The story of Dr. Michelle Bisutti is one that all healthcare students should be required to read. Like a disclaimer, we should make it mandatory for all students to read before signing any educational loan. Her story can be read here.
Condensed version: Dr. Bisutti is a Family practitioner that graduated with a debt load of $250,000 in 2003 and has since ballooned to $555,000 as a result of interest. The article notes that at that time (2003) those debt loads were unusual, however today that is not the case. $250,000 for Medical Students is the norm. Don’t believe me? Here’s a quick table by the AAMC for U.S. Medical School Tuition and Student Fees for 2012-2013 (MS 1)[1]
Tutiion 2012-2013
Dr. Bisutti knew that her loans were extensive but rationalized that she would be earning a lot to justify the debt load levels. Sound familiar?
Dr. Bisutti will be 70 years old when she pays off her federal loans. Her damaged credit prevents her from purchasing a home or new car. It has also affected her personal life putting marriage off between her and her boyfriend because of debt.
BOTTOM LINE: DON’T BE LIKE DR. BISUTTI. Educate yourself!
An old video from 2009 from Suze Orman. Love her or hate her, she nailed this pending crisis and this was back in 2009:
http://www.youtube.com/watch?v=pj5CcYSAjq8
BUT, ONCE I’M EARNING I WILL BE MAKING PLENTY OF MONEY
Now this maybe true, but you need to learn personal finance. Case in point, a buddy of mine, an Administrator of Orthopaedics, the first week on the job he botched Payroll. The Staff and Doctors would miss their first paycheck by two days after the beginning of the week. On day two he received calls not from the Staff, but rather from the significant others of the doctors yelling on the phone. One in particular asked “How are we supposed to make our boat payment?” After hearing this story, it then dawned on me, just because they were physicians (hell, orthopods at that) did not mean they knew how to be financially fit. These physicians were living paycheck to paycheck! But they’re Doctors, right? Making $200,000+….how can that be?
THE WORLD IS NOT FAIR. LET’S LEVEL THE PLAYING FIELD
Look at your peers outside of healthcare. Most of them are long done with their education. Some have started their careers and are well on their way to financial freedom by paying off their student loans (if they even have them!). As a student of healthcare you have an additional burden of debt, a shaky horizon with the frontier of medicine changing drastically, most of your youth consumed towards education to this craft, it is only reasonable that you are compensated fairly for this. However, in order to become wealthy and set yourself up for financial successful, it requires time on your part and education to learn the building blocks of personal finance.