• Advice You're Thankful for Contest

    Now that it's getting close to Thanksgiving, we're running a contest to hear advice you've received that you're most thankful for! This can be any type of advice and the advice with the most reactions will win!

    JOIN CONTEST

MD & DO FAFSA & Loans [Urgent]

lolomghelp

Full Member
Oct 17, 2019
121
66
  1. Pre-Medical
    Hi, I wasn't sure where to post this question, and therefore, decided to post here.
    I am a first year medical student who will be starting at the end of next month. I am not good with understanding loans or anything, and I simply followed instructions that were given by my school, which were to basically fill out the FAFSA application. Therefore, I did that.

    But, today, I saw that they had received my FAFSA application, but there were documents missing that I need to do for them to process it:

    MPN - Fed Direct Loan
    MPN - Fed Direct Graduate PLUS
    DL Entrance Counseling Online

    I'm not sure what these documents are. They are required, so I would like to know.

    If you have the time, please go in detail about what happens after you do the FAFSA application. Right now, I just filled the application and I'm waiting.

    EDIT: I wrote [Urgent] as the title, because I start in a month and would like to have this done quick as possible.

    Thank you all!
     

    DrStephenStrange

    OMS-IV C/O 2022
    2+ Year Member
  • Oct 25, 2017
    3,085
    4,643
    The NY Sanctum
    1. Medical Student
      These are required every time you are borrowing money for the first time. They can be found and filled out on www.studentaid.gov
      Also, you probably also need to apply for Grad Plus Loan (also on www.studentaid.gov) because FAFSA unsubsidized loan won't cover your whole cost of attendance unless you're gonna be paying the rest out of pocket. Side note you must not have any adverse credit history to qualify for the Grad Plus Loan otherwise you would need to add a cosigner (usually a parent or someone without any adverse credit history).
       
      • Like
      Reactions: 1 user

      ismyexistenceamemeyet

      resident goofball
      Feb 14, 2020
      146
      447
      AK
      1. Medical Student
        Hi, I wasn't sure where to post this question, and therefore, decided to post here.
        I am a first year medical student who will be starting at the end of next month. I am not good with understanding loans or anything, and I simply followed instructions that were given by my school, which were to basically fill out the FAFSA application. Therefore, I did that.

        But, today, I saw that they had received my FAFSA application, but there were documents missing that I need to do for them to process it:

        MPN - Fed Direct Loan
        MPN - Fed Direct Graduate PLUS
        DL Entrance Counseling Online

        I'm not sure what these documents are. They are required, so I would like to know.

        If you have the time, please go in detail about what happens after you do the FAFSA application. Right now, I just filled the application and I'm waiting.

        EDIT: I wrote [Urgent] as the title, because I start in a month and would like to have this done quick as possible.

        Thank you all!
        I don't blame you with not getting all this loan stuff; it's a ton of new terminology if you haven't dealt with undergrad loans (this was my situation so I absolutely relate). MPN refers to "master promissory note." You can consider it like a contract for any federal loans you'll use to fund your med school education. If I recall correctly, it should contain things like repayment terms, interest rates, etc. and constitutes your agreement that you'll pay back these loans.

        In med school, you'll deal with two types of loans, the Federal Direct Unsubsidized Loans and the Federal Direct GradPLUS loans. You will need to sign separate MPNs for each class of loan (i.e. sign one MPN for Direct Unsubsidized Loan and sign another MPN for GradPLUS loans). Depending on how much your tuition is...take the full amount (what people refer to as "maxing out") your Unsubsidized Loans first (I believe you get up to $40,500 per year), since they have lower interest rates (around 6.08%) than the GradPLUS loans (7.08%). For example, if your COA (cost of attendance) is $45,000/year, take out the full $40,500 in unsubsidized loans, and the remaining 4,500 in GradPLUS loans. It saves you money in the long run.

        The first time you have to get any loans, you'll be required to do entrance counseling. It's a crash-course of the different types of loans and loan repayment options you have. Read through it to get a better idea of what the loan process looks like. You're required to complete entrance counseling to have your loans disbursed to your school.

        In most cases, your FAFSA helps determine how much you'll need to borrow, and thus, impacts the amounts that go into your MPNs (someone can correct me if I'm wrong on this or anything else I've mentioned here). I would strongly suggest reaching out to your financial aid office and getting a clearer picture of what you need re: loans.
         
        • Like
        Reactions: 3 users
        About the Ads

        lolomghelp

        Full Member
        Oct 17, 2019
        121
        66
        1. Pre-Medical
          I don't blame you with not getting all this loan stuff; it's a ton of new terminology if you haven't dealt with undergrad loans (this was my situation so I absolutely relate). MPN refers to "master promissory note." You can consider it like a contract for any federal loans you'll use to fund your med school education. If I recall correctly, it should contain things like repayment terms, interest rates, etc. and constitutes your agreement that you'll pay back these loans.

          In med school, you'll deal with two types of loans, the Federal Direct Unsubsidized Loans and the Federal Direct GradPLUS loans. You will need to sign separate MPNs for each class of loan (i.e. sign one MPN for Direct Unsubsidized Loan and sign another MPN for GradPLUS loans). Depending on how much your tuition is...take the full amount (what people refer to as "maxing out") your Unsubsidized Loans first (I believe you get up to $40,500 per year), since they have lower interest rates (around 6.08%) than the GradPLUS loans (7.08%). For example, if your COA (cost of attendance) is $45,000/year, take out the full $40,500 in unsubsidized loans, and the remaining 4,500 in GradPLUS loans. It saves you money in the long run.

          The first time you have to get any loans, you'll be required to do entrance counseling. It's a crash-course of the different types of loans and loan repayment options you have. Read through it to get a better idea of what the loan process looks like. You're required to complete entrance counseling to have your loans disbursed to your school.

          In most cases, your FAFSA helps determine how much you'll need to borrow, and thus, impacts the amounts that go into your MPNs (someone can correct me if I'm wrong on this or anything else I've mentioned here). I would strongly suggest reaching out to your financial aid office and getting a clearer picture of what you need re: loans.


          Wow! Thank you so much for the detailed response.
           
          • Like
          Reactions: 1 user

          lolomghelp

          Full Member
          Oct 17, 2019
          121
          66
          1. Pre-Medical
            These are required every time you are borrowing money for the first time. They can be found and filled out on www.studentaid.gov
            Also, you probably also need to apply for Grad Plus Loan (also on www.studentaid.gov) because FAFSA unsubsidized loan won't cover your whole cost of attendance unless you're gonna be paying the rest out of pocket. Side note you must not have any adverse credit history to qualify for the Grad Plus Loan otherwise you would need to add a cosigner (usually a parent or someone without any adverse credit history).
            thank you so much :)
             
            About the Ads
            This thread is more than 1 year old.

            Your message may be considered spam for the following reasons:

            1. Your new thread title is very short, and likely is unhelpful.
            2. Your reply is very short and likely does not add anything to the thread.
            3. Your reply is very long and likely does not add anything to the thread.
            4. It is very likely that it does not need any further discussion and thus bumping it serves no purpose.
            5. Your message is mostly quotes or spoilers.
            6. Your reply has occurred very quickly after a previous reply and likely does not add anything to the thread.
            7. This thread is locked.