All loans deffered?

[wannabeaDO]

Hello, I though I posted this here instead becuase you guys have been through this.

I was wondering if you can help me know, if there are always loans that let you deffer on payment. I'm talking about going to MSUCOM or WVSOM as an out of state person. Will I get $60,000 in loans to cover the tuition of MSUCOM that won't ask for payment until I graduate? Will the other loans that cover up tp the cost of attendance also be deferrable? I'm just scared that I would "Max" out on deferrable loans, and then I can't pay to go to med school.

I'm afraid they will give me those, parent PLUS loans or something, that makes you or your parents pay while you are in school, which is not possible.

To let you know my family's income, I am eligible for fee waiver from ACCOMAS.

Thanks in advance

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[DrWBD]

If your loans are Stafford or Grad Plus loans you are not obliged to repay as long as you are in medical school at least half-time. Once you graduate and start residency, you can either apply for deferment (with no interest accumulating on the loan principal) or forbearance (where interest accumulates but you are not obliged to repay). When you are no longer eligible for deferment, you can only apply for forbearance for the remainder of your residency.

Salliemae.com has information about this.
You should also discuss this issue with the Financial Aid office of the school you choose.

 

[Bacchus]

You can't defer through residency anymore. There is a graduated pay scale that was put into legislation a few months ago. Forbearance might be an option. Look at this article:

http://www.ama-assn.org/amednews/2007/11/05/prsa1105.htm

 

[Semicolon]

If your loans are Stafford or Grad Plus loans you are not obliged to repay as long as you are in medical school at least half-time. Once you graduate and start residency, you can either apply for forbearance (with no interest accumulating on the loan principal) or deferment (where interest accumulates but you are not obliged to repay). When you are no longer eligible for forbearance, you need to defer.

Salliemae.com has information about this.
You should also discuss this issue with the Financial Aid office of the school you choose.

Just to clarify, I think wanna_be_do slightly mixed up the definitions for forbearance and deferment. Interest accumulates during forbearance and may or may not (depending on the loan) during deferment.

 

[DrWBD]

Just to clarify, I think wanna_be_do slightly mixed up the definitions for forbearance and deferment. Interest accumulates during forbearance and may or may not (depending on the loan) during deferment.

You're correct, I fixed the original post. Thanks.

 

[DrWBD]

You can't defer through residency anymore. There is a graduated pay scale that was put into legislation a few months ago. Forbearance might be an option. Look at this article:

http://www.ama-assn.org/amednews/2007/11/05/prsa1105.htm

That really sucks.

 

[wannabeaDO]

If your loans are Stafford or Grad Plus loans you are not obliged to repay as long as you are in medical school at least half-time. Once you graduate and start residency, you can either apply for deferment (with no interest accumulating on the loan principal) or forbearance (where interest accumulates but you are not obliged to repay). When you are no longer eligible for deferment, you can only apply for forbearance for the remainder of your residency.

Salliemae.com has information about this.
You should also discuss this issue with the Financial Aid office of the school you choose.

Thanks, but thats the thing. Will the Stafford loan be ever maxed out below the tuition cost? Does the amount of the Stafford loan you can max out depend on the school? Or is there a certain limit you can get the stafford loan, say $40,000, no matter what school.

I'm worried about MSUCOM or WVSOM (Those happen to be some of the schools I would like to go to). As long as I can get stafford loan up to the cost of tuition, I think I will be okay.

 

[DrWBD]

Thanks, but thats the thing. Will the Stafford loan be ever maxed out below the tuition cost? Does the amount of the Stafford loan you can max out depend on the school? Or is there a certain limit you can get the stafford loan, say $40,000, no matter what school.

I'm worried about MSUCOM or WVSOM (Those happen to be some of the schools I would like to go to). As long as I can get stafford loan up to the cost of tuition, I think I will be okay.

According to the salliemae site, you can borrow up to $20,500 per year ($8,500 between subsidized and unsubsidized, plus an additional $12,000 unsubsidized).

After you max out the Stafford loans, you can apply for Federal Graduate PLUS loans up to the full cost of your education, less other aid received.

 

[Semicolon]

Thanks, but thats the thing. Will the Stafford loan be ever maxed out below the tuition cost? Does the amount of the Stafford loan you can max out depend on the school? Or is there a certain limit you can get the stafford loan, say $40,000, no matter what school.

I'm worried about MSUCOM or WVSOM (Those happen to be some of the schools I would like to go to). As long as I can get stafford loan up to the cost of tuition, I think I will be okay.

The cost of tuition and the cost of attendance (or education) are different things. The amount you can borrow in Stafford loans is decided by the school's curriculum and whether or not you've borrowed Stafford loans in undergrad. The rest of the COA is made up for by the Grad PLUS loan, whose limit is the COA. In other words, Grad PLUS = COA - Stafford amount. If you're worried about whether you'll be able to take out enough to afford your education, then don't worry; you're guaranteed to be able to take out loans up to the COA and you're guaranteed to have an enormous debt in the end.

According to the salliemae site, you can borrow up to $20,500 per year ($8,500 between subsidized and unsubsidized, plus an additional $12,000 unsubsidized).

After you max out the Stafford loans, you can apply for Federal Graduate PLUS loans up to the full cost of your education, less other aid received.

That only refers to graduate school students; medical students have a specific policy that allows for much more to be borrowed (up to $224,000 lifetime, I believe).

 

[scpod]

.... If you're worried about whether you'll be able to take out enough to afford your education, then don't worry; you're guaranteed to be able to take out loans up to the COA ....QUOTE]

Yes, but with one caveat. Remember, GradPlus loans ARE credit based, so you do have to qualify (or have a co-signer) for those first.

 

[wannabeaDO]

That only refers to graduate school students; medical students have a specific policy that allows for much more to be borrowed (up to $224,000 lifetime, I believe).

Sorry for beating the horse, but my thoughts excactly. Just for tuition and not counting COA, I would need to borrow 65000 X 4 = 260,000. (For MSU)

So the rest would be have to be GRAD plus... I mean how is someone in college supposed to build credit in the first place? I guess I am using a credit card, but hopefully that enough will help.

 

[wannabeaDO]

I just thought of it. If a person doesn't have credit, and doesn't have a cosigner. That person may actually not be able to get enough loans for an expensive medical/graduate school.... like MSUCOM!

http://salliemae.com/get_student_loan/find_student_loan/grad/grad_student_loans/stafford/

Thanks for the link. The Stafford Limit is $224,000.

 

[Semicolon]

Sorry for beating the horse, but my thoughts excactly. Just for tuition and not counting COA, I would need to borrow 65000 X 4 = 260,000. (For MSU)

So the rest would be have to be GRAD plus... I mean how is someone in college supposed to build credit in the first place? I guess I am using a credit card, but hopefully that enough will help.

I have not personally heard of anyone who was turned down from getting a Grad PLUS loan; they're pretty lenient. They would most likely only refuse those with bad credit histories (and I mean more than just a late payment).

 

[Bacchus]

I had a credit card for less than a year and one bill under my name for 3 years at the time of application for my GradPlus. I had 19,500 dollars approved in 20 seconds over the phone. They're lenient, but there are some people that probably won't get them.

The maximum Stafford one can get a year is 40,500 dollars. 32,000 is unsubsidized while the rest is subsidized. Not everyone get this much, though.

 

[scpod]

I have not personally heard of anyone who was turned down from getting a Grad PLUS loan; they're pretty lenient. They would most likely only refuse those with bad credit histories (and I mean more than just a late payment).

There is no debt-to-income requirement like for a normal loan. There is no income requirement at all. That is good in many ways, BUT, you cannot have any payments more than 90 days old, defaults, bankruptcies, or any adverse actions on a Title IV debt.

 

[Semicolon]

The maximum Stafford one can get a year is 40,500 dollars. 32,000 is unsubsidized while the rest is subsidized. Not everyone get this much, though.

That's not the maximum Stafford; it depends on the school. I'm getting more than that (for NYCOM the maximum is 42,722).

 

[Bacchus]

That's not the maximum Stafford; it depends on the school. I'm getting more than that (for NYCOM the maximum is 42,722).

I believe that is based on how long your year is, then.

 

[235750]

You can't defer through residency anymore. There is a graduated pay scale that was put into legislation a few months ago. Forbearance might be an option. Look at this article:

http://www.ama-assn.org/amednews/2007/11/05/prsa1105.htm

This sounds bad, but really it's not
Look up the Income Contingent Repayment (ICR) plan. You will never pay more than 20% of your income to your loans. This does not apply to private loans. Also look up Income Based Repayment (IBR) plan that's new as of July

 

[Bacchus]

This sounds bad, but really it's not
Look up the Income Contingent Repayment (ICR) plan. You will never pay more than 20% of your income to your loans. This does not apply to private loans. Also look up Income Based Repayment (IBR) plan that's new as of July

I don't think its bad and already planned on paying on my loans. For some people its not possible or very pressing on them. I think its smart money sense to begin paying during residency.