Ok, I'm applying for 2003, so I'm trying to find some stuff out ahead of time... can someone give me a little briefing about how loans work? I mean, I don't even know where to start...websites I should look at, how they work, etc...basically I'm clueless about loans and I figure I'll probably have to take some loans out during dental school, so I should have an idea of how it all works... anyone care to enlighten me
Have you tried the financial aid forum? <a href="http://forums.studentdoctor.net/cgi-bin/ultimatebb.cgi?ubb=forum&f=35&submit=Go" target="_blank">http://forums.studentdoctor.net/cgi-bin/ultimatebb.cgi?ubb=forum&f=35&submit=Go</a>
vixen, you can find details by looking through the threads below (in financial aid) but the general idea is most students finance large parts of their education through loans. You can get Stafford loans (backed by the gov't) in ammounts up to 8500 subsidized plus 30000 unsubsidized. Some schools offer merit or need based scholarships, or need based low interest loans. You schould check out the financial aid web site of the schools you apply to for more details. If your parents make a lot (no student is considered independant unless an orphan) you may need to borrow "alternative" or private loans beyond the 38500 Stafford. Most students don't. If you need info on those, post your question and I'll answer.
Once you've gotten into school, getting a student loan is very easy. I just went to the finanical aid office, they had a list of lenders and were able to tell me which ones had a habit of sending checks late. You basically fill out a very simple application, the school rubber stamps it, and voila..you get your checks. Bascially the amount you are allowed to borrow and the interest rate is set by the federal government. While I forget the names of each type, one type you can get up to $8500 a year and the interest is deferred til after you graduate. There is another type that you can borrow more but the interest accumulates from the day you borrow it. YOu don't have to make any payments on either type til after you graduate.
</font><blockquote><font size="1" face="Verdana, Helvetica, sans-serif">quote:</font><hr /><font size="2" face="Verdana, Helvetica, sans-serif"> Once you've gotten into school, getting a student loan is very easy. I just went to the finanical aid office, they had a list of lenders and were able to tell me which ones had a habit of sending checks late. You basically fill out a very simple application, the school rubber stamps it, and voila..you get your checks. </font><hr /></blockquote><font size="2" face="Verdana, Helvetica, sans-serif">I want to clarify the point above about lenders sending checks late. We are a lender, and we have electronic funds transfer (EFT) agreements with most schools. However, there are some schools who prefer to receive checks. It's the school's choice whether we use EFT or checks, not ours. If a lender sends checks, they must be sent out within three business days, and they are either sent regular mail or overnighted, depending on the lender's policy. Once the school processes the check, they can hold onto it legally for 14 days before they HAVE to disburse funds to the student. It has been our experience that sometimes a FAO will have a particular lender they want the students to use, so they might arrange an EFT with that lender so the funds come quicker, and have the rest of the lenders send checks, and use that as a tool to discourage students from using other lenders. That's why it's important to ASK QUESTIONS AND SHOP AROUND. Knowledge is power!
i remember from undergrad that Stafford loans are NOT based on credit. they were more or less a "given" for certain amounts. is this true for med school? will bad credit ever stop you from obtaining loans? will you need a cosigner? i'm worried about all this approval for such an enormous amount of money. seems rough!
</font><blockquote><font size="1" face="Verdana, Helvetica, sans-serif">quote:</font><hr /><font size="2" face="Verdana, Helvetica, sans-serif">Originally posted by paean: <strong>... in ammounts up to 8500 subsidized plus 30000 unsubsidized. </strong></font><hr /></blockquote><font size="2" face="Verdana, Helvetica, sans-serif">I was also under the impression that unsubsidized Staffords were capped at $30K, but I just got my fin aid package and am eligible to take out $34K+. Anyone know what's up with this? Thx.
I believe that the additional $4000 comes from private loans that you can take out in addition to Stafford loans. I may be wrong though...
pardon my ignorance on financial aid, but is the $38,500 an annual loan that you can take out, or is this the max amount allocated for all your 4 years?
That amount is per year. If you want additional $$$, you can go through private loans, up to the amount the school will authorize you for. Even so, there are priavte loan companies that will allow you to exceede that amount too. One caveat: Private loans are not guaranteed, and are credit based.....
