If you have decided to move on to grad school to get a higher degree such as your medical degree, law degree, veterinary degree, or any other specialty degree, you may be wondering if the debt that you will accrue will actually be WORTH it in the end. The key term here is “worth.”
Many students find these different careers lucrative because they do make a handsome wage, one that is hardly found in many other career choices. While the wage may be up there, is the debt truly worth accumulating and then paying off? Let’s take a look.
1. What is the Job Outlook and Salary?
Before you jump right into med school, it is important to know what the job outlook and salary is for the job that you want. For example, if you want to be a nurse and the average salary is $60,000, would it be worth it to train and accrue a debt of $150,000 for that career? No.
Just as if you wanted to work in the podiatry field, but the job outlook and growth was only one percent – would it be worth the $150,000 in debt to do it? No.
You need to sit down and evaluate these things because after all, it will be your future and you will be the one taking on all of the debt.
2. What is the Actual Amount of Debt You Will Accrue?
You need to determine the amount of debt that you will actually accrue. This can be hard to determine because grad school prices do not always take everything into account. One thing you do need to realize about grad school though is that it is debt, almost purely debt.
The average cost of a medical degree is about $200,000, but may be more depending on where you study, what your career path actually is, and more.
3. Know Before You Go
To help give you an idea and put a perspective on it, let’s take a look at some salary averages and student loan repayment projections. For all examples, we will use the average degree cost at an interest rate of 6.8 percent and a loan term of 25 years.
The average salary of a general doctor is about $135,000 annually and the average cost of a medical degree is $230,000.
Your total student loan monthly repayment would be $1,596.37. Based on the average salary, your monthly income BEFORE taxes is approximately $11,250.
The average salary of a veterinarian is about $90,000. The average cost of a veterinary degree is about $200,000.
Your total student loan monthly repayment would be $1,388.14. Based on the average salary, your monthly income BEFORE taxes is approximately $7,500.
The average salary of a dentist is about $166,000. The average cost of a dental degree is $250,000.
Your total student loan monthly repayment would be $1,735.18. Based on the average salary, your monthly income BEFORE taxes is approximately $13,833.
Only you can determine if the cost of schooling is worth it to you in the end. You will have a high amount of debt, but your career choice may pay off in the end.
It is also worth mentioning that once you start working in your respective field, you could become an ideal candidate to refinance student loans. Student loan refinancing refers to a product offered by private lenders and banks where they consolidate your student loans, offering a new loan, interest rate, and repayment term to qualified borrowers in return. If approved, a doctor or high-earning health profession could be eligible for much lower interest rates. Student loan refinancing and consolidation can save a borrower money over the life of a loan, but you will also be giving up on whatever terms you may be enjoying before the consolidation takes place.
Author: Jeff Gitlen
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