Defering payments for undergrad debt

[clinicallabguy]

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I thought this had been addressed before, but did a search and didn't find it. Anyway, if this is rehash I apologize. My question:

I have about $15,000 in undergrad debt, and I am starting medical school next year. What do I need to do to make sure that I don't have to make payments on that amount?

Initially, I thought that I wouldn't go into repayment, b/c I would be back in school before 6 months was over. But, now I wonder if this is correct. Is it possible that I will have to start paying on this while in medical school?

 

[lord_jeebus]

Your situation is very common and I have never heard of a lender that would force you to make payments while in medical school.

 

[nontrdgsbuiucmd]

One other consideration is the type of loans -- federal loans can be deferred while one is in school half time or more so you'd be fine there. Some private loans will have different rules; I'd think they'd grant an exception such that no payments would be due, but if you have private loans you may want to contact the lenders to confirm this rather than potentially getting stressed about nasty lender letters received during med school.

one other cool thing about some federal loans -- if the loan is subsidized, no interest will accrue (be tacked onto the loan) while you've got an in-school deferral.

 

[clinicallabguy]

One other consideration is the type of loans -- federal loans can be deferred while one is in school half time or more so you'd be fine there. Some private loans will have different rules; I'd think they'd grant an exception such that no payments would be due, but if you have private loans you may want to contact the lenders to confirm this rather than potentially getting stressed about nasty lender letters received during med school.

one other cool thing about some federal loans -- if the loan is subsidized, no interest will accrue (be tacked onto the loan) while you've got an in-school deferral.

Very good info. Thank you. All of my loans are subsidized Stafford loans, so this is good news. It stinks, however, that I'll max out on Stafford loans in medical school pretty quickly. But, we all will.

 

[TMP-SMX]

Very good info. Thank you. All of my loans are subsidized Stafford loans, so this is good news. It stinks, however, that I'll max out on Stafford loans in medical school pretty quickly. But, we all will.

You mean your aggregate limit? No you won't. The limit for undergrad and med school is $224,000. It is $40,500 per year.

 

[nontrdgsbuiucmd]

would appreciate an update on this area pls.. I thought that the stafford was only available up to around 8,500 per year (is that correct that stafford is subsidized by definition?), and then unsubsidized federal loans are available above that up to some max (maybe that's the 40K mentioned above presuming the school's total allowed "cost" is that high?)

Fortunately I'll be at a state school, but even there total cost last year was around 44K -- that extra 3-4K would need to come from savings or a grad + loan? thx

 

[akpete]

would appreciate an update on this area pls.. I thought that the stafford was only available up to around 8,500 per year (is that correct that stafford is subsidized by definition?), and then unsubsidized federal loans are available above that up to some max (maybe that's the 40K mentioned above presuming the school's total allowed "cost" is that high?)

Fortunately I'll be at a state school, but even there total cost last year was around 44K -- that extra 3-4K would need to come from savings or a grad + loan? thx

The annual limits in medical school are $8500 for subsidized and $40500 for total federal loans (subsidized plus unsubsidized). Stafford = federal. i.e. subsidized Stafford and unsubsidized Stafford.

You are limited by your school's COA. If the COA is above the $40500 mark, then it's your decision - money you may have saved, private loans, family, work, creating a budget and deciding you don't actually need it, etc. Local aid can help with this too. I've luckily not needed private/grad plus loans because even though my COA has been around $55000, there have been institutional loans and state medical society loans available to get my need back into the $40500. In general the terms of these loans aren't better than Stafford, just equal.