Debt Financing

[jojo88]

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OK, so the max Stafford loan we can get is something like 168,000 (sub and unsub)...or so I understand. For those of you that will be going to a private institution where it is expected (for some) that you will have close to 300,000....where will you find the additional funding to make up the difference?

 

[JavadiCavity]

One way to get the financing is this:

Financial Aid: $8,500 (Subsidized); $10,000 (Unsubsidized); $22,000 (Additional Unsbusidized). That makes for a total of $40,500.

If you need more than this you have three options: 1--get a Health Professions Student Loan. This loan is awarded to dental students and the maximum amount is equal to tuition, living expenses, and school fees (a total, called the budget, that each school decides). 2--A private loan. The disadvantage of these is the cost of borrowing. 3--Scholarships. Obviously these are highly competivtive, and shouldn't be counted on as a guaranteed source of funds for all students or at every school.

Honestly, I think that between the Stafford Loans and the Health Professions Student Loan, you should have more than enough money to see you through 4 years of dental school and beyond, and you'll never have to work a day while you go to school (if you don't want to). The key is that the HPSL will make up the difference between where the Stafford Loan falls short and what the school demands in costs.

 

[ItsGavinC]

You can take out ~$30,000 unsub Stafford and $8500 sub Stafford, so without looking at ANY private loans, you are already at ~$38,500.

Access Group loans have NO borrowing costs or fees, and are a great traditional loan for medical and dental students.

 

[ShawnOne]

Originally posted by JavadiCavity

If you need more than this you have three options: 1--get a Health Professions Student Loan. This loan is awarded to dental students and the maximum amount is equal to tuition, living expenses, and school fees (a total, called the budget, that each school decides). 2--A private loan. The disadvantage of these is the cost of borrowing. 3--Scholarships. Obviously these are highly competivtive, and shouldn't be counted on as a guaranteed source of funds for all students or at every school.

Honestly, I think that between the Stafford Loans and the Health Professions Student Loan, you should have more than enough money to see you through 4 years of dental school and beyond, and you'll never have to work a day while you go to school (if you don't want to). The key is that the HPSL will make up the difference between where the Stafford Loan falls short and what the school demands in costs.

This is not true. The HPSL has a 6,000 max per year. so after that you must resort to private loans. I had a lengthy conversation with the USC financial aid rep who explained it to me thoroughly.

So from Stafford Loans you can get about $43,000 annually. You can get another $6,000 from HPSL. Finally, you can get $3,000 from a Perkins Loan (nobody has mentioned this one yet)

Thats a total of: $52,000 annually from those three sources. Now consider a school like USC, NYU, and BU have a COA of $75,000 per year. Your gonna need an additional $23,000 in private loans every year. Thats the reality.

 

[JavadiCavity]

For ShawnOne and any other intersted folks:

The below excerpt comes from the law(Section 722(a) of the Public Health Service Act) that governs the HPSL funds. I'm not sure what the financial aid lady told you, but below it is very clear that the HPSL award can be equal to <B>AMOUNTS THAT DO NOT EXCEED THE COST OF ATTENDANCE(INCLUDING TUITION, OTHER REASONABLE EXPENSES, AND REASONABLE LIVING EXPENSES).</B>

I'm not sure where the $6,000 number comes from, but I'm not sure I believe it due to the information below.

Chapter 4 TERMS AND CONDITIONS OF THE HPSL PROGRAM

This chapter reviews the characteristics of the HPSL program such as maximum amounts that students may borrow, interest rates, deferment options, repayment requirements, cancellation provisions, and loan consolidation.

Section 1 LOAN AMOUNTS

<b>Loans made on or after November 13, 1998, may be made in amounts that do not exceed the cost attendance (including tuition, other reasonable educational expenses, and reasonable living expenses).</b> Previously the maximum loan amount was tuition plus $2,500. Before making decisions about how much an individual student receives in HPSL funds, schools must be sure that students meet the statutory and regulatory eligibility criteria described in Chapter 3, Section 1, Student Eligibility Criteria.

[Section 722(a) of the Public Health Service Act]

 

[ShawnOne]

Previously the maximum loan amount was tuition plus $2,500.

OK, I think I have it figured out. The 6,000 number is specific for USC and that is because its the difference between what the Stafford loan covers and the tuition plus 2,500.

Its important to note that this implies that you CAN NOT take the HPSL loan for amounts over tuition plus 2,500. In other words, you cant take those loans for living expenses, equiptment, etc.

For those, you must take private loans.

Agree/disagree? Make sense?

 

[JavadiCavity]

Disagree. Reread the section I posted from the Act. The Act says for loans made PRIOR to November 13, 1998, the total award could not exceed TUITION plus $2,500. As the act is written now, ALL LOANS made AFTER November 13, 1998 may not exceed TUITION, REASONABLE EXPENSES, AND REASONABLE LIVING EXPENSES. So, you can actually borrow up to whatever the school budget is.

If you disagree still, read the below excerpt. I copied it from the actual Act. I know the wording is difficult to understand since its in legalese, but I think it's really to everyone's advantage to understand what the HPSL can do. To read through all of the provisions within Section 722(a) of the Public Health Service Act click on the following link:

http://bhpr.hrsa.gov/dsa/sfag/health_professions/bk1prt1.htm


<b>ACTUAL WORDING OF THE ACT: </b>

<i>Chapter 4 TERMS AND CONDITIONS OF THE HPSL PROGRAM

This chapter reviews the characteristics of the HPSL program such as maximum amounts that students may borrow, interest rates, deferment options, repayment requirements, cancellation provisions, and loan consolidation.

Section 1 LOAN AMOUNTS

<b>Loans made on or after November 13, 1998, may be made in amounts that do not exceed the cost attendance (including tuition, other reasonable educational expenses, and reasonable living expenses). Previously the maximum loan amount was tuition plus $2,500. </b>Before making decisions about how much an individual student receives in HPSL funds, schools must be sure that students meet the statutory and regulatory eligibility criteria described in Chapter 3, Section 1, Student Eligibility Criteria.

[Section 722(a) of the Public Health Service Act]</i>