A warning about the dangers of student debt in medicine

ThatDrGuy

This sad article was written by a UCD grad living in Canada at the moment. Ive heard a lot of people are still going heavily into debt to finance graduate medicine and it's really not worth it. There is essentially no way you will be able to pay off any significant loans given the salarys paid. Its probably time to start working out a strategy for dealing with them.


http://corkindependent.com/20130321/news/trapped-by-debt-cork-doctor-considered-suicide-over-loan-S61735.html

nerrad01

I second that, Im not trying to put people off but think long and hard before embarking on a career in medicine. The level of debt is unpayable by staying in ireland (without even getting into working condition, training and career prospects)

DoctorDre

Do you think it will be any easier for students to pay back a fees only loan now? Let's say someone was to live at home and have no other expenses for the four years. Surely a ~€60,000 loan is much better than the old €100,000 one? Or am I being naive?

Agnieszka_88

The old 100k loans were incredibly easy to get, basically no guarantees and with really low interest rates (seriously, no wonder this country went bankrupt, they were practically throwing money at you). The "new" loans are harder to get (or so I've heard), they put down a lot of safeguards too. It is a 40k less to pay back, sure, and that makes it easier, but you'll still be giving the banks half of your pay (at least at the beginning) and you will be in a lot worse position to renegotiate the loan if you ever feel like you can't pay it back.

I've heard a while ago that the universities noticed the problem and are considering stipends and/or cooperation with banks (would be easier if they stopped raising the tuition every year, but what am I expecting...). Fingers crossed for that, although I can't say I have much hope. Maybe if application rates drop next year, someone will start thinking about a solution. Meanwhile, observe people going off to England for university and/or running away to Australia leaving unpaid debts behind.

I myself have started to seriously consider studying in England. Even if I delay applying until I save enough to cover the living costs during medschool, I'll still be left with a huge debt and an uncertain future afterwards. Not to mention that until I manage to save the ~50k needed, I'll be in my mid-thirties. I guess it all depends on whether they'll stay in the EU.

Edit: does anyone else have problems opening the article the OP posted or is it just me?

nerrad01

DoctorDre wrote: »

Do you think it will be any easier for students to pay back a fees only loan now? Let's say someone was to live at home and have no other expenses for the four years. Surely a ~€60,000 loan is much better than the old €100,000 one? Or am I being naive?

60k is still a huge amount of money to pay back, your coming into the same kinda of debt a mortgage would give you.
The main problem now, is the reduction in intern salary which will be around 24k after tax, so around €2000 pm, repayments on the fees only loan would be in the region of €7-800pm, so after your rent you wont be earning much more than somebody on the dole (despite working potentially 80 hours a week). I dont even want to put down the figures for the people with the full loan, essentially its a one way road to bankruptcy/ never owning a house and all the other stuff that goes along with it etc.

Also the whole issue with non payment of over time, the cuts with croke park 2 to come and the huge reduction in consultant salaries (and only 20% chance of getting a consultancy post) means its not going to get any easier as you progress unfortunately.

If you really want it, and are prepared to get paid a below average salary for the job, and sacrifice to pay off the loan go for it! but please know what your getting yourself in for!!!

if you can survive with a fees only loan, but if you have to get other loans from other institutions too then it is just not worth it!

medic087

Despite all of this i still really really want to be a doctor. I couldn't live with myself if i didn't despite the many many negatives. I'm only in first year and i estimate i'll be roughly 80k in debt by the end of it all.

nerrad01

medic087 wrote: »

Despite all of this i still really really want to be a doctor. I couldn't live with myself if i didn't despite the many many negatives. I'm only in first year and i estimate i'll be roughly 80k in debt by the end of it all.

im still on the medical road having previously given up a well paid 9-5ish profession. But ive also come to terms with paying back loans for 10 years+ and not owning a house until my 40s. Would i change it? no, but i think everyone should be aware of what they are in for, as the new consultant salaries of 106k a year after 12+ years training dosent bode well for paying money back,

Despite all this i still love the lifelong learning and couldnt have imagined being stuck in my old deskjob for the rest of my days:D

diverboy83

The size of the loan is a huge issue which ought to be considered fully; it is not an insignificant undertaking. However, from my own perspective, I am not going into medicine for the money and, given what I am giving up, that would be a very foolish and naive reason in any event.