Financial aid- making interest payments while in school???

[turnandburn]

My mom sent me this article about student loans... wondering how it's going to affect us vet students who are taking out $100,000+ in loans, how are we supposed to be paying interest WHILE IN SCHOOL??? Who can afford hundreds of dollars when you can hardly work?

http://www.startribune.com/business/41580277.html?elr=KArksUUUU

"The company, formally known as SLM Corp. is replacing its signature loan with a shorter-term version that requires students to make interest payments while in school. For many families, the move is expected to push private loans out of reach in an already tight credit market"

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[david594]

My mom sent me this article about student loans... wondering how it's going to affect us vet students who are taking out $100,000+ in loans, how are we supposed to be paying interest WHILE IN SCHOOL??? Who can afford hundreds of dollars when you can hardly work?

Because we are all eligible for essentially an unlimited amount of federal loans as professional students and as such should have no need for private loans like those referenced in that article.

 

[sumstorm]

I haven't been able to find an answer on this: are we all eligible, even if our expected contribution is very high?

 

[turnandburn]

I haven't been able to find an answer on this: are we all eligible, even if our expected contribution is very high?

Right, I was wondering about this too, my EFC was rather high, although I thought that they weren't going to take into account parental finances?

 

[Caninerepro]

I seem to recall reading that for us they do not factor in parental contributions, even though the HPL loans require their information. I do not know about is we ourselves have a higher expeted contribution. I am nolonger that wealthy to have to worry about it.

 

[sumstorm]

Actually, some schools say on thier websites that there is an expected contribution from parents (I read it on Penn.)

For me, parents are dirt poor, so that isn't an issue, but husbands isn't too shabby.

 

[vnair2]

Actually, some schools say on thier websites that there is an expected contribution from parents (I read it on Penn.)

For me, parents are dirt poor, so that isn't an issue, but husbands isn't too shabby.

I also read that on Penn's website. It was my impression that a parental contribution is only factored in when consideration are made for Penn specific need based scholarships / grants and does not affect your eligibility for the basic gov loans, which can be used to cover the vast majority if not all of your expenses anyway.

This reminds me, I was suppose to call penn financial aid and clarify this. Thanks for the reminder.

 

[sumstorm]

Penn updated their site, so it doesn't say that about parental contribution anymore:

https://www.vet.upenn.edu/Education...Aid/GeneralInformation/tabid/580/Default.aspx

 

[bunnity]

Disclaimer: this is all for Penn but I think generally applies to other schools:
Stafford
-Federal
-Guaranteed 40,500
-Not EFC based - you get this regardless of your or spouses or parents' finances
-Does not require parent info on the FAFSA or fin aid application
-For Penn at least, you don't have to fill out the fin aid application

Perkins and Health Professions
-Federal
-Up to 10,000 total (one is up to 4,000, one is up to 6,000)
-Need based (EFC based)
-Requires parent info on the FAFSA and the fin aid application
-Better interest rate than Stafford

School based grants at Penn have the same requirements as the Perkins and HP loans (scholarships etc).

I can try to dig up the website if anyone wants it... it took me forever to find last time.

 

[VAgirl]

Disclaimer: this is all for Penn but I think generally applies to other schools:
Stafford
-Federal
-Guaranteed 40,500
-Not EFC based - you get this regardless of your or spouses or parents' finances
-Does not require parent info on the FAFSA or fin aid application

It is absolutely true that the unsubsidized amount of Federal Stafford money is guaranteed regardless of you monetary situation. Period. I'm not 100% sure the dollar amount of unsubsidized Stafford, though...I want to say it's 30-something thousand dollars. It's definitely $8,500 subsidized. So I'm wondering if the $40.5K number is subsidized and unsub together. If so, it's only the unsub portion that you get regardless of financial need.

 

[bunnity]

Yeah the 40,500 is sub and unsub added together. I am pretty sure that the whole thing is guaranteed though, unless our schools are just doing it differently.

 

[VAgirl]

Yeah the 40,500 is sub and unsub added together. I am pretty sure that the whole thing is guaranteed though, unless our schools are just doing it differently.

Nope, it's not different by school because the rules are set by the federal government.

"How much can I borrow? It depends on your year in school and whether you have a subsidized or unsubsidized Direct or FFEL Stafford Loan. A subsidized loan is awarded on the basis of financial need. If you're eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you're in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan borrowing limit for your level of study (see below)."
From http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp

 

[mekia02]

Because we are all eligible for essentially an unlimited amount of federal loans as professional students and as such should have no need for private loans like those referenced in that article.

Be careful the above quote is NOT reality, and for some students it hits hard. As professional students the maximum in federal money that we can borrow is $138,500.00. Most people usually only think about the Stafford or Direct unsubsidized/subsidized loans, however according to studentaid.ed.gov this includes the Graduate Plus Loan.

Let me back up, most of you will fill out your paperwork for the subsidized (max of $8500) and possibly the unsubsidized (max of $32,000-this max. is new). Some vet students might find that $40,500 is not enough to cover tuition/fees, and to live off of for 1 year so they should look next at the Graduate Plus loan. Grad Plus is like the Parent Plus some people might have used in undergrad, but you don't need your parents information for this. The interest rate is a little bit higher for grad plus. There is no maximum amount that you can borrow from the Grad Plus (you just can't borrow over the cost of attendance for your school) BUT.....if you are one of the unlucky people who borrows up to the federal max of $138,500, you have to pay some of that back BEFORE you can take out another Grad Plus loan, again until you reach the max of $138,000.

So please be careful when taking out loans, make sure that you educate yourself. I will be one of those unlucky people after my 2nd year, I will only have about 5K in federal money left that I can borrow. Grad school was very expensive for me, and I actually had forgotten about the Grad Plus stopping once the federal max is reached until I read the OP's post and went searching for the references for my post. I will need to use private loans for my last two years and at many schools if not all the last year or two are the most expensive because of insurance and other items you will need.

If your school offers financial planning sessions, or possible seminars through VBMA or AHAH I strongly encorage you to go to these. If your tuition is going to be $30,000 per year do you know if you can live off of $10,000 a year? I wish I had asked more vet students how they lived before I started vet school so I could maybe have prepared a little more before school started. while you guys and girls are waiting to hear from schools or to start in the fall I would go ahead and prepare your financial budget, ask as many people questions about finances ( politely) as you can find at the school you are going to. In my opinion not nearly enough time is spent on the financial aspects of our lives as vet students or as veterinarians and when school starts finances might end up being up there with studying for gross anatomy when it comes to stressors.

References
Look at 10,11,12 for the stuff I cited.
http://studentaid.ed.gov/students/attachments/funding/PlusLoansQA.pdf

http://studentaid.ed.gov/PORTALSWebApp/students/english/PlusLoansGradProfstudents.jsp

 

[mekia02]

Wow 4 people posted while I was typing my other post, this might be my first post in hot thread on this board!

"A subsidized loan is awarded on the basis of financial need."- VAGirl

Most vet students will qualify for the unsubsidized loan. Just fill out your FAFSA and if you dont get offered a subsidized loan ask the financial aid officer about it. That is typical students, if your non traditional coming off of a wall street career you might not qualify but that is certainly not going to be most applicants.

Your a considered a dependent student if your applying for professional school regardless of your age, as so your parents info is no longer needed (outside of the Health Professions Loan?). So only your finances are looked at and most of us don't have massive amounts in the savings, IRAs, 401K accounts or trust funds..... unless were lucky.



2nd Edit
Your right about that VAgirl-I forgot about spouses income.

 

[VAgirl]

Wow 4 people posted while I was typing my other post, this might be my first post in hot thread on this board! Most vet students will qualify for the unsubsidized loan. Just fill out your FAFSA and if you dont get offered a subsidized loan ask the financial aid officer about it. That is typical students, if your non traditional coming off of a wall street career you might not qualify but that is certainly not going to be most applicants.

Since spouse's financial information is factored in, if you have a spouse making good money, it seems entirely possible that there might be issues qualifying for the subsidized portion. However I'm pretty sure it's not an all or nothing deal...one could still qualify for a portion of the $8,500, potentially.

 

[StillDreaming]

Be careful the above quote is NOT reality, and for some students it hits hard. As professional students the maximum in federal money that we can borrow is $138,500.00.

Is that limit just for graduate school or does it inlcude loans we might have taken out in undergrad?

I did not know about this limit, thank you SO much for pointing it out.

 

[kef148]

I found a site that the Lifetime limit is higher for students in "Health Professional" schools compared to graduate schools. For us it should actually be $224,000.

My source: http://www.staffordloan.com/stafford-loan-info/graduate-stafford-loan.php

Does anyone know anything else about this?

 

[david594]

Let me back up, most of you will fill out your paperwork for the subsidized (max of $8500) and possibly the unsubsidized (max of $32,000-this max. is new). Some vet students might find that $40,500 is not enough to cover tuition/fees, and to live off of for 1 year so they should look next at the Graduate Plus loan. Grad Plus is like the Parent Plus some people might have used in undergrad, but you don't need your parents information for this. The interest rate is a little bit higher for grad plus. There is no maximum amount that you can borrow from the Grad Plus (you just can't borrow over the cost of attendance for your school) BUT.....if you are one of the unlucky people who borrows up to the federal max of $138,500, you have to pay some of that back BEFORE you can take out another Grad Plus loan, again until you reach the max of $138,000.

When you graduate with a graduate or professional degree, the maximum total debt allowed from Stafford Loans is $138,500. No more than $65,500 of this amount may be in subsidized loans. This maximum total graduate debt limit includes Stafford Loans received for undergraduate study. However, the aggregate loan limit for graduate and professional students enrolled in certain approved health profession programs is $224,000.

Veterinary school in the US counts as an approved health profession program so we are subject to the $224,000 limit and not the $138,500 limit.

References
Look at 10,11,12 for the stuff I cited.
http://studentaid.ed.gov/students/attachments/funding/PlusLoansQA.pdf

And its #14 on that sheet you referenced that mentions the increased health professions limit.

 

[StillDreaming]

I found a site that the Lifetime limit is higher for students in "Health Professional" schools compared to graduate schools. For us it should actually be $224,000.

My source: http://www.staffordloan.com/stafford-loan-info/graduate-stafford-loan.php

Ah, i can breathe again. I kind of got a little freaked out there for a second. I mean, i'm still freaked out by the HUGE sum that this is, but at least I can get federal loans past my 2nd year.

OK, going back to my corner to catch my breathe

 

[turnandburn]

I filed my FAFSA last week, does anyone know when we hear anything back?

 

[chris03333]

Be careful the above quote is NOT reality, and for some students it hits hard. As professional students the maximum in federal money that we can borrow is $138,500.00. Most people usually only think about the Stafford or Direct unsubsidized/subsidized loans, however according to studentaid.ed.gov this includes the Graduate Plus Loan.

Let me back up, most of you will fill out your paperwork for the subsidized (max of $8500) and possibly the unsubsidized (max of $32,000-this max. is new). Some vet students might find that $40,500 is not enough to cover tuition/fees, and to live off of for 1 year so they should look next at the Graduate Plus loan. Grad Plus is like the Parent Plus some people might have used in undergrad, but you don't need your parents information for this. The interest rate is a little bit higher for grad plus. There is no maximum amount that you can borrow from the Grad Plus (you just can't borrow over the cost of attendance for your school) BUT.....if you are one of the unlucky people who borrows up to the federal max of $138,500, you have to pay some of that back BEFORE you can take out another Grad Plus loan, again until you reach the max of $138,000.

http://studentaid.ed.gov/students/attachments/funding/PlusLoansQA.pdf

http://studentaid.ed.gov/PORTALSWebApp/students/english/PlusLoansGradProfstudents.jsp

Actually as a "medical student" which is what they classify vet students as, (not professional students that have the 138k limit)you aggregate is closer to $224,000

See:
http://www.finaid.org/loans/studentloan.phtml

Andd I know this for sure as I received the max 40K+ for all 4 years of vet school.

 

[mekia02]

Veterinary school in the US counts as an approved health profession program so we are subject to the $224,000 limit and not the $138,500 limit.




And its #14 on that sheet you referenced that mentions the increased health professions limit.

Actually as a "medical student" which is what they classify vet students as, (not professional students that have the 138k limit)you aggregate is closer to $224,000

See:
http://www.finaid.org/loans/studentloan.phtml

Andd I know this for sure as I received the max 40K+ for all 4 years of vet school.

Thanks for the correction, I'm breathing easier myself!

 

[banditalfi]

A few FinAid things...

I know at Cornell (and I would assume at every US school) we can take out loans up to the estimated cost of education and living expenses, so there's not really a loan shortage. It's just that I don't want to take out that money (ugh).

Also, we were told by our FinAid office that we should definitely pay off the interest while we are in school. My last payment was >$150, which I essentially paid with the loans I took out. It sucks, but it's better than paying $1000 later.

Also, in terms of working, I think once you learn how to be a vet student you'll be able to find some work that suits you. Many of my classmates now have a job and it's nice to get a little cash in and not feel bad about going out for drinks or to eat once in a while. Personally, I have three (very) part time jobs right now and I babysit occasionally, so it's definitely doable. I'm not bringing in the big bucks, but it really is comforting to know I'm doing what I can to combat the loans.

 

[bunnity]

I filed my FAFSA last week, does anyone know when we hear anything back?

If you did it online, you should get an email very soon with a link to access your student aid report. You can also just go to the website and check on your status. Basically all the report gives you is your EFC.

 

[kef148]

Does anyone know if Perkins Loans count towards the 224,000 lifetime limit? I think that you pay them back to the school, not the government, but they are called Federal Perkins Loans.

 

[chris03333]

Does anyone know if Perkins Loans count towards the 224,000 lifetime limit? I think that you pay them back to the school, not the government, but they are called Federal Perkins Loans.

224k is federal stafford limit

 

[meadow36]

Bumping this thread; important info here for all of us.