interesting facts reguarding loan default

[hematosis]

---

Members do not see this ad.

http://defaulteddocs.dhhs.gov/discipline.asp

looks like we are the 4th highest on the list (out of 10). Chiros lead the way. What i find interesting is that it appears that we are the smallest profession on the list yet we are the 4th highest defaulters. But to put things into perspective, 70/14,000 dont look too bad (~0.5%)

I also found that 30/69 are from NYCPM.

What are your thoughts on all of this. Its interesting that most of these students that defaulted are not recent graduates but appear to have graduated in the 80's and such. Anyone know why this is? are we doing better as a profession?

 

[dyk343]

http://defaulteddocs.dhhs.gov/discipline.asp

looks like we are the 4th highest on the list (out of 10). Chiros lead the way. What i find interesting is that it appears that we are the smallest profession on the list yet we are the 4th highest defaulters. But to put things into perspective, 70/14,000 dont look too bad (~0.5%)

I also found that 30/69 are from NYCPM.

What are your thoughts on all of this. Its interesting that most of these students that defaulted are not recent graduates but appear to have graduated in the 80's and such. Anyone know why this is? are we doing better as a profession?

New yorks market can be pretty harsh for an entering pod, or at least thats my understanding of the market for podiatrists in that state (city).

CSPM seems to have a good chunk of that number too... Wonder why. For along time they were the only school on the west coast. One would think that the geographical market would be in favor of CSPM alumni resulting in less defaults for CSPM grads.

one guy (school unknown) acquired 800K in debt... wow... must have borrowed more to open up a practice and failed?

 

[hematosis]

New yorks market can be pretty harsh for an entering pod, or at least thats my understanding of the market for podiatrists in that state (city).

CSPM seems to have a good chunk of that number too... Wonder why. For along time they were the only school on the west coast. One would think that the geographical market would be in favor of CSPM alumni resulting in less defaults for CSPM grads.

one guy (school unknown) acquired 800K in debt... wow... must have borrowed more to open up a practice and failed?

Yea i was also wondering about that too. I came to the conclusion that the person borrowed the maximum amount and probably stopped paying his loans for so long that the interest started to accumulate and climb to 800k. I'm not sure if you can borrow federal government loans for the purpose of opening a practice? who knows...

 

[PADPM]

Now maybe you can appreciate docs like me and Podfather a little more! Graduating in the 80's wasn't that easy since there were only enough residency positions for approximately 45-50% of the class. Additionally, hospitals weren't exactly "podiatry friendly" and even those of us that did have the training often found it difficult to find a hospital that would allow us to perform the procedures we were trained to perform.

We ran into quite a bit of resistance and it often took years (at least for me) to "prove myself" and earn privileges to perform each individual procedure. Now any qualified podiatrist with the proven training can simply walk in and request those privileges at the same hospitals, and be granted those privileges with proof of training.

Therefore, many docs had a hard time repaying loans since they may have had a hard time making a decent living running into similar resistance.

I am by NO MEANS advocating defaulting on a loan, but this may help explain why this happened a little more in the 80's than the present.

 

[Podfather]

Now maybe you can appreciate docs like me and Podfather a little more! Graduating in the 80's wasn't that easy since there were only enough residency positions for approximately 45-50% of the class. Additionally, hospitals weren't exactly "podiatry friendly" and even those of us that did have the training often found it difficult to find a hospital that would allow us to perform the procedures we were trained to perform.

We ran into quite a bit of resistance and it often took years (at least for me) to "prove myself" and earn privileges to perform each individual procedure. Now any qualified podiatrist with the proven training can simply walk in and request those privileges at the same hospitals, and be granted those privileges with proof of training.

Therefore, many docs had a hard time repaying loans since they may have had a hard time making a decent living running into similar resistance.

I am by NO MEANS advocating defaulting on a loan, but this may help explain why this happened a little more in the 80's than the present.

Also when you graduated or if you landed a residency when you finished it there were few job opportunities. You typically went to a bank borrowed even more money to either open a practice or buy an existing one. You jumped feet first into running a business. Some were naturals but most learned by trial and error.

Don't forget the economy in the 80s. My HEAL loans were at 16-18% accruing immediately. My business loan to start a practice was at 12%. This made paying your interest and principal a daunting task. I too do not support defaulters but do see how someone could have gotten into a bind in that era.

I was fortunate to land a 2 year residency in the day. I had training that many others were not fortunate to have and was able to get referrals for surgical patients that in those early days reimbursed fairly well. Those without training were doing mostly routine care and trying to pay rent, employees, fixed costs of business, student and business loans.

Ortho groups, multispecialty groups didn't even talk to let alone hire DPMs. The typical DPM practice was primarily RFC so hiring associate meant a salary of 25-60K. That is why I opened a practice and was lucky to make it happen.

 

[347932]

Thank goodness for me my student loans are behind me. I really feel for those who struggle with this. Who would imagine that after so much hard work, you couldn't pay back your loans? Its truly a tragic situation.