Best loan for school?

[Merely]

I was wondering if you guys have heard about the Loan for Disadvantaged students and if this is the best offered loan for medical students coming in? What exactly are the requirements to get a loan like this and if this isn't the best loan, which one is better? Thanks.

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[Winged Scapula]

A quick Google search revealed this in terms of eligibility: http://bhpr.hrsa.gov/scholarshipsloans/tools/guidelines/lds.pdf

 

[Merely]

Thank you for that. I actually already read that prior to posting but it really doesn't give specifics in terms of the cutoffs for income needed to be eligible. Is it poverty as set by the government for a given family size or what I'm not really sure.

 

[Merely]

Also, if anyone is aware of any other loans that are better than this one I would really appreciate the input.

 

[Merely]

In the end, we will not remember the words of our enemies but the silence of our friends.

 

[Roxas]

In the end, we will not remember the words of our enemies but the silence of our friends.

That was deep yo

 

[W19]

In the end, we will not remember the words of our enemies but the silence of our friends.

Huh?

 

[Merely]

I just want answers to my questions lol

 

[ace12345]

.

 

[xffan624]

I just want answers to my questions lol

And if people had them who read it knew the answers, they would post. The majority of people reading this are not familiar with this loan program. You can presume this from their silence, not any malice on the part of the posters. You know who would have answers to your questions? Your financial aid office or the administrators for the loan program you are referring to.

 

[Merely]

Allright true that just was curious if anyone was familiar with this in any way

 

[maxxor]

Lots of information at the below link. Look at chapter 2 for eligibility criteria and such.

While it has a low-ish interest rate (5%), is subsidized, and has a long grace period (12 month), it's a mediocre loan at best. It's administered through your school/ECSI rather than the official federal servicers, which also means it is not eligible for IBR/PAYE; you're stuck on 10 year repayment. In reading the rules of this particular loan, apparently you can defer it while in residency. However, you are unlikely to receive your entire loan balance as an LDS, which means you could only defer the portion that is LDS.

If you could get your entire professional school tuition as an LDS & defer it while in training so no interest accrues, yes it would be the best loan to have. However, the likelihood of that happening is low.

http://bhpr.hrsa.gov/scholarshipsloans/tools/guidelines/lds.pdf

 

[Merely]

Lots of information at the below link. Look at chapter 2 for eligibility criteria and such.

While it has a low-ish interest rate (5%), is subsidized, and has a long grace period (12 month), it's a mediocre loan at best. It's administered through your school/ECSI rather than the official federal servicers, which also means it is not eligible for IBR/PAYE; you're stuck on 10 year repayment. In reading the rules of this particular loan, apparently you can defer it while in residency. However, you are unlikely to receive your entire loan balance as an LDS, which means you could only defer the portion that is LDS.

If you could get your entire professional school tuition as an LDS & defer it while in training so no interest accrues, yes it would be the best loan to have. However, the likelihood of that happening is low.

http://bhpr.hrsa.gov/scholarshipsloans/tools/guidelines/lds.pdf

This is exactly the kind of response I was waiting for, thank you. The only thing that leaves me a bit confused from your post is the fact that you say it's "a mediocre loan at best" then you end by saying "it's the best possible loan you can get," can you elaborate on that a bit? Is it mediocre because it's hard to get or what because I don't see how it's mediocre at best then the best loan for all four years. Thank you.

 

[Mad Jack]

This is exactly the kind of response I was waiting for, thank you. The only thing that leaves me a bit confused from your post is the fact that you say it's "a mediocre loan at best" then you end by saying "it's the best possible loan you can get," can you elaborate on that a bit? Is it mediocre because it's hard to get or what because I don't see how it's mediocre at best then the best loan for all four years. Thank you.

He's saying that the loan would be decent if you could get it to cover everything, but you'll probably end up with a mix of loans that will make payback a confusing and inconvenient mess if you go with this plan.

 

[Merely]

He's saying that the loan would be decent if you could get it to cover everything, but you'll probably end up with a mix of loans that will make payback a confusing and inconvenient mess if you go with this plan.

Oh, okay. Why would it be difficult to get it to cover everything? Thanks.

 

[Mad Jack]

Oh, okay. Why would it be difficult to get it to cover everything? Thanks.

You should really read the pdf posted and talk to your school. The school sets the max amount and also sets the repayment terms.

Personally I'd say it's worth it, as you can consolidate it later if your school allows (check your terms!). The interest rate will save you tens of thousands, if not hundreds of thousands, depending on the length of the loan.

 

[maxxor]

Oh, okay. Why would it be difficult to get it to cover everything? Thanks.

You don't get to pick the loans; your financial aid office does. As far as I understand, each school gets a set amount of LDS that they can disburse. Usually, they will give some trifling amount to each eligible student (say $3-5k) each year. However, when your annual loan burden can easily exceed $30k a year, having 10% of your loans as a subsidized, 5% loan with a 12 month grace period is inconsequential compared to the $25k you'll have in unsubsidized stafford loans at 6-7%. This is why I said it is mediocre at best; you don't get to suddenly have your entire annual tuition borrowed as an LDS loan. Most likely you'll reach the max of Stafford, followed by Grad plus, interspersed with LDS and perhaps Perkins loans which have annual limits.

If you could have your entire loan balance as an LDS (which is a near-zero possibility), it's an awesome loan. However, my guess is that it won't happen.

to others: yes I know 30k/year is insultingly low for medical school cost of attendance. I'm just pulling a number out of the air to make an easy comparison.

 

[Merely]

You don't get to pick the loans; your financial aid office does. As far as I understand, each school gets a set amount of LDS that they can disburse. Usually, they will give some trifling amount to each eligible student (say $3-5k) each year. However, when your annual loan burden can easily exceed $30k a year, having 10% of your loans as a subsidized, 5% loan with a 12 month grace period is inconsequential compared to the $25k you'll have in unsubsidized stafford loans at 6-7%. This is why I said it is mediocre at best; you don't get to suddenly have your entire annual tuition borrowed as an LDS loan. Most likely you'll reach the max of Stafford, followed by Grad plus, interspersed with LDS and perhaps Perkins loans which have annual limits.

If you could have your entire loan balance as an LDS (which is a near-zero possibility), it's an awesome loan. However, my guess is that it won't happen.

to others: yes I know 30k/year is insultingly low for medical school cost of attendance. I'm just pulling a number out of the air to make an easy comparison.

Very informative post. My question now is how do you go about trying to get it all LDS? Why do some people get it all LDS and others don't? What are the requirements for it?

 

[maxxor]

Very informative post. My question now is how do you go about trying to get it all LDS? Why do some people get it all LDS and others don't? What are the requirements for it?

I don't know anyone that gets their entire loan package as entirely loans for disadvantaged students. Schools love to put out quarterly bulletins that say XX% of the class is receiving financial aid, and YY% are on loans for disadvantaged students. Giving all the loan budget to one student runs counter to their public relations goals.

In short, ask your financial aid office.