Financial Aid Worries

[sisko]

Advertisement - Members don't see this ad

So I've heard from people who've been through the process and what they usually say is, "Don't worry about it, there's more than enough loan money out there for med students... if you get accepted somewhere, you will get enough loans to make it work, no problem, everybody does." Now as I think about it though I'm apprehensive because my situation may be different from the norm in a few important ways.

1. I've already got over $100k in outstanding student loans before med school even starts.
2. My credit score sucks, and there ain't much I can do to change it anytime soon.
3. I definitely will not have anybody willing/able to co-sign on a loan with me.

If anybody who has some knowledge here could help out with their two cents I'd apreciate it!

 

[MedPR]

So I've heard from people who've been through the process and what they usually say is, "Don't worry about it, there's more than enough loan money out there for med students... if you get accepted somewhere, you will get enough loans to make it work, no problem, everybody does." Now as I think about it though I'm apprehensive because my situation may be different from the norm in a few important ways.

1. I've already got over $100k in outstanding student loans before med school even starts.
2. My credit score sucks, and there ain't much I can do to change it anytime soon.
3. I definitely will not have anybody willing/able to co-sign on a loan with me.

If anybody who has some knowledge here could help out with their two cents I'd apreciate it!

Fix your credit. There's always a way and it really isn't that difficult.

 

[angldrps]

So I've heard from people who've been through the process and what they usually say is, "Don't worry about it, there's more than enough loan money out there for med students... if you get accepted somewhere, you will get enough loans to make it work, no problem, everybody does." Now as I think about it though I'm apprehensive because my situation may be different from the norm in a few important ways.

1. I've already got over $100k in outstanding student loans before med school even starts.
2. My credit score sucks, and there ain't much I can do to change it anytime soon.
3. I definitely will not have anybody willing/able to co-sign on a loan with me.

If anybody who has some knowledge here could help out with their two cents I'd apreciate it!

😱 How is this even possible? And I thought my undergrad loans were too high.

 

[qwerty2012]

Most med students I've talked to are carrying around 150k-200k of loans. I don't use credits so I can't relate to you. But you should be worrying because the difference in 100k is still 100k.
In the long run, the most economically wise decision wins out.

 

[sisko]

$150-$200k in loans to get you through undergrad plus med school? that sure would be nice. that's not happening though without getting some serious free money from somewhere...either some sizeable scholarships or mommy and daddy footing a lot of the bills

 

[docmayer]

$150-$200k in loans to get you through undergrad plus med school? that sure would be nice. that's not happening though without getting some serious free money from somewhere...either some sizeable scholarships or mommy and daddy footing a lot of the bills

+1. I was thinking around 300 k (undergrad + med school debt). In the OPs situation, already having 100 K is scary. You'll be carrying 350 k pretty easily after medical school. I am not sure if you will be able to get a LOC for 250k without a co-signer. Your best bet is to just ask the banks.

 

[Mehd School]

Fix your credit. There's always a way and it really isn't that difficult.

This is pretty generalized and not purely accurate for a lot of 20-24 year olds.

 

[Mehd School]

+1. I was thinking around 300 k (undergrad + med school debt). In the OPs situation, already having 100 K is scary. You'll be carrying 350 k pretty easily after medical school. I am not sure if you will be able to get a LOC for 250k without a co-signer. Your best bet is to just ask the banks.

I transferred from a $45k/year school to a $8k/year school. One of my smarter choices thus far in life. My major department is actually better at the cheap school than it was at the prestigious private institution.

I always made fun of my education major friends that were going to be close to $200,000 in debt making $30k per year after graduation.

 

[Back 5]

I'm interested in this as well. I have close to 200k in loans already due to Chiropractic school. I'm assuming I will have to get loans based on credit if I get accepted next year? My credit is good, but not sure what options there are.

Guess I will cross that bridge once I get there. Information always helps though!

 

[Birdeee]

I would advise you to talk directly with a medical school financial aid office. There are a lot of variables and it can be tricky to navigate. When my husband started medical school at age 50 when we had three kids in college we needed to know details so I made several long phone calls.

Everyone's situation and risk tolerance is different. Best of Luck!

 

[HalfListic]

So I've heard from people who've been through the process and what they usually say is, "Don't worry about it, there's more than enough loan money out there for med students... if you get accepted somewhere, you will get enough loans to make it work, no problem, everybody does." Now as I think about it though I'm apprehensive because my situation may be different from the norm in a few important ways.

1. I've already got over $100k in outstanding student loans before med school even starts.
2. My credit score sucks, and there ain't much I can do to change it anytime soon.
3. I definitely will not have anybody willing/able to co-sign on a loan with me.

If anybody who has some knowledge here could help out with their two cents I'd apreciate it!

have you thought of military? Even the army reserve has a pretty good program and isn't all that involved.

Other resources are available, but few that would give you a stipend monthly, which seems like what you may need

 

[MedPR]

This is pretty generalized and not purely accurate for a lot of 20-24 year olds.

Most 20-24 year olds don't have a bk, aren't months late on a mortgage or car paymentn and dont have a huge medical collection following them around.. Small things like 30 day lates on your gap card can be removed and building a positive recent history is as easy as having a credit card and making a small charge every month. Most young people have a very thin credit file and those are the easiest to build up. A low credit score does not always mean bad credit. Having a high utilization percentage on your credit cards will kill your score but once you lower that you will see a score increase. And there is no record of your score or past balances except the internal records credit card companies keep.

Also keep in mind that student loan balances are not calculated into your credit score unless you have a derog (late payment, etc) on them.

Sent from my SGH-T999 using SDN Mobile

 

[sisko]

yeah if I was 20-24, I'd have plenty of time and this whole thing would be a comparative breeze lol. I'm on the far side of 30... and I'm aware of the easier credit fixes. they don't apply here. like i said, no real chance of changing the credit score anytime soon.

 

[MedPR]

yeah if I was 20-24, I'd have plenty of time and this whole thing would be a comparative breeze lol. I'm on the far side of 30... and I'm aware of the easier credit fixes. they don't apply here. like i said, no real chance of changing the credit score anytime soon.

I suggest you checkout myfico. The forums there are incredibly helpful.

Sent from my SGH-T999 using SDN Mobile

 

[sisko]

Well here's an update from my scouring of the interwebs and ignoring my orgo homework, for others who are interested...

The FICO score is not used for Grad Plus loans or the private alternatives. They're looking at:

--Bankruptcy (Chapters 7, 11, or 12 within the past 5 years. Department Policy does not consider Chapter 13 bankruptcy as adverse credit.)
--Voluntary surrender within the last 5 years.
--Repossession within the last 5 years.
--Foreclosure proceedings started.
--Foreclosure within the last 5 years.
--Deed in lieu of foreclosure.
--Accounts currently 90 days or more delinquent.
--Unpaid collection accounts.
--Chargeoffs/write offs.
--Wage garnishment within the last 5 years.
--Defaulted loan that has been claim paid.
--Lease or contract terminated by default.
--County/State/Federal tax lien, within the past 5 years

They are also not interested in how much student loan debt you already have, as long as nothing is in default, you're not behind in your payments, that kind of thing.

If you are denied, there's a formal process where you can appeal and list "extenuating circumstances." Anecdotal reports of people arranging to make monthly payments on the items on their credit report, even tiny payments, just to show that they are actively paying, and being approved or approved on appeal.

 

[MedPR]

Well here's an update from my scouring of the interwebs and ignoring my orgo homework, for others who are interested...

The FICO score is not used for Grad Plus loans or the private alternatives. They're looking at:

--Bankruptcy (Chapters 7, 11, or 12 within the past 5 years. Department Policy does not consider Chapter 13 bankruptcy as adverse credit.)
--Voluntary surrender within the last 5 years.
--Repossession within the last 5 years.
--Foreclosure proceedings started.
--Foreclosure within the last 5 years.
--Deed in lieu of foreclosure.
--Accounts currently 90 days or more delinquent.
--Unpaid collection accounts.
--Chargeoffs/write offs.
--Wage garnishment within the last 5 years.
--Defaulted loan that has been claim paid.
--Lease or contract terminated by default.
--County/State/Federal tax lien, within the past 5 years

They are also not interested in how much student loan debt you already have, as long as nothing is in default, you're not behind in your payments, that kind of thing.

If you are denied, there's a formal process where you can appeal and list "extenuating circumstances." Anecdotal reports of people arranging to make monthly payments on the items on their credit report, even tiny payments, just to show that they are actively paying, and being approved or approved on appeal.

Good to know. People with low scores typically have one or more of those things on their report.

Sent from my SGH-T999 using SDN Mobile

 

[Back 5]

So, people with high FICO scores and no dings on their reports, should be fine for financing even if they are 200k in debt (school loans) already? That would set my mind at ease.

Are there DO schools who finance their students directly? I thought I read PCOM offers direct financing, I haven't looked in some time though.

 

[MedPR]

So, people with high FICO scores and no dings on their reports, should be fine for financing even if they are 200k in debt (school loans) already? That would set my mind at ease.

Are there DO schools who finance their students directly? I thought I read PCOM offers direct financing, I haven't looked in some time though.

Make sure your reports are clean. You can have a good score with derogs on your report. I had a 720-730 for the longest time with a chargeoff and 3 120 day lates. Those ended up not being mine though so I got them removed pretty easily.

 

[dudeliness]

Good to know the requirements for the grad plus loans. As I get into more and more debt, I may actually subscribe to a credit monitoring service instead of just checking my free report once a year.

 

[MedPR]

Good to know the requirements for the grad plus loans. As I get into more and more debt, I may actually subscribe to a credit monitoring service instead of just checking my free report once a year.

Don't use credit karma. It's free, but the scores they give you are not the ones creditors use.

 

[NurWollen]

Good to know the requirements for the grad plus loans. As I get into more and more debt, I may actually subscribe to a credit monitoring service instead of just checking my free report once a year.

There's a new one, and it's completely free. Google Credit Karma.

 

[NurWollen]

Don't use credit karma. It's free, but the scores they give you are not the ones creditors use.

There's a new one, and it's completely free. Google Credit Karma.

Well nevermind then...

 

[HalfListic]

Everyone can use this once a year...

https://www.annualcreditreport.com/cra/index.jsp


also, your bank can usually help you review your credit report once a year

 

[MedPR]

Everyone can use this once a year...

https://www.annualcreditreport.com/cra/index.jsp


also, your bank can usually help you review your credit report once a year

Yes, this is a good resource. In most cases what shows on 1 report will show on all 3 so one way to do it is to pull a single one every 4 months (instead of all 3 at the same time). That way you get to view your report for free more often.