Private loans

[ziggy1104]

How do you get them when you've capped federal loan limit? I don't have parents who can help or anyone who would or could cosign. My credit is ok, but not great. don't have anything on there except undergrad loans. Im not even accepted yet, but just curious

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[CMistry]

Without a cosigner you're unlikely to get a good rate from a private bank/lender.

 

[sacapuntas]

Do you mean past the aggregate limits or past the annual limits on student loans?

 

[Glimmer1991]

I can't remember... Are you married?

You aren't applying until next cycle, right? Figure out what is holding your credit back and work on bringing it up. Getting the lowest rate can save you thousands and thousands in the long run.

From what I understand, they aren't particularly difficult to get on top of federal loans. However, the interest rates are going to be higher, and the repayment terms aren't usually as favorable/forgiving. Do you really think you'll need extra? I'd try not to. These loans are huge as-is.

 

[InspiredDDS]

I think the federal loan limit is 224,000$. After that Amount you can receive grad plus loans. You will be awarded them in an amount in addition to your other loans in an amount dictated by your dental school. Every dental school sets a yearly cost of attendance, which is typically more than sufficient. You can max out on those or not depending on your needs. You probably won't need more than they offer. I was offered up to more than 100,000$ this year even though my tuition was about half that. Don't worry, the hard part for most people isn't not having too little money.

 

[InspiredDDS]

I think the federal loan limit is 224,000$. After that much you can receive grad plus loans. You will be awarded them
in addition to your other loans in an amount dictated by your dental school. Every dental school sets a yearly cost of attendance, which is typically more than sufficient. You can max out on those or not depending on your needs. You probably won't need more than they offer. I was offered up to more than 100,000$ this year even though my tuition was about half that. Don't worry, the hard part for most people isn't having too little money.

 

[ziggy1104]

@sacapuntas...I mean past the aggregate limit. Just thinking about wgat I would do once I went over the 224000 (certain I will since the school im applying to ~ 50k yr)

@glimmer...yes, I am married. He has a steady job, but credit isn't great (pretty much has none at all) yes, im apying next year, so I wont be needing these loans for a long time though, so plenty if time to work on credit.

@inspired...thank you thats good to know funds will be available if needed. I guess im worried that banks would look at the 224000 I wilk have racked up and laugh, but I guess its what we have to do

 

[Glimmer1991]

Interest at 5.4% (Direct loan, which has the lower aggregate limit) and 6.4% (Direct PLUS loan, what you have to do when you go "above and beyond") is a scary beast. Sock away as much money as you can from your husband's job (and yours, too, if you're working). Live very frugally while you're in school. It is expensive to go to LECOM, and you're going to want to do everything you can to lower the amount you take out in loans. With a working spouse whose job is steady, you should be able to cover a decent chunk of your school costs. Don't take out more than you need and be willing to live frugally for a few years.

He should at least be able to cover living expenses, I hope. That means you'll be looking at 50k a year according to this: http://lecom.edu/financial-aid.php/School-of-Dental-Medicine-Tuition-Fees/49/2205/621/2486.

A loan total of 200k upon graduation is manageable. It gets scarier when you get closer to the 300k range.

Oh.. and make sure you're funding his 401k up to the match point and then fully funding a Roth IRA. Then, put anything extra into the 401k. You won't always be eligible for a Roth once you are making a dentist's salary + his salary, so take advantage of it now. And make sure you always get the full employer match, since it's free money, after all. Compounding interest is a beautiful thing. Start saving early! (I know I might be preaching to the choir here and you may very well be doing all of these things, haha.)

 

[ziggy1104]

Thanks again, glimmer. Youre always very helpful I really appreciate it! I should mention I already have 50k in undergrad loans (stupid I know) so thats why im worried about going over bc with a conservative estimate, im looking at ~250k should have been more careful in undergrad! However, I do think if I stick with your plan, 250k is much more managable than over 300k. Scary though!