LOANS and How to Pay for PT School

[ptschoolhopeful]

I need help from any current DPT students. I am starting PT school next month and am trying to figure out loans, etc. How is everyone affording school beyond (or maybe instead) of Stafford Loans? I realize that it has probably been easier for current students because of previously having the subsidized loans, which I will not have the opportunity of getting, but what other loans have you taken out? Are most people using GRAD PLUS loans? Private loans? The school I'm going to is my in-state school and I am living with my parents to save room and board; however, the school does not offer any financial aid options other than loans so any advice on them would be greatly appreciated!

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[Litlwarrior08]

You take the first $20,500 unsub loan-Direct Loan then Grad Plus covers everything else per the cost of attendance posted on the schools FA page. You will need to estimate what YOUR needs are. The schools OVER estimate for your benefit. You might find private loans w/ lower interest rates that also postpone payment until after graduation. Check Wells Fargo med loans / grad school loans.But these can't be consolidated...only the Gov loans can be consolidated.

 

[frootloops]

You should be careful - these unsub loans are very high in interest: 6.8%. The grad plus loans are WORSE: 8% (and likely to rise). My goal is to get the unsub loans and my school said they contract with Sallie Mae and you can apply for private loans. I haven't asked yet, but I am hoping they will have a lower interest rate.

 

[frootloops]

Ask your school if they have options for private loans at a lower interest, when the interest begins accruing...

I have been researching loans hardcore these days because I have no idea what the fine print means and it freaks me out a bit.

 

[Litlwarrior08]

When you talk w/ the loan / financier they will tell you which schools they contract with. Many are variable loans so the interest rate can go higher.

Question---can a private loan co. roll them all together when billing comes due or will we have to pay on multiple loans? What are DPT students insights on this? What about the consolidation of Gov loans..........do you end up w/ a higher rate once consolidated?

 

[pubicsymphysis]

SOrry to keep bumping. Bump.

 

[1011]

The thing with the grad plus program is that it has a fixed rate of 7.9% so that means it won't go up or down during the time you have the loan out. With private loans they have a lower rate right now of like 5% but that can fluctuate at any time. That's why I was thinking of just doing the grad plus program.

 

[pubicsymphysis]

The thing with the grad plus program is that it has a fixed rate of 7.9% so that means it won't go up or down during the time you have the loan out. With private loans they have a lower rate right now of like 5% but that can fluctuate at any time. That's why I was thinking of just doing the grad plus program.

Is it common for private loans to fluctuate and get higher than 8%?

 

[bnwj89]

I'm also pretty worried about all this... Stafford loans will cover all my tuition almost exactly, but I will need to take out gradPLUS loans for living expenses......

Time to buy the value packs of ramen noodles, eh?

 

[pubicsymphysis]

I'm also pretty worried about all this... Stafford loans will cover all my tuition almost exactly, but I will need to take out gradPLUS loans for living expenses......

Time to buy the value packs of ramen noodles, eh?

damn... noodles for 3 years....

 

[DPTHopeful2012]

Is it common for private loans to fluctuate and get higher than 8%?

I talked to a financial advisor at a school I interviewed at and she said a student took out a private loan and the rate was something like 5%, but when he graduated the rate was 20%. After hearing that, I wouldn't take out a private loan since it can go up.

 

[kptnau]

noodles for 3 years....

Don't eat just noodles!!!
http://shine.yahoo.com/healthy-living/teen-s-strange-ramen-addiction--165713286.html
Haha. Funny that this is in the news the same day.
At least throw some grilled cheese in there to spice things up a bit. Or just realize that it's worth the extra loans to be healthy.
Seriously, though, I like this thread. I'm thinking I would like to live cheap after school and repay the loans faster. Do they allow that? I would assume so. What's the normal payment? If it's like 700 then why not pay 1400 and get out of debt WAY faster? If you live on ramen (or just a balanced diet that's semi-cheap) why not keep living that way after school? Even with a family I'm sure it's somewhat possible.

 

[Litlwarrior08]

Don't eat just noodles!!!
http://shine.yahoo.com/healthy-living/teen-s-strange-ramen-addiction--165713286.html
Haha. Funny that this is in the news the same day.
At least throw some grilled cheese in there to spice things up a bit. Or just realize that it's worth the extra loans to be healthy.
Seriously, though, I like this thread. I'm thinking I would like to live cheap after school and repay the loans faster. Do they allow that? I would assume so. What's the normal payment? If it's like 700 then why not pay 1400 and get out of debt WAY faster? If you live on ramen (or just a balanced diet that's semi-cheap) why not keep living that way after school? Even with a family I'm sure it's somewhat possible.

Yes you will be able to pay more down per month towards your loan, I think there is also an option to pay the interest while in school but that seems odd since you need the money in the first place. Paying faster will = less $ paid in the long run. SO its noodles for many, many years. hah

 

[NewDPT31]

AVOID PRIVATE LOANS AT ALL COSTS.

yes the interest on private loans are what, 2-4% right now? but they are variable and could easily go over the 8% of federal.

But that's not the main reason. Private loans cannot be consolidated with federal loans(which is gradplus and what you will use for PT school).
So while I graduated with 145k in federal, and 90k in private loans....most of my money goes to private loans and then a sep payment towards federal with IBR.

If federal loans were available to cover full cost of undergrad, it would all be federal...and i would have one IBR repayment(same as what i do now)...and in 9 more years when i hit 10 years of paying my monthly IBR(i work at a non profit hospital), the rest is forgiven. INstead im paying 2000 towards private a month and like 586 a month in IBR. I would be driving a freaking audi right now.

 

[Litlwarrior08]

AVOID PRIVATE LOANS AT ALL COSTS.

yes the interest on private loans are what, 2-4% right now? but they are variable and could easily go over the 8% of federal.

But that's not the main reason. Private loans cannot be consolidated with federal loans(which is gradplus and what you will use for PT school).
So while I graduated with 145k in federal, and 90k in private loans....most of my money goes to private loans and then a sep payment towards federal with IBR.

If federal loans were available to cover full cost of undergrad, it would all be federal...and i would have one IBR repayment(same as what i do now)...and in 9 more years when i hit 10 years of paying my monthly IBR(i work at a non profit hospital), the rest is forgiven. INstead im paying 2000 towards private a month and like 586 a month in IBR. I would be driving a freaking audi right now.

Watch your planning: FYI--federal gov is not yet forgiving DPT loans ..........some employers are though and then it is counted as employment and can be taxed as income.

 

[NewDPT31]

Watch your planning: FYI--federal gov is not yet forgiving DPT loans ..........some employers are though and then it is counted as employment and can be taxed as income.

The program isn't old enough for anybody to have loans forgiven yet. Not till 2017. And yes, I consolidated into a direct federal loan. It is on IBR, and I am on my way to the 10 year mark. As far as forgiveness being treated as income for taxes, this is true...but I work in a non for profit hospital. I've already sent in my forms to the gov and they certified my hospital as being public health so im off the hook for the taxes. Anyone in public health is not on the hook for the tax on the forgiveness. Look it up.

 

[Litlwarrior08]

The program isn't old enough for anybody to have loans forgiven yet. Not till 2017. And yes, I consolidated into a direct federal loan. It is on IBR, and I am on my way to the 10 year mark. As far as forgiveness being treated as income for taxes, this is true...but I work in a non for profit hospital. I've already sent in my forms to the gov and they certified my hospital as being public health so im off the hook for the taxes. Anyone in public health is not on the hook for the tax on the forgiveness. Look it up.

Do you have some links to share so I can follow up w/ more research? Appriciate it.
I know the federal forgiveness starts in 2017. I read and have been trying to follow, the loan forgiveness act , it does not yet include DPT programs. see stickie above.

I'm still in school racking up the loans.. I have a $10000 TUIT ASSIST that will be counted as income once I work the time off.

 

[NewDPT31]

Do you have some links to share so I can follow up w/ more research? Appriciate it.
I know the federal forgiveness starts in 2017. I read and have been trying to follow, the loan forgiveness act , it does not yet include DPT programs. see stickie above.

I'm still in school racking up the loans.. I have a $10000 TUIT ASSIST that will be counted as income once I work the time off.

10000 in income-depends on if it will all count the first year you are out or if they count it spread over 2-3 years. Your first year out (assuming u graduate in may), you will probably only make 4 months worth of income. This will make it look like you are at poverty level. I paid marginal tax rate of under 1% my first year because of loan interest deductions, only working 4 months, and tuition tax credit from the gov. anyway, 10000 forgiveness isnt going to bankrupt you.

The sticky loan repayment form for DPTs is DIFFERENT than IBR. IBR is a loan repayment program that is for ANYBODY with a federal loan. The sticky is for going to an underserved area for loan repayment. Hope the link helps to clear things up. CHeers!


http://www.ibrinfo.org/what.vp.html