May 6, 2009
146
0
Status
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
 

DrWBD

Formerly 'wanna_be_do'
Lifetime Donor
20+ Year Member
May 2, 1999
1,116
117
Long Island, NY USA
Status
Attending Physician
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.
 
Last edited:

Bacchus

Staff member
Administrator
10+ Year Member
Apr 28, 2007
21,056
2,353
Status
Attending Physician

Semicolon

OMS II
10+ Year Member
Dec 5, 2008
1,237
0
NYC
Status
Medical Student
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. :p
 

DrWBD

Formerly 'wanna_be_do'
Lifetime Donor
20+ Year Member
May 2, 1999
1,116
117
Long Island, NY USA
Status
Attending Physician
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. :p
You're correct, I fixed the original post. Thanks. :laugh:
 
OP
W
May 6, 2009
146
0
Status
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

Formerly 'wanna_be_do'
Lifetime Donor
20+ Year Member
May 2, 1999
1,116
117
Long Island, NY USA
Status
Attending Physician
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

OMS II
10+ Year Member
Dec 5, 2008
1,237
0
NYC
Status
Medical Student
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. :D

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

Moderator Emeritus
10+ Year Member
Oct 13, 2005
3,241
124
Status
Attending Physician
.... 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.
 
OP
W
May 6, 2009
146
0
Status
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.
 

Semicolon

OMS II
10+ Year Member
Dec 5, 2008
1,237
0
NYC
Status
Medical Student
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

Staff member
Administrator
10+ Year Member
Apr 28, 2007
21,056
2,353
Status
Attending Physician
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

Moderator Emeritus
10+ Year Member
Oct 13, 2005
3,241
124
Status
Attending Physician
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

OMS II
10+ Year Member
Dec 5, 2008
1,237
0
NYC
Status
Medical Student
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

Staff member
Administrator
10+ Year Member
Apr 28, 2007
21,056
2,353
Status
Attending Physician
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

Guest
10+ Year Member
Dec 5, 2008
636
4
Status
Non-Student
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

Staff member
Administrator
10+ Year Member
Apr 28, 2007
21,056
2,353
Status
Attending Physician
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.