Consolidating while in school

[vmaheshw]

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My financial aid advisor just told us that they are allowing medical students to consolidate their loans while still in school. I've read through some of the threads and still am not sure if this is a good thing to do. Does anybody have some credible experience with this as to the pros or cons?

I realize that I will be giving up my grace-period, but wouldn't i be applying for economic hardship defrement during residency anyways?

Also, can anybody suggest who is/are the people to consolidate with or if there is any difference in the first place.

Thanks

 

[mpp]

Check the FAQ in the Financial aid forum.

 

[GeneGoddess]

I realize that I will be giving up my grace-period, but wouldn't i be applying for economic hardship defrement during residency anyways?

That's not always true. Direct Loans permits you to keep the full grace period if you consolidate while in school.

 

[TommyGunn04]

I realize that I will be giving up my grace-period, but wouldn't i be applying for economic hardship defrement during residency anyways?

Do you know if you'd actually qualify for the economic hardship deferment? By my calculations, it looks like with a typical intern's salary you'd need at least $100k in loans to qualify (although in the end it depends on the types of loans and their interest rates). SallieMae has a deferment calculator online that can help you figure it out: http://www.salliemae.com/aamc/

 

[vmaheshw]

With undergrad and med. school put together, I think i am unfortunately going to be somewhere near 175K. I guess on the positive note I can qualify for economic hardship then.

 

[mpp]

You use the prior year's income tax return when you apply for residency. So, for your first year of residency, for most interns, their salary will be $0 (assuming they did not earn an income in their 4th year of medical school). For the 2nd year of residency they will take out your intern salary for the calendar year which would include 6 months of salary (July-Dec). Your third year, you are correct....you are on your own. If your loan payment isn't high enough, you won't qualify. This is the downside to consolidating to repayment term of 30 years. You payment is so low that you may not qualify for hardship deferment.