How Much Can I Borrow?

I did some googling, and found that the limit for graduate stafford loans is $20,500/yr. Has anyone had difficulty/success supplementing their cost of living with additional loans? I have the G.I. Bill, which will cover $17,500 of tuition, plus about $5,500/yr in a non-taxable housing allowance. I'm married, with one kid on the way and expect to have another by the time I actually start med school, so obviously quality of life for my family trumps my ambitions. I should have about $100,000 saved by the time I start, will max out the graduate stafford and will be looking to borrow an additional ~$25,000/yr from private lenders. That will put me at about $65,000/yr for cost of living + $17,500 for tuition. Does this sound reasonable to anyone who's been there, done that?

$20,500 is the grad school limit for Staffords, yes, but the med school limit is $40k. I like finaid.org for a comprehensive overview.

Generally in med school you can assume federal loan availability for the full cost of attendance, and you can get more $ for child care.

Best of luck to you.

Originally Posted by DrMidlife

$20,500 is the grad school limit for Staffords, yes, but the med school limit is $40k. I like finaid.org for a comprehensive overview.

Generally in med school you can assume federal loan availability for the full cost of attendance, and you can get more $ for child care.

Best of luck to you.

what do you mean 'assume federal loan availability for the full cost of attendance'... which might be like 70 grand a year...?

what do you mean 'assume federal loan availability for the full cost of attendance'... which might be like 70 grand a year...?

Yup, you can borrow it all but the interest rates are atrocious (currently 6.8%) and interest starts accruing day one.

6.8 is higher than normal, but save "atrocious" for private loan variable rates and such.

I find it amusing that those who aren't borrowing for med school complain the loudest about rates.

I should mention that the difference between cost of attendance and the Stafford limit can be funded by GradPlus loans, which are also federal, but have less favorable loan terms. Good credit and/or a cosigner required. Again: finaid.org is a great info source.

By all means try to get into your state's public school(s) if at all possible.

Originally Posted by DrMidlife

I should mention that the difference between cost of attendance and the Stafford limit can be funded by GradPlus loans, which are also federal, but have less favorable loan terms. Good credit and/or a cosigner required. Again: finaid.org is a great info source.

By all means try to get into your state's public school(s) if at all possible.

"Good credit" meaning what? 700+FICO? 720+?

Originally Posted by MedPR

"Good credit" meaning what? 700+FICO? 720+?

finaid.org! Really!

From http://www.finaid.org/loans/gradplus.phtml:

You can get a PLUS loan even if you have a bad credit score, so long as you don't have an adverse credit history (i.e., no more than 90 days late on any debt and no defaults, bankruptcies or other adverse action on any Title IV debt).

Originally Posted by DrMidlife

I should mention that the difference between cost of attendance and the Stafford limit can be funded by GradPlus loans, which are also federal, but have less favorable loan terms. Good credit and/or a cosigner required. Again: finaid.org is a great info source.

By all means try to get into your state's public school(s) if at all possible.

Also, isn't the GradPlus rate at 7.9% now? Maybe not "atrocious," but definitely frustrating given the current Fed rates and the current mortgage rates.

Thanks for the leads. I did some more googling, and it looks like the Stafford will give me $40,500/yr. This may be a stupid question, but are there any limitations relating how much I can borrow to how much the school costs, or is it $40,500 for everyone? In other words, if I go to a cheap school that the G.I. Bill will completely cover, can I still max out the $40,500 and use it for cost of living?

It doesn't look like I'm eligible for the plus loans. The way I read it, you have to be a dependent of your parents at the time you apply.

Edit to add: I have great credit, for those factoring FICO into their replies.

1 dollar

Originally Posted by ShoTyme

1 dollar

I'll see your dollar and raise you two bits of string!

Originally Posted by xUSMCx

Thanks for the leads. I did some more googling, and it looks like the Stafford will give me $40,500/yr. This may be a stupid question, but are there any limitations relating how much I can borrow to how much the school costs, or is it $40,500 for everyone? In other words, if I go to a cheap school that the G.I. Bill will completely cover, can I still max out the $40,500 and use it for cost of living?

It doesn't look like I'm eligible for the plus loans. The way I read it, you have to be a dependent of your parents at the time you apply.

Edit to add: I have great credit, for those factoring FICO into their replies.

PLUS loans

The terms and conditions applicable to PLUS Loans for parents also apply to PLUS Loans for graduate and professional students. These terms and conditions include:

• a determination that you (the applicant) do not have an adverse credit history; and
• a fixed interest rate of 7.9% for Direct PLUS Loans.

How much can I borrow?

The maximum PLUS Loan amount you can borrow is your cost of attendance (determined by the school) minus any other financial assistance you will receive.

You can borrow from the government UP TO your total COA for your school. They should have that published on their website. There are a few things that can be added to the COA, but not many. Child care expenses can be added if your spouse is a student or employed.

ETA: See below for info from MCW's site, it seems to summarize it nicely.

Federal Direct Unsubsidized Loan Program
The Federal Direct Unsubsidized Loan is awarded to students who demonstrate financial need, as based on Federal Methodology calculations. Qualified first and second year students can borrow up to $42,722 annual maximum. Third year students can borrow up to $47,167, less any Subsidized Stafford Loan. Fourth year students can borrow up to $44,944. The aggregate maximum is $224,000. Beginning July 1, 2006 all new Stafford loans will have a fixed interest rate of 6.8%. There is no interest subsidy under the Unsubsidized Stafford Loan program. Up to 1%-origination/default fee paid to the U.S. Dept. of Education by way of fees deducted from your check before it is disbursed.

Most students who apply for financial aid at the Medical College of Wisconsin have the majority of their need covered by the Federal Direct Unsubsidized Loan Program.

Federal Perkins LoanFederal Perkins Loans are awarded by the Medical College of Wisconsin on the basis of financial need and availability of funds. This loan has an annual maximum of $8000 and a lifetime maximum of $54,000. This loan is interest free while enrolled and during the grace and deferment periods. At the end of the allowable deferment period, interest is fixed at the rate of 5%. There is no fee associated with this loan.
Federal Direct Graduate PLUS LoanThis program has a fixed interest of 7.9% for the life of the loan. You can borrow up to the total cost of attendance at MCW minus any other financial aid you receive. There is no interest subsidy on this loan and repayment will begin 6 months after you are no longer enrolled in school. Up to a 4%-combined origination/insurance fee paid to the U.S. Dept. of Education by way of fees deducted from your check before it is disbursed.

Also, here is MCW's breakdown of cost of attendance. This is what you can borrow up to with federal (ie, not private) loans.
http://www.mcw.edu/medicalschool/finaidcosts.htm

Adding, here is UW-Madison's COA, for comparison of private vs. public.
http://www.finaid.wisc.edu/196.htm

Originally Posted by PostHaste

PLUS loans


You can borrow from the government UP TO your total COA for your school. They should have that published on their website. There are a few things that can be added to the COA, but not many. Child care expenses can be added if your spouse is a student or employed.

ETA: See below for info from MCW's site, it seems to summarize it nicely.


Also, here is MCW's breakdown of cost of attendance. This is what you can borrow up to with federal (ie, not private) loans.
http://www.mcw.edu/medicalschool/finaidcosts.htm

Adding, here is UW-Madison's COA, for comparison of private vs. public.
http://www.finaid.wisc.edu/196.htm

Your answer may be more accurate than mine.