do people with rich parents take out loans also?

[somemaybedoc]

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so the parents are paying the additional interest just to build a credit history 🙄

Heres a crazy idea: get a credit card and use it to pay your recurring bills and all your other expenses. . I use my credit card in the mind set that I'm using debit - and I always pay it off in full every month. And my credit rating is "excellent". Follow this and overtime you'll develop a great credit history.

If the parents could pay it up front that means they have cash. Let's take that and dump it into the stock market; over the last 20 years the stock market has averaged about 12 percent returns per annum. Sure there is risk on a year to year basis, but long term there is not all that much. 12 percent is higher than 6.8 percent. So not only will they take out the loans; they will pay them off as slowly as possible. They are making money on the spread and building credit. There is risk, but people who can afford to pay cash up front can generally afford a little bit of risk for the probability of returns.

Not to mention educational dependency and tax dependency are separately determined so they can score a tax deduction on the interest if the student isn't making any money.

 

[alwaysaangel]

I don't understand what the problem is with med school. Isn't everyone considered independent -- and unless they themselves are extremely wealthy -- isn't EVERYONE eligible for full financial aid? (Staffords, Perkins, etc.)

I know I'm taking out all of those.

I'm talking about free money.

Most of us are not eligible for Perkins. But yes you'll get Staffords (subbed and unsubbed) and GradPLUS' to the full amount of cost of attendance.

I was more talking about the free money part, which would mean fewer loans. I think its COMPLETELY appropriate that medical schools ask for parental income to determine if someone gets grants/scholarships or not - a lot of people disagree.

 

[Chinorean]

The way my dad sees it is, it's a way of passing money on to his kids tax-free. In the end it's all supposed to come to us; this way we get more of it.

 

[Cirrus83]

Heh I think plenty of my classmates are having their doctor parents pay for their tuition. Some of them actually seem to have less free spending money though, since their parents don't neccessarily give them the same amount as the loans would have been, so they're actually broker than the kids with loans at least as far as liquidity is concerned, lol.

And then there's the kids who definitely have no liquidity issues.

But the vast majority of people seem to be taking loans. I know my mother offered to help (she's not a wealthy doctor btw, just a workaholic nurse) but I made it very clear that I didn't want her to do that.

Plus anyways, the loan interest rate is more or less acceptable now...not as good as a few years ago, but if you were a corporation you'd consider it "cheap money", so why not take it and let your parents invest their money someplace with better yield?

That said, if my mom was a bazillionaire who didn't have to work hella hard for her money, I might be more accepting of help, so if your parents are actually loaded I don't really think you should feel ashamed about accepting help. Plus seriously? Who do you think they're going to leave their money to in their will anyway, you're either gonna take their money now or take it later, so just suck up your pride and take the f'ing tuition help.

 

[GuitarAK22]

I think that's a good way to look at it: that it benefits both of you in the end.
I happen to be one of the people whose parents are paying for med school, and I have a good amount of spending money to go along with it. I greatly resent posters such as the person comparing me to Paris Hilton, this is absolutely ridiculous. People coming from families who can afford to support their children through medical school have two options: they can go the "Paris" route and throw money at their child, allowing them to do whatever they feel like without instilling values...

...or they can pay for medical school. Obviously I'm exaggerating here, but I think you see my point. What is the harm in providing funding for your child to work hard at something, and allow them the freedom to have extra money to raise a family and pay for a house after school without having to worry about paying off debts? My father worked extremely hard to earn what he has. And he happens to have enough to pay for med school so I don't have debts coming out of school. He just wants me to be happy, and with his life experience he feels that going through the financial hardships he did when he went through medical school would be unnecessary to teach me life's lessons I should be learning in my mid-20's.
And does it really matter, in the end? One poster claimed that he wouldn't want a doctor that hadn't taken out loans. That is absolutely ridiculous. Last I checked, everyone licensed to be an MD had to pass Steps 1, 2, and 3--regardless of who paid for them to take it. Everyone has to apply to medical school, everyone has to get in, everyone has to do a residency, and everyone has to exhibit competency in their practice before they can become an attending. So to claim that, because someone didn't take out loans, they aren't as good a doctor, is a little ignorant.
I must say, its exactly attitudes like this that almost make me 'ashamed' that my father is paying for medical school. I'm not ashamed, per se--although I'm sure some of the psychiatrists on my rotation there could have a session on the couch about it--but when did this culture arise in medical schools, this culture that, somehow, putting your dues in during school and residency isn't enough? Now we need to justify being poorer young attendings by taking out loans, even when the people we love are willing to pay for us?
And as to people who claim that you need to take out loans to learn how to live independently: I see your point, but I have to disagree. Financial independence is just one kind of independence. There are ways of teaching independence without revoking financial support.
Sorry for the rant. If you made it through, I'd love to hear your thoughts.

 

[TRAMD]

And as to people who claim that you need to take out loans to learn how to live independently: I see your point, but I have to disagree. Financial independence is just one kind of independence. There are ways of teaching independence without revoking financial support.

I make almost the exact same point in post #46. You are obviously a genius.

 

[RokChalkJayhawk]

I make almost the exact same point in post #46. You are obviously a genius.

Why even make this post? Honestly...

 

[RokChalkJayhawk]

Sorry for the rant. If you made it through, I'd love to hear your thoughts.

I am borrowing 100% of the cost of attendance as well as living expenses. I have nothing against people who are more fortunate. Sure I wish I was in their position, but I don't think any less of them.

And all doctor's kids are not wealthy enough for their parents to pay their way through medical school. I am one such example. This isn't to criticize anything you have said Guitar, but to counter a point made by many on these boards.

Any way you look at it... medical school is expensive.

 

[da8s0859q]

I am borrowing 100% of the cost of attendance as well as living expenses. I have nothing against people who are more fortunate. Sure I wish I was in their position, but I don't think any less of them.

God bless you, child.

 

[RokChalkJayhawk]

God bless you, child.

Go whine elsewhere.

 

[RokChalkJayhawk]

God bless you, child.

I take that back, whine as much as you want. But the only person I don't want as my doctor is someone who uses a sarcastic tone to antagonize people on the internet.

 

[TRAMD]

Why even make this post? Honestly...

To get my post count up. +1 Ka-CHING!

 

[da8s0859q]

Go whine elsewhere.

I was being supportive of your "best to them" attitude - NOT being sarcastic or insulting whatsoever. I think it's fantastic that you adopt such a mature attitude towards people that have such support while not always having the same thing yourself, and I wish other people would do the same in lots of situations, financial and otherwise.

Of course, you can wrongfully jump on my ass on a forum some more if you'd like. 😛

 

[RokChalkJayhawk]

I was being supportive of your "best to them" attitude - NOT being sarcastic or insulting whatsoever. I think it's fantastic that you adopt such a mature attitude towards people that have such support while not always having the same thing yourself, and I wish other people would do the same in lots of situations, financial and otherwise.

Of course, you can wrongfully jump on my ass on a forum some more if you'd like. 😛

Sorry bout that... I took it as being sarcastic. I guess the only thing that rubbed me the wrong way was "child"

 

[da8s0859q]

Sorry bout that... I took it as being sarcastic. I guess the only thing that rubbed me the wrong way was "child"

Nah, I say goofy things like that - didn't mean badly by it.

 

[MSKalltheway]

I think that's a good way to look at it: that it benefits both of you in the end.
I happen to be one of the people whose parents are paying for med school, and I have a good amount of spending money to go along with it. I greatly resent posters such as the person comparing me to Paris Hilton, this is absolutely ridiculous. People coming from families who can afford to support their children through medical school have two options: they can go the "Paris" route and throw money at their child, allowing them to do whatever they feel like without instilling values...

...or they can pay for medical school. Obviously I'm exaggerating here, but I think you see my point. What is the harm in providing funding for your child to work hard at something, and allow them the freedom to have extra money to raise a family and pay for a house after school without having to worry about paying off debts? My father worked extremely hard to earn what he has. And he happens to have enough to pay for med school so I don't have debts coming out of school. He just wants me to be happy, and with his life experience he feels that going through the financial hardships he did when he went through medical school would be unnecessary to teach me life's lessons I should be learning in my mid-20's.
And does it really matter, in the end? One poster claimed that he wouldn't want a doctor that hadn't taken out loans. That is absolutely ridiculous. Last I checked, everyone licensed to be an MD had to pass Steps 1, 2, and 3--regardless of who paid for them to take it. Everyone has to apply to medical school, everyone has to get in, everyone has to do a residency, and everyone has to exhibit competency in their practice before they can become an attending. So to claim that, because someone didn't take out loans, they aren't as good a doctor, is a little ignorant.
I must say, its exactly attitudes like this that almost make me 'ashamed' that my father is paying for medical school. I'm not ashamed, per se--although I'm sure some of the psychiatrists on my rotation there could have a session on the couch about it--but when did this culture arise in medical schools, this culture that, somehow, putting your dues in during school and residency isn't enough? Now we need to justify being poorer young attendings by taking out loans, even when the people we love are willing to pay for us?
And as to people who claim that you need to take out loans to learn how to live independently: I see your point, but I have to disagree. Financial independence is just one kind of independence. There are ways of teaching independence without revoking financial support.
Sorry for the rant. If you made it through, I'd love to hear your thoughts.

👍 I agree with absolutely everything in this post. Everyone has a different situation, and some are fortunate enough to have their parents financially support them through medical school. I chose a scholarship to college over going to top schools. Why? Because even after having my parents pay for practically everything for me all through the age of 18, they still raised me to know the value of a dollar. If they paid for med school for me, would I be less independent or less knowledgeable of money management? I think making a blanket statement that those who are fortunate to have parents that can pay for such an expensive education, and who are generous enough to actually do it dont raise kids with a sense of independence is unfair. It is equally unfair to say they are not worthy to be seen as well. No matter who pays for your education, your patients are going to think you are rich even if you are scraping by. This is not the old days when education was far cheaper.

Guitar, you should not be ashamed about this at all. Its great that your parents want to help you out. I want to make sure my kids dont have to pay a dime for their education, because being financially secure wont get any easier.

 

[CatsandCradles]

My parents don't even come close to the 300K mark, but they pay for my tuition. I think I got lucky in that I'm:
- only child
- going to state school
- dad worked in hospital lab for 25 years, and part of his retirement package includes 1/2 tuition for children.

Wow.

That's awsome.

 

[soleluna]

Yeah, it is a cultural thing to some extent. But on the other hand, if I am a patient, I would feel more comfortable if the doc who is making life or death decisions for me, is not dependant on his or her mother or father to cover his or her ass financially. I would prefer that my doc is a fully capable fully functioning adult, not some kid who does not need a credit card because Pop pays all the bills. I guess I don't want Doogie Houser as my physician, give me an adult please.

Well, I am Italian and here people stay at home until about 20-30 too.
But it doesn't mean we are not good doctors or that we are not indipendent. In my family, and most med students families I know, we prefer not to have loans, because we don't want to have debt with anyone, and staying at home is the only way for the family to afford the costs, especially since it's impossible to work while in med school.

 

[Ubadub]

hhhhhh

 

[ChePibe]

Let me pose the question in a different manner. I have saved up enough money to put me through med school, would you still get loans or use up almost all your saved money to pay for school? I'm leaning towards the second one. But then again, there's the very important matter of actually making it into med school, which is what I'm working on as we speak.

 

[limpkitty]

Let me pose the question in a different manner. I have saved up enough money to put me through med school, would you still get loans or use up almost all your saved money to pay for school? I'm leaning towards the second one. But then again, there's the very important matter of actually making it into med school, which is what I'm working on as we speak.

The smart move would be to take out the cheap loans and pay the rest out of your pocket.

 

[Cirrus83]

Let me pose the question in a different manner. I have saved up enough money to put me through med school, would you still get loans or use up almost all your saved money to pay for school? I'm leaning towards the second one. But then again, there's the very important matter of actually making it into med school, which is what I'm working on as we speak.

Take the interest free stuff without thinking if you qualify (subsidized) and then I'd debate on the remainder. Having some extra liquidity can help keep things smooth though, I honestly wouldn't feel too comfortable with no money in the bank and depending on every last penny of my loan refunds.

 

[MSKalltheway]

Let me pose the question in a different manner. I have saved up enough money to put me through med school, would you still get loans or use up almost all your saved money to pay for school? I'm leaning towards the second one. But then again, there's the very important matter of actually making it into med school, which is what I'm working on as we speak.

Taking all the unsub is probably best since you wont have to pay any interest on it during school. Even if you dont need to use it at all, putting that amount in a high yield account like other posters have suggested will give you some extra cash on top of that, and besides, you can always give it right back if you dont use it.

 

[enlightenedhick]

.

 

[Napoleown]

Do many attending jobs offer loan forgiveness?

 

[doctorsartorius]

My father is a pulmonologist and I have to take out student loans, but I have an older sister who went to law school and a younger brother who went to a private grad school, so it would be unfair for him to pay for 1 child and not the other two and there is no way that he could pay for the 3 of us combined.

 

[humuhumu]

Let me pose the question in a different manner. I have saved up enough money to put me through med school, would you still get loans or use up almost all your saved money to pay for school? I'm leaning towards the second one. But then again, there's the very important matter of actually making it into med school, which is what I'm working on as we speak.

Take out the loans and invest your savings in something that is likely to pay a higher rate of return than your interest payments. Even if you can't find said investment, it will be nice to have that wad of cash when it comes time to purchase a home (if you haven't already purchased one). There is no good reason to deplete your savings.

 

[deleted103644]

If you've worked for a bit out of college, it doesn't matter for federal loans how much your parents make (even if they help you out on your tuition). So if you can get a subsidized loan, you should certainly take it since you won't have to pay interest on it until you graduate. Most school loans take into account parental income.

 

[yadayadadude]

Wealthy people are wealthy people because they are wise with their money. Medical school loans charge interest which is tax-deductable (putting parents, student, or whomever into a lower % tax bracket).

Why have $100,000 - $300,000 paid towards medical school bills, when instead...

you can take FAFSA and 'write off' the interest you pay, helping decrease the sum of 'total claimed income' come tax time (perfectly legal).

Winners think like winners. Wealthy people think like wealthy people.

This is a very persistent misconception around here.

YES, student loan interest is an above-the-line tax deduction (meaning you don't have to itemize to get the deduction), BUT it is phased out at incomes above $50,000 ($105,000 for married filing jointly) and eliminated completely at incomes above $65,000 ($135,000 for married filing jointly). Unless you are married with a non-working spouse, you will only see this advantage when you are a resident, assuming you are making student loan payments then. And even if you are making payments during residency, you are already in a low income tax bracket because your income is crap. Finally, the maximum deduction allowed is $2500, saving you something like $800 on your taxes. This is hardly going to make your fortune.

In order to "think like a winner", it helps to start with accurate information.

 

[TRAMD]

This is a very persistent misconception around here.

YES, student loan interest is an above-the-line tax deduction (meaning you don't have to itemize to get the deduction), BUT it is phased out at incomes above $50,000 ($105,000 for married filing jointly) and eliminated completely at incomes above $65,000 ($135,000 for married filing jointly). Unless you are married with a non-working spouse, you will only see this advantage when you are a resident, assuming you are making student loan payments then. And even if you are making payments during residency, you are already in a low income tax bracket because your income is crap. Finally, the maximum deduction allowed is $2500, saving you something like $800 on your taxes. This is hardly going to make your fortune.

In order to "think like a winner", it helps to start with accurate information.

You should have gone to law school instead.

 

[chocomorsel]

My parents fit into the $300k+ category. They paid for my tuition and fees, bought me a car and helped with my downpayment on my house. I still have $120k in loans because I needed the money to pay for my mortgage, my wife's car, bills, gas, groceries, etc for me and my family. I am responsible for paying back my loans. The car and house downpayment are no-interest loans that I need to pay back to my parents someday. The tuition (a total of $60k) was a gift. The best part about having my parents help me out is that I have never owned a credit card.

Damn!!!!! Must be niiice😀😀😀😀 Very nice.
But you do need to own a credit card soon. What kinda grown man doesn't own a credit card. You know, to reserve stuff and build your own credit. But I guess if you got it like that since you already have the house with your name on it I assume. So, is your wife in school too?

 

[yadayadadude]

You should have gone to law school instead.

*shrug*

Sorry, this just happens to be one of my (irrational, I admit) pet peeves. The argument that you should borrow money so you can avoid paying income taxes on a portion of the interest that you pay is ... breathtakingly dumb.

In my humble opinion.

 

[TRAMD]

Damn!!!!! Must be niiice😀😀😀😀 Very nice.
But you do need to own a credit card soon. What kinda grown man doesn't own a credit card. You know, to reserve stuff and build your own credit. But I guess if you got it like that since you already have the house with your name on it I assume. So, is your wife in school too?

I did tell a little bit of a fib. I DO own a credit card. It is the AMSA platinum Mastercard and I was assured by the lady I got it from that I didn't have to use it to have it and could start using when I felt like it . . . I just have never used it . . . for 4 years. So I have a credit card, but have NEVER used it. I don't know if this counts, but my Wells-Fargo check card acts like a credit card for all purposes such as reserving hotel rooms, buying stuff online, etc. I don't like the idea that you need a credit card to build credit. My credit scores have always been around 740 and I have great rates on my house and car loans.

My wife works as a nanny and takes care of my 2 year-old son and her 7 months pregnant belly.

 

[TRAMD]

*shrug*

Sorry, this just happens to be one of my (irrational, I admit) pet peeves. The argument that you should borrow money so you can avoid paying income taxes on a portion of the interest that you pay is ... breathtakingly dumb.

In my humble opinion.

It is a good pet peeve. I meant my comment as a compliment. I don't always like lawyers, but I respect many of them.

 

[shivasHeroLike]

ya my fams pretty well off..
& because we didn't want to pay the interest rates if we could already afford it.

my parents are all about saving money and they hated the idea of having to pay more money than necessary.

so thats my situation

 

[montessori2md]

The thing about paying as you go is, let's say 3rd year you get super tired, throw your car into a ditch and they can't get your heart started, your parents, or you, or your sugardaddy, still have all that cash, and your gov't loans are forgiven -no one ever has to pay for that. So, from a fiscal conservative perspective, the intelligent thing to do is take out the federal loans, and whatever $$ you could have put towards tuition, invest it.

Oh, and all grown-ups should try to establish a credit record. Yeah, you're gonna be an MD, people will loan you $$$, blah blah blah. All grown-ups should try to have a decent FICO, unless they're tryin' to hide from the Man and want to stay off their radar by paying for everything without plastic or a bank.

There's a whole thread about the OPs question in the finaid forum FAQ.

 

[Re3iRtH]

You don't have to have a parent that makes that much more. My parents don't pay for me--although they did help out with the downpayment for my mortgage--but my girlfriend's sister is having her dad pay for all of her tuition/fees/room and board. He dad doesn't make too much over 300, but he's been making this kind of money for a long time. In any casey, my point is that your parents don't have to be filthy rich to help out a little (my case) and they don't have to be making millions to pay for it all (my girlfriend's sister's case).
Call me a fool, but I'd feel bad if my parents straight up paid for it all. There has to be some point when you get out from under their wings.

Funny, because I've met some med students who had no problem having
their parents pay for med school, in fact, they didnt even think
twice about it. And the income doesnt have to be anywhere near 300k,
it just depends on what the parents want to spend.

 

[rickthetwinkie]

Yeah, it is a cultural thing to some extent. But on the other hand, if I am a patient, I would feel more comfortable if the doc who is making life or death decisions for me, is not dependant on his or her mother or father to cover his or her ass financially. I would prefer that my doc is a fully capable fully functioning adult, not some kid who does not need a credit card because Pop pays all the bills. I guess I don't want Doogie Houser as my physician, give me an adult please.

Until you know the actual person, may I suggest that you refrain from making judgments about his maturity just because his parents have the wherewithal to help him pay for his medical education?

 

[searun]

Until you know the actual person, may I suggest that you refrain from making judgments about his maturity just because his parents have the wherewithal to help him pay for his medical education?

According to your profile, your primary criteria for selecting a medical school was a short driving distance to your parents' house. So I understand why you are a little sensitive about comments that joke about parent-child relationships and uncut umbilical cords.

 

[rickthetwinkie]

According to your profile, your primary criteria for selecting a medical school was a short driving distance to your parents' house. So I understand why you are a little sensitive about comments that joke about parent-child relationships and uncut umbilical cords.

FYI, I do not live with my parents, but I would like to be around my family because, you know, I consider them somewhat important in my life. Just because I want to maintain a close relationship with my parents means nothing about my state of dependence. Again, before you start making comments about someone's maturity and why they make decisions, maybe you should wait until you actually have information about the person rather than making disparaging remarks about something you have less than enough information about.

 

[searun]

FYI, I do not live with my parents, but I would like to be around my family because, you know, I consider them somewhat important in my life. Just because I want to maintain a close relationship with my parents means nothing about my state of dependence. Again, before you start making comments about someone's maturity and why they make decisions, maybe you should wait until you actually have information about the person rather than making disparaging remarks about something you have less than enough information about.

Fair enough. The next time that I am in Alabama, I will stop by and buy you a cup of coffee and get to know you. Besides, I have always wanted to visit a university where 92,000 people show up in April to watch the football team scrimmage among themselves. That would be a fascinating spectacle. Was Bear Bryant reincarnated as Lou Saban? Or is God really Bear Bryannt as rumoured?? Seriously, 92,000 people at the Alabama spring scrimmage, according to Sports Illustrated. Some grad student in sociology at the University of Alabama just got a great topic for a Ph.D thesis. Don't take yourself quite so seriously (removing my tongue from my cheek).

 

[rickthetwinkie]

Fair enough. The next time that I am in Alabama, I will stop by and buy you a cup of coffee and get to know you. Besides, I have always wanted to visit a university where 92,000 people show up in April to watch the football team scrimmage among themselves. That would be a fascinating spectacle. Was Bear Bryant reincarnated as Lou Saban? Or is God really Bear Bryannt as rumoured?? Seriously, 92,000 people at the Alabama spring scrimmage, according to Sports Illustrated. Some grad student in sociology at the University of Alabama just got a great topic for a Ph.D thesis. Don't take yourself quite so seriously (removing my tongue from my cheek).

Its a cultural thing, buddy. There are plenty of very intelligent people here who, despite being very intelligent, would probably be one of the 92,000 to see the spring scrimmage. I don't happen to be one of them. I'm sure in the area you live there are equally "fascinating" cultural spectacles. But I'm sure you don't participate in those, either.

I'm sure we can discuss this over coffee. Just pick a Starbucks. There's two of them within half a mile of each other on 20th street. Or we can go to Lucy's. That's right next to one of the Starbucks'. I think we can rest easily knowing that your parents had no hand in paying for the coffee. Because, you know, that's important.

 

[searun]

Its a cultural thing, buddy. There are plenty of very intelligent people here who, despite being very intelligent, would probably be one of the 92,000 to see the spring scrimmage. I don't happen to be one of them. I'm sure in the area you live there are equally "fascinating" cultural spectacles. But I'm sure you don't participate in those, either.

I'm sure we can discuss this over coffee. Just pick a Starbucks. There's two of them within half a mile of each other on 20th street. Or we can go to Lucy's. That's right next to one of the Starbucks'. I think we can rest easily knowing that your parents had no hand in paying for the coffee. Because, you know, that's important.

You are right, I will be paying for the coffee, with the money I earned working my ass off on a construction job last summer, sweating it out with the rest of the folks who sweat for a living....so now, as I sit in this air conditioned library at medical school as an M1, I will never complain about how tough it is being a medical student, I will just feel how blessed I am for this opportunity. So I will pay for the coffee, with my own money. And go Crimson Tide! But watch out for LSU!

 

[45408]

I will never complain about how tough it is being a medical student, I will just feel how blessed I am for this opportunity.

Never? I doubt that. Despite sweating my ass off all summer as well, there are definitely days I wish I was back outside working rather than trying to study.

 

[TRAMD]

The thing about paying as you go is, let's say 3rd year you get super tired, throw your car into a ditch and they can't get your heart started, your parents, or you, or your sugardaddy, still have all that cash, and your gov't loans are forgiven -no one ever has to pay for that. So, from a fiscal conservative perspective, the intelligent thing to do is take out the federal loans, and whatever $$ you could have put towards tuition, invest it.

Oh, and all grown-ups should try to establish a credit record. Yeah, you're gonna be an MD, people will loan you $$$, blah blah blah. All grown-ups should try to have a decent FICO, unless they're tryin' to hide from the Man and want to stay off their radar by paying for everything without plastic or a bank.

There's a whole thread about the OPs question in the finaid forum FAQ.

Does anyone REALLY know how a credit score is figured? I truly believe "building credit" with a credit card is propaganda from credit card companies. A high FICO will go to someone who will take out a loan, always make their payments on time and make payments for the full term of the loan. Why? Because that is who the lender makes the most money off of. My parents are multimillionaires and have never had a late payment on anything and have multiple credit cards that they pay the balance off on every month--sounds like the perfect formula for someone to have a credit score over 800. I am $140,000 in debt from school loans and have never had a credit card. I have a better credit score than they do (740 vs 720). Why is this? It is because I fit the bill of what was described above perfectly. I have always paid my bills on time (rent, utilities) and have a decent job so I can make my payments but I don't make enough to pay off my principle. My parents buy things outright or pay off big loans within a couple years. They are not the ideal people to lend to because they pay off the principle of loans too quickly. Sure, you will get your money back, just not with as much interest as with someone like me.

 

[rickthetwinkie]

You are right, I will be paying for the coffee, with the money I earned working my ass off on a construction job last summer, sweating it out with the rest of the folks who sweat for a living....

You truly are a man of the people. Just by virtue of all the sweat you poured into working during the summer, the coffee will be doubly as invigorating. Along with your ability to discern maturity levels just by knowing someone's source of financial aid, this certainly makes you better than everyone else.

 

[45408]

Does anyone REALLY know how a credit score is figured?

a secret formula used by Fair Isaac & Co, but it includes these:

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

 

[searun]

Never? I doubt that. Despite sweating my ass off all summer as well, there are definitely days I wish I was back outside working rather than trying to study.

You are right, I will complain. During third year and during residency and probably when I am studying at the end of second year. I will bitch like everyone else. But during this past year before med school, I worked with this hispanic guy, Alfredo, who was part of my work crew, and he did not have his documentation, we traveled around the Northwest and to Alaska to work, he only ate two meals a day, and then slept on the floor in our motel room at night, and bounced up at 6 am ready to go....this guy had a work ethic and work skills that are the model for my life. That is guy is my hero and role model.

 

[TRAMD]

a secret formula used by Fair Isaac & Co, but it includes these:

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

I have seen that kind of stuff before but it doesn't really tell you a lot. I do appreciate your effort.

 

[Re3iRtH]

You are right, I will complain. During third year and during residency and probably when I am studying at the end of second year. I will bitch like everyone else. But during this past year before med school, I worked with this hispanic guy, Alfredo, who was part of my work crew, and he did not have his documentation, we traveled around the Northwest and to Alaska to work, he only ate two meals a day, and then slept on the floor in our motel room at night, and bounced up at 6 am ready to go....this guy had a work ethic and work skills that are the model for my life. That is guy is my hero and role model.

That is really inspiring. I just started MS1, and only a couple of patients
into my career as a health care provider, just seeing a patient bed-ridden
because they were over in Iraq, made me wonder how anyone can ever
complain about med school. If I ever do complain about it, I'll admit to
it, but it makes me think that seeing stuff like this will pretty much give
me no reason to complain.