Any good books that help with understanding and being smart with student loans??

[ravenclaw1234]

Hi all. I recently got accepted to dental school and am trying to learn about the financials of student loans. I'll admit that I am not competent at all about this stuff. I have just learned that we know longer receive subsidized loans and that interest accrues every period immediately. I am so excited for dental school since I got accepted to my state school but it will still cost around $280,000. I have been trying to google stuff about student loans but am still confused.

Does anyone know of any good books that talk about student loans and how to pay them off?

Also has anyone ever loaned from their parents instead of gradplus/ federal loans? I know that gradplus is currently 7.2%, I believe that if I loan from my parents refinancing their house the interest rate is 3.19%. I really don't understand why student loan interests rates are so high. I really just want to learn!!!

I apologize if I am using any financial terms wrongly- I really don't know about anything financially and it's about time I learn.

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[sjv]

Sufficient info is readily available online, I'm not sure there is a perfect book that would be worth it to buy that will completely address your concerns.

What exactly is confusing? I'm sure we can help you out.

 

[rm3042]

You should be happy you got into a state school; I'm from mass, there's no such thing as a state school. I'll be paying double that! I'm still celebrating and enjoying the holidays, I'll worry about the finances after the holidays. But I'm very interested in others' advice on this topic!

 

[lexa_m]

I haven't read either book yet, but someone on sdn recommended two -- The White Coat Investor by: Dhale and I Will Teach You To Be Rich by: Sethi

Has anyone read these or another??

 

[Glimmer1991]

@lexa_m, that'd be me. 🙂

Definitely read the book by Ramit Sethi. It's a great place to start. It won't directly address your concerns, OP, but it gives a good overview. I'd move on to the White Coat Investor afterwards. I'll admit I haven't read the book, but I've read his blog and it's full of great stuff.

 

[deleted390966]

http://whitecoatinvestor.com/

 

[free99]

The millionaire next door.

As for refinancing the home to pay for schools, be aware you will not have govt payback options available to you at that point (ibr, paye, NHSC lrp). Just something to consider.

 

[cacajuate]

The millionaire next door.

As for refinancing the home to pay for schools, be aware you will not have govt payback options available to you at that point (ibr, paye, NHSC lrp). Just something to consider.

Which is worth the risk for ~3% interest rate.

What I keep thinking about about repayment programs is what is someone going go do that is 15 yes deep into the program and then govt gets rid of the program for high income earners? All of a sudden you have this ballooned interest that you have to take care of.

 

[ravenclaw1234]

Sufficient info is readily available online, I'm not sure there is a perfect book that would be worth it to buy that will completely address your concerns.

What exactly is confusing? I'm sure we can help you out.

Hi sjv

Yep there's a lot of good info out there I guess I'm having a hard time figuring out where to start. I just have a hard time understanding interest rates and how dental students go about receiving loans and Etc (for example, does everyone take out Stafford loans/grad plus/ federal. Or does anyone take out loans from the bank? Idk). I'm meeting with a financial advisor and talking to my friends at the dental school to see what they're doing.

 

[ravenclaw1234]

Also thank you everyone for your responses I will look into every book you all have suggested! I need to learn about all these financial things. I feel so incompetent about it.. It's quite embracing lol

 

[ravenclaw1234]

The millionaire next door.

As for refinancing the home to pay for schools, be aware you will not have govt payback options available to you at that point (ibr, paye, NHSC lrp). Just something to consider.

Thank you. See I would have never known this. Hopefully when I confide in some dental students or the schools financial advisor she will give me all these details

 

[ravenclaw1234]

Which is worth the risk for ~3% interest rate.

What I keep thinking about about repayment programs is what is someone going go do that is 15 yes deep into the program and then govt gets rid of the program for high income earners? All of a sudden you have this ballooned interest that you have to take care of.

Are you a dental student who has taken this route? I know some dental students who get "loans" from their parents refinancing their houses. I'm just trying to figure out the pros and cons. Of course the 3% interest rate is a huge pro

 

[sjv]

Hi sjv

Yep there's a lot of good info out there I guess I'm having a hard time figuring out where to start. I just have a hard time understanding interest rates and how dental students go about receiving loans and Etc (for example, does everyone take out Stafford loans/grad plus/ federal. Or does anyone take out loans from the bank? Idk). I'm meeting with a financial advisor and talking to my friends at the dental school to see what they're doing.

Most students take government loans in the form of Direct and Direct PLUS loans. Direct loans a have the lower interest rate and cover up to ~$47,000 (I forget the exact number). The rest of your balance would be covered by Direct PLUS (Grad PLUS) loans which have the higher interest rate. Interest rates are fixed throughout the life of the loan and are tied to the 10-year treasury note so they may change each year depending on the economy, since the economy is doing well interest rates are likely headed up due to the note going up. Another type of loan is available depending on the school and availability called HPSL which is subsidized while in school.

Private lenders can offer competitive interest rates that are better but you lose the flexibility of the various repayment options that the government provides. If your loan amount is relatively smaller, this may be a viable option.

Beginning in January, you may fill out FAFSA and submit it to the dental school you are attending, they will provide you with a financial package containing the above government loans. You may choose to borrow as little or as much from the government as you need. If you choose an alternative method to finance your education you may also do so.

 

[ravenclaw1234]

Most students take government loans in the form of Direct and Direct PLUS loans. Direct loans a have the lower interest rate and cover up to ~$47,000 (I forget the exact number). The rest of your balance would be covered by Direct PLUS (Grad PLUS) loans which have the higher interest rate. Interest rates are fixed throughout the life of the loan and are tied to the 10-year treasury note so they may change each year depending on the economy, since the economy is doing well interest rates are likely headed up due to the note going up. Another type of loan is available depending on the school and availability called HPSL which is subsidized while in school.

Private lenders can offer competitive interest rates that are better but you lose the flexibility of the various repayment options that the government provides. If your loan amount is relatively smaller, this may be a viable option.

Beginning in January, you may fill out FAFSA and submit it to the dental school you are attending, they will provide you with a financial package containing the above government loans. You may choose to borrow as little or as much from the government as you need. If you choose an alternative method to finance your education you may also do so.

Thank you so much. A lot of great information put in simpler terms.