UofT Dentistry Debt

[WByers]

Hey Everyone,

I recently got into the University of Toronto DDS program and I was hoping to get any advice on student loans and how hard it is to pay them off as a working dentist. Thing is I also got accepted into the program in my province which will be almost 100k cheaper.

I expect to have around 300k from living costs and tuition but how would this be in terms of paying off once I'm a working dentist. I really want to move to Toronto for the experience but not at the cost of struggling to pay off the debt down the line.

Any advice would be appreciated!

Thanks!

[koft]

Aside from catastrophic collapse of the economy.  

your 300k in debt for the entire 4 years is it a worth case scenario projection, best case or somewhere in the middle of the road.

For all financial planning and estimate, I recommend looking at worst case scenario, and live liked you are trying to keep debt to a minimal.   Because things can sidetrack, unplanned expenses, etc.

The kicker would be interest rate would be going up to BOC of 3-4% by 2023. Prime rate (which bank refer to is usually 2 bases point above BOC rate), so you will be looking at 5 - 6% interest on any bank loan.  Government student load is P+2.5% (i believe)

Once you grad from school find an associateship that works for you. and live within your means, you should be able to pay off the loan in several years

[iwanttogotodentalschoolpls]

On 6/3/2022 at 9:31 PM, koft said:

Aside from catastrophic collapse of the economy.  

your 300k in debt for the entire 4 years is it a worth case scenario projection, best case or somewhere in the middle of the road.

For all financial planning and estimate, I recommend looking at worst case scenario, and live liked you are trying to keep debt to a minimal.   Because things can sidetrack, unplanned expenses, etc.

The kicker would be interest rate would be going up to BOC of 3-4% by 2023. Prime rate (which bank refer to is usually 2 bases point above BOC rate), so you will be looking at 5 - 6% interest on any bank loan.  Government student load is P+2.5% (i believe)

Once you grad from school find an associateship that works for you. and live within your means, you should be able to pay off the loan in several years

.

[dent1sst]

.

[dentistrydmd]

Go to the most affordable school. If you work outside a major city that may be saturated with dentists like Toronto or Vancouver you should be fine paying debt down. Obviously the best thing to do is live within your means.

[koft]

On 6/4/2022 at 1:41 AM, iwanttogotodentalschoolpls said:

Doesn't RBC's student LOC say it's prime - 0.25, not prime + 2?

https://www.rbcroyalbank.com/healthcare/en/royal-credit-line/index.html?utm_dc=ks_SEG_1635803996_137297113671_587439166006_kwd-323940303720_c&gclid=Cj0KCQjw4uaUBhC8ARIsANUuDjVQ66-9Ib-pEdTKLYjeAHj7A2-dAwrQ_06DYJ6097aTxMqbiTXw9xMaAmjkEALw_wcB

I guess you didn't understand Prime rate is BOC rate + ~2%, and you misread my statement. Not P+2%, BoC + ~2% ~= Prime for major bank

BOC rate right now is 1.5% and prime rate at major bank is 3.7%.  Therefore, if BOC raise another 2x 50 bases points by dec.  Your Prime rate would be around 4.7

and more rate hike in the book in 2023.  so prime at 5 - 6% by 2023 is not unrealistic.   BTW, dental school does not teach you how to run a business and economics.

 

 

[koft]

On 6/5/2022 at 4:40 PM, dentistrydmd said:

Go to the most affordable school. If you work outside a major city that may be saturated with dentists like Toronto or Vancouver you should be fine paying debt down. Obviously the best thing to do is live within your means.

100% agree.. That is the most important take home msg..