Dealing With Undergrad + Vet School Student Loans

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Great Butts

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Hi all,

I apologize if a very similar thread has already been made - I did a quick search and there wasn't really an answer to my question.

I currently attend a private university, and as a result, have accrued a substantial amount of debt (~$100k). I'm trying to be a little more intelligent about my finances if I happen to matriculate into veterinary school this fall (c/o 2021!), but there is so much information to sift through on the internet that I'm not sure what to look at first.

I was considering loan repayment programs, and I know that USDA (VMLRP) and the government (PSLF) offers them. I was considering the NIH as well since I am most interested in zoonoses research - but how feasible would it be to obtain such an award fresh out of veterinary school?

Otherwise, how would private loans work in regards to veterinary schools? I am currently using a state subsidized loan program for my undergrad that provides an interest rate of ~5% (bless up), but I used a private loan program my first year and the interest is MASSIVE. Would you guys be able to provide advice in regards to what type of loan programs you used/scholarships out there/repayment programs?

I'm worried about my finances, but if I don't attend veterinary school, I won't be able to defer my loans and will have to stay at home working while I begin payments (which I would like to avoid as much as possible because of family issues).

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Hi all,

I apologize if a very similar thread has already been made - I did a quick search and there wasn't really an answer to my question.

I currently attend a private university, and as a result, have accrued a substantial amount of debt (~$100k). I'm trying to be a little more intelligent about my finances if I happen to matriculate into veterinary school this fall (c/o 2021!), but there is so much information to sift through on the internet that I'm not sure what to look at first.

I was considering loan repayment programs, and I know that USDA (VMLRP) and the government (PSLF) offers them. I was considering the NIH as well since I am most interested in zoonoses research - but how feasible would it be to obtain such an award fresh out of veterinary school?

Otherwise, how would private loans work in regards to veterinary schools? I am currently using a state subsidized loan program for my undergrad that provides an interest rate of ~5% (bless up), but I used a private loan program my first year and the interest is MASSIVE. Would you guys be able to provide advice in regards to what type of loan programs you used/scholarships out there/repayment programs?

I'm worried about my finances, but if I don't attend veterinary school, I won't be able to defer my loans and will have to stay at home working while I begin payments. I literally would not survive a year in my household - my parents are the source of many of my mental issues.
I did a private loan my first year of vet school. The interest rate was significantly lower than government loans, but you don't get the same repayment options that government loans allow you to have (income based repayment, even loan forgiveness). I can't even get rid of that loan if I die, it goes straight on my dad's shoulders. The only options are reduced minimum monthly payments, forbearance or temporarily interest reduction, but you really need to plead your case sometimes and prove it.
 
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I did a private loan my first year of vet school. The interest rate was significantly lower than government loans, but you don't get the same repayment options that government loans allow you to have (income based repayment, even loan forgiveness). I can't even get rid of that loan if I die, it goes straight on my dad's shoulders. The only options are reduced minimum monthly payments, forbearance or temporarily interest reduction, but you really need to plead your case sometimes and prove it.

May I ask what company you did your private loan through? Are you on government loans now?
 
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May I ask what company you did your private loan through? Are you on government loans now?
Discover. I think the low interest rate came from my parents having a decent credit history and a 20+ year old credit line with them. I think you have to have a cosigner for private loans unless you can provide your own proof of income, by the way. Discover also has a 1% bonus reward for good grades, but I wouldn't say that should be the reason to choose private over government lol. I'm on government loans now.

Really, I was really pressured into the private loan by my dad. I should have stuck to my guns, but he wouldn't listen. The low interest rate was nice, but I don't think I would have gotten it otherwise. Once I finally showed him that he's responsible for my loan if a horse kills me, and that I have no beneficial repayment options if I do an internship/residency, he backed off when the next FAFSA came around.

Government loans have a lot of repayment options you should look into. The only problem is that they seem to change everything periodically.
 
Discover. I think the low interest rate came from my parents having a decent credit history and a 20+ year old credit line with them. I think you have to have a cosigner for private loans unless you can provide your own proof of income, by the way. Discover also has a 1% bonus reward for good grades, but I wouldn't say that should be the reason to choose private over government lol. I'm on government loans now.

Really, I was really pressured into the private loan by my dad. I should have stuck to my guns, but he wouldn't listen. The low interest rate was nice, but I don't think I would have gotten it otherwise. Once I finally showed him that he's responsible for my loan if a horse kills me, and that I have no beneficial repayment options if I do an internship/residency, he backed off when the next FAFSA came around.

Government loans have a lot of repayment options you should look into. The only problem is that they seem to change everything periodically.

I used Discover my first year as well, with my father cosigning, but their interest rate was pretty high in comparison to what I'm using now. Are you using loans to fully pay off tuition, or are you still working/finding other means to fund your way through veterinary school?
 
I used Discover my first year as well, with my father cosigning, but their interest rate was pretty high in comparison to what I'm using now. Are you using loans to fully pay off tuition, or are you still working/finding other means to fund your way through veterinary school?
At this time, there isn't a way for me to feel comfortable spending enough time at a job while keeping my grades up. I did get a job working as a pet food company's corporate rep for my school, but the pay is just a few hundred dollars a school year so obviously that's not going to make a huge difference.

I'm 100% on loans now, regularly applying to scholarships. I haven't had much luck yet, but I'm already at roughly $90k in the hole (including interest) and I'm just in my second year. I still have next semesters distribution coming.

I know of people in my school that work a lot. Like, more than I ever could while passing. Every person is different when it comes to what they can handle. I know an Uber driver, a delivery driver, several people who work a day a week at a local clinic, and there are tons of jobs in the teaching hospital if you're willing to be on call. It's possible to make decent money as a vet student, you just have to balance your time.
 
Go for government loans.


Some perspective. ... I'm in my first year out of vet school. Had I gone with private loans, I'd have to do a 10 year repayment. ...at $4,000/month.

As a new grad, I make at the top range of starting salaries. My income post taxes is barely above $4k/month.... remember you still have to live. ...rent, utilities, etc. Without the government repayment plans, it would be incredibly difficult to make payments to absolutely impossible
 
Go for government loans.


Some perspective. ... I'm in my first year out of vet school. Had I gone with private loans, I'd have to do a 10 year repayment. ...at $4,000/month.

As a new grad, I make at the top range of starting salaries. My income post taxes is barely above $4k/month.... remember you still have to live. ...rent, utilities, etc. Without the government repayment plans, it would be incredibly difficult to make payments to absolutely impossible
Not all private loans hold you to a 10 year repayment, just FYI. Mine definitely doesn't.
 
Not all private loans hold you to a 10 year repayment, just FYI. Mine definitely doesn't.

True, but even at a 15 or 20 year repayment, the monthly amount isn't doable . .... if, a 20 year repayment were simply half that of a 10 year (it is more) that's still $2k/month. It really isn't feasible.
 
True, but even at a 15 or 20 year repayment, the monthly amount isn't doable . .... if, a 20 year repayment were simply half that of a 10 year (it is more) that's still $2k/month. It really isn't feasible.
Although, this brings up a good point for the OP. With the government loans, you technically have to have them paid within 20 years (according to my paperwork, anyways). It's just that once you hit 20 years, any unpaid balance is forgiven, you just are taxed on the remaining. For some of us, that can be tens of thousands of dollars on its own and should be saved up for, if that is your plan.

I'm not sure what happens if you can't cover that tax bill, actually
 
Go for government loans.


Some perspective. ... I'm in my first year out of vet school. Had I gone with private loans, I'd have to do a 10 year repayment. ...at $4,000/month.

As a new grad, I make at the top range of starting salaries. My income post taxes is barely above $4k/month.... remember you still have to live. ...rent, utilities, etc. Without the government repayment plans, it would be incredibly difficult to make payments to absolutely impossible

Are you still struggling with undergrad loans or are just repaying vet school loans now? I can't imagine having to struggle with loan payments at $4k/month while earning an average of $45k a year as a new grad.
 
Although, this brings up a good point for the OP. With the government loans, you technically have to have them paid within 20 years (according to my paperwork, anyways). It's just that once you hit 20 years, any unpaid balance is forgiven, you just are taxed on the remaining. For some of us, that can be tens of thousands of dollars on its own and should be saved up for, if that is your plan.

I'm not sure what happens if you can't cover that tax bill, actually

Would that be the same as defaulting on a loan? I know that the IRS will withhold income tax refunds until the loan is paid in full.
 
Are you still struggling with undergrad loans or are just repaying vet school loans now? I can't imagine having to struggle with loan payments at $4k/month while earning an average of $45k a year as a new grad.

I'm earning well above that average, but do keep in mind, people earn that 45k or sometimes less starting. And yes, I have undergrad loans too...some figured into that 4k and some private loans not figured into that. The income based repayment is nice. ...I'm paying a $0 minimum currently and next year should be paying around $600/month. I will never pay off my debt, that is just fact, but at least the government loans allow me the ability to live that I wouldn't have had I done everything as a private loan.
 
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I'm earning well above that average, but do keep in mind, people earn that 45k or sometimes less starting. And yes, I have undergrad loans too...some figured into that 4k and some private loans not figured into that. The income based repayment is nice. ...I'm paying a $0 minimum currently and next year should be paying around $600/month. I will never pay off my debt, that is just fact, but at least the government loans allow me the ability to live that I wouldn't have had I done everything as a private loan.

Thanks for your insight! I was thinking about going the private loan route, but it seems that government loans are the way to go. Hopefully, I can pay all of my tuition that way - I'm already living with the fact that I will never pay off my debt either, but I'm hoping that having a significant other to live with will make life a little easier.
 
Would that be the same as defaulting on a loan? I know that the IRS will withhold income tax refunds until the loan is paid in full.
No, it's not defaulting. If I haven't paid off my loan within 20 years of graduating, the remaining balance is forgiven with the income based or pay as you earn repayment plans. https://studentaid.ed.gov/sa/repay-loans/understand/plans . If you're not using those methods though, you won't get forgiveness as far as my understanding goes.

Again, I think that would only work if you crunched numbers and actively saved money to pay that tax bill. If you're in a position where you can't put money away each month for that tax bill, it won't work out for you. If you go back into deferment, forbearance, etc, those don't count towards your 20 years. I can't find what happens if you qualify for forgiveness but can't cover the taxes...I imagine you'd just keep paying as normal.
 
Thanks for your insight! I was thinking about going the private loan route, but it seems that government loans are the way to go. Hopefully, I can pay all of my tuition that way - I'm already living with the fact that I will never pay off my debt either, but I'm hoping that having a significant other to live with will make life a little easier.

You'll be able to pay all if your tuition that way. Plus living expenses. That's how most vet students are able to afford school
 
No, it's not defaulting. If I haven't paid off my loan within 20 years of graduating, the remaining balance is forgiven with the income based or pay as you earn repayment plans. https://studentaid.ed.gov/sa/repay-loans/understand/plans . If you're not using those methods though, you won't get forgiveness as far as my understanding goes.

Again, I think that would only work if you crunched numbers and actively saved money to pay that tax bill. If you're in a position where you can't put money away each month for that tax bill, it won't work out for you. If you go back into deferment, forbearance, etc, those don't count towards your 20 years. I can't find what happens if you qualify for forgiveness but can't cover the taxes...I imagine you'd just keep paying as normal.

Okay, I see what you're saying. Thanks for the info! I don't have much experience with direct government loans, so the link is helpful.
 
Thanks for your insight! I was thinking about going the private loan route, but it seems that government loans are the way to go. Hopefully, I can pay all of my tuition that way - I'm already living with the fact that I will never pay off my debt either, but I'm hoping that having a significant other to live with will make life a little easier.
You'll get 100% of what you need with either private or government loans, but I'd go towards government loans, even if the interest rates of some private loans catch your eye.
 
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I'm worried about my finances, but if I don't attend veterinary school, I won't be able to defer my loans and will have to stay at home working while I begin payments (which I would like to avoid as much as possible because of family issues).

I'm sure you didn't mean for it to sound this way but I hope that you're not saying that you're only going to vet school to be able to defer your loans. Vet school is an expensive choice to make and it wouldn't make any sense to dig yourself deeper into loans just to avoid paying loans back for a few years.




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I'm sure you didn't mean for it to sound this way but I hope that you're not saying that you're only going to vet school to be able to defer your loans. Vet school is an expensive choice to make and it wouldn't make any sense to dig yourself deeper into loans just to avoid paying loans back for a few years.




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Oh, definitely not. Veterinary school has been a career goal of mine since I was young - I wouldn't have it any other way. Veterinary school isn't easy to get into anyway, so it would seem silly of me to pursue acceptance for the sake of my loans. I was just saying that I'm sort of in a sticky situation with my finances, since I already have a ton of loans, I'm trying to see how I can manage my current loans and my future loans.
 
Oh, definitely not. Veterinary school has been a career goal of mine since I was young - I wouldn't have it any other way. Veterinary school isn't easy to get into anyway, so it would seem silly of me to pursue acceptance for the sake of my loans. I was just saying that I'm sort of in a sticky situation with my finances, since I already have a ton of loans, I'm trying to see how I can manage my current loans and my future loans.

Your question reminds me of my own personal experience... I graduated undergrad in 2013 with 120k worth of student loan debt and no veterinary school offers. I then accepted a government job, however I was only making 34,000. I was in a situation where my entire monthly paycheck was going to my 1000 dollar monthly student loan bill and rent/utilities. I struggled and had three jobs to get by. Got a job working in corporate and am working to pay as much of my debt before applying to veterinary school next cycle (my parents aren't thrilled about my decision to tack on a few hundred thousand to that already outstanding number, but why settle for a corporate job when you wanted to be a vet your entire life... I've accepted that I'll be in debt for the rest of eternity and never be able to retire). Anyways my biggest advice for you is to consolidate your undergrad private loans! Just make sure they offer deferment when you go back to school. I went from 1200 dollar payments to 800. I had some private loans that were at 9+% interest rates. Consolidating dropped me down to 5%. And if you want, you can keep a few smaller loans out of the consolidation so you can pay those off quicker. I also very much agree that going through government loans is the best since they offer various repayment options. I think there is a vet loan calculator somewhere? Called VIN? I've seen some threads discuss this a little bit.... but this can give you a rough estimate about what you can expect to pay on veterinary loans through different plans.

From my experience you will always find a way through financial struggle. Just do your research. My masters professor recently gave me the best advice.... you will always find a way if it's something you truly want to do.


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@Great Butts I can speak to the PSLF which is a newer program and is different from the 20 year forgiveness - I thought about doing it since I work in Public Health, but ultimately it didn't end up being a good option for me. PSLF (as I'm sure you know) requires 10 years of working in "public service" which encompasses a lot of jobs in public health (including mine in state public health, other positions at CDC and at NIH as well as other entities). It's open to anyone in these positions and doesn't require application. I researched this program ad nauseam - some of the reasons I didn't do it:

- When I first started in public health, I did a CDC fellowship which did NOT count toward PSLF. So not all positions, even in the same organization, will qualify. This means that you would be limited in the work you could do for some time if you relied on PSLF and I also found that there was a lot of confusion about what did and did not count.
- You have to be in a qualifying repayment program so most people doing PSLF choose income-based as it's *generally* the lowest payment per month. If something happens with the program, you could end up having to pay off all the extra interest accrued by choosing the lowest payment.
- PSLF was enacted in 2007, so the first cohort eligible for forgiveness will be 2017 (10 years post graduating). So at this point no one has even had their loans forgiven yet under this program.
- Over the past 4 years since I graduated from grad school, there's been a couple of attempts by the government to vote to cap the PSLF forgiveness amount. The most recent one was at around $57,000. If you are paying the minimum amount on a loan for 10 years, you're likely to owe way more than 50k at the end.
- There's no structure to being "in" the program. Basically, you print off a form and have your employer sign it and then you can send it in. However (at least right now), no one acknowledges or reviews the form until your 10 years is up. So you could find out late in the game that something doesn't qualify that you thought did.

I definitely think PSLF is something to consider, but I'd do a lot of research on it over the next few years and watch what happens as the first cohorts become eligible. Make some spreadsheets and graphs - I was literally blown away by how much risk I would have been taking to let my loans basically "sit" for 10 years. Also, a public health vets salary is not that terrible even being in public health haha, so you may not qualify for a repayment program that will make it worthwhile to do.

The nice thing is that you don't really have to decide to do it until after you graduate and even then, you're only making the decision by choosing your repayment program, you're not locked in. The biggest downside is that it makes the most sense to choose a repayment program that has you paying the least amount of money possible, so once you decide to do it you either have to commit to 10 years or you end up paying for that interest accrual later.

Completely unrelated to PSLF: I have a couple of friends that used the organization SoFi to consolidate their loans and reduce interest. One got a 4% rate and the other's was just under 4% for their entire amount they owe back. I'm not sure what all the restrictions are, but they did that 5 years ago and were just talking this weekend about being happy with it.

Good luck!
 
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Sorry for the late reply all, finals had me swamped. @ahallowell and @Awapi, thanks for all of the information! Super helpful as I'm trying to consider what I want to do with my loans when/if I get into veterinary school.
 
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