Federal Loans and Tuition

[Dr Dazzle]

Hi guys,

I was recently accepted to medical school, but am having a very difficult time understanding financial aid, loans and paying tuition for next year. Are there good resources for this? I have filled out my FAFSA, but other than that don't really know what I should do at this point. Which loans are subsidized/ unsubsidized? What's your advice to approach this process wisely. I don't want to take any more debt than I have to and my tuition is 50k per year.

Thanks for the help!

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[NickNaylor]

Unless there are obscure programs that I'm unaware of (and there may be), there are no non need-based aid programs that are subsidized. Grad students no longer qualify for subsidized Stafford loans. There are Pell grants, which are federally awarded and technically need-based (and subsidized), but since your EFC is zero I believe you automatically qualify for them.

In most cases, people will rely on (unsubsidized) Stafford loans, institutional aid (including scholarships), and, if necessary, GradPLUS loans. If you have made a decision as far as which school to attend, my advice would be to call that school, talked to their financial aid people, and see what kind of info they can give you. They will be best able to give you information that is pertinent to your situation. And don't be afraid to do that - that's what they're there for. If you haven't made a decision, then call schools that you are seriously considering and see what they have to say.

Of course, step 1 is filling out the FAFSA. Once you do that schools that you send that to will be able to build your aid package based on what you qualify for and what they might be able to give you in the form of institutional aid. Until your FAFSA is processes and submitted, though, you won't be able to get too many specifics barring tons and tons of work.

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[Dr Dazzle]

Thanks, I won't qualify for any merit scholarships. It is an out of state school for me. How much more besides tuition cost do you guys take out in loans? Not sure how much other logistical costs will be at this point.

 

[Smokemont]

Thanks, I won't qualify for any merit scholarships. It is an out of state school for me. How much more besides tuition cost do you guys take out in loans? Not sure how much other logistical costs will be at this point.

Make sure your FAFSA was sent to the med school you'll be attending and you are done. Closer to your start date your school will give you your award package, i.e. how much money the government will let you borrow to cover tuition and living expenses. You will log into a website provided by your school and accept however much money you want. Your school will directly take out tuition and whatever is left over you can have put into your bank account. Start to make a monthly budget. Make a spreadsheet and record everything you spend money on. Ask your parents or someone who supports themselves/manages their own money for help if you are lost. Also your school most definitely has a mock budget that you can use for guidance. Make sure to take out a little more your first year so you don't run out of money and then you can calibrate the remaining 3 years based on your experience.

Also, the only loans you will be offered are unsubsidized and gradplus. Gradplus has higher interest rate so try not to take out too much of these, even though many people are forced to.

 

[Dr Dazzle]

Make sure your FAFSA was sent to the med school you'll be attending and you are done. Closer to your start date your school will give you your award package, i.e. how much money the government will let you borrow to cover tuition and living expenses. You will log into a website provided by your school and accept however much money you want. Your school will directly take out tuition and whatever is left over you can have put into your bank account. Start to make a monthly budget. Make a spreadsheet and record everything you spend money on. Ask your parents or someone who supports themselves/manages their own money for help if you are lost. Also your school most definitely has a mock budget that you can use for guidance. Make sure to take out a little more your first year so you don't run out of money and then you can calibrate the remaining 3 years based on your experience.

Also, the only loans you will be offered are unsubsidized and gradplus. Gradplus has higher interest rate so try not to take out too much of these, even though many people are forced to.

Is there a max. amount of unsubsidized loans that are offered? Does that vary for each student, or is there a standard minimum that can be expected?

 

[Smokemont]

Is there a max. amount of unsubsidized loans that are offered? Does that vary for each student, or is there a standard minimum that can be expected?

Yes there is a maximum amount of unsubsidized loans offered. So if you max out these and need more money you have to use the gradplus loans, which have a higher interest rate. Since every school's tuition is different it's hard to be exact but based on my experience your unsubsidized loans will cover tuition plus some living expenses. Then depending on how much more money you need for your budget you may or may not have to go into gradplus loans. So to answer your question, there is a maximum on the unsubsidized loans, but I don't think it is "standard" and I don't think anyone can give you a specific number until you see it for yourself. Just know that the advice is always the same, live a cheap lifestyle and you are not the first or the last to take out a lot of loans for med school. So keep educating yourself on the financial aspects but ultimately you will have to accept the fact that you will be in debt for many years.

 

[DrBowtie]

Also, budget for 12 months. The school budget will only be for months that school is in session so you'll have to make the money stretch.

 

[UCSFx2017]

The first $40,500 (per year) is covered by Unsubsidized Federal loans at 6.8% annual interest rate with 1% origination fee.
The rest is covered by Federal Grad PLUS loans at 7.9% annual interest rate with 4% origination fee.

 

[mafanda]

This is so helpful. Does anyone know around when the loans are awarded? If say, I need money to move out to the school I will be attending and buy the basics (bed, table), would I have enough time to use some of my loans? I'm starting school in August.

 

[NickNaylor]

This is so helpful. Does anyone know around when the loans are awarded? If say, I need money to move out to the school I will be attending and buy the basics (bed, table), would I have enough time to use some of my loans? I'm starting school in August.

Depends on the school, but unless your financial aid office is particularly kind, I doubt you would get your funds much before classes start.

 

[byaaaaaaah23]

There are Pell grants, which are federally awarded and technically need-based (and subsidized), but since your EFC is zero I believe you automatically qualify for them.

Just to clarify, Pell Grants are only for undergraduates.

 

[Smokemont]

This is so helpful. Does anyone know around when the loans are awarded? If say, I need money to move out to the school I will be attending and buy the basics (bed, table), would I have enough time to use some of my loans? I'm starting school in August.

Most likely no. Every financial aid talk I've heard they always say to make sure to budget accordingly because most disbursements are given out close to the first day of class, and sometimes not until a few days after.....ridiculous, I know.

Contact your school financial aid office though. They may have a mechanism or source of funds for such a situation.

 

[NickNaylor]

Just to clarify, Pell Grants are only for undergraduates.

Thank you - I meant Perkins loans, not Pell grants. Sorry about that.

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