starting at 30 would generate 3M more than the same retirement with saving starting at 35. The following chart outlines some of the basic costs you will encounter during your medical school education at the Cumming School of Medicine. The decision to attend a high-cost private medical school should involve the entire family. We have no financial relationship to disclose. I would say that for the vast majority of physicians it’s more than worth it from a pure money perspective if you love what you do. The maximum per-year cost for tuition, fees and health insurance was $99,622, paid by non-resident students attending public medical schools. Login Required. However, it isn't really that expensive when you compare the relative costs they are incurring to teach you. "Subsidized and Unsubsidized Loans." Neither type of loan is based on financial need but direct PLUS loans do require a credit check.. Cast the net wider for scholarships and grants In addition to federal scholarships, you should be looking high and low for scholarships and grants to pay your way through medical school. So, which career is better? Thanks for the post! Physicians, Pharmacists, and other healthcare professionals are invited to join Incrowd today! I do not think a doc is going to live on 25k. Scholarship recipients also receive a monthly stipend and a $20,000 sign-on bonus, all in exchange for one year of active duty service for each year that they receive the scholarship. I made an estimation, so please do your own calculation to confirm. While the cost of medical school in and of itself is certainly high, the true cost of becoming a doctor is in years and years of your life. Most doctors start their family in their 40s, burnt out, high risks of infertility, significant health issues of their own, no energy to raise their own kids or take care of their loved ones. Aside from that, another key difference to note with private student loans is that they lack many of the protections federal student loans offer. Obviously, there are many other non-monetary reasons to pursue the profession, but the question posed is an intriguing one. Pursuing a career in medicine requires discipline and multiple years of higher education--which could add up to a substantial cost. The longer it takes this physician to pay back the loan, the more money he owes in total. Therefore, when the doctor is 38, he will be in a better position financially than the software engineer. Rebecca Lake covers financial planning and credit for The Balance. Calculating the average cost of medical school is an important step for both students and parents as it helps them gauge the affordability of earning a medical degree. There are many ways to follow in paying for medical school and as well pay up the tuition cost and expenses for medical school. Why You Should Fill Out the FAFSA Even If Your Parents Make Too Much Money, National Health Service Corps Scholarship Program, Medscape Physician Compensation Report 2019, Medical Student Education: Debt, Costs, and Loan Repayment Fact Card, Direct PLUS loans: Up to the remainder of college costs not covered by other financial aid. After graduating from medical school, the physician has a good amount of debt to pay off. "PLUS Loans." Accessed Sept. 25, 2020. These numbers do not include annual increases in tuition rates, nor do they factor in the cost of living while attending medical school. A physicians career is more stable, and there is also probably less chance of outsourcing a doctor’s job in the future. I agree that although the doctor will owe significantly more and have a delayed start by the time he or she starts earning an attending salary, the higher income will eventually swing the pendulum in the doctor’s favor. 329 votes, 166 comments. "Tuition and Student Fees Reports," Download "2013-2020 Tuition and Student Fees Report." Assuming the cost of secondaries is $100 per school (some are $50 and some are $75), and assuming you apply to 30 schools (15 DO and 15 MD) and you turn them all in, that’s $3,000 for secondary applications. In reality, I think it is MUCH harder to focus on debt because of pent up demand for upscale vehicles, homes, and toys not affordable while in school. Medical school debt. Is it better to get a good job right out of college? Already matched into a competitive surgical subspecialty at an awesome program in a great state. Notify me of followup comments via e-mail. Tuition, fees, and expenses comprise the cost of attendance of medical school at HMS. The average cost of medical school can be daunting but it may be a small price to pay if becoming a physician is your passion. Best to use $ vs % for this math word problem. Nevertheless, I am happy with the career path I chose, and by earning the salary of an anesthesiologist in the upper midwest, I realized I was financially independent at the age of 39. The software engineer starts saving when he is 23 years old. Loans are one way to pay for medical school but there are some alternatives worth considering to make the cost easier to manage. That means the amount would be about $12000 after medical school is done. The Chase Sapphire Preferred is my top pick for your first rewards card. Happy Independence day! Many residents I know are paying less towards their loans/year than the interest they are accruing. Went to a new school. Not to mention, everyone around them make similar sacrifices, if not harder, and have failed relationships with spouses and family. So much for theories! For non-residents, the totals increased to $61,858 and $62,230 respectively. when used to book travel (after a $4,000 spend in 3 mo) and other great perks you can learn about. Consider the pediatrician living in NYC making 130k, with 200-300k of loans. I like it because it roughly contrasts the career choices my twin brother and I have made. Replies to my comments For every C-suite MBA pulling a high 6 to 7 figure salary there are many who are scraping it out in cubicle drudgery. Can residents and doctors live off of $25,000 a year? He’ll have $171,000 – $25,000 = $146,000 a year in cash to pay down that loan. On average, medical school tuition, fees, and health insurance during the 2019-2020 academic year ranges from $37,556 (public, in-state) to $62,194 (public, out-of-state). I think that if you are a physician-calibre student, you have a good chance of landing at Google, Facebook, etc as a software engineer. ** Basic Sciences students who earn grades of ‘F’ or ‘CR’ will not be charged tuition for the repeated courses; however, in all these cases, … But that can be a tall order to fill. 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