Grad PLUS loans and outstanding debt

[Torilynn92]

Hello hello!
I had an absolute nightmare last night that I got denied for a loan for medical school, and now I'm panicking. My credit score is in the 700's, but I do have a car loan, credit cards, and undergrad debt (although I have always made these payments on time.)
However, I DO have outstanding debt in collections - about $350, which I incurred during an ER visit that I was in a prolonged battle with my insurance to pay for. If accepted, I would be starting medical school in July 2016. I obviously hope to pay this debt off, or at least remain on a payment plan, by then.
My question - will this prevent me from getting approved for a Grad Plus loan?

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Omg we are twins lol I also had a nightmare about getting denied for loans! I don't have any debt in collections but I do have undergrad loans and a low 700's credit score. I mean, we're almost all in our low 20's, how established can our credit possibly be?

 

[Torilynn92]

Get it paid off or get a payment plan AND get a letter from the creditor that says so. It may impact you. I had a recently matriculated student who had to defer a year over divorce/house foreclosure. That was cleared up only to be denied the next year over a lesser amount of a bill in collections that was being sent to her foreclosed house after she was gone. Took a panic but cleared up in time to start med school.

Oh, gosh, that's terrifying. The charges on my account amount to around $350 or so, but there's two - one from radiology, one from the ER. If I get them paid in full or enter a payment plan, and get a letter from my creditor saying so, will I be okay for a Grad PLUS? Also - should I start the process of applying for Grad PLUS now, pre-acceptance, just in case? So I know that if I need to appeal or if there are snags, I can head them off?

Thank you!

 

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gonnif's advice on this is great. I didn't have health insurance in college and had an ER visit during finals. I ended up with a $2,000 bill! The hospital let me enter a payment plan of $40/month (they'll go lower though if you need to) and once I paid on time each month for a year they ended up forgiving most of it. I think after 12 months they asked me to pay 50% of the remaining bill and offered to forgive the rest, so I took them up on that offer. The point is that my credit was completely protected during the entire time.

 

[Torilynn92]

Awesome! Okay. I wish I had known I could do a payment plan earlier. So I've now contacted both collections agencies, entered into a payment agreement, and will be making payments until the debt is paid off. I have letters confirming this for each collections agency, and will submit them to the credit agencies. So now I'm AOK, good to go on Grad Plus Loans, right?

 

[StudyLater]

Hello hello!
I had an absolute nightmare last night that I got denied for a loan for medical school, and now I'm panicking. My credit score is in the 700's, but I do have a car loan, credit cards, and undergrad debt (although I have always made these payments on time.)
However, I DO have outstanding debt in collections - about $350, which I incurred during an ER visit that I was in a prolonged battle with my insurance to pay for. If accepted, I would be starting medical school in July 2016. I obviously hope to pay this debt off, or at least remain on a payment plan, by then.
My question - will this prevent me from getting approved for a Grad Plus loan?

How are you getting denied loans, regardless of credit?

You're going to ****ing medical school. Anyone not investing in you has literally zero business sense.

There's got to be alternatives. Have you looked into stafford?


EDIT: Oh you're not in yet? That makes perfect sense, then. I thought you were supposed to apply after you get in anyway?

 

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How are you getting denied loans, regardless of credit?

You're going to ****ing medical school. Anyone not investing in you has literally zero business sense.

There's got to be alternatives. Have you looked into stafford?


EDIT: Oh you're not in yet? That makes perfect sense, then. I thought you were supposed to apply after you get in anyway?

No one has been denied loans. OP is concerned he/she may be denied for them when the time comes to apply.

 

[StudyLater]

No one has been denied loans. OP is concerned he/she may be denied for them when the time comes to apply.

I still don't get it. You'd have to have some major major inconsistencies in your academic record for them to even think about not sponsoring your medical education. Additionally, since OP seems to have no form of outside support, they can count on OP to make good considering the alternative is going to be almost lifelong financial enslavement.

 

[Affiche]

I still don't get it. You'd have to have some major major inconsistencies in your academic record for them to even think about not sponsoring your medical education. Additionally, since OP seems to have no form of outside support, they can count on OP to make good considering the alternative is going to be almost lifelong financial enslavement.

Lol have you ever applied for loans before? No one is exactly gunning to loan money to 20-somethings. Grad PLUS is different, but the OP is definitely right to make sure he/she's all straight before the time comes to procure such a large loan.

 

[StudyLater]

Lol have you ever applied for loans before?

No. But even if I had, med school is a whole different investment than some UG education that has ~50% chance of failing and an even greater chance that it will not produce a grad that will be able to secure reasonable employment to repay the loan in a timely fashion.

No one is exactly gunning to loan money to 20-somethings.

20-somethings who are going to med school? I don't know; somehow I doubt that. I think it has to do with the graduation rate and future income potential.

Grad PLUS is different, but the OP is definitely right to make sure he/she's all straight before the time comes to procure such a large loan.

Sure.

But I don't know. Settling a $350 debt compared to what they'll be giving you. I think it'd be a cute gesture at the most. But I get it: extrapolation based on past behaviors. "Well if he can't even repay $350...." Though obviously the situation is totally different for medical training. Poor college student with no skills vs. highly trained physician with money coming out his ears.

 

[Torilynn92]

How are you getting denied loans, regardless of credit?

You're going to ****ing medical school. Anyone not investing in you has literally zero business sense.

There's got to be alternatives. Have you looked into stafford?


EDIT: Oh you're not in yet? That makes perfect sense, then. I thought you were supposed to apply after you get in anyway?

Yeah, not in, just worried. I know that these things take sometimes months to get arranged. And StudyLater, my boyfriend is an attorney so I watched him go through this process several years ago for law school. You WILL get denied for GradPLUS loans if you have any "negative credit history". This includes unpaid/bad credit card debt, late student loan payments, and debts sent to collection (this is the one I have). If you have any of the above, there's no convincing lenders that "oh, she's going to medical school, she's good for it". It's a basic formula - if you do not meet all of their criteria (which, at present, I do not), you do not get a loan. Period.
What I wanted to know, though, was if I paid off these debts or got onto a payment plan, if I would still potentially qualify. I think the answer to this question is yes, but I was hoping to chat with somebody who has done it before themselves and who could guide me! It's a scary thought - maybe getting into school, but being denied for loans.

 

[Torilynn92]

Basically - I will obviously be paying off the $350, for sure. I should have done it ages ago. But even if I pay it off, there's no guarantee I'd qualify for the loan, since the specific verbage on the qualifying agreements is "No accounts in the last 7 years which went 90 days past due" - which I have, even if I pay now, gone past 90 days. The collections agency claims they'll delete it from my credit history though, so we'll see. :/

 

[Torilynn92]

@gonnif In general, though, could I submit that the account was paid in full and even though it's still showing on my report, qualify for grad plus? I just want to get this taken are of ASAP since I know it does take time!

 

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I think it has to do with the graduation rate and future income potential.

It does, but it has more to do with past payment history. For funding medical education, no credit is better than bad credit. If you think that you can do whatever you want with your credit and you'll still be approved for a 200k loan just because you're going to medical school, you'll be sorely disappointed.

 

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But I don't know. Settling a $350 debt compared to what they'll be giving you. I think it'd be a cute gesture at the most.

Sure, but if someone let $350 go to collections what makes you think anyone would be willing to loan $200,000? No offense, OP.

 

[Torilynn92]

Sure, but if someone let $350 go to collections what makes you think anyone would be willing to loan $200,000? No offense, OP.

None taken. It was a dumb, dumb move. It was leftover from an extremely expensive ER visit and hospital stay for kidney problems, and I just had a lot on my plate. I assumed insurance would take care of it. When they did not, and I was sent to collections, I wasn't in a financial position to pay so I just didn't. It's my own fault! Definitely let this be a lesson to other people - don't let things go. I can see why it would make me look like an irrisponsible investment, for sure. At this point, I plan on paying, but I want to know what I need to get as far as damage-control so that GradPLUS will still give me a chance. I'm a responsible borrower in every other way -credit cards, student loans, car payments, etc.

 

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Basically - I will obviously be paying off the $350, for sure. I should have done it ages ago. But even if I pay it off, there's no guarantee I'd qualify for the loan, since the specific verbage on the qualifying agreements is "No accounts in the last 7 years which went 90 days past due" - which I have, even if I pay now, gone past 90 days. The collections agency claims they'll delete it from my credit history though, so we'll see. :/

If this is the case then don't worry so much. You've done what you can to settle it and it sounds like your credit will be protected. If it makes you feel any better, I had a $6 charge on my account for 23 months from a utility bill that I was never contacted about. I thought I paid off my account and closed it when I changed addresses, but I guess there was a final charge that I was billed and not notified about. I found out about 2 years later when I was applying for a new apartment! I was told it never went to collections and I obviously sent them the 6 dollars, but I still stress

 

[parachichi]

So in the same vein of this thread, I read through some financial aid info last night and found out that you can't pay off old debt (like credit card debt) with your school loans. You also can't pay off debt for car loans, apparently. I was planning on getting a car for med school (nothing fancy) and counting it as another drop in the bucket of medical school loans. I can pay down some of the debt I have from this past year (postbac and applications), but probably not all of it - I thought this debt would count as a drop in the bucket as well. Parents aren't an option (they're worse off financially than I am). I should probably just talk with a financial aid officer about this, but anyone have a similar experience? I have good credit, btw.

 

[Affiche]

So in the same vein of this thread, I read through some financial aid info last night and found out that you can't pay off old debt (like credit card debt) with your school loans. You also can't pay off debt for car loans, apparently. I was planning on getting a car for med school (nothing fancy) and counting it as another drop in the bucket of medical school loans. I can pay down some of the debt I have from this past year (postbac and applications), but probably not all of it - I thought this debt would count as a drop in the bucket as well. Parents aren't an option (they're worse off financially than I am). I should probably just talk with a financial aid officer about this, but anyone have a similar experience? I have good credit, btw.

I have a similar plan haha. Depending on where I matriculate, I may need to buy a car but I cannot afford to buy a good one right now without a loan. My plan is to save to put as large of a down payment down as possible (good rule of thumb: never buy a car unless you can put down at least 20%) and set up a manageable payment plan. Depending on where you go to school, you can take out a higher loan amount and justify it as CoA and just live somewhere cheap for rent, buy used books, etc. The money you save in the other fees for CoA you can use to pay off your car.

Edit: I would not advise anyone to rack up credit card debt with the idea of paying it off with student loans.

 

[StudyLater]

Yeah, not in, just worried. I know that these things take sometimes months to get arranged. And StudyLater, my boyfriend is an attorney so I watched him go through this process several years ago for law school. You WILL get denied for GradPLUS loans if you have any "negative credit history".This includes unpaid/bad credit card debt, late student loan payments, and debts sent to collection (this is the one I have). If you have any of the above, there's no convincing lenders that "oh, she's going to medical school, she's good for it". It's a basic formula - if you do not meet all of their criteria (which, at present, I do not), you do not get a loan. Period.

I could definitely see law student criteria being much more rigorous. Also have a close relative who had issues on this same front. I don't see it entirely translating, though.

What I wanted to know, though, was if I paid off these debts or got onto a payment plan, if I would still potentially qualify. I think the answer to this question is yes, but I was hoping to chat with somebody who has done it before themselves and who could guide me! It's a scary thought - maybe getting into school, but being denied for loans.

I'm also interested in this. I just don't know why you would be denied if you pay it off, or even if you didn't. There's got to be thousands others in your exact situation, some with 5-6 figures in outstanding UG debt that they just can't cover yet. I know there has to be some alternative. In modern times, not being able to get an education for financial reasons when you're perfectly academically capable could only be a result of not exhausting any and all options.

It does, but it has more to do with past payment history. For funding medical education, no credit is better than bad credit. If you think that you can do whatever you want with your credit and you'll still be approved for a 200k loan just because you're going to medical school, you'll be sorely disappointed.

With the chance of success being far higher than any business one could possibly ever invest in, the credit score would need to be absolutely deplorable. Also I assume if no payments are made by the time you're earning they can always just garnish wages.

Sure, but if someone let $350 go to collections what makes you think anyone would be willing to loan $200,000? No offense, OP.

When in poverty likely making <15k/yr, this small amount of money makes a much greater difference in one's life (particularly if they have kids) than, say, 50k/yr when making >250k/yr. Therefore, like I said, I don't think the extrapolation is reasonable. Though I don't necessarily doubt it could be interpreted the way you suggest by financial institutions.

 

[Torilynn92]

If this is the case then don't worry so much. You've done what you can to settle it and it sounds like your credit will be protected. If it makes you feel any better, I had a $6 charge on my account for 23 months from a utility bill that I was never contacted about. I thought I paid off my account and closed it when I changed addresses, but I guess there was a final charge that I was billed and not notified about. I found out about 2 years later when I was applying for a new apartment! I was told it never went to collections and I obviously sent them the 6 dollars, but I still stress

My worst fear! I check my report every now and again to make sure that doesn't happen to me! Thanks for talking me off a cliff. I just wanna make sure I have all my ducks in a row. I'd hate to get into school and not be able to go for financial reasons,. Thanks for talking me off the cliff!

I could definitely see law student criteria being much more rigorous. Also have a close relative who had issues on this same front. I don't see it entirely translating, though.

The criteria for federal Grad Plus loans (easiest ones to get) are the same, no matter what grad school you go to. They treat doctoral students in interpretive poetry the same as they treat neurobiologists. According to them - if you have ever foreclosed, defaulted, or been sent to collections on ANY kind of debt, you do not qualify. You could owe a million dollars to a mortgage loan for a house, so long as that debt is consistently paid, they don't care.

I'm also interested in this. I just don't know why you would be denied if you pay it off, or even if you didn't. There's got to be thousands others in your exact situation, some with 5-6 figures in outstanding UG debt that they just can't cover yet. I know there has to be some alternative. In modern times, not being able to get an education for financial reasons when you're perfectly academically capable could only be a result of not exhausting any and all options..

I agree, but what should be and what ARE are two different things. I have 5-figure UG debt, for sure, but that doesn't matter. The ONLY criteria for a Grad PLUS loan are basically "no bad marks on your credit" - which I have, because I had a debt sent to collection. They don't care about my car loan, or my UG loans, or any of that. They care that I was sent to a collections agency on hospital debt - which unfortunately, I think is not all that common.

 

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I could definitely see law student criteria being much more rigorous. Also have a close relative who had issues on this same front. I don't see it entirely translating, though.



I'm also interested in this. I just don't know why you would be denied if you pay it off, or even if you didn't. There's got to be thousands others in your exact situation, some with 5-6 figures in outstanding UG debt that they just can't cover yet. I know there has to be some alternative. In modern times, not being able to get an education for financial reasons when you're perfectly academically capable could only be a result of not exhausting any and all options.



With the chance of success being far higher than any business one could possibly ever invest in, the credit score would need to be absolutely deplorable. Also I assume if no payments are made by the time you're earning they can always just garnish wages.



When in poverty likely making <15k/yr, this small amount of money makes a much greater difference in one's life (particularly if they have kids) than, say, 50k/yr when making >250k/yr. Therefore, like I said, I don't think the extrapolation is reasonable. Though I don't necessarily doubt it could be interpreted the way you suggest by financial institutions.

You are mistaking earning potential to be synonymous with actual earning. Investors do not see it that way, even for medical students. Grad PLUS loans have requirements and you don't get to circumvent those just because you're going to *medical school* instead of plain old law school. You have a lot to learn about the government and finances in general haha. If denied for Grad PLUS, OP would likely be able to easily score a private loan because of her earning potential, but the interest rates would be insane and she'd end up paying back almost twice as much as she borrowed because capitalized interest.

 

[Torilynn92]

^^ Bingooooo. Boyfriend got both GradPLUS and Private Student Loans for his private law school in excess of $250,000. His interest accrues faster than his minimum payments, which means that he now actually has the issue of having his loans GROW every year, even when he makes all monthly payments on time. It's crazy. I definitely want to avoid private lenders like the plague.

 

[Torilynn92]

I wish grad loans were easier, particularly for people in the medical field, who obviously will contribute massively to their communities once they graduate. As it stands, though - if you have ANY negative credit history, for ANY reason, ya better make that go bye-bye or you're not getting a loan. At least, that's my understanding. I feel bad for non-trad applicants who may have undergone a divorce, bankruptcy, default, or foreclosure at some point...how on earth are they supposed to get loans?

 

[StudyLater]

I agree, but what should be and what ARE are two different things. I have 5-figure UG debt, for sure, but that doesn't matter. The ONLY criteria for a Grad PLUS loan are basically "no bad marks on your credit" - which I have, because I had a debt sent to collection. They don't care about my car loan, or my UG loans, or any of that. They care that I was sent to a collections agency on hospital debt - which unfortunately, I think is not all that common.

I don't know! I feel like especially 20-somethings would be the ones to flub on these kinds of things. Doesn't necessarily indicate you're not going to be perfectly good for it down the line. Maybe it's one of those things where there's an institutional rule, but there's some backdoor finagling that could happen -- like if you just had a conversation with one of their officers or something. I don't know.

You are mistaking earning potential to be synonymous with actual earning. Investors do not see it that way, even for medical students. Grad PLUS loans have requirements and you don't get to circumvent those just because you're going to *medical school* instead of plain old law school. You have a lot to learn about the government and finances in general haha. If denied for Grad PLUS, OP would likely be able to easily score a private loan because of her earning potential, but the interest rates would be insane and she'd end up paying back almost twice as much as she borrowed because capitalized interest.

That's ok. At least it's not prohibitively expensive even in the worst case.

 

[Torilynn92]

I don't know! I feel like especially 20-somethings would be the ones to flub on these kinds of things. Doesn't necessarily indicate you're not going to be perfectly good for it down the line. Maybe it's one of those things where there's an institutional rule, but there's some backdoor finagling that could happen -- like if you just had a conversation with one of their officers or something. I don't know.

That's what I'm praying for! Somebody I could call and be like "yo, I paid that off, bro. Let me get the loan. Kthanks!" We'll see what happens!

 

[parachichi]

I have a similar plan haha. Depending on where I matriculate, I may need to buy a car but I cannot afford to buy a good one right now without a loan. My plan is to save to put as large of a down payment down as possible (good rule of thumb: never buy a car unless you can put down at least 20%) and set up a manageable payment plan. Depending on where you go to school, you can take out a higher loan amount and justify it as CoA and just live somewhere cheap for rent, buy used books, etc. The money you save in the other fees for CoA you can use to pay off your car.

Edit: I would not advise anyone to rack up credit card debt with the idea of paying it off with student loans.

Okay perfff I was thinking of a plan along those lines. Just wanted to make sure I wasn't screwed, thanks! Will be eating Top Ramen the rest of this year.

 

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Maybe it's one of those things where there's an institutional rule, but there's some backdoor finagling that could happen -- like if you just had a conversation with one of their officers or something. I don't know.

Good luck with that.

At least it's not prohibitively expensive even in the worst case.

I would find that to be prohibitively expensive, but to each his own.

 

[StudyLater]

That's what I'm praying for! Somebody I could call and be like "yo, I paid that off, bro. Let me get the loan. Kthanks!" We'll see what happens!

I'm just going to say, throughout my life, most of the time this has been the case. There's always "the rule," and then "the deal" which can deviate from the rule. Assuming rules are hard and fast literally would have caused me to go through some pretty difficult things financially and educationally which I was able to totally dodge just from simply asking the right people, "Can we work something out here?"

^^ Bingooooo. Boyfriend got both GradPLUS and Private Student Loans for his private law school in excess of $250,000. His interest accrues faster than his minimum payments, which means that he now actually has the issue of having his loans GROW every year, even when he makes all monthly payments on time. It's crazy. I definitely want to avoid private lenders like the plague.

Lawyers know basic math and a little algebra, right? He should run the numbers himself (one can usually do this in one's head within ~1-2mins) to figure out what needs to be paid each month to ensure the loan is getting paid off some x dollar amount every month, and then calculate the total amount of time it would take to pay it off overall.

Personally I'd be allocating at least 100k of my 150-200k post-tax budget to loans. 5 Ferraris, 3 wives, 15 kids, 2 private jets, 15 butlers, 6 mansions and tropical island vacations every weekend will have to wait a few years.

 

[StudyLater]

I would find that to be prohibitively expensive, but to each his own.

For this you or for Dr. you? I'm talking about Dr. rachiie. Because Dr. rachiie has mad dough and at that point, how she wants to allocate it is her business. But she can never say she can't pay 400k over the course of a decade or two.

 

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Personally I'd be allocating at least 100k of my 150-200k post-tax budget to loans.

A salary of $250,000 comes out to about $160-$166,000 after taxes. Once you're making that salary, your 200k loan will be about 300k with a 6.84% interest rate, depending on your payment plan. You'll also be wanting to save for a down payment on a house and buy a nice, reliable car. I think you're operating under the assumption that doctors make much, much more money than they actually do.

 

[StudyLater]

A salary of $250,000 comes out to about $160-$166,000 after taxes. Once you're making that salary, your 200k loan will be about 300k with a 6.84% interest rate, depending on your payment plan. You'll also be wanting to save for a down payment on a house and buy a nice, reliable car. I think you're operating under the assumption that doctors make much, much more money than they actually do.

Apartment. Ideally I'm right next to work/grocery store plaza so I walk/bike. I'll get some basic used A-->B vehicle with 100-150k mi on it for $4k.

No like I said 150-200k, which your calculations have come out to as well. I was assuming about 40% (might be more like 44 with SS) off a 250-300k salary. Assume one lives somewhere that has no state/property. Even on the low end, you've got $140k. Pay 100 to my pimp. 40 for 2BR apartment (assuming I'm attending, I live where I want, and I've decided to live in a low COL place -- ~8-900/mo), utilities ($200/mo), food + other grocery crap ($400/mo high end), $100 gas, insurance ($5-10k or so), and incidentals (another $10k, or just save it).

That's a basic outline, give or take 5k or so for some BS I may have forgot about.

 

[Affiche]

Apartment. Ideally I'm right next to work/grocery store plaza so I walk/bike. I'll get some basic used A-->B vehicle with 100-150k mi on it for $4k.

No like I said 150-200k, which your calculations have come out to as well. I was assuming about 40% (might be more like 44 with SS) off a 250-300k salary. Assume one lives somewhere that has no state/property. Even on the low end, you've got $140k. Pay 100 to my pimp. 40 for 2BR apartment (assuming I'm attending, I live where I want, and I've decided to live in a low COL place -- ~8-900/mo), utilities ($200/mo), food + other grocery crap ($400/mo high end), $100 gas, insurance ($5-10k or so), and incidentals (another $10k, or just save it).

That's a basic outline, give or take 5k or so for some BS I may have forgot about.

Sure, dude.

 

[StudyLater]

Sure, dude.

I know I know. I'm gonna get married and have like 12 kids all of which will cost me 15k each and I'll be struggling just to make ends meet.

Please lecture me more rachiie

 

[Torilynn92]

Lawyers know basic math and a little algebra, right? He should run the numbers himself (one can usually do this in one's head within ~1-2mins) to figure out what needs to be paid each month to ensure the loan is getting paid off some x dollar amount every month, and then calculate the total amount of time it would take to pay it off overall.

I mean, you're a genius! You've solved our life's problems! We've been struggling with this conundrum for the last several years since his graduation! We can afford a wedding now!
All jokes aside, we know how much he must pay monthly in order to pay down those loans. It is impossible on his current salary. Them's the breaks. That's why I'd like to avoid private loans if I can. Counting on a $200k salary as a future physician these days isn't the best idea financially - I work in the field now, and I know that physicians are struggling more and more every year to make enough money to service their loans. It's not the guaranteed cash cow that it used to be, and that's a fact. Depressing, though.

 

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I know I know. I'm gonna get married and have like 12 kids all of which will cost me 15k each and I'll be struggling just to make ends meet.

Please lecture me more rachiie

Lol I have no interest in having kids at all and I don't think anyone will be struggling to make ends meet as an attending. I do, however, think that it's not likely you'll be wanting to bike to work year-round while you're in your 30's while living in a cheap, 2 BR apartment. It just sounds like you're incredibly naive about finances, having never applied for a loan before and it sounds like you've never been salaried, either. But hey, if you want to live like a college student until you're 40 because 400-500k in debt doesn't sound prohibitively expensive for you, go for it!

 

[Torilynn92]

But hey - this is all assuming that I can even get in, and that GradPLUS doesn't give me a big fat "NO!" because I don't meet their leading requirements. I'm stressing about things that haven't come to pass yet. Typical Type-A! I'm going to go back to my $30k a year job, now, and praying for some miracles!

 

[StudyLater]

Lol I have no interest in having kids at all and I don't think anyone will be struggling to make ends meet as an attending. I do, however, think that it's not likely you'll be wanting to bike to work year-round while you're in your 30's while living in a cheap, 2 BR apartment. It just sounds like you're incredibly naive about finances, having never applied for a loan before and it sounds like you've never been salaried, either. But hey, if you want to live like a college student until you're 40 because 400-500k in debt doesn't sound prohibitively expensive for you, go for it!

I really do think 400-500k is a fair investment. If I could get a cheaper deal, though, then of course that'd be preferred. I don't see why it has to be a big deal. I can live where I please, so I could choose wherever I feel there is a good balance between weather, taxes, and COL. Ergo, walking/biking doesn't have to be such a big issue. It shouldn't be insanely difficult to find a place to live within 1-2mi of a hospital.

And ok show and tell time: I lived independently, successfully before college doing just what I described previously. I haven't had to apply for a loan because I got a scholarship to my sh*tty public U. I'm currently a salaried worker there. I don't want to live like anything, though. I just want to live, and I've got low standards for myself. I do agree however that an SO with a totally different frame of mind could possibly shake things up a bit. But I'd rather be with someone who understands and respects my financial views. That's pretty much like my only requirement for someone I'd live with.

 

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I really do think 400-500k is a fair investment. If I could get a cheaper deal, though, then of course that'd be preferred. I don't see why it has to be a big deal. I can live where I please, so I could choose wherever I feel there is a good balance between weather, taxes, and COL. Ergo, walking/biking doesn't have to be such a big issue. It shouldn't be insanely difficult to find a place to live within 1-2mi of a hospital.

And ok show and tell time: I lived independently, successfully before college doing just what I described previously. I haven't had to apply for a loan because I got a scholarship to my sh*tty public U. I'm currently a salaried worker there. I don't want to live like anything, though. I just want to live, and I've got low standards for myself. I do agree however that an SO with a totally different frame of mind could possibly shake things up a bit. But I'd rather be with someone who understands and respects my financial views. That's pretty much like my only requirement for someone I'd live with.

Your financial views are stupid. You're willing to pay 500k for a degree you can get for 100-200k, but then think you'll be happy being a frugal son of a bish and living like a kid until you're 40? You honestly sound like you're too young to even comprehend what balancing work and life is like.

 

[StudyLater]

Your financial views are stupid. You're willing to pay 500k for a degree you can get for 100-200k, but then think you'll be happy being a frugal son of a bish and living like a kid until you're 40? You honestly sound like you're too young to even comprehend what balancing work and life is like.

I thought we were talking about a hypothetical in which medical school isn't possible unless you get that private loan you mentioned? So we're assuming it's 500k or no med school right now. Also the frugal stuff I mentioned was honestly a complete joke. I thought that was clear.

I'm also mentioning this partially because I know you like starting **** and I love when you get up in people's faces about things like this. Just wanted to experience it for myself. But I'm also seriously trying to contend a point. Please don't be actually mad at me. I'm a huge fan of your work.

 

[Torilynn92]

The whole subject got a little derailed! If anybody has successfully applied for a GradPlus loan with a collections account on their file, hit yo home girl up with your magic.

 

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Please don't be actually mad at me. I'm a huge fan of your work.

It's good work, right? Haha not mad. Very rarely do I actually care about anything said on SDN. I just have a slow season at work and this site is entertaining (and occasionally helpful).

So we're assuming it's 500k or no med school right now.

The thing is some people actually will pay this much money rather than defer a year and get their finances in order. It's a huge financial mistake to pay so much for a medical degree. People actually think they can live like a college kid into their 30's and it'll all be fine (and some do, but it's with major sacrifice).

 

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Lawyers know basic math and a little algebra, right? He should run the numbers himself (one can usually do this in one's head within ~1-2mins) to figure out what needs to be paid each month to ensure the loan is getting paid off some x dollar amount every month, and then calculate the total amount of time it would take to pay it off overall.

This was uncalled for and borderline offensive to OP.

 

[StudyLater]

The whole subject got a little derailed!

Happens.

It's good work, right? Haha not mad. Very rarely do I actually care about anything said on SDN. I just have a slow season at work and this site is entertaining (and occasionally helpful).

The thing is some people actually will pay this much money rather than defer a year and get their finances in order. It's a huge financial mistake to pay so much for a medical degree. People actually think they can live like a college kid into their 30's and it'll all be fine (and some do, but it's with major sacrifice).

Yeah I'd try to avoid that like the plague. But I don't know, your views on "living like a college kid" don't have to be so negative! Plenty of my friends in elementary/middle/HS lived in small apartments with their fams and weren't particularly dissatisfied. I'm just saying it doesn't have to be the end of the world. Some people don't work for money to live like kings. You can use money other ways.

This was uncalled for and borderline offensive to OP.

Really? OP represented it like her friend was just going off the recommended minimums without doing his own calculations. See if I said I did that you'd probably call me an idiot and some other mean names (which I would enjoy), but I can't recommend a practical solution to such an issue? You're cold, rachiie. But that's ok, I'm warm enough for the both of us.

OP, no offense meant. I hope your friend gets a raise and/or figures out some way to cut costs.

 

[Torilynn92]

Yeah TBH I got a little testy and heated at first at the insinuation that my boyfriend and I can't do basic math haha. We've been dealing with his loans for six years now. But what's truly ironic - he's a bankruptcy attorney, he spends all day every day getting millionaires out of their debt, but he just can't shake his. Student debt is non dischargeable! I doubt many people in medicine encounter his problems (astronomical principle and interest rate, low-paying job), but it's still something to think about when taking out private loans. IBR is your friend!

 

[Torilynn92]

It's all cool!

 

[StudyLater]

Yeah TBH I got a little testy and heated at first at the insuinatkon that my boyfriend and I can't do basic math haha. But what's truly ironic - he's a bankruptcy attorney, he spends all day every day getting millionaires out of their debt, but he just can't shake his. Student debt is non dischargeable! I doubt many people in medicine encounter his problems (astronomical principle and interest rate, low-paying job), but it's still something to think about when taking out private loans. IBR is your friend!

I wasn't saying you can't! The lawyer crack about math was a complete joke -- like I said, have a relative in the same situation. Despite being totally capable, some people just don't work things out. Too busy or whatever, and it just doesn't cross your mind. That's totally understandable.

 

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Yeah I'd try to avoid that like the plague. But I don't know, your views on "living like a college kid" don't have to be so negative! Plenty of my friends in elementary/middle/HS lived in small apartments with their fams and weren't particularly dissatisfied. I'm just saying it doesn't have to be the end of the world. Some people don't work for money to live like kings. You can use money other ways.

Yeah you really don't need to talk to me about what it's like living on little to no money. Thanks, though.
I don't call people idiots unless they're being idiots.

 

[StudyLater]

Yeah you really don't need to talk to me about what it's like living on little to no money. Thanks, though.
I don't call people idiots unless they're being idiots.

You're a hard person to please.