Hello I have a question, I am a pharmacy tech student and an interested in becoming a pharmacist. I have am a straight A student with a constant 4.0 GPA. But my dilemma is that I am a mom with two kids and I'm worried about the student loans being too much and not leaving my husband and I enough room to still support our family. We can't move in with my family because there isn't a university with a pharmD program near them. How much are student loans payments really, and is there anything I can do to make school financially and time wise easier on me and my family?
First, Congratulations and I wish you lots of luck.
Second, please know that you have friends around here. You are not alone, just keep asking questions and others will help.
Third, about this concern:
But my dilemma is that I am a mom with two kids and I'm worried about the student loans being too much and not leaving my husband and I enough room to still support our family. We can't move in with my family because there isn't a university with a pharmD program near them.
My help:
One good news: during pharmacy school, as ACTIVE STUDENT, you do not have to pay any part of student loan.
During pharmacy school, to support family and pay bills, borrow to the max AND spend very little AND keep the rest for rainy days in savings account. Why? Simple, must survive during pharmacy school, full of intense stress and shocking surprising bills.
I am picturing the worst case situation during school: NON-ACTIVE STUDENT: Sick because of intense stress of pharmacy school.
If you take 1 year off from pharmacy school because of sickness or not passing exams, I do not know what option you have for student loan. Anyone knows? Please share.
My friends went to school which tuition cost around 40000 a year just to have a seat as student. Max allowed for student to borrow was around 70000 a year to cover tuition and other expenses. With 2 kids, you can ask for more for hardship expenses like child care expenses and other reasons; be best friend with financial aid officer and you may get surprising helps. Anyone has any successful story that can help her borrow more to survive? Please share. Thank you in advance.
About this concern:
How much are student loans payments really, and is there anything I can do to make school financially and time wise easier on me and my family?
After graduation, you have these good options: I am picturing the worst case situation: No job or sick because of intense pharmacy school. Believe me, pharmacy school is like a marathon with "wall effect" near the end.
Forbearance: 1 year, you automatically qualify. No need for reason. This will buy you 1 year during the first year to look for job and save money. Even if you have a job, save that income for rainy days. Why? You will be a new pharmacist and you may not perform well and therefore, you may be out of a job as pharmacist and you still have to somehow cough about about 4000 dollars a month. Who's going to loan you around 4000 a month? Must save for that rainy days.
Deferment: 6 months a time, 6 times total. Must apply every 6 months. Possible reasons to qualify: Not enough working hours as full time worker. Not having job at all.
Once those options are gone: With 2 kids, you may very likely qualify for low monthly payment that ties with program called Income-Based-Repayment or Income-Contingency-Repayment.
When you begin to pick a program to pay student loan, student with kids and family must think in terms of survival. We always must have enough money just to cover the REQUIRED BILLS of this month. Therefore, we want to have REQUIRED PAYMENT as low as possible so we can simply afford that REQUIRED PAYMENT. After paying REQUIRED BILLS, what do we do with the rest of money? Save, save, save for rainy days or sicky days or no job days. Bills are still here even if we are sick. Therefore, the emphasis is: stretch out the loan as long as you can by picking the LOWEST REQUIRED LOAN PAYMENT, pick the plan that you have lowest payment. If we think in term of whole life of this loan, the total net interest will be higher AND you will survive to the end.
When you have enough CASH to cover 10 months of expenses. Then, to lower the net interest, we can pay 50 dollars more a month, 100 dollars more a month....
Simple math:
If you need to pay REQUIRED PAYMENTS as 4000 a month, then please must have 40000 dollars in saving. Then, you can think about paying EXTRA to shorten the loan and minimize interest. Think surviving. When I first started in life, I was so naive and made the mistake of paying EXTRA without having any money in savings account until one day I read a financial book and learned the lesson. Even now, when I read a lot of financial advises, I see very few sources emphasizing the importance of MUST HAVE ENOUGH CASH FOR SOME MONTHS before paying EXTRA.
So, in summary, in the near future, during pharmacy school, you will have loan around 70000 a year and you do not have to pay student loan during school. Also, during first month of school, you can apply for intern license (even if you do not know much) and your pay rate will be higher than technician, around 18 dollars an hour (Still please focus on studying and work only the hours that would not interfere with your new stressful environment.)
With that secrets shared with you, I hope your financial worries are less stressful and go out there and continue this road to be a good compassionate pharmacist.
To all other friends out there, if I wrote anything wrong, please correct me and if you have any other secrets to help her, please do share.
Thank you very much in advance.
