Federal Loan interest rates are 8%+, many Medical schools charge 60-100k per year, and there’s this toxic culture of you need to accept the offer of any medical school that grants you admission regardless of financial burden
But...Most medical schools are closer to 40k a year. Plus as long as you work at a not-for-profit company (like virtually all residencies) your entire federal loans are forgiven after ten years of minimum payments. So still sucky but not as bad as lots of people make it seem. After residency you can continue working at a teaching hospital to complete loan payments at a minimum or go into private practice where you can easily pay off the remainder in a couple of years.
I’ve been in private practice since 1992-your post is spot on re: reimbursements vs cost of running a private practice . I’m hanging on with my fingertips …everyday I see new patients who are grateful to have a doctor to help them , IN PERSON ….like the old days !
They really need to pass bill in the senate that pauses interest accrual while in residency. That would help A LOT of residents and people who plan on going to med school. I wish US (and Canadian) med schools should have a limit on how much tuition they can charge instate and US residents like in the UK. Til then, I’m trying my hardest to get a full ride or federal scholarship.
So many young students decide they want to go into medicine before fully understanding what they are commuting to. We want them to have all of the information before making such a huge time and financial commitment. If becoming a doctor isn't the ideal path, we encourage students to consider one of the many, many other medical careers available.
@@MedSchoolInsiders as a first year medical student myself, I completely agree, it’s just my opinion that there so much discourage I see in here, or I should say there is barely Any motivation here .
@@MedSchoolInsiders just to be clear I don’t mean it’s a bad channel, in fact it’s the complete opposite, you helped me reached med school and thank you so much for that.
Pre-meds are already motivated enough. The danger is they do not see the downsides of it all. Doctors have some of the highest suicide rates for example. is your life and happiness worth playing golf with other entitled assholes at the country club? How about realizing at 40 that you are a total chump and a computer programmer makes more than you and still has time to play WoW? You can't eat or pay rent with praise from your aged tiger mom.
Extremely important question and will continue to impact not only Med School grads but the efforts to diversify medical care for the foreseeable future.
Not to mention taxes! 300,000 is not 300,000 after taxes it’s more like 225,000 or less!! Then student loan repayment and mal practice insurance. About or just under 200,000. Still nice, still livable but not at the level people are thinking. Also never get a 30 year mortgage! You literally pay twice as much!
If you’re called to be a doctor and it’s your purpose, then it’s worth it. But if you’re only going into the profession for the salary or prestige then it’s going to be a tough road ahead.
@@dominick6131I think given what they do and the perks of it physicians are pretty well compensated from both a prestige and monetary standpoint. Let us start with teachers or a profession that is actually undervalued.
@@philosophia4562 how is that so? How do you know that? Look up the suicide rate amongst physicians. How does prestige pay for anything? A physician gives up a decade (minimum) of their life, meaning you watch as your family and friends proceed with life as you are in stasis, miss important time that you will never get back. Then you take on the most debt of any other profession. Only after do you start making any money (while you shoulder the fear of legal repercussions that could financially ruin you) , but you then have to spend almost another decade to get out of debt.
So many providers either quit or retired early because of the stress and burnout during Covid. We are already dealing with a shortage of medical professionals, and the decrease in take-home pay when inflation is accounted for, the costs to start your own practice, and the huge amounts of debt just to become a doctor make this whole shituation much worse. I just…don’t know what’s going to change. Inflation seems to be a pretty big culprit here, but I seriously doubt that the politicians who get into positions of power on the backs of lobbyists who are benefitting from inflation (with corporate profits reaching all time highs recently) are going to do anything to help. It is just a very scary situation, especially as it pertains to our HEALTH. I’m sure the impacts of inflation will level out eventually given all the striking we see, and people understanding the worth of their work as a result of Covid, but I can’t help but be nervous. We all ought to come together and demand some very serious changes as opposed to fighting one another and choosing sides. We are all on the same side here!!!
Don't forget about the 80+ hour work week. CEOs brag about working 80 hour weeks as if it is the end of the world and they end up making millions. 80 hour work weeks is the minimum expected of doctors and they end up making pennies
Yeah they loosened medical school requirements and opened up more spots but not more residency positions. That combined with the flood of FMGs and a lot more people than you think end up unmatched and $300k in debt with no way to pay it back. Medicine is no longer the slam dunk it used to be. If someone who didn't pay anything for med school is complaining you should probably think long and hard about enrolling. Also most medical students gun for the highest paid specialty. Will you be able to live with yourself "just" doing primary care if your lifestyle and ego dreamed of Ortho or derm or urology?
Great Video! I appreciate that you are highlighting the financial side of being a physician because there are so many myths about physician compensation.
I can tell you from personal experience that if you have a physical disability or mental health issues, becoming a physician is far from a sure thing. You’re better off going into another field.
Basically just because you can afford something doesn’t make it a good idea and you should always put your money towards the future instead of buying too many unnecessary items
I graduated debt free with an RN degree. Just go to a community college first get FAFSA, grants, scholarships. Then pay for your own BSN later RN-BSN was just $9000 at UIC in Chicago. Live way below your means and it's manageable. I paid it all myself none of my parents helped me and I came from the Phil.
You nailed it... Example. I finished high school with top grades and went to college, med school, and residency. My brother graduated from high school 3 years later , barely literate, and went to work in a union factory. I was a chief resident before my salary equalled his STARTING salary. OK, 4 years later (after 3 years of fellowship) I started making what was likely more than he'd make in any given year in his lifetime, but it took me an additional 15 years of training to get there. I fully agree that the only way to make the loan payoff work is to continue to live like a student and put as much as you can toward those loans as soon as possible. Alternatively, you can go to school on the military or on a Health Professions "scholarship," and put in years post residency paying off the "loans" that you didn't need to take out.
You are exactly right. On entering college, we were offered optional, free testing. I was told, among other things, that my addiction potential approached zero but the bad news was that I had very low monetary acumen. Yikes! So I added finance and economics classes to the schedule. I graduated from an excellent med. school debt free. My outpatient schedule was almost full before I was even able to rent an office! I am frugal and very hard working by nature and thus enjoyed a highly successful practice which I sold while it was still valuable. I often advise people just starting to read "A Random Walk Down Wall St." and almost anything by John Bogle and Charles Ellis. Never hire a broker or financial advisor. Invest in great companies by indexing broadly, cheaply (e.g. VOO), reinvest dividends when paid and NEVER SELL. Buy a house, perhaps office real estate, etc. Would I do it all again? Med. School...yes. It was a great experience. Practice?...probably when I did it. Now? No.
Also ego and entitlement. Like pro athletes a lot of doctors are super competitive and want to outdo their peers in terms of houses, cars, spouses, vacations, etc.
You will be fine. Just live like you're broke the first few years of residency and pay off your debt. Then you can splurge and upgrade your lifestyle without that debt hanging over you.
I listened to similar videos when I was younger and didn’t go this route. I am now 30 and starting Premed. Do it!! If this is your passion, ask yourself: If you DONT go this route, what alternative will you be doing for the next 8 years, and will you be happy? If so, do that. If not, go to school and become a doctor. I know many doctors and not a single one is struggling financially. You will have enough to live comfortably, and trust me when I say that NOTHING is worth giving up your passion for. Would you rather live comfortably doing a job you love, or have the nicest car, nicest everything but work too many hours at a job that stresses you to the core while ALL THE WHILE thinking about “what if I became a doctor”?
@@TurdFurgeson571 from my experience, the general population doesn’t even know that DOs exist. It would be nice if Kevin could use his platform and include DOs in his videos when he refers to MDs since they are equivalent.
tbh now with SAVE program and PSLF you can just get all your loans forgiven after making minimum payments during residency so it's not even expensive anymore. By the time you are attending the rest are forgiven so realistically you just pay like 100 a month during training and finish debt free
Hahaha, so many lies. Lottery winners get poor too but doctors live rich life which is why everyone wants to be in medical school. The doctors can easily pay off debts which is why medical school can charge that much in tuition. Otherwise banks would have stopped offering lower interest loans (and pre approved mortgages) to medical students long ago!!!
Nearly all of the inflation was due to terrible fiscal policies from 2000-2020, like keeping interest rates at 0 for an entire decade. Stop thinking memes actually give you information.
What are your favorite financial resources? Share them with our community in the comments!
Federal Loan interest rates are 8%+, many Medical schools charge 60-100k per year, and there’s this toxic culture of you need to accept the offer of any medical school that grants you admission regardless of financial burden
❗️❗️❗️💯
I'm on the RN route but always consider this when I explore being an MD
But...Most medical schools are closer to 40k a year. Plus as long as you work at a not-for-profit company (like virtually all residencies) your entire federal loans are forgiven after ten years of minimum payments. So still sucky but not as bad as lots of people make it seem. After residency you can continue working at a teaching hospital to complete loan payments at a minimum or go into private practice where you can easily pay off the remainder in a couple of years.
I’ve been in private practice since 1992-your post is spot on re: reimbursements vs cost of running a private practice .
I’m hanging on with my fingertips …everyday I see new patients who are grateful to have a doctor to help them , IN PERSON ….like the old days !
Wow! You're already a multimillionaire?
I work in estate banking. Main dr's im seeing with money right now are the guys selling test shots to middle aged men.
They really need to pass bill in the senate that pauses interest accrual while in residency. That would help A LOT of residents and people who plan on going to med school. I wish US (and Canadian) med schools should have a limit on how much tuition they can charge instate and US residents like in the UK. Til then, I’m trying my hardest to get a full ride or federal scholarship.
one thing I noticed about medicine in the US and this channel, there so much discourage and nagativity rather than actual motivation
So many young students decide they want to go into medicine before fully understanding what they are commuting to. We want them to have all of the information before making such a huge time and financial commitment. If becoming a doctor isn't the ideal path, we encourage students to consider one of the many, many other medical careers available.
@@MedSchoolInsiders as a first year medical student myself, I completely agree, it’s just my opinion that there so much discourage I see in here, or I should say there is barely Any motivation here .
@@MedSchoolInsiders just to be clear I don’t mean it’s a bad channel, in fact it’s the complete opposite, you helped me reached med school and thank you so much for that.
Thanks! We'll take that into consideration for a future video. Best of luck in med school and beyond!
Pre-meds are already motivated enough. The danger is they do not see the downsides of it all. Doctors have some of the highest suicide rates for example. is your life and happiness worth playing golf with other entitled assholes at the country club? How about realizing at 40 that you are a total chump and a computer programmer makes more than you and still has time to play WoW? You can't eat or pay rent with praise from your aged tiger mom.
Extremely important question and will continue to impact not only Med School grads but the efforts to diversify medical care for the foreseeable future.
Not to mention taxes! 300,000 is not 300,000 after taxes it’s more like 225,000 or less!! Then student loan repayment and mal practice insurance. About or just under 200,000. Still nice, still livable but not at the level people are thinking. Also never get a 30 year mortgage! You literally pay twice as much!
it really depends on the rate.
9:13 had to have been an ode to Alex Hormozi lol...well played
If you’re called to be a doctor and it’s your purpose, then it’s worth it. But if you’re only going into the profession for the salary or prestige then it’s going to be a tough road ahead.
The two are not mutually exclusive. How about we reward people who pursue their purpose instead of taking advantage of it.
True too!
Any illiterate RUclipsr earns much more money than a doctor 🙃
@@dominick6131I think given what they do and the perks of it physicians are pretty well compensated from both a prestige and monetary standpoint. Let us start with teachers or a profession that is actually undervalued.
@@philosophia4562 how is that so? How do you know that? Look up the suicide rate amongst physicians. How does prestige pay for anything?
A physician gives up a decade (minimum) of their life, meaning you watch as your family and friends proceed with life as you are in stasis, miss important time that you will never get back. Then you take on the most debt of any other profession. Only after do you start making any money (while you shoulder the fear of legal repercussions that could financially ruin you) , but you then have to spend almost another decade to get out of debt.
So many providers either quit or retired early because of the stress and burnout during Covid. We are already dealing with a shortage of medical professionals, and the decrease in take-home pay when inflation is accounted for, the costs to start your own practice, and the huge amounts of debt just to become a doctor make this whole shituation much worse. I just…don’t know what’s going to change.
Inflation seems to be a pretty big culprit here, but I seriously doubt that the politicians who get into positions of power on the backs of lobbyists who are benefitting from inflation (with corporate profits reaching all time highs recently) are going to do anything to help. It is just a very scary situation, especially as it pertains to our HEALTH. I’m sure the impacts of inflation will level out eventually given all the striking we see, and people understanding the worth of their work as a result of Covid, but I can’t help but be nervous. We all ought to come together and demand some very serious changes as opposed to fighting one another and choosing sides. We are all on the same side here!!!
The fact that to learn how to save lives you have to pay while to take one you can do it for free!!!
This world is freaking unfair!
Seems like I'm a Dr already. Just need to study the science
Don't forget about the 80+ hour work week.
CEOs brag about working 80 hour weeks as if it is the end of the world and they end up making millions.
80 hour work weeks is the minimum expected of doctors and they end up making pennies
CEO’s never really stop working. 80 hours per week is when they are on vacation.
@@edhcb9359lol
@@edhcb9359that's just indoctrinated bullshit
Risk of failure is also very real.
Yeah they loosened medical school requirements and opened up more spots but not more residency positions. That combined with the flood of FMGs and a lot more people than you think end up unmatched and $300k in debt with no way to pay it back. Medicine is no longer the slam dunk it used to be. If someone who didn't pay anything for med school is complaining you should probably think long and hard about enrolling. Also most medical students gun for the highest paid specialty. Will you be able to live with yourself "just" doing primary care if your lifestyle and ego dreamed of Ortho or derm or urology?
Great Video! I appreciate that you are highlighting the financial side of being a physician because there are so many myths about physician compensation.
I can tell you from personal experience that if you have a physical disability or mental health issues, becoming a physician is far from a sure thing. You’re better off going into another field.
Basically just because you can afford something doesn’t make it a good idea and you should always put your money towards the future instead of buying too many unnecessary items
Underrated field
How do you make these incredible animations?
Now imagine paying 75k for a basic BSN degree. Is that worth it?
I graduated debt free with an RN degree. Just go to a community college first get FAFSA, grants, scholarships. Then pay for your own BSN later RN-BSN was just $9000 at UIC in Chicago. Live way below your means and it's manageable. I paid it all myself none of my parents helped me and I came from the Phil.
You nailed it... Example. I finished high school with top grades and went to college, med school, and residency. My brother graduated from high school 3 years later , barely literate, and went to work in a union factory. I was a chief resident before my salary equalled his STARTING salary. OK, 4 years later (after 3 years of fellowship) I started making what was likely more than he'd make in any given year in his lifetime, but it took me an additional 15 years of training to get there.
I fully agree that the only way to make the loan payoff work is to continue to live like a student and put as much as you can toward those loans as soon as possible. Alternatively, you can go to school on the military or on a Health Professions "scholarship," and put in years post residency paying off the "loans" that you didn't need to take out.
You are exactly right. On entering college, we were offered optional, free testing. I was told, among other things, that my addiction potential approached zero but the bad news was that I had very low monetary acumen. Yikes! So I added finance and economics classes to the schedule. I graduated from an excellent med. school debt free. My outpatient schedule was almost full before I was even able to rent an office! I am frugal and very hard working by nature and thus enjoyed a highly successful practice which I sold while it was still valuable. I often advise people just starting to read "A Random Walk Down Wall St." and almost anything by John Bogle and Charles Ellis. Never hire a broker or financial advisor.
Invest in great companies by indexing broadly, cheaply (e.g. VOO), reinvest dividends when paid and NEVER SELL. Buy a house, perhaps office real estate, etc.
Would I do it all again? Med. School...yes. It was a great experience. Practice?...probably when I did it. Now? No.
After Covid the government should’ve eradicated debt for all healthcare workers.
Also ego and entitlement. Like pro athletes a lot of doctors are super competitive and want to outdo their peers in terms of houses, cars, spouses, vacations, etc.
Is it me o they show Alex Hormozi when mentioning Entrepeneurship? Hahaha
UGHHH
what have i gotten myself into
You will be fine. Just live like you're broke the first few years of residency and pay off your debt. Then you can splurge and upgrade your lifestyle without that debt hanging over you.
I listened to similar videos when I was younger and didn’t go this route. I am now 30 and starting Premed. Do it!! If this is your passion, ask yourself: If you DONT go this route, what alternative will you be doing for the next 8 years, and will you be happy? If so, do that. If not, go to school and become a doctor. I know many doctors and not a single one is struggling financially. You will have enough to live comfortably, and trust me when I say that NOTHING is worth giving up your passion for. Would you rather live comfortably doing a job you love, or have the nicest car, nicest everything but work too many hours at a job that stresses you to the core while ALL THE WHILE thinking about “what if I became a doctor”?
I work as a nurse
I’m gonna be that guy, but why do you not mention DO’s as well when you mention solely MD’s?
Why do you need him to mention DOs?
@@TurdFurgeson571 from my experience, the general population doesn’t even know that DOs exist. It would be nice if Kevin could use his platform and include DOs in his videos when he refers to MDs since they are equivalent.
Unless they get their license revoked, doctors have guaranteed job security all their life. Unlike most other jobs.
tbh now with SAVE program and PSLF you can just get all your loans forgiven after making minimum payments during residency so it's not even expensive anymore. By the time you are attending the rest are forgiven so realistically you just pay like 100 a month during training and finish debt free
If I’m majoring in bio rn should I try minoring in finance/economics?
if you try to do too many things you are not going to be good at anything. a bio degree is pretty much worthless btw.
I don't really want to hear about opportunity cost because doctors make a lot of money once they are done with residency.
Would love to see a video on “So you want to be a CRNA.” CAA and other mid level positions would be great too.
Can you be a surgery if you have bad memory
If you work on your memory yed
@@MoonieToonie yes sir
The debt will be worth it🫶🏾
Hahaha, so many lies. Lottery winners get poor too but doctors live rich life which is why everyone wants to be in medical school. The doctors can easily pay off debts which is why medical school can charge that much in tuition. Otherwise banks would have stopped offering lower interest loans (and pre approved mortgages) to medical students long ago!!!
nobody wants to be in medical school to make a doctor's salary, why are you even implying this?
@@grossnegligence022 what are you talking about? just look at the medical school acceptance rate. everyone wants to be a doctor and live a luxury life
Oof that Bidenomics was definitely felt
Nearly all of the inflation was due to terrible fiscal policies from 2000-2020, like keeping interest rates at 0 for an entire decade. Stop thinking memes actually give you information.
Inflation is a worldwide problem. Every country. Nothing to do with Biden.