please help with financial aid

[fw5tape6kq]

I will be 22 years old when I begin my freshman year at medical school next year. I have no credit and very meager income history, and I am going to need to borrow approximately $55,000/ year (out of a total bill of $75,000). I am still claimed as a dependent by my parents, whose income for the next few years will be in the $500,000 area range (before my father retires). My father is willing to pay for my living expenses, and $20,000 of my tuition.

What is your suggestion as to the best way to borrow this tuition money at the cheapest rate? Any constructive advice would be greatly welcomed.

My thought is that, because of my parents income, I will not be able to receive a federal loan for my schooling. Moreover, I do not wish to pursue a Sallie Mae, because of their incredibly high 8% interest rate. Do I have any other options. I can't imagine I'm the only prospective medical student who has even been in this boat.

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[SN12357]

I will be 22 years old when I begin my freshman year at medical school next year. I have no credit and very meager income history, and I am going to need to borrow approximately $55,000/ year (out of a total bill of $75,000). I am still claimed as a dependent by my parents, whose income for the next few years will be in the $500,000 area range (before my father retires). My father is willing to pay for my living expenses, and $20,000 of my tuition.

What is your suggestion as to the best way to borrow this tuition money at the cheapest rate? Any constructive advice would be greatly welcomed.

My thought is that, because of my parents income, I will not be able to receive a federal loan for my schooling. Moreover, I do not wish to pursue a Sallie Mae, because of their incredibly high 8% interest rate. Do I have any other options. I can't imagine I'm the only prospective medical student who has even been in this boat.

You can get federal loans for graduate school no matter what your parents income. Federal loans are what you should get.

Your parents' income effects how the schools evaluate you for their own internal financial aid, not federal loans for graduate study.

 

[fw5tape6kq]

You can get federal loans for graduate school no matter what your parents income. Federal loans are what you should get.

Your parents' income effects how the schools evaluate you for their own internal financial aid, not federal loans for graduate study.

Even if I'm still claimed as a dependent?

 

[fw5tape6kq]

Even if I'm still claimed as a dependent?

Moreover, if my parent's income has no bearing on my likelihood to get financial aid, then why does an organization like Sallie Mae even exist?

 

[SN12357]

Even if I'm still claimed as a dependent?

That's my understanding, yes.

 

[fw5tape6kq]

That's my understanding, yes.

Do you think I can borrow the full $55,000/ year through a government loan, and any idea what the approximate interest rate is (Sallie Mae's interest rate is 8%)

 

[mik30102]

Your can borrow whatever you need through subsidized Stafford and grad plus regardless of paternal income.

 

[fw5tape6kq]

Your can borrow whatever you need through subsidized Stafford and grad plus regardless of paternal income.

I thought Stafford max was approximately only $5500 a year!

 

[kingjameslbj]

http://studentaid.ed.gov/types/loans/subsidized-unsubsidized

20k

 

[scarletgirl777]

I thought Stafford max was approximately only $5500 a year!

Higher maxes for undergrad v. graduate degree. Whether or not you are a dependent doesn't matter, my friend was a dependent for all of med school and still was able to take out stafford and grad plus loans.

 

[mik30102]

And after you reach you maximum Stafford you switch to grad plus. Grad plus has no limit.

 

[WillburCobb]

The amount you can take out in federal loans is based solely on your income, even if you are claimed as a dependent. Your school's financial aid office will determine where the rest of your loans come from to make up the difference between what the federal government offers you and what you still need to cover tuition and living expenses. Many, but not all, of these will take your parents' income into account and are often given out on a needs basis (i.e., the needest students get priority on the better loans). From here you can either accept you financial aid package, try and renegotiate with the financial aid office, or take out additional private loans if you really feel you need them.

 

[fw5tape6kq]

And after you reach you maximum Stafford you switch to grad plus. Grad plus has no limit.

Is Grad Plus a private loan? How does it differ from a Sallie Mae loan, and does my father have to co-sign it?

 

[scarletgirl777]

Is Grad Plus a private loan? How does it differ from a Sallie Mae loan, and does my father have to co-sign it?

Your parents do not have to cosign anything. Rest assured that many people are in your situation and it is abundantly easy to sign up for hundreds of thousands of dollars of student debt all from the federal government . For 99% of people private loans will not be necessary. Stafford and Grad PLUS are federal loans direct from the govt. When you get accepted to medical school it's just a matter of some very simple paperwork.

 

[kingjameslbj]

Is Grad Plus a private loan? How does it differ from a Sallie Mae loan, and does my father have to co-sign it?

http://lmgtfy.com/?q=http://www.usn...ticles/2011/03/16/graduate-plus-loan-faqs&l=1

 

[Elewynne]

Google is your friend. Try "loans for medical school"

Here is a start:

https://www.aamc.org/advocacy/meded/79232/federal_student_loans.html

 

[WillburCobb]

Also, you mentioned in your initial post you were accepted for this coming year. Check your med school's financial aid website or call their office for additional and possibly more specific info.

 

[fw5tape6kq]

Also, you mentioned in your initial post you were accepted for this coming year. Check your med school's financial aid website or call their office for additional and possibly more specific info.

Will do. The only reason I've been somewhat reticent to do that is because I'm afraid I'll ace myself out of certain loans (or even potential merit aid) by disclosing my parents income.

 

[scarletgirl777]

Will do. The only reason I've been somewhat reticent to do that is because I'm afraid I'll ace myself out of certain loans (or even potential merit aid) by disclosing my parents income.

Merit aid is given for merit. If you don't mention your parents' income, the school will assume your family has unlimited financial resources. Don't share if you don't want to, it won't affect your ability to get grad plus and stafford--it just knocks you out of any need-based aid although unless you have 10 siblings, I am doubtful you woud have gotten any anyway.

 

[fw5tape6kq]

Your parents do not have to cosign anything. Rest assured that many people are in your situation and it is abundantly easy to sign up for hundreds of thousands of dollars of student debt all from the federal government . For 99% of people private loans will not be necessary. Stafford and Grad PLUS are federal loans direct from the govt. When you get accepted to medical school it's just a matter of some very simple paperwork.

Does that paperwork include a FAFSA form?

 

[WillburCobb]

Does that paperwork include a FAFSA form?

1. Complete FAFSA. This takes about 2min. You can include your parents tax info if you choose.

2. Complete any paperwork your school requires for need based aid (this will pretty much just be providing you parents income info if you didn't already on FAFSA).

3. Complete any paperwork for scholarships you may be offered.

4. Wait.

5. Accept or try to negotiate your financial aid package.


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