Financial aid -- not enough

[Punchap]

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It seems like every semester I come up short money wise..it ends the same, I either max out my current credit card or borrow from my dad (neither preferable options). I'm an MS-3 and so I have three more semesters of this.

My school dispenses loans according to their set estimated cost of attendance. They have a very conservative estimate as far as rent, transportation costs and "other.".....I'm not super-extravagant in my spending..the only extras that come to mind are: 1) I live alone (so I usually pay more in rent about 850 including utilities). 2) I have a car payment which I started two years before med school began ($320/mo.) 3) I see several specialists for health reasons ($40 specialist copays and multiple drug copays every month add up). All of this adds up and I'm coming up short for it.

I know EVERYONE has some money issues, but the added stress of this every six months seems unnecessary, especially since I'll be up to my ears in debt by the time I graduate medical school anyway -- why stress in the short term too?

My question to you all is this -- are there any decent, low-interest loan options out there for medical students that go beyond the cost of attendance expenses? Anyone have luck solving their own similar problem? Thanks.

 

[DrBowtie]

You have two luxury items that make it incompatible with the student budget. You live alone and have a car payment. I'd get a roommate or ditch the car for a cheap used one.

As for loan options, check your local bank/credit union. Rates may vary but since you're in a pinch, you'll just have to take what rate they offer.

 

[MedMan25]

There are several private lenders out there that offer loans to med students for expenses that go beyond your COA. Whether or not you'll qualify for such a loan will depend on your credit. Interest rate on these loans is going to be higher than your stafford loans but most likely much lower than your credit card interest rate.

Have you spoken to anyone in your financial aid office? Sometimes they can approve you for loan money beyond your COA for special circumstances like health care expenses, etc.

If you want my personal opinion though, I'd look for ways to cut down on your spending before trying to borrow more. Getting a roommate could save you $2,500/semester if you're spending $850 on rent. Selling your car and getting something more affordable would add another thousand or two. If you're a medical student living off student loans, it isn't enough to live within your means, you've got to live below your means if you want to avoid being in debt the rest of your life after you become a doc.

 

[babel]

Another thing to consider is that you really want to try to get your expenses under control NOW while you're a student, as you're not going to be bringing in much more as a resident - and what then? You'll probably be looking at ~$2500-$2600/mo, and considering IBR student loan payments of $400-$500/mo, you're back down to ~$2000/mo (which is about what I get in student loans, anyway). You could inquire with your school about getting money to pay your car loan, however. Many places will cover this if you really do need a car to get around to 3rd year rotations.

 

[Jasil]

I have to concur about the car payments and living alone! My wife and I are currently getting our ducks in a row financially to give her a clear conscience option to choose to go to med school and the first to go is her BMW X5 more than 320/mnth😀

Her 89K/yr+ job will be missed!! A close friend went CRNA route and she just graduated making 65/hr she's in hog heaven, but my point is she just bought her 1st new car. The other beater was 18yrs old!!


Good luck!

 

[alwaysaangel]

Agree with everyone here. The problem is not their conservative estimates its the fact that you have two things that are outside those estimates: 1) living alone and 2) a pretty pricey car payment (which I'm assuming comes along with a pretty pricey insurance premium if you're not on your parents insurance)

You could have one and make it but to try to make both as a student is pretty unrealistic. You're going to keep having the problem. Especially next year when its time to apply for residency and you have extensive travel expenses.

As others have said: the problem probably won't go away in residency either. I've crunched the numbers for residency and have pretty much accepted that I am going to not be buying a new car until I am completely done and working.

As others have said you have a couple of options:
1) Get a roommate.
2) Sell your car and buy an older car that you can pay for outright
3) If your parents are already willing to help you every month see if they will take over your car payment for a few years. You can tally what you owe them and pay them back when you're done
4) Keep doing what you're doing. If your parents don't mind then its not really a problem.