 Today we are talking about money and in particular how much money I don't have because I have med school debt sat face and I'm going to tell you in this video guys how much debt I have as well as how I expect to pay it all let's get to it. All right guys what is going on? Luxury for them the journey helping you succeed on your medical journey with less stress. If you are new to this channel I am a newly med school grad just starting my first year residency in internal medicine and today we are talking about something that I am becoming very familiar with which is my med school debt. So if you guys enjoy this video first of all don't forget to hit that like button smash that like button most of you guys know the drill now disintegrate that like button and just to help this video get up in the youtube algorithm as well as supporting the channel the subscriber count is growing so thank you for all of you guys have done so if you haven't please like help your brother out but today we are talking about my med school debt as well as how you go about paying med school debt what's average and all of those questions you probably have so let's start with basically how much debt does the average med student have now for the graduating class of 2018 the average med school debt was reported to people around $192,000 so basically around that up to 200,000 now you also have to remember that some of these same individuals also have loans and debt from their undergrad degrees as well now you also have to remember that some of these same students also had debt from their undergraduate degrees so the average increases from 190 to about 220,000 dollars now 200 plus grand to owe and money for your education is ridiculous but unfortunately it doesn't end there using an average interest rate of anywhere from 3.5 to upwards of 7% these same individuals will end up paying nearly 350,000 to 400,000 dollars by the time that their loan is completely paid off that's just like you're paying off like two Lamborghinis that's ridiculous and it gets even worse some students will have loans from private institutions including their undergrad as well as med school institutions and those are even pricier so that loan amount of 350 to 400,000 can easily escalate up into the 600 and 700 case so it's crazy but now let's talk about me we're going to get a little bit selfish I'm going to share with you my numbers as well as kind of how that loan breaks down and then we'll talk about common ways to pay it off as well as how I expect to pay my med school loans off and now let's get to the anxiety-provoking number which is my med school debt and that is 190,000 dollars basically a Lamborghini because of two letters that have not been added to my name and four years of training now I want to break down that loan because that number may seem astronomically high for some of you guys it may seem right on average which it is for many of you and also may feel like a discount compared to some of my classmates who have done private institutions or have been outside of the state of Texas I've been lucky um but basically my tuition every year for four years of medical school is about 21 to 22,000 dollars depending on the year so adds up to about 80,000 dollars now in addition I also had living costs I chose to live by myself and a single bedroom apartment instead of getting a roommate because it was my first time living alone and I just didn't want to deal with the hassle of med school as well as having a roommate for the first time so I did elect to pay a little bit more per month to have my own apartment so then when you add in you know rent tuition food as well as transportation I made lots of trips back and forth if you guys seen the video that I've done with my wife Priya went back and forth to Austin almost two weeks for four years to see her now she's my wife so I clearly did something right I'm making those trips was clearly not cheap it was about 60 dollars um round trip I have terrible gas mileage guys um and so adding that all in plus when you take an expenses of med school such as step one exams paying for residency you get the final number of 198,000 dollars now is it nerve racking absolutely every time I fill in applications or just look at those numbers it's anxiety provoking but I have a plan so we'll get to it now let's talk about the different ways you can pay for your med school loans now basically it comes down to four ways really there's five number one in that case would be let somebody else pay for it I'm assuming most of you guys wouldn't be watching this video if you're in that situation unless you really just want to know my loans are and now you're done so you're gonna click off this video hit that like button um but number one is basically paying it off on a standard plan so basically if you take your generic loan of 198,000 it comes to about a thousand twelve hundred dollars per month that you'd be paying based off of the interest rate and that's ridiculous that's like the size of my rent right now most residents just don't have that kind of extra income laying around so then you have to go to the other options step number two is refinancing your loans now basically what refinance means is taking the interest rate that your loans are currently given by the government which mine are about five five point five percent um and using a private company you may have heard of some of them called sofi or lower road um and asking for a lower interest rate that can lead you to save a lot of money for example if you had 189,000 dollars in loans which is basically where I'm at you know that's seven percent interest that would mean you'd be paying about 74,000 dollars in interest after you're done paying the loan on top of the original payment which is the principal but if you are managed to lower that rate from 7.0 to 5.5 then your total interest payment comes up to about 57,000 dollars so you almost save 20 grand just by refinancing and if you think that refinancing is the way to go for you then check out the links down below in the description and you'll also be able to get a little bit of a discount number 30 is really the most common way that residents including myself will be paying for their medical loans and this is basically an income driven repayment plan IDRs basically what it means is when you make less money as a resident you pay less based off of your lower income and when you get a higher salary as an attending you now start paying more per month so that's perfect for somebody like me who doesn't have a thousand dollars sitting around but I may have three or five hundred dollars that I can throw at my loans I really don't but um if I have to that's much better option and then when I'm attending and I make a little bit more I can have a more flexibility to pay a higher payment now there's different forms of income driven repayment plans the most two popular ones are pay and repay you don't really need to know too much about the difference but if you guys want me to compare them in a future video I'm happy to do so but most people nowadays are going for the repay plan basically what it is is that you have a low monthly payment of anywhere from 200 to about 400 dollars for that average 190 thousand dollars but the cool thing is is that if you know that your normal payment what I've been let's say 1500 but your repay payment is 500 then there's still a thousand dollars that's not being covered so where does that go now normally that would go into your interest and just keeps accumulating until you become an attending and you can start slashing away at those bigger payments but with a repay the cool thing is the government will take that extra thousand dollars that you're not paying and just forgive 50 they'll subsidize 50 percent of it so if you have a thousand dollars that you're not paying an interest they'll only add 500 to your total loan balance which is nice is a great way to save money and it works for a lot of people so definitely consider repay if you want me to make more specifics on the pros and cons because there are some cons of using a repay plan then let me know in the comments down below and I'm happy to make a video in the future but pay and repay are really the most popular methods but let's get into number four and this is the one you hear about the most but unfortunately not used at all and that is public service loan forgiveness programs people have heard about this a lot and if you haven't in the united states there is basically laws indicating that if you work for a non-profit or a public institution which most hospitals happen to be and you make 120 payments on your loan so at 10 years and you work at this nonprofit or public institution then eventually you can apply to have your loan forgiven sounds nice especially if you are somebody who has 600 to 700 thousand dollars of debt it may not be possible to pay it off in 10 years so instead this may be an option considering now the one caveat is that this plan has been going on for a while and so far only 1% that's right 1% have actually been approved and given loan forgiveness now there's a little bit of caveats against that too which is loan payment plans have not become a little bit easier to understand the forms that you have to fill out yearly and become easier people understand what to do and a lot of the doctors that are new plans like repay like I am are just starting to get closer and closer to that 10-year mark so we really don't know if the government at least united states will actually be able to back up their promise but the one thing I will say is you should act like you could get public service loan forgiveness if you at all see yourself working in those kinds of institutions but just don't plan on it have a backup plan on saving enough money when you're attending to just pay off your loans and the public service works out then awesome if it doesn't then at least you have a plan to pay those loans away so quickly I want to end this video on basically what I'm doing with my loans again 190 thousand dollars yikes just had a mini heart attack saying it out a lot again but basically the way I'm going to be handling it is first I consolidated my loan and so every year that you get a new med school loan is basically considered to be a different loan so instead of having to pay $75 here $50 here $100 here based off your interest in your mounts I'm just putting them all under one bundle under one interest rate that you can do after you graduate med school and then I'm going to be doing the repay plan and ideally I haven't got my final number now but I will be paying anywhere from 300 to 500 dollars and all of that is based off of obviously your income the amount of loans you have as well as your spouse's income so all of that considered I'm hoping I'm paying about 400 dollars a month fingers crossed and just to help kind of plan for my wife and I are basically taking that out of my paycheck already and putting it or savings and acting like we don't have it so that way when the loan payment actually does come we're paying it and we don't feel like we're missing out on anything so that guys is my med school debt how much I have what I plan to do and how you can also overcome all of that money Lamborghinis for those two letters that you'll be getting after you graduate med school hope you guys enjoyed this video and make sure you comment down below with any financial or medical school questions that you may have and the last thing you guys need to do is definitely consider giving me a follow on instagram if you want daily tips just like this one broken to you on a nice short instagram post but thank you guys so much for watching all the resources I mentioned in the video will be linked down below so definitely check them out and also check out either this video or this video I think you'll probably like this one better but this one's my personal favorite so hit this one in a new tab and hit this one right now I'll see you guys later thanks guys peace