Expensive school that you love vs. cheaper school that you're not crazy about?

[The Enchanter]

I'm having a dilemma and while I in no way plan to base my decision on a random internet poll, I'm hoping a little discussion will help me sort my head out.

I've been accepted to School A whose program I love, but is out-of-state and has offered me nothing in terms of scholarships etc.

I've also been accepted to School B whose program I am not crazy about (even though it is more highly ranked than School A) but is in-state and has given me a fairly substantial financial aid package. This school would cost about half of much as School A.

If money were not an issue, I'd commit to School A before you could blink. I feel that I would be happier there and have more opportunities to develop personally and professionally. I have a bad feeling that I'll be miserable at School B.

The question is: is it worth giving up your dream school in exchange for significantly less debt? Do you follow your gut instinct and go to the school you're crazy about or listen to your checkbook and attend a the cheaper program that you're worried might suck the life out of you?

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[Geekchick921]

I think you should go to the cheapest school where you think you'll be happy. If you really think you'll be miserable at the cheaper school, then go to your dream school.

 

[medat101]

I'm having a dilemma and while I in no way plan to base my decision on a random internet poll, I'm hoping a little discussion will help me sort my head out.

I've been accepted to School A whose program I love, but is out-of-state and has offered me nothing in terms of scholarships etc.

I've also been accepted to School B whose program I am not crazy about (even though it is more highly ranked than School A) but is in-state and has given me a fairly substantial financial aid package. This school would cost about half of much as School A.

If money were not an issue, I'd commit to School A before you could blink. I feel that I would be happier there and have more opportunities to develop personally and professionally. I have a bad feeling that I'll be miserable at School B.

The question is: is it worth giving up your dream school in exchange for significantly less debt? Do you follow your gut instinct and go to the school you're crazy about or listen to your checkbook and attend a the cheaper program that you're worried might suck the life out of you?

Umm I think the only way to evaluate the two schools would be to give us more information -- as in the names of the schools

If you want the heart-driven answer, then follow your heart and go to your dream school. If you want the logical, finance-driven answer, then consider the huge amount of debt and subsequent interest you will unnecessarily subject yourself to and that may limit your future financial stability.
See... there is no simple answer to your question unless we know more about the schools, and even then we may not be able to give you a concrete response... sorry

Also, most SDNers would say follow the money.. but that may be contrary to your personality or current financial status

 

[Bartelby]

If it were me I would go to the cheap school with the most positive attitude I could muster. It's too bad it has to be that way, but adding on what I am guessing is $100,000+ dollars to your tab will hurt a lot later on.

 

[Frazier]

It could be expensive, no?

 

[Parts Unknown]

The question is: is it worth giving up your dream school in exchange for significantly less debt? Do you follow your gut instinct and go to the school you're crazy about or listen to your checkbook and attend a the cheaper program that you're worried might suck the life out of you?

Med school:

Year 1: You go to class, someone drones on for hours, you live in library.
Year 2: You skip class, someone drones on for hours to empty room, you live in library.
Year 3: You disappear into hospital.
Year 4: Residency interviews, then you live in bar.

After med school:

Year 5: You watch your debt grow.
Year 6: You watch your debt grow more.
Year 7: You watch your debt grow more.
Year 8: You watch your debt grow more.
Years 10-35: You pay off your debt.

Look, you really don't know what med school is like until it's too late, and chances are you've overly romanticized School A at the unfair expense of School B. Humans are quite adaptable, and we all have little happiness thermostats that adjust quite well to compensate for our surroundings. Once you enroll and classes start, your feelings will quickly turn away from the present and towards residency, which frankly has much larger implications on your future than a meager 45 months of med school.

 

[TooMuchResearch]

Med school:

Year 1: You go to class, someone drones on for hours, you live in library.
Year 2: You skip class, someone drones on for hours to empty room, you live in library.
Year 3: You disappear into hospital.
Year 4: Residency interviews, then you live in bar.

After med school:

Year 5: You watch your debt grow.
Year 6: You watch your debt grow more.
Year 7: You watch your debt grow more.
Year 8: You watch your debt grow more.
Years 10-35: You pay off your debt.

Look, you really don't know what med school is like until it's too late, and chances are you've overly romanticized School A at the unfair expense of School B. Humans are quite adaptable, and we all have little happiness thermostats that adjust quite well to compensate for our surroundings. Once you enroll and classes start, your feelings will quickly turn away from the present and towards residency, which frankly has much larger implications on your future than a meager 45 months of med school.

Edit: I'm not sure the "lovey" was the correct emoticon here, but I'm too stubborn to change it.

 

[sugardad]

I'm having a dilemma and while I in no way plan to base my decision on a random internet poll, I'm hoping a little discussion will help me sort my head out.

I've been accepted to School A whose program I love, but is out-of-state and has offered me nothing in terms of scholarships etc.

I've also been accepted to School B whose program I am not crazy about (even though it is more highly ranked than School A) but is in-state and has given me a fairly substantial financial aid package. This school would cost about half of much as School A.

If money were not an issue, I'd commit to School A before you could blink. I feel that I would be happier there and have more opportunities to develop personally and professionally. I have a bad feeling that I'll be miserable at School B.

The question is: is it worth giving up your dream school in exchange for significantly less debt? Do you follow your gut instinct and go to the school you're crazy about or listen to your checkbook and attend a the cheaper program that you're worried might suck the life out of you?

You seem to be fine with the location of both schools, school B is in state so you will probably be closer to family, and to top it off school B is ranked higher (not that it really matters). The only reason you like school A more than school B seems to be because of the "program". what does that even mean? All medical schools will teach you the same material. Some will do it with lecture some with CBL, some will do systems based and some will have individual courses. None of these differences will affect your happiness to much, but the amount of debt you go into certainly will.

 

[JJMrK]

Med school:

Year 1: You go to class, someone drones on for hours, you live in library.
Year 2: You skip class, someone drones on for hours to empty room, you live in library.
Year 3: You disappear into hospital.
Year 4: Residency interviews, then you live in bar.

After med school:

Year 5: You watch your debt grow.
Year 6: You watch your debt grow more.
Year 7: You watch your debt grow more.
Year 8: You watch your debt grow more.
Years 10-35: You pay off your debt.

Look, you really don't know what med school is like until it's too late, and chances are you've overly romanticized School A at the unfair expense of School B. Humans are quite adaptable, and we all have little happiness thermostats that adjust quite well to compensate for our surroundings. Once you enroll and classes start, your feelings will quickly turn away from the present and towards residency, which frankly has much larger implications on your future than a meager 45 months of med school.

I understand (and agree with) your point in general. But why would you not start paying off debt until after residency?

 

[orthomyxo]

I understand (and agree with) your point in general. But why would you not start paying off debt until after residency?

Uhh, probably cause you don't get paid ****?

 

[The Enchanter]

It depends on how expensive is expensive and how miserable is miserable.

Obviously if you were to say something like 500k price tag then... or is it a 300k price tag?
Similarly, if miserable is to the degree of harming oneself then... or is it miserable to where you just say FML as your facebook status?

This is too open-ended.

The difference in cost is a little over $100k for 4 years. We're not talking wrist-slitting miserable at the cheaper school. Maybe miserable is a strong word. It's just that I got a very unfriendly vibe at School B, that the faculty seemed disinterested and rude and that I feel that the curriculum is loaded with busy work that the students all complain about.

 

[drizzt3117]

The difference in cost is a little over $100k for 4 years. We're not talking wrist-slitting miserable at the cheaper school. Maybe miserable is a strong word. It's just that I got a very unfriendly vibe at School B, that the faculty seemed disinterested and rude and that I feel that the curriculum is loaded with busy work that the students all complain about.

Pay $100k more to go to OSU over Pittsburgh? REALLY?

 

[csmittyB]

The difference in cost is a little over $100k for 4 years. We're not talking wrist-slitting miserable at the cheaper school. Maybe miserable is a strong word. It's just that I got a very unfriendly vibe at School B, that the faculty seemed disinterested and rude and that I feel that the curriculum is loaded with busy work that the students all complain about.

How unhappy will you feel knowing you may have an extra $100k in loans building interest that you will need to pay off?

 

[jboz]

OP didn't you already make a thread about you having crap credit and not being able to get loans? Why would you go into another extra $100k Debt. You'll end up like the Caribbean PCP doc that owes over $500,000+.

Ohio State vs UPitt

You can either go BIG or go BROKE

holla holla top dolla

 

[SusGob711]

Been there done that with undergrad. Luckily my school turned out to be wayyy better than I thought it would If you are paying for it all yourself I would recommend the cheaper school. But as long as you aren't going to be unbelieveable miserable--in that case it might be worth the debt. Also keep in mind what specialities you are interested in (ex: Peds probably won't bail you out of that 100K difference)...just something to think about.

 

[chibrown01]

i would go to the cheaper school. You probably met some of the faculty on a bad day, and thats why they seemed rude. You may go to your "dream school" and be miserable. You will never know what life will be like at the cheaper school until you experience it yourself. I would suck it up, and make the best of the cheaper school.
Who knows, you might actually LOVE IT.

 

[SusGob711]

Med school:

Year 1: You go to class, someone drones on for hours, you live in library.
Year 2: You skip class, someone drones on for hours to empty room, you live in library.
Year 3: You disappear into hospital.
Year 4: Residency interviews, then you live in bar.

After med school:

Year 5: You watch your debt grow.
Year 6: You watch your debt grow more.
Year 7: You watch your debt grow more.
Year 8: You watch your debt grow more.
Years 10-35: You pay off your debt.

Look, you really don't know what med school is like until it's too late, and chances are you've overly romanticized School A at the unfair expense of School B. Humans are quite adaptable, and we all have little happiness thermostats that adjust quite well to compensate for our surroundings. Once you enroll and classes start, your feelings will quickly turn away from the present and towards residency, which frankly has much larger implications on your future than a meager 45 months of med school.

Hahahahahahahahaha....finally a real look at medical school & residency. It's not all stethoscopes and hot doctors, kids, lmao

 

[Suenya]

Unless the location is horrible, you'll probably adjust to the things that you dislike pretty quickly. Most people do, and end up having far less a difference in emotional state based on their decisions than they think they will. The school you like better won't make you that much happier and the school you like less won't make you that much less happy.

Having less debt does simplify life though.

 

[flip26]

Pay $100k more to go to OSU over Pittsburgh? REALLY?

pretty crazy, and based on some wild ass extrapolation of disinterested and rude faculty based on probably some busy interviewer???...and concerns about the "program" making him miserable???...some of the things I read on SDN blow my mind.

 

[Catalystik]

I'd be way more miserable having a debt of an extra $100,000 plus interest hanging over my head.

 

[cpants]

The difference in cost is a little over $100k for 4 years. We're not talking wrist-slitting miserable at the cheaper school. Maybe miserable is a strong word. It's just that I got a very unfriendly vibe at School B, that the faculty seemed disinterested and rude and that I feel that the curriculum is loaded with busy work that the students all complain about.

Are you really willing to blow 100k on a "vibe". Realize that you will literally have hundreds of faculty, some great, some horrible, most somewhere in between. Cheaper is better.

 

[flip26]

Unless the location is horrible, you'll probably adjust to the things that you dislike pretty quickly. Most people do, and end up having far less a difference in emotional state based on their decisions than they think they will. The school you like better won't make you that much happier and the school you like less won't make you that much less happy.

Having less debt does simplify life though.

Very well said, if not totally profound!

Great way to put it.

And I totally agree about the debt - less debt will increase one's options, from residencies, to other uses for the money for things like houses, etc.

 

[Parts Unknown]

I understand (and agree with) your point in general. But why would you not start paying off debt until after residency?

As Chops alluded to, even paying the interest on your debt would suck up an untenable amount of your monthly income as a resident. You would essentially be making yourself miserable for the entirety of your training in order to slightly decreased your loan payments as an attending. That makes zero sense, and explains why virtually nobody touches their debt until they are making some real $$$.

 

[Parts Unknown]

It's just that I got a very unfriendly vibe at School B, that the faculty seemed disinterested and rude and that I feel that the curriculum is loaded with busy work that the students all complain about.

Wow, those sound like great reasons to go 100K further in the hole. I mean, vibe? Some disinterested seeming faculty? Busy work? By all means you should attend School A, where legions of scorching hot nymphomaniacs will douse you in beer nightly, and by day a cadre of Nobel laureates will personally inject decades of stunning wisdom into your brain in a most engaging fashion.

Seriously, let's assume you have exactly 100K in extra debt at graduation, consolidated at 5% interest, and you forbear for a 5 year residency. Conservatively, that will knock you up to about 128K.

Paying off 128K over 25 years leads to ~224K total repayment (~96K interest).

Now, to earn that $224,000 needed to pay off the initial $100,000 loan you will have to earn more than 224K, because you will lose income to taxes and whatnot. Assume loss of about a third, and you will have to earn $334,000 to pay off that amount.

So, using a series of very conservative estimates, that four years of vibe will cost you about a third of a million dollars over the lifetime of the loan. You may opt to pay down the loan more aggressively, but that chokes your cash flow.

On the plus side, by 2040 $334,000 may buy a Happy Meal.

 

[Geekchick921]

The difference in cost is a little over $100k for 4 years. We're not talking wrist-slitting miserable at the cheaper school. Maybe miserable is a strong word. It's just that I got a very unfriendly vibe at School B, that the faculty seemed disinterested and rude and that I feel that the curriculum is loaded with busy work that the students all complain about.

I retract my previous comment. Go to the cheaper school.

 

[Mandiblespeaks]

Wow, those sound like great reasons to go 100K further in the hole. I mean, vibe? Some disinterested seeming faculty? Busy work? By all means you should attend School A, where legions of scorching hot nymphomaniacs will douse you in beer nightly, and by day a cadre of Nobel laureates will personally inject decades of stunning wisdom into your brain in a most engaging fashion.

Seriously.....QUOTE]


That was seriously poetic.. I am withdrawing from my accepts and applying to this school.

 

[Narmerguy]

Go to the school that you think will allow you to do best in.

 

[ZeusonRoids]

As a medical student attending one of the most expensive schools in the nation (USC-Keck) I can say that I would not trade being in a location I want to be in, at a great school, with great resources and more opportunity to match into a program in Southern California...for an extra $100k. I had this debate with myself all last year, I was accepted to several schools in locations I did not feel were desirable, and schools which did not have the reputation that USC-Keck has...

For instance, I was accepted to SUNY Buffalo which is about ~150k for 4 years (with living) and USC-Keck which is just under 300k for 4 years.
There was a huge difference in
1. Money
2. Location
3. Reputation
4. Educational atmosphere
5. Opportunities
6. The students (mostly East coasters vs. mostly people from the West...which I don't care who you are...you know there are major differences in how they approach life)
7. 1st and 2nd year course organization (and recent years average board scores ***BTW USC-Keck HAS FREAKING KILLED Step 1 recently. I think we have been in the top 3-5 the past few years)

The only reason I could see to go to SUNY-Buffalo was to save a few dollars...Every other advantage for me was pointing me toward going to USC-Keck.

Looking back, and if I had to make the decision over again, I would still go to USC-Keck and it would be a VERY easy decision. Whether you like it or not, you will end up making a lot of connections through your school and will be doing rotations at hospitals around the area your school is located in. If the people at the hospital already know who you are (and if you had a good rotation) you will have a major advantage in landing the residency.
Think of it this way. If you have a 35 year career and you pay 100k more...that will essentially be like paying less than $3,000 per year to go to the school you want. (AND if it is a better school it might actually make you better off because you can land a higher paying job.)

Go with your dream my young pre-meds and MS-0s. Your greatest asset is time.
PS I was looking at the weather in Buffalo this winter and thinking how much it would suck to be living in a place that was below freezing from essentially October to March with my family 3,000 miles away.
**** just writing this makes me want to go to the beach right now and watch the sunset.
Later

 

[ZeusonRoids]

NEVERMIND...I DID NOT SEE THAT YOU WERE DECIDING BETWEEN OSU AND UPitt!!!

BOTH are in crappy places. And I don't really see enough difference in reputation. Sorry...save yourself the money unless you really really really think you will be unhappy at the worse school.

 

[flip26]

As a medical student attending one of the most expensive schools in the nation (USC-Keck) I can say that I would not trade being in a location I want to be in, at a great school, with great resources and more opportunity to match into a program in Southern California...for an extra $100k. I had this debate with myself all last year, I was accepted to several schools in locations I did not feel were desirable, and schools which did not have the reputation that USC-Keck has...

For instance, I was accepted to SUNY Buffalo which is about ~150k for 4 years (with living) and USC-Keck which is just under 300k for 4 years.
There was a huge difference in
1. Money
2. Location
3. Reputation
4. Educational atmosphere
5. Opportunities
6. The students (mostly East coasters vs. mostly people from the West...which I don't care who you are...you know there are major differences in how they approach life)
7. 1st and 2nd year course organization (and recent years average board scores ***BTW USC-Keck HAS FREAKING KILLED Step 1 recently. I think we have been in the top 3-5 the past few years)

The only reason I could see to go to SUNY-Buffalo was to save a few dollars...Every other advantage for me was pointing me toward going to USC-Keck.

Looking back, and if I had to make the decision over again, I would still go to USC-Keck and it would be a VERY easy decision. Whether you like it or not, you will end up making a lot of connections through your school and will be doing rotations at hospitals around the area your school is located in. If the people at the hospital already know who you are (and if you had a good rotation) you will have a major advantage in landing the residency.
Think of it this way. If you have a 35 year career and you pay 100k more...that will essentially be like paying less than $3,000 per year to go to the school you want. (AND if it is a better school it might actually make you better off because you can land a higher paying job.)

Go with your dream my young pre-meds and MS-0s. Your greatest asset is time.
PS I was looking at the weather in Buffalo this winter and thinking how much it would suck to be living in a place that was below freezing from essentially October to March with my family 3,000 miles away.
**** just writing this makes me want to go to the beach right now and watch the sunset.
Later

Your math is off. And to say it is like paying $3000 a year over a 35 year career is misleading as hell...if you had that payment option, then everybody would take on the debt, but it doesn't work that way, not even close.

When you start repaying this loan is when you can say "it was worth it"...right now, that debt is not costing you a thing, so of course you think it was worth it.

 

[Hope0913]

OP didn't you already make a thread about you having crap credit and not being able to get loans? Why would you go into another extra $100k Debt. You'll end up like the Caribbean PCP doc that owes over $500,000+.

Ohio State vs UPitt

You can either go BIG or go BROKE

holla holla top dolla

 

[Parts Unknown]

Think of it this way. If you have a 35 year career and you pay 100k more...that will essentially be like paying less than $3,000 per year to go to the school you want.

flip26 is right. The longest repayment plan is 25 years, and at 6.8% interest the total repayment on $100,000 is $208,221. That's $8,328/year of your net income, and probably >$13,000 of your gross. It's a lot of money over 25 years, especially considering how brief a dalliance med school really is. It's also assuming that the original 100K will not expand while you are in residency, which is false.

The more critical financial decisions of your life will involve your mortgage, retirement savings, and putting money away for your kids' college.

(AND if it is a better school it might actually make you better off because you can land a higher paying job.)

In your circumstances you may have no choice but to seek out a higher paying job. Good luck doing that in the land of Kaiser. Perhaps there will be a bevy of appealing loan forgiveness programs by that point.

In any case, enjoy your hangover. It begins in November of 2013.

 

[Narmerguy]

In your circumstances you may have no choice but to seek out a higher paying job. Good luck doing that in the land of Kaiser. Perhaps there will be a bevy of appealing loan forgiveness programs by that point.

In any case, enjoy your hangover. It begins in November of 2013.

Oh please! Don't be so melodramatic.

 

[drizzt3117]

NEVERMIND...I DID NOT SEE THAT YOU WERE DECIDING BETWEEN OSU AND UPitt!!!

BOTH are in crappy places. And I don't really see enough difference in reputation. Sorry...save yourself the money unless you really really really think you will be unhappy at the worse school.

I think you missed the part where the OP wanted to pay 100k more to go to the lower ranked school.

 

[Parts Unknown]

Oh please! Don't be so melodramatic.

There is no melodrama to be had. I am quite familiar with the general state of medical practice in Southern California, the penetrance of managed care, the competition for jobs (and subsequent effect on salaries), and the extraordinary cost of living. Walking into that situation with >$300,000 of debt would make any sane person think long and hard about future compensation.

I also find the hangover analogy to be perfectly apt.

 

[MadMnkey]

It's a tough question, and honestly, back when I was applying I would've been all for going to the most big named school because I thought it would give me a huge leg up, but I've really come to realize that it doesn't matter at all. People in the niche fields of medicine all know each other, so as long as you work hard, you'll be able to do your residency anywhere you want. I have so far not heard of anyone from an American med school who did everything they were suppose to not getting in to a residency of their choice (competitive fields may be an exception, but a well-known school is not going to save you if your record blows). I'd say choose the cheapest option, bust your butt for 4 years, and then enjoy the rest of your career knowing that there isn't a huge financial burden on you.

 

[lejeunesage]

I think both OSU and UPitt are very fine schools and neither should give you a huge advantage over the other. Your own board scores, in any case, with the research you do will matter infinitely more than which school you attended. Save yourself a lot of money. Some people here will disagree with me, but I can think of very, very few scenarios where I'd be willing to pay 100k on top of debt that's likely to be already non-negligible (you're not looking at 110k vs 10k, it's probably more like 160k vs 60k). Chances are that going to Upitt will allow you to get into whatever residency you want, and admittedly, you're not looking at what you'll gain from each school; you're looking at vibe. Vibe, really? Definitely not worth it. If you really like the area, you can always move back there for or after residency. But med school only lasts 4 years; Debt, on the contrary, can be forever.

 

[Jihad]

There is no melodrama to be had. I am quite familiar with the general state of medical practice in Southern California, the penetrance of managed care, the competition for jobs (and subsequent effect on salaries), and the extraordinary cost of living. Walking into that situation with >$300,000 of debt would make any sane person think long and hard about future compensation.

I also find the hangover analogy to be perfectly apt.

Haha he said penetrance.

 

[SteinUmStein]

Wait, does the OP seriously think OSU>>>Pitt? Who put this notion in your head? One bad interview day does not make a top tier school crappy. Go to the second looks if you're really this confused. Pitt is an awesome school.

 

[dw2158]

As Chops alluded to, even paying the interest on your debt would suck up an untenable amount of your monthly income as a resident. You would essentially be making yourself miserable for the entirety of your training in order to slightly decreased your loan payments as an attending. That makes zero sense, and explains why virtually nobody touches their debt until they are making some real $$$.

not weighing in on the OP's question, but asking a question of my own: do most/all people really not make loan payments during residency? i thought we had to nowadays. and if not, are people claiming economic hardship? or are they putting the loans into forbearance? AFAIK, those are the only 2 options afforded to someone not making payments. enlighten me, please.

 

[SteinUmStein]

I'm having a dilemma and while I in no way plan to base my decision on a random internet poll, I'm hoping a little discussion will help me sort my head out.

I've been accepted to School A whose program I love, but is out-of-state and has offered me nothing in terms of scholarships etc.

I've also been accepted to School B whose program I am not crazy about based on my minimal interactions and observations made during my interview day (even though it is more highly ranked than School A) but is in-state and has given me a fairly substantial financial aid package. This school would cost about half as much as School A.

If money were not an issue, I'd commit to School A before you could blink. I feel that I would be happier there and have more opportunities to develop personally and professionally. I have a bad feeling that I'll be miserable at School B, again, based on a few impressions but no real experience actually attending the school.

The question is: is it worth giving up the school whose admissions team did a great job of sweeping me off my feet in exchange for significantly less debt? Do you follow your gut instinct and go to the school you're crazy about or listen to your checkbook and attend a the cheaper program that you're irrationally afraid of attending?

Fixed it for ya. Also, this is assuming you aren't making this decision based on family or personal ties in either location. I'm assuming you're deciding between the two schools on their merit alone.

Your current plight would make a lot more sense if you had family or a significant other in Columbus, for example. From what you posted, though, it's pretty nonsensical. ~$100k more to attend OSU over Pitt? Probably not a well thought-out decision.

 

[rockaction]

Dude, come on! Pitt is an awesome school. Sure, OSU is great, but I interviewed at both and got a better impression of Pitt. The only thing that could have made my Pitt interview day better was a free iPod. Come on, where's this Pitt hate coming from?

 

[SteinUmStein]

Dude, come on! Pitt is an awesome school. Sure, OSU is great, but I interviewed at both and got a better impression of Pitt. The only thing that could have made my Pitt interview day better was a free iPod. Come on, where's this Pitt hate coming from?

I know, right? I'm wondering if he interviewed at a different Pitt than we did... On my roster, I put Pitt neck-and-neck with schools like UChicago, Northwestern, etc. OSU not so much, although it is a great school overall.

 

[Parts Unknown]

not weighing in on the OP's question, but asking a question of my own: do most/all people really not make loan payments during residency?

Yup, although there will always be some exceptions. Like a single surgery resident who lives in smallish midwestern city with very low cost of living and no time to spend his money. That person might have an extra $1,000 a month lying around.

i thought we had to nowadays. and if not, are people claiming economic hardship? or are they putting the loans into forbearance? AFAIK, those are the only 2 options afforded to someone not making payments. enlighten me, please.

If your loans are typical Stafford loans, they will be a mix of subsidized (the minority) and unsubsidized (the majority). In deferral the subsidized do not accrue interest, but the unsubsidized loans do. In forbearance they both accrue interest.

Back in the day you could only defer for 3 years, so if training lasted longer than that you would have to spend the remaining years in forbearance. As it stands now you just forbear all the way through.

Forbearance isn't as good a deal as deferral, but since deferral only covered the subsidized loans for 3 years, it's not a huge loss.

 

[dw2158]

Yup, although there will always be some exceptions. Like a single surgery resident who lives in smallish midwestern city with very low cost of living and no time to spend his money. That person might have an extra $1,000 a month lying around.



If your loans are typical Stafford loans, they will be a mix of subsidized (the minority) and unsubsidized (the majority). In deferral the subsidized do not accrue interest, but the unsubsidized loans do. In forbearance they both accrue interest.

Back in the day you could only defer for 3 years, so if training lasted longer than that you would have to spend the remaining years in forbearance. As it stands now you just forbear all the way through.

Forbearance isn't as good a deal as deferral, but since deferral only covered the subsidized loans for 3 years, it's not a huge loss.

thanks for this info. i guess i should be glad that the majority of my loans are institutional and won't accrue interest until after residency.