All right let’s assume that I get into a medical school with the US. What little money I have is in Canadian. When US tourists come to Canada I often hear the term “play money” when referring to our currency. It sounds as though I am in for a nasty time if I go to a US school. However I have heard that you go into debt for the first 4 years and then pay it off over the next 3-4 years of residency and then your break even by the time you graduate. So that leaves private practice as a scary proposition since that would involve another several years of debt. Since I am 30 now this all seems very stressful!!
Can you guys verify if I am right on my interpretation? Are there any Canadians that are in med school in the US right now that can respond???
I think the term “play money” has more to do with the design/colors of the money than any reference to exchange rates. Our currency is small, green, and relatively uniform. But for games (like monopoly) the money is colored – so when many Americans see foreign currency for the first time, it looks like play money to them. [excuse the over explaining, it is one of my faults]
as far as loans and money goes - I’m not sure I understand your timeline as presented in your post.
you wrote:
| QUOTE |
| However I have heard that you go into debt for the first 4 years and then pay it off over the next 3-4 years of residency and then your break even by the time you graduate. So that leaves private practice as a scary proposition since that would involve another several years of debt. |
One takes out loans to pay for school - so 4 years of increasing debt until you graduate from school.
Residency - you are paid, but it is small compared to living expenses and debt reduction - some loan pmts might be deferred until after residency. Most people will not completely pay off loans during a residency, unless their debt load was very small.
So, you still have large loan balances once you begin in private practice after residency, but your salary is increased as well - but you could spend many years paying it all off (I don’t know what the loan repayment periods are for the federal programs).
It almost seems like from your post that you see part of this as a residency OR private practice - in the US, the norm is residency for ALL and private practice afterwards. Maybe Canada is different.
Yes, I realize that coloured money is a new thing but the joke is also often related to the exchange rate. The plan would be to begin paying back all interest bearing loans as soon as possible. Even with the small salary that a residency supplies you can start making payments. The huge difference being tuition amounts in the US versus Canada. It would be conceivable to have debt paid off before private practice (and then to go back in due to the costs of opening a business) when in Canada.
In the US, this sounds like an impossibility, but the salaries are much higher and taxes are less so it would all work out in the end if staying there. The scenario I am thinking of is going back to Canada after incurring debt within the US. Scary indeed… I've already gone through the stress and pressure of paying off massive debt and do not look forward to this process again. Perhaps the ultimate decision is to plan on staying after graduating or to come back home.