Expenses considered "okay" for loan money

[pugmom21]

Hey y'all! I'm really excited to be starting med school this summer! I'm trying to figure out cost of living stuff and start getting an idea of how my standard of living will be during med school. To be honest, I'd like to not have to work. I worked 2-3 jobs all four years of college and really didn't have much time left for studying. There was a clear difference in my performance (not grades necessarily, but confidence in the material) when I was working a heavier week versus one with lighter shifts. I'd like to focus entirely on school as my job and really be confident in as much of the material as I can, but I also know that loan money is meant to be for necessities like rent, groceries, etc. I love to try restaurants and grab drinks with friends to relax a bit and whatnot, but those clearly aren't necessities.

Real question: If I don't have a scheduled job with steady income, and my parents can't help with my finances, does that mean I just can't go anywhere or do anything using the loan money? Or are the loan terms more flexible than they really say, allowing for a conservative amount of take out, nights with friends, etc.? TIA!!

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[LizzyM]

You will have a pot of money for living expenses based on what the school thinks the average student needs to live. That is yours to spend as you wish. If you live more frugally, you may be able to afford the occasional night out with friends.

 

[drstranger]

Hey y'all! I'm really excited to be starting med school this summer! I'm trying to figure out cost of living stuff and start getting an idea of how my standard of living will be during med school. To be honest, I'd like to not have to work. I worked 2-3 jobs all four years of college and really didn't have much time left for studying. There was a clear difference in my performance (not grades necessarily, but confidence in the material) when I was working a heavier week versus one with lighter shifts. I'd like to focus entirely on school as my job and really be confident in as much of the material as I can, but I also know that loan money is meant to be for necessities like rent, groceries, etc. I love to try restaurants and grab drinks with friends to relax a bit and whatnot, but those clearly aren't necessities.

Real question: If I don't have a scheduled job with steady income, and my parents can't help with my finances, does that mean I just can't go anywhere or do anything using the loan money? Or are the loan terms more flexible than they really say, allowing for a conservative amount of take out, nights with friends, etc.? TIA!!

You can use loans for things you mentioned but instead of eating out 1-2 times a week limit it to 1-2 times a month just realize $1 you spend is $2 you have to pay back because of interest. Also, there are ways to get "fun" money a big one is donated plasma, not the most enjoyable experience but something you can do while you study to make some side money. I know a few people who invest in stocks for extra cash but you have to know what you are doing and you may put in more time than you want while studying.

 

[Deleted member 1077394]

Of note, medical schools either strongly discourage or outright ban people from working side jobs. Med school is really hard and there is no time for work.

It's only March. For fun money, would you consider taking a low-hour second job like MCAT tutoring or waiting tables to have a "nest egg"?

FWIW, my brother went to law school in New York City. He is really into musical theater and really wanted to go see Broadway shows while he was there. It was important to him and so he cut back on other expenses (e.g. stopped drinking pop more than once per day) so he could do that.

Sit down, make a budget and figure out how to have a little bit of fun money for the activities that are really important to you. It's not like they are going to audit you for what you used the money on, but the loans are based on what the school says is needed for necessities in the area and it'll be tight.

 

[LizzyM]

Learn to cook.
Pack your lunch.
Make coffee (or your beverage of choice) at home.
Profit.

 

[xffan624]

If you go to a school with a decently large academic/research footprint and don't mind needles, take a look into participating in clinical trials. It's easy money ($25-$100 per visit) and all you have to do usually is get poked and give small amounts of blood.

 

[KnightDoc]

You will have a pot of money for living expenses based on what the school thinks the average student needs to live. That is yours to spend as you wish. If you live more frugally, you may be able to afford the occasional night out with friends.

THIS^^^^^ is the answer OP is looking for. Everyone has been providing useful tips on how to budget or generate a few extra bucks, but the answer to OP's question is that there are no restrictions on how loan proceeds are spent, so the "loan terms" are entirely flexible.

You will typically be approved for a maximum loan amount that is determined by what the school certifies as its COA, which includes tuition, mandatory fees, and estimates for health insurance, books and equipment, room and board, entertainment, clothing, travel, etc. How you spend the money is entirely up to you, and nobody audits or second-guesses what you do. The more you take, the more you have to pay back, with interest, unless you become eligible for loan forgiveness or you end up defaulting.

 

[Blueprint Med School]

Of note, medical schools either strongly discourage or outright ban people from working side jobs. Med school is really hard and there is no time for work.

It's only March. For fun money, would you consider taking a low-hour second job like MCAT tutoring or waiting tables to have a "nest egg"?

FWIW, my brother went to law school in New York City. He is really into musical theater and really wanted to go see Broadway shows while he was there. It was important to him and so he cut back on other expenses (e.g. stopped drinking pop more than once per day) so he could do that.

Sit down, make a budget and figure out how to have a little bit of fun money for the activities that are really important to you. It's not like they are going to audit you for what you used the money on, but the loans are based on what the school says is needed for necessities in the area and it'll be tight.

Tutoring tends to be an exception, but I recommend one do a couple of semesters and make sure you can handle the workload. But tutoring is a great way to reinforce the concepts and made a few bucks. I learned a ton from being forced to teach it to others. I taught a few live MCAT classes concurrently before moving on to majority USMLE later on. Some schools (mine did) even paid students to tutor younger students.

David D, MD - USMLE and MCAT Tutor
Med School Tutors

 

[Talldoctor96]

You get a direct deposit into your account to use however you want

 

[viralhiker]

You can use loans for things you mentioned but instead of eating out 1-2 times a week limit it to 1-2 times a month just realize $1 you spend is $2 you have to pay back because of interest. Also, there are ways to get "fun" money a big one is donated plasma, not the most enjoyable experience but something you can do while you study to make some side money. I know a few people who invest in stocks for extra cash but you have to know what you are doing and you may put in more time than you want while studying.

I really don't think this is helpful/appropriate advice.

The thought of being forced to sell my plasma to comfortably go out for drinks with friends is abhorrent to me. I had to sell plasma to pay rent in undergrad, and I can't imagine being in that position again. Also, its totally not a convenient thing to do, especially if you are already stretched to the limit by the responsibilities of being a medical student! Going to a plasma "donation" center usually requires driving a significant distance, and sitting in a chair relatively immobile for ~2 hours at a time.

And the suggestion of using retail investing as a form of income could be pretty detrimental for the average person. What stock apps like robinhood call "investing" is, in all reality, gambling with a veneer of hip professionalism. Your friends who are successful either are sitting on a large nest egg or are extremely lucky to supplement their living income with it. You wouldn't advise your classmate to hit the roulette table to help cover their monthly expenses!

 

[drstranger]

I really don't think this is helpful/appropriate advice.

The thought of being forced to sell my plasma to comfortably go out for drinks with friends is abhorrent to me. I had to sell plasma to pay rent in undergrad, and I can't imagine being in that position again. Also, its totally not a convenient thing to do, especially if you are already stretched to the limit by the responsibilities of being a medical student! Going to a plasma "donation" center usually requires driving a significant distance, and sitting in a chair relatively immobile for ~2 hours at a time.

And the suggestion of using retail investing as a form of income could be pretty detrimental for the average person. What stock apps like robinhood call "investing" is, in all reality, gambling with a veneer of hip professionalism. Your friends who are successful either are sitting on a large nest egg or are extremely lucky to supplement their living income with it. You wouldn't advise your classmate to hit the roulette table to help cover their monthly expenses!

Okay first off no one is forcing anyone to do anything.... as far as plasma, I know lots of people with good and bad experiences. Most college towns have a center that's not a significant drive and I suggested it for the fact you are immobile but still able to do anki/review powerpoints or watch lectures, which is what most students would be doing at home anyways. I agree with the investing bit but I do know of a few classmates that have started with very little and made enough for some expenses, but it takes either time or luck.

And I was just suggesting two things students I know have done in the past to pay for their nights out....

 

[viralhiker]

Okay first off no one is forcing anyone to do anything.... as far as plasma, I know lots of people with good and bad experiences. Most college towns have a center that's not a significant drive and I suggested it for the fact you are immobile but still able to do anki/review powerpoints or watch lectures, which is what most students would be doing at home anyways. I agree with the investing bit but I do know of a few classmates that have started with very little and made enough for some expenses, but it takes either time or luck.

And I was just suggesting two things students I know have done in the past to pay for their nights out....

I understand you were trying to help, didn’t mean to jump down your throat. It’s just that speaking as someone who has pretty significant experience with both of those suggestions, I felt as though I should say I don’t recommend them for the average student. Specifically for the plasma, the $500 you might make in a year is not worth the effort in my opinion. Use the loan money and focus your energy on doing well in academics and ECs.