Debts, Loans and life after dental school

[zenith92]

I know this greatly vary from one dental grad to another but how long does it usually take until one clears all the debt and start making profit, aka make some real earnings, given that one does not get any external help and needs to pay back loans by himself?

 

As far as I know, as days go by, the market is being more and more saturated with dentists, and the future isn't looking too bright for recent dental school graduates.

 

I don't have rich parents who can take care of my debts (though even if i had, i wouldn't expect them to pay my debts) or dentists parents whose practice I can take over.

 

I'm a little concerned that by the time I graduate, I might be having a hard time being hired while I have few hundred thousand dollars to pay : /. I really love dentistry and further down the road, I'd like to open my own clinic. But as of now, the financial barrier seems a bit overwhelming and burdening.

 

After all, although I expected it to be like this, it sure seems like the life of a dentist isn't a cakewalk as some people make it sound.

 

For those of you who are graduating/recently graduated, what are your thoughts?

[Ostracized]

I lived at home, went to UofT for a total cost of $120,000, used some inheritance and savings and had some (~25%) help from my parents. After graduation I stayed at home and put all of my earnings into student debt and paid it off in about 6-8 months - spending almost nothing. But that was well below $100,000 in debt!

 

If you wanted to take the same approach in aggressively paying off BU tuition and living expenses, you'd be living at a welfare level for 5-6 years. For UBC maybe 3-4 years. Obviously more realistically you'll be paying $2-4K/month for the next 20 years or so. If you are expecting a reasonable after-tax income of $6K/month to start, this is really cutting into your income.

 

In terms of job availability - I can't really say. Certainly finding full time associateship in a major city is already very tough and usually low paying. I'm thinking about looking for a new associateship in the near future and I myself am worried about the job market, but at least I am debt free.

 

There will absolutely be more dentists in the market (per capita) in 5 years than there are now. We are very soon going to reach a point where there are more new grads/FTDs than there are associateships. Then what will unemployed dentists do with their debt?

 

I don't like posting negative comments or discouraging people, but I just don't think I can recommend this profession at any higher than $200K in debt. But I've always been very risk-averse financially.

[OMGITWONTFI]

I lived at home, went to UofT for a total cost of $120,000, used some inheritance and savings and had some (~25%) help from my parents. After graduation I stayed at home and put all of my earnings into student debt and paid it off in about 6-8 months - spending almost nothing. But that was well below $100,000 in debt!

 

If you wanted to take the same approach in aggressively paying off BU tuition and living expenses, you'd be living at a welfare level for 5-6 years. For UBC maybe 3-4 years. Obviously more realistically you'll be paying $2-4K/month for the next 20 years or so. If you are expecting a reasonable after-tax income of $6K/month to start, this is really cutting into your income.

 

In terms of job availability - I can't really say. Certainly finding full time associateship in a major city is already very tough and usually low paying. I'm thinking about looking for a new associateship in the near future and I myself am worried about the job market, but at least I am debt free.

 

There will absolutely be more dentists in the market (per capita) in 5 years than there are now. We are very soon going to reach a point where there are more new grads/FTDs than there are associateships. Then what will unemployed dentists do with their debt?

 

I don't like posting negative comments or discouraging people, but I just don't think I can recommend this profession at any higher than $200K in debt. But I've always been very risk-averse financially.

 

How far away do you have from a major city (Toronto) in order to stand a good chance of finding a full time associate job upon graduation? Are we talking Barrie type of far or are we talking Windsor/London type of far? Also, isn't it pretty common for most recent grads to take up multiple associateship positions to fill up their schedules?

[Ostracized]

In Toronto, yes, multiple part time positions are the norm for new grads.

 

I can't say where you'll be able to find a job. There are jobs in Toronto, but the competition will be more fierce and the patient-pool will be smaller. Also it's not just about getting a job, but getting a good job where you are busy and earn well. Worry about the specifics of finding a job towards the end of dental school but be concerned about the general issues now.

[ScotiabankDentalAdvisor]

I look after financing dental students at UWO for Scotiabank. I've done this for about 10 years. I also finance the purchase of dental practices all over Ontario. In my experience it takes the average dental student 7-8 years to pay off their dental school loans if they haven't had any parental help. The average dental grad will purchase their own clinic 2-3 years after graduation. Yes there seems to be a glut of dentists in Ontario at present and this is partly due to the Stock market trouble we had a few years ago. Dentists lost some value in their investments so they feel that they have to work a few more years. Dental practices are still being sold and at record prices. Eventually, those 50 -55 year old dentists are going to want to retire and I predict we are only 3-5 years away from having a wave of dentists selling their practices. Generally banks finance 100% of the purchase price of the dental practice and it's usually at Prime. Did you know that the majority of dental practices get sold before they are even listed with a broker? Here's how you can get some "inside" information on when these practices come up for sale, deal with a banker and an accountant that specialize in banking and accounting for dentists. If you don't have an accountant that specializes in dentists, please contact me and I will make a referral for you. If you have any banking questions at all, please contact me.

 

Best regards,

 

 

Dave McKerlie

Account Advisor Professional

(519)642-0308

dave.mckerlie@scotiabank.com

[dentss]

I look after financing dental students at UWO for Scotiabank. I've done this for about 10 years. I also finance the purchase of dental practices all over Ontario. In my experience it takes the average dental student 7-8 years to pay off their dental school loans if they haven't had any parental help. The average dental grad will purchase their own clinic 2-3 years after graduation. Yes there seems to be a glut of dentists in Ontario at present and this is partly due to the Stock market trouble we had a few years ago. Dentists lost some value in their investments so they feel that they have to work a few more years. Dental practices are still being sold and at record prices. Eventually, those 50 -55 year old dentists are going to want to retire and I predict we are only 3-5 years away from having a wave of dentists selling their practices. Generally banks finance 100% of the purchase price of the dental practice and it's usually at Prime. Did you know that the majority of dental practices get sold before they are even listed with a broker? Here's how you can get some "inside" information on when these practices come up for sale, deal with a banker and an accountant that specialize in banking and accounting for dentists. If you don't have an accountant that specializes in dentists, please contact me and I will make a referral for you. If you have any banking questions at all, please contact me.

 

Best regards,

 

 

Dave McKerlie

Account Advisor Professional

(519)642-0308

dave.mckerlie@scotiabank.com

 

thanks for the insight Dave! just curious how long it generally takes general dentists to payoff the loan to purchase a practice? im guessing thats dependent on a number of factors but say for someone (supporting a family of 3 for e.g.) who is renting as opposed to owning a house vs someone who's also paying towards a house mortgage.