MMM retired on 1M. I get that you used averages but if the engineer starts at 23 then med school should as well for comparison sake. 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. Getting into any US medical school is a huge accomplishment. Accessed Sept. 25, 2020. I used average salaries for both the doctor and engineer. Medical school is a long-term investment. A longer timeframe (10+ years) seems more likely to me. Engineers oftentimes receive stock options which could grow significantly over time depending on the company. The maximum per-year cost for tuition, fees and health insurance was $99,622, paid by non-resident students attending public medical schools.. I Decided Not to Go For Medical School. There’s no way to know, but I’m pleased with the way things have worked out.]. We’ll make similar assumptions for our software engineer. Also, the loan interest rates might be different. Should You Fill Out the FAFSA When Applying to Med School? The Chase Sapphire Preferred is my top pick for your first rewards card. Join now & receive a $10 bonus!. 2. Medical school debt. I like it because it roughly contrasts the career choices my twin brother and I have made. Can that lost ground ever be made up? Answer quick MicroSurveys for cash. To help you identify loans, budget wisely, and even find scholarships and grants, Kevin … Accessed Sept. 25, 2020. What Is the Average Cost of Medical School? 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. These numbers do not include annual increases in tuition rates, nor do they factor in the cost of living while attending medical school. If you use just the average figures, the average cost of medical school (assuming a four-year stint) can range from $150,224 to $248,920. The White Coat Investor just published a bunch of data on this. You did not factor in the time value of the money. 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. You can also subscribe without commenting. "Consumer Expenditures--2019." Most doctors sacrifice their youth and vitality for their careers. If you want to become a doctor, the question is moot. The longer it takes this physician to pay back the loan, the more money he owes in total. Military service in exchange for tuition The Health Professions Scholarship Program pays full tuition for up to four years, also covering books, fees, and equipment. 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. To determine how much this doctor’s income will be taxed, I used a tax calculator for Missouri residents (because different states tax differently, and Missouri’s income tax was pretty average compared to other states). 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. Weighing the costs for different schools carefully and exploring every option to help pay for those costs is a step you can't afford to skip. Both likely will have some. All things being equal, having a higher income means you have more flexibility and have a better chance reaching FIRE despite having debt and starting out later in life. I also assumed he did not go to any type of graduate school (and therefore had no debt). The debt of a medical student varies widely by school. I have crunched some numbers which includes my undergrad debt, combined with my cost of living and tuition (for a private med school) and have come to the conclusion that after med school, a 3 year residency, and maybe a couple years of fellowship, I will be sitting at approximately $450,000 of debt (this is with interest included). Medscape. That’s what software engineering gets you. It’s not worth it. If you view your education as an investment, you’re paying 200-300k for a 200-300k salary for 30 years. Hence, you need to be mindful of how or which option you choose to … The engineer also wouldn’t have saved as quickly. Interesting simulation and you’re right, there are lots of things you can’t include in your calculation. 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. 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. Average private school figures come in just below public schools for in-state and out-of-state students, at … At the highest end, the cost reaches $398,488. PoF retires on 3.3M+ with a similar super safe WR That’s what being a physician gets you. If we consider this person spending 50% of income and saving the rest, the engineer will reach financial independence much sooner than the doc, but at a lower standard of living. I have no idea what it is with engineers but I imagine it is longer. Consider both larger national scholarships and grants as well as the smallest ones that may be offered by your school of choice or by local organizations in your community. Although no universally agreed-upon set of rankings exists for medical schools, many students find the one compiled by U.S. News & World Report helpful as a guide to determining how selective a school is.. Medical school cost. For the three years of residency following medical school, the resident will have $52,000 – $25,000 = $27,000 to throw at his loan. The engineer starts saving early and that money if invested is worth more. This would hurt both financially but hurt the lower earner more. Of the total cost to attend St. George’s University School of Medicine, approximately 15% represents administrative/student fees. I used the following algebraic equation to find the age (a) at which the engineer and doctor have saved the same. There are many ways to follow in paying for medical school and as well pay up the tuition cost and expenses for medical school. Student Financial Assistance. 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. Engineer has a 15 yr head start in retirement contributions. Therefore, the engineer has 9 years of saving before the doctor starts doing so. Went to a new school. Upon graduation from medical school in 2013, I owed approximately $180,000 in student debt — what might seem an outrageously high number that is … Obviously, you shouldn’t be going into medicine for the money. Interesting and thought-provoking analysis. AAMC. So loan totals are going UP in residency, not down. Finally, I assumed that this resident/doctor will need $25,000 a year to cover other things necessary in life (housing, food, etc). She specializes in divorce, death, career changes, and caring for aging relatives. 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. In either case the physician should be better off eventually due to the greater earning potential. Every person I know who retired early worked for Intel or a company that was bought by Intel with well over 10 million USA $ in assets (usually Intel stock) at the time they retired (in their forties). It’s the average among indebted students. I blogged about this years ago (when I though one day I could be a superstar blogger like you and WCI etc). The physician in this scenario appeared to have the ability to pay off that debt in four years if he lived frugally, and quickly caught up financially to the software engineer by age 38. 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. Thanks for the post! Federal Student Aid. Tuition and fees at a private school averages well over $50,000 a year regardless of whether you’re an in-state or out-of-state student. So in that sense, the docs will never catch up. Practicing in an underserved area The National Health Service Corps Scholarship Program provides funding to medical school students, as well as dentists, nurse practitioners, and other health care professionals in training. "Tuition and Student Fees Reports," Download "2013-2020 Tuition and Student Fees Report." Then came the financial crisis, which severely impacted my earnings, but not hers. So to peg a school as noncompetitive is incorrect. 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. "This is a $300,000 investment that’s probably as important as buying your first home." However, I would argue that part of the success is to be proactive and take control of your opportunities. What’s the Average Cost of a Doctorate Degree? There are a lot of variables making this a hard comparison. Prescription for Financial Success. The doctor might not have been able to live as frugally as he did and pay off his loan in 4 years. Cost of Attendance. It does, of course, include students who had plenty of help, but still took out some loans. Jake Tabbot of Med School Tips reached out after running some numbers to try to determine whether or not it might be worthwhile from a strictly financial perspective. They could and should while they gave loans but less the 1% will. And they get to work with those fun loving anesthesiologists! The engineer could have also received a yearly 401k match during this time period. Therefore, if the physician were 28 years old when he started residency, he would then be 32 years old when he was finally debt free (28 + 3 + 1). I made an estimation, so please do your own calculation to confirm. According to the AAMC, in the 2018-19 year, the cost of public medical school averaged $36,755 per year ($147,020 per degree) for in-state students and $60,802 per year ($243,208 per degree) for out-of-state students. Please note: In November 2019, the Alberta Government ended the provincial freeze on tuition. "Medscape Physician Compensation Report 2019." In that scenario, you are likely out-earning your physician counterparts. My suspicion is that among those medical students who require loans for medical school the debt is well above $200k. If you chose medicine, was it worth it for you? [04:15] The Cost of Medical School Secondary Applications. I want to remark on a few things that I think would make this far more realistic missing from here: Not a bad deal. The final thing to remember is that medical school is not something you’ll pay for by writing a few checks. 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