I am a physician and my daughter will be starting medical school soon. It has always been my intention to pay for her medical school education. In light of the public student loan forgiveness program, it seems to me that a better option would be for her to take out loans and see how things work out. I can always help her with the outstanding loan balance if she does not end up getting her loans forgiven. Am I wrong? If anyone has a different opinion, I would like to hear your reasons why.
Thanks in advanceJune 6, 2019 at 1:53 pm MST #219665hatton1ParticipantStatus: PhysicianPosts: 2981Joined: 01/11/2016
You could certainly help her borrow less by paying her living expenses.
I blog at http://doctoroffinancemd.com/MSoonerParticipantStatus: SpousePosts: 181Joined: 02/25/2016
Whatever you decide, I’d make the decision around match day. By then she will know her specialty and can start understand what sort of income she can anticipate and how difficult getting a PSLF eligible job will be.
Those loans can really explode during residency if you don’t handle them well :/June 6, 2019 at 2:11 pm MST #219702fatlittlepigParticipantStatus: PhysicianPosts: 750Joined: 01/26/2017
i think the kid should take out some debt for grad school. gotta have some skin in the game, builds character and responsiblity. daddy paying for college + med school is kind of lame. just my opinion
FLPPedsParticipantStatus: PhysicianPosts: 3800Joined: 01/08/2016
I’ll be the voice of reason:
Help her with tuition!
That is all.q-schoolParticipantStatus: PhysicianPosts: 2362Joined: 05/07/2017
i would just thank god she was smart enough to get in to medical school and for providing the ability to help jumpstart her financial life.
whether you pay some or all, i think the die has already been cast regarding her financial tendencies. if she has shown imprudence, let her take loans. if she has shown good judgement, trust her to continue to do so. i’m not saying buy her a ferrari, just let her have loans.
best of luck! i hope my kids grow up like yours.EM->CCM MDParticipantStatus: PhysicianPosts: 42Joined: 07/23/2017SerrateAndDominateParticipantStatus: PhysicianPosts: 401Joined: 02/01/2018
Good problem to have. I’d pay first two years then give her a Step 1 goal if she wants the last two years paid. JK sorta
I am really just trying to look at this from a purely financial perspective. My thought was to mentally set aside enough money to pay off her loans. If she ends up getting her loans forgiven, I will have saved probably a few hundred thousand dollars. The interest accrued on the loans will hopefully be offset by capital gains/dividends from those funds which will be invested. It is pretty hard to ignore the prospect of the government forgiving that much debt. Part of me thinks this seems too good to be true. Most physicians, including me, seem to work for a “non profit” these days. Very interested in seeing how this loan forgiveness program plays out.ZZZParticipantStatus: SpousePosts: 479Joined: 06/18/2018
Have you looked at the fees and rates on graduate school student loans? That interest still accrues during school. Think you can beat that in after tax returns while waiting for her to see where she ends up?burritosParticipantStatus: PhysicianPosts: 366Joined: 04/23/2018
Sorry if it was mentioned before, but why are the loans going to be forgiven?June 6, 2019 at 3:43 pm MST #219720pulpsnatcherParticipantStatus: DentistPosts: 43Joined: 09/10/2018
Of all the things my wife and I can do for our children, I can think of few things that will last and have ongoing value than an education. With that said, it is imperative that you know your child and their interest in attaining a serious education. I am most willing to pay for a valued education. I know parents who have allowed their children to take significant student loans, but then the parents pay for an over-the-top wedding. To each his own. Loan forgiveness in your situation becomes a very personal decision ~ since you are able & willing to pay. No judgment here.wonka31ParticipantStatus: PhysicianPosts: 605Joined: 03/24/2018
Do you have enough money? What’s your financial situation? If you have more than enough, then go for it. If you don’t, absolutely not.
Have you looked at the fees and rates on graduate school student loans? That interest still accrues during school. Think you can beat that in after tax returns while waiting for her to see where she ends up?Click to expand…
No I do not. I was just making the point that the interest on the loans would hopefully be offset by any CG/dividends. I have no idea by how much. What does interest me greatly is the prospect of 100% of her loans forgiven. I would suspect a majority of physicians work for a non profit entity these days.June 6, 2019 at 4:26 pm MST #219728