How difficult is it to get a student loan for medical school these days (with the economy showing uncertainty)? I did not work at all during undergrad, and parents are physicians. It will be for an out-of-state medical school.
To get in-state tuition the second year on at the medical school, I have to show I was self-sufficient first year and that is only possible through a loan funding all my expenses without any other support.
How have your all experiences been with getting loans, how are the interest rates, and did your parents have to co-sign your loan?
Thanks
Here's a brief overview of how the loan process works for medical students:
- Every medical student is eligible for Stafford loans. As a medical student, you are considered an independent, thus your parent's income information is not required (some schools require parental info if you want to be eligible for institution-granted need-based aid. If your parent's are both physicians, I doubt you'll be eligible for this).
- Stafford loans will cover up to about $40,000 per year. $8,500 of this is subsidized, meaning no interest accrues on the loan while you're in school. The other $32,000 is unsubsidized and accrues interest at 6.8%.
- GradPLUS loans are designed to cover the difference between what your school considers to be the total cost of attendance (tuition + books + living expenses) and the $40,000 from Stafford loans. GradPLUS loans are at 8.5% interest.
- Certain things can screw up your GradPlus eligibility, I think it's mostly 90 day late payments on credit cards, other loans, etc, but I'm not totally sure. Check the financial aid forums for more info. If your history's bad enough, then you might need a co-signer.
- As for lenders, some still exist. As well, many schools are starting to have students borrow directly from the federal gov't. So you won't have much of a problem getting the money.
So, overall, you will be able to get loans that should cover all of your expenses your first year. Make a budget and be smart with your money and you should be able to be self-sufficient and get that in-state tuition 2nd year.
