Fafsa

[MedPR]

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I'm applying to medical school this year and I understand that I need to fill out my FAFSA sometime in January. I don't know if medical school loans are like undergrad loans in that the amount you can borrow is somewhat based on your expected family contribution, but I've been thinking about it and encountered a bit of a dilemma.. Hopefully it's not going to be a problem like I think it is. Anyway, here's my situation.

I'm currently working full-time and grossing around $25k per year (been working for 19 months if that matters) and I plan to continue working up until a month or so before starting medical school next July/August (hopefully ). So, since I'll be filling out my FAFSA while I'm employed, will that affect how much money I can borrow for my first year of medical school? I obviously won't be working during medical school and I don't want to be unable to borrow enough to pay for everything.

Thanks.

 

[DrMidlife]

Income has no effect at all on loans. (A bad credit rating, however, will affect your ability to get GradPlus, which you need, if you're borrowing over the Stafford limit, which is something like $42,500.)

Expected family contribution affects only free money like grants & scholarships. You have to submit your tax returns and your parents' for free money.

Best of luck to you.

 

[MedPR]

Income has no effect at all on loans. (A bad credit rating, however, will affect your ability to get GradPlus, which you need, if you're borrowing over the Stafford limit, which is something like $42,500.)

Expected family contribution affects only free money like grants & scholarships. You have to submit your tax returns and your parents' for free money.

Best of luck to you.

Ah good to know. I guess I will need to pay off my application/interview debt earlier than expected. Since my utilization has gone up from about 3% to something like ~25% my scores have dropped from the 720's down to around 695.

Just so I'm clear, being employed when applying for medical school loans will not hurt my borrowing ability, right?

 

[curt656]

Correct. It will only affect grants, and 25k earned in FY2012 is not going to put a big dent in any grants you could be offered if a school is going to offer you a need based grant.

 

[MedPR]

Correct. It will only affect grants, and 25k earned in FY2012 is not going to put a big dent in any grants you could be offered if a school is going to offer you a need based grant.

Great, thank you.

 

[bonoz]

I'd like to ask a relevant question without opening up a new thread.

Is it true that there are no more subsidized $8500 loans for graduate students i.e. medical school students?

If true, is there absolutely any way of getting around that?

Thanks

 

[DrMidlife]

I'd like to ask a relevant question without opening up a new thread.

Is it true that there are no more subsidized $8500 loans for graduate students i.e. medical school students?

If true, is there absolutely any way of getting around that?

Thanks

You still get the $8500 in loans, but the interest on that $8500 per year is no longer subsidized. No, there is no way around that.

The total cost of the loss of this interest subsidization, over the course of 4 years of medical school, is about $5600 in accrued/compounded interest. Prioritize accordingly.

Best of luck to you.

 

[bonoz]

Thanks for that clarication! Why was it decided to make it that way? Is it only for Grad students? If so, then shame.

 

[DrMidlife]

Thanks for that clarication! Why was it decided to make it that way? Is it only for Grad students? If so, then shame.

There's been a global economic crisis since 2008. The US annual budget deficit is in the trillions. Global austerity measures. Fiscal cliff.

Grad students losing $5600 of previously free money gets no sympathy, compared to businesses failing and families losing their jobs and houses and 401ks. You'll have to work pretty hard to find sympathy for your $5600 plight, against your future six figure salary, among those footing the bill (taxpayers).

Undergrads still get the Stafford interest subsidy. Subsidy = free money.

Some countries invest in education so that student debt isn't a crippling problem. The US isn't one of them.