<p>"Mini, your politics are going to change."</p>
<p>Yeah, and by the time the Ivy-trained physician catches up (by my calculations), my wife will be happily retired. ;)</p>
<p>Around here, nurses are doing really well and approaching or exceeding $100k with several years experience. Salaried physicians are doing much better and those with enough sense to run their own practices are making....lots.</p>
<p>edad, and people who don't pay up for college don't get promotions, better jobs, more interesting jobs as they get experience?</p>
<p>Of course, but on average the salaries at all levels will be less.</p>
<p>Many, many 2 year programs (and some 1 year programs) can generate great earnings. Those that teach a specific needed skill lead graduates to relatively high paying positions. Certainly more than the ivy and top 25 college graduates in my neighborhood are earning in their entry level jobs.</p>
<p>edad, Really, Where did you get that information? I'd like to read it.</p>
<p>"Around here, nurses are doing really well and approaching or exceeding $100k with several years experience. Salaried physicians are doing much better and those with enough sense to run their own practices are making....lots."</p>
<p>Yup. But add it up, if you like. Wife and Ivy-to-be-physician start at same time. </p>
<p>Wife's education costs $6k. During that time, she holds down an LPN job, and nets $50k. So during education, she's up $44k; bank it (actually, stockmarket it) at 7% aftertax return. First full-time job, oh, maybe $55k? Hits $75k in third year (the year the Ivy-physician-to-be starts med school. Then goes up 3% a year for the next 10. No loans to pay back.</p>
<p>Ivy-to-be-physician. Education cost - $200k (which could have been invested at 7% after tax.) Three years of med school, borrowed - $225k. Then internship, residency - $40k-$75k? but has to start paying back the loans, and the 7% on the $200k is down the tubes. 10 years out of med school (or 14 years after starting the race), the community-college nurse is still WAY ahead, if she had had the $200k to bank (which of course she didn't, but just for sake of argument), and still ahead without the extra $200k.</p>
<p>Sorry, I lost hard drive and many links. You can readily check for census data on the effect of a college education on salaries.</p>
<p>"Mini, your politics are going to change."</p>
<p>Fathers Day present for Mini</p>
<p>Did you know John Moe is leaving Kuow?</p>
<p>Yeah Mini, but after that 23rd year. (I'm just making it up).</p>
<p>I might retire very soon if I could get a 7% after tax return. Where could I get that on a consistent basis?</p>
<p>"Sorry, I lost hard drive and many links. You can readily check for census data on the effect of a college education on salaries."</p>
<p>I'm talking about certain colleges compared to others.</p>
<p>Sorry about the hard drive. That sucks.</p>
<p>frankie, that is a nice mathematical exercise but it has little relationship with reality. Life is just too random. Yes, student A may receive a higher paying job directly out of college but career success in the following years will have little to do with the college name on the sheepskin.</p>
<p>To illustrate how random life really is, for us who are married think about the seemingly insignificant choices which brought you together for the first time. Mine was a late nite decision to accompany a friend for an interview at RPI even though I had absolutely no rational reason to go and had better things to do that Monday morning. </p>
<p>There are many good reasons to spend in excess of $200k for an undergraduate degree. But the grarantee that you will have a financially more successful career is not one of them.</p>
<p>
[quote]
First full-time job, oh, maybe $55k? Hits $75k in third year
[/quote]
Washington must have the highest paid hospice nurses in the nation.</p>
<p>Maybe hospice is different, but some of the nurses who graduate from the college i work at start at 75,000 in hospitals in NYC.</p>
<p>"Washington must have the highest paid hospice nurses in the nation."</p>
<p>I don't think so, just lots and lots of Overtime. :)</p>
<p>"Washington must have the highest paid hospice nurses in the nation"</p>
<p>Nope. Actually on the low side. And one of the nice things about it is that there is NO overtime, though there are days (or nights) that nurses have to be on call.</p>
<p>"Yeah Mini, but after that 23rd year. (I'm just making it up).</p>
<p>I might retire very soon if I could get a 7% after tax return. Where could I get that on a consistent basis?"</p>
<p>Over 30 years, stock market return with dividends reinvested is almost 11%. But after tax is 7+%. But you have to sock the money away, which the Ivy-to-be-physician could have done with the initial $200k, avoided the $225+ in loan repayments and interest, and come out WAY ahead (probably around 21 years by my reckoning, depending on practice.)</p>
<p>Anyhow, my commmunity-college trained wife would be long retired before the Ivy physican catches up.</p>
<p>From what I can tell, most of the med schools take care of their students and seem to help them out financially.</p>
<p>"College A: Total 4 year borrowing costs=200K Total costs + simple interest =210K
College B: Total 4 year borrowing costs=100K Total costs + simple Interest =105K
Assume interest = 5% Payback period 10yrs after graduation."</p>
<p>A 5% payback is no longer possible under current admin.</p>
<p>"The difference between Cost from College A to College B= 210-105=105K"</p>
<p>"Question is how many years would it take to pay back difference in education of College A to College B if the difference in job income is 10k between College A to College B?"</p>
<p>You forgot to add in the side account difference of $105k invested at say 7% return through an investment mix. </p>
<p>"Assume College A starting salary 50K
Assume College B starting salary 40k
Assume both salaries increasing 3.5% per year compounded.</p>
<p>Year 1
CollegeA=50,000
CollegeB=40,000</p>
<p>Year 2
A=51,750
B=41,400</p>
<p>Yr3
A=53,561
B=42,849</p>
<p>Yr4
A=55,436
B=44,349</p>
<p>Yr5
A=57,376
B=45,901</p>
<p>Yr6
A=59,384
B=47,507</p>
<p>Yr7
A=61,463
B=49,170</p>
<p>Yr8
A=63,614
B=50,891</p>
<p>Yr9
A=65,840
B=52,672</p>
<p>Yr10
A=68,145
B=54,516</p>
<p>10 Yr Total Income
A=586,570
B=469,256</p>
<p>Difference between College A vs College B income after 10 yrs
117,314"</p>
<p>Less side investment of 105K </p>
<p>Which at 7% taxable has a return of 171,687 after 10 years.
at 8% 183,825, at 9% 196,730. assuming 28% tbracket.</p>
<p>tax exempt </p>
<p>at 7% 206,551
at 8% 226,687
at 9% 248,573</p>
<p>"After 10 years the income differential of 117k pays for the 105k initial differential in college costs!"</p>
<p>Or considering investing that money at the same time?????</p>
<p>Now your payback is much, much longer, no? </p>
<p>because if you invested that difference even in a taxable investment at 7%, net 5% after tax. You'd have your salary plus $171,000 to ease the sting of college B. </p>
<p>I'm not questioning your numbers, but equalize the investment. It is a choice of doing A over B, it does not mean the extra savings have to sit idle, true?</p>
<p>"From what I can tell, most of the med schools take care of their students and seem to help them out financially."</p>
<p>They do, usually in low-interest loans.</p>
<p>and working in the ER at $1500/weekend</p>