Closed

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.
Depends on the school you go to. Some schools (ex. Texas schools) the money will go a lot further than others (ex. MW-AZ)
 
maga1994 said:
As far as paying for school goes, how much do specific loans cover? Do most people tap into an unsubsidized stafford loan and then the rest is GradPlus?
Click to expand...
I didn't have to take out any grad plus this year because I received a scholarship.
 
maga1994 said:
I think because you lose certain protections compared to federal student loans; however, I've heard that some people refinance their loans after school for a lower rate and then buy disability insurance to protect themselves if they get injured/sick, thus saving lots of $.
Click to expand...

If you're just gonna refinance it at the end why not just get the private loan to start...


Sent from my iPhone using SDN mobile
 
wengerin said:
Yeah I'm trying to understand why we wouldn't go for a loan with a much lower interest rate.


Sent from my iPhone using SDN mobile
Click to expand...
I don't think it's the type of loan and interest rate so much as it is harder to get a private loan because credit score factors in. It's harder to get the loan because people who are younger may not have sufficient credit to get the loan approved without a co-signer.

At my tufts interview they talked a lot about this and that was the primary drawback they listed. Repayment terms also may be a little more stringent depending on where you get the loan.
 
BluntForceTrauma said:
I don't think it's the type of loan and interest rate so much as it is harder to get a private loan because credit score factors in. It's harder to get the loan because people who are younger may not have sufficient credit to get the loan approved without a co-signer.
Click to expand...

So essentially if someone with good credit score agrees to be the co-signer then we can borrow from private loans?
 
maga1994 said:
As far as paying for school goes, how much do specific loans cover? Do most people tap into an unsubsidized stafford loan and then the rest is GradPlus?
Click to expand...

You can borrow up to your annual published cost of attendance using student loans.

Most students max out their Direct Unsubsidized Loan (amounts range from $40,500 - $47,167 annually depending on the length of your academic year) and then cover the rest of their costs using the Grad PLUS. There is a $224,000 aggregate (overall) limit on the Unsubsidized Loan, but most students don't hit that during dental school unless they borrowed heavily for undergrad.
 
whaleofatale said:
You can borrow up to your annual published cost of attendance using student loans.

Most students max out their Direct Unsubsidized Loan (amounts range from $40,500 - $47,167 annually depending on the length of your academic year) and then cover the rest of their costs using the Grad PLUS. There is a $224,000 aggregate (overall) limit on the Unsubsidized Loan, but most students don't hit that during dental school unless they borrowed heavily for undergrad.
Click to expand...

lol.
 
cacajuate said:
lol.
Click to expand...

Not sure why that is lolworthy. Even if your dental school awarded the $46,167 annual maximum for all four years of school, you wouldn't hit the $224k unless you had previously borrowed from that loan program. Very few students hit the aggregate max for Unsubsidized Loans during dental school.
 
Last edited:
htdt said:
So essentially if someone with good credit score agrees to be the co-signer then we can borrow from private loans?
Click to expand...
As I understand it, yes, but I also think that puts them in the cross hairs if you fail to do your part. I don't even think I'd do that for my own child much less someone more distantly related to myself.
 
whaleofatale said:
Not sure why that is lolworthy. Even if your dental school awarded the $46,167 annual maximum for all four years of school, you wouldn't hit the $224k unless you had previously borrowed from that loan program. Very few students hit the aggregate max for Unsubsidized Loans during dental school.
Click to expand...


What about the schools that have an estimated cost that is double that amount?


I can only think of a few schools that cost less than $224k these days.
 
cacajuate said:
What about the schools that have an estimated cost that is double that amount?


I can only think of a few schools that cost less than $224k these days.
Click to expand...
That's where grad plus loans come in. @whaleofatale is correct. The direct unsubsidized loans have an annual limit. The rest comes from grad plus (this is the loan based on your credit). I actually know someone who had HORRIBLE credit that couldn't get approved for grad plus and was SOL without a cosigner for dental school. If you know you're going to need grad plus, make sure your credit is in order or you have someone willing to cosign
 
fogorvostan said:
That's where grad plus loans come in. @whaleofatale is correct. The direct unsubsidized loans have an annual limit. The rest comes from grad plus (this is the loan based on your credit). I actually know someone who had HORRIBLE credit that couldn't get approved for grad plus and was SOL without a cosigner for dental school. If you know you're going to need grad plus, make sure your credit is in order or you have someone willing to cosign
Click to expand...


@whaleofatale was saying that most won't pass that unsubsidized limit. I'm saying 90% will take out grad + loans.


Hell, I'm at a Texas school and I hear kids talking about needed to take out grad+ loans to cover living expenses.
 
maga1994 said:
Just to clarify, so we can expect these interest rates for the 2016-2017 year:
Direct Unsubsidized graduate loan: 5.31% + 1.069% (disbursement fee) = 6.379% (47K annual borrowing limit, thus 188K max - not 244K?)
Graduate Plus: 6.31% + 4.276% (disbursement fee) = 10.586%
🙁+pity+

Edit: there's hope!! http://www.ada.org/en/publications/...usive-student-loan-refinancing-offer-with-drb
Click to expand...

No, this is incorrect. The interest rate and origination fee are separate entities. The interest rate this year is 5.31%. The origination fee of 1.069% is taken off the top of the loan at the time of disbursement, it is not charged like an interest rate. So, if you are awarded a $40,500 Direct Unsubsidized Loan, you will receive a net $40,067 AFTER the fee. It's not an additional interest charge. You do not simply add the two together.
 
wengerin said:
Question: Why does no one take out private loans with a lower interest rate?
Click to expand...
Not sure if this was answered here, but people avoid private loans (even with a lower interest rate) because the interest rate can change throughout the life of the loan, whereas the interest rates of federal loans are locked in when you sign for them. Federal loans are also preferable because the interest is not capitalized until 6 months after you graduate, so you can pay off all of the interest accrued over 4 years of dental school if you get a job immediately after graduation, keeping the principal balance on your loans the original amount you borrowed. On the other hand, most private loans are regular capitalized interest loans.
 
Last edited:
The Flossopher said:
Not sure if this was answered here, but people avoid private loans (even with a lower interest rate) because the interest rate can change throughout the life of the loan, whereas the interest rates of federal loans are locked in when you sign for them. Federal loans are also preferable because the interest is not capitalized until 6 months after you graduate, so you can pay off all of the interest accrued over 4 years of dental school if you get a job immediately after graduation, keeping the principal balance on your loans the original amount you borrowed. On the other hand, most private loans are regular capitalized interest loans.
Click to expand...

This is mostly correct. Also, Federal Loans have much more flexible repayment and forgiveness options. In general, private loans are best with students who have perfect credit and/or a co-signer with perfect credit, who do not need to borrow their full cost of attendance (because private loans have lower caps), and who know for sure that they can pay the loan off quickly and aggressively after graduation.
 
whaleofatale said:
This is mostly correct. Also, Federal Loans have much more flexible repayment and forgiveness options. In general, private loans are best with students who have perfect credit and/or a co-signer with perfect credit, who do not need to borrow their full cost of attendance (because private loans have lower caps), and who know for sure that they can pay the loan off quickly and aggressively after graduation.
Click to expand...
You should post more often, @whaleofatale ! The lack of financial literacy among pre-dents and us dental students is dangerous; we need experts on these forums!
 
I'm oblivious to how the process of gaining funds for dental school works. Can any body post a good link for me to educate myself ? It would be greatly appreciated
 
Also if have terrible credit if you have any advice for that situation
 
Astatedental said:
I'm oblivious to how the process of gaining funds for dental school works. Can any body post a good link for me to educate myself ? It would be greatly appreciated
Click to expand...

From two years ago but I think it gives a good general idea
 
You must log in or register to reply here.

Similar threads

Aspiringtoothdoctor6
  • Locked
Closed
Replies
2
Views
519
Aspiringtoothdoctor6
Aspiringtoothdoctor6
Rainbowsheep5
Question about open/closed interviews
Replies
3
Views
854
Firik
Firik
C
Closed
Replies
0
Views
625
Cali20002
C
F
is there a thread to which schools have closed/open file interviews?
Replies
1
Views
832
artist2022
artist2022
C
Closed
Replies
1
Views
826
Meeza
Meeza
Top Bottom