Does anyone borrow more than the schools budget?

[Ramoray]

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Ok well i am trying to get my loans figured out here, and im looking at my schools 1st year budget of 56k, and i am wondering if anyone gets more than that in private loans. I mean that is already including a 18k private loan but id rather not be so poor and take a little bit more.. any insight on this. or do private lender even allow u to go over the schools budget?

 

[tkim]

Ramoray, the phrase I've heard repeated over at each financial aid presentation when I was interviewing was: "Live like a doctor while a student, live like a student while a doctor." You probably heard that, too.

But, I also know that GW is on the pricy side - and DC costs as well.

There are things called 'no-doc' loans - as in 'no documentation' required for the loan. Most loans require your school to certify a total budget amount, and will not loan you above that amount.

With 'no-doc' loans, you can borrow beyond the school-certified budget - at a higher interest rate and fees.

Most borrowers will require a co-signer - someone who will continue to work during your time in school.

The only loan provider that offers no-doc loans that I've found was:

http://www.educationone.com/foryou/graduate.html

The interest rate was ~6% - about two point above the Stafford loan rate, and an origination fee exists for this loan, where most of the Stafford loan products do not charge one.

Good luck, and let me know if you find any others!

- Tae

 

[8744]

And the "Education One" loan is not defferered during residency.

 

[Ramoray]

thanks guys that loan looks great but then if u cant defer i dont know that may suck. BUt defiently a good option i think ill be good with private only but man did i get stuck with an expensive place, yould think they would offer more money to us since we are going to be docs. i mean another 5k a year would be nothign to pay off but sure would make a differnece in living. oh well poorhouse here i come

 

[phatsebz]

hey ramoray how is gw with loans? do they give alot of federal loans? or do u have to take out alot of private loans?

 

[tkim]

Originally posted by Ramoray
thanks guys that loan looks great but then if u cant defer i dont know that may suck. BUt defiently a good option i think ill be good with private only but man did i get stuck with an expensive place, yould think they would offer more money to us since we are going to be docs. i mean another 5k a year would be nothign to pay off but sure would make a differnece in living. oh well poorhouse here i come

Well, if 5K is what it takes to make a difference for you, then perhaps you can borrow from the Bank of Mom and Dad. I'm sure you can work out a decent rate with them.

I just called BankOne and confirmed that the deferral period for this loan ends when med school ends - after a 6 month grace period during which interest *does* accrue.

If you really think you need an extra 5K to make life liveable, then go for the loan. You will be paid a little while in residency, and it beats using a credit card with double to triple the interest - and no deferral time.

- Tae

 

[birdie]

tkim, do you know if that loan is avaible for a post-bacc program or is it only for degree-granting programs? And the interest on it only starts accruing after med school?

 

[Runtita]

I looked up the site, and it looks like there is a loan available for post-bacc. work (called post-undergrad? I think). Thanks to the OP for posting the site! 🙂

 

[tkim]

Originally posted by birdie
tkim, do you know if that loan is avaible for a post-bacc program or is it only for degree-granting programs? And the interest on it only starts accruing after med school?

The site says:

"Education One? Graduate/Professional Education loans are available to students pursuing advanced degrees at participating colleges and universities across the nation. Students must attend at least half-time. (Students who attend less than half-time, please see the Education One Continuing Education loan). "

Seems like only graduate degree programs qualify, but you can call to clarify.

"Payments of principal and interest are automatically deferred until after leaving college for up to four years for 4-year programs and five years for 5-year programs and during a 6-month grace period."

Interest accrues from the day the loan is disbursed - only the payments are deferred.

- Tae

 

[birdie]

Originally posted by Runtita
I looked up the site, and it looks like there is a loan available for post-bacc. work (called post-undergrad? I think). Thanks to the OP for posting the site! 🙂

Runtita, are you pursuing a post-bacc program too? I plan on doing one and have had a hard time trying to find loans b/c most of them are for degree-granting programs. Lemme know if you have any luck or find any additional info.

 

[meanderson]

>>Ramoray, the phrase I've heard repeated over at each >>financial aid presentation when I was interviewing was: "Live >>like a doctor while a student, live like a student while a >>doctor." You probably heard that, too.


I think that's pretty questionable advice in some situations. The OP is talking about borrowing in excess of the 58k allowed. Say he borrows 65k. After four years, you're looking at 260k. And that's before interest!!!

We don't know what reimbursement will look like 15 years from now when the OP will still be paying on these loans, but many are guessing that it will continue to decline or at least decline relative to inflation.

I wouldn't take drastic measures to reduce my loans marginally, but I would be frugal to a certain extent.

 

[Runtita]

What types of Education One loans are available?

There are four. Education One Loans can be used for Undergraduate/Career Education (including Technical and Trade Education), Graduate/Professional Education, Continuing Education, and K-12 Education. Please see the individual loan types or answers to other Frequently Asked Questions for more details.

So this sounds like it would be available for post-bacc. work, as continuing ed. or career ed.

And I'm not post-bacc, btw. Just trying to help! 😉