harder to get med school loans?

[atlhawks29]

i heard there were plans of government backed loans for graduate schools getting cut back in the coming years as part of cutting the budget. i'm definitely going to need loans, and my family can't help me at all-- should i be worried about not being able to pay/should i work and save up some money before applying? i dont want to have gone through the whole thing only to find out i cant pay for it

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[MedPR]

i heard there were plans of government backed loans for graduate schools getting cut back in the coming years as part of cutting the budget. i'm definitely going to need loans, and my family can't help me at all-- should i be worried about not being able to pay/should i work and save up some money before applying? i dont want to have gone through the whole thing only to find out i cant pay for it

I'm in the same boat (though I won't be applying until June). I'm curious about this as well.

 

[jesse120]

I'm sure others can answer this question better than I, but you shouldn't have to worry about getting loans. The Stafford loan will be unsubsidized only (meaning interest begins to accrue immediately but does not have to be repaid while in school) and no longer subsidized (interest paid by the government while in school). That sucks big time. But the interest rate is low and fixed. That should cover a big chunk of tuition. Graduate PLUS loans can supplement the Stafford loans for tuition, fees, and living expenses. Then there are also a ton of scholarship you can apply for throughout medical school. If your stats are high enough, you might even be lucky enough for a merit aid.

tl;dr It shouldn't be a problem. I hope.....

 

[Guy Montag]

Unsubsidized loan maximum is at ~$184,000 I believe (please correct me if I'm wrong). There are also other federal loans and possibly private ones, the latter of which would not likely have the best interest rates. It really is a shame they cut out the subsidized loans. I'm waiting on a school that would be roughly $60k/year if accepted. Ouch.

 

[Starlightembers]

Unsubsidized loan maximum is at ~$184,000 I believe (please correct me if I'm wrong). There are also other federal loans and possibly private ones, the latter of which would not likely have the best interest rates. It really is a shame they cut out the subsidized loans. I'm waiting on a school that would be roughly $60k/year if accepted. Ouch.

I will never get out of debt. It is official.

Thank you for the information, jesse and Montag.

 

[atlhawks29]

Unsubsidized loan maximum is at ~$184,000 I believe (please correct me if I'm wrong). There are also other federal loans and possibly private ones, the latter of which would not likely have the best interest rates. It really is a shame they cut out the subsidized loans. I'm waiting on a school that would be roughly $60k/year if accepted. Ouch.

wow. yea, thanks for the info. so i take it it's easy to get private loans? i'm also looking at around 60k a year... so im definitely going to be over the 184k. how bad can the interest get? i dont think i have particularly good credit (being that i dont really have a credit history). i mean is it bad enough that i should work to save up the difference to avoid the private loans? thanks again for the info... i havent really been thinking about the money part of med school and it's a huge reality check

 

[MT Headed]

Stafford loan... the interest rate is low and fixed.

No, the interest rate is an enormous 6.8% and fixed. The interest rate used to be low, or it used to be possible to consolidate the loans at a low interest rate (like 2%), but that option no longer exists.

The second federal option, GradPLUS loans, come in at 7.9%.

 

[DoctwoB]

Loans are not harder to get, they are just more expensive with the axing of subsidized stafford loans. Also as tuition goes up but stafford loans don't, you'll take out more grad plus loans (~8%, higher fees) instead of stafford loans (6.8%)

 

[IMSingular]

Loans are not harder to get, they are just more expensive with the axing of subsidized stafford loans. Also as tuition goes up but stafford loans don't, you'll take out more grad plus loans (~8%, higher fees) instead of stafford loans (6.8%)

There is, I think, also 4% upfront fee on grad+ loan. You only get $96 of $100 loan you take. Looks like a rip-off in low interest regime we are in.

 

[atlhawks29]

There is, I think, also 4% upfront fee on grad+ loan. You only get $96 of $100 loan you take. Looks like a rip-off in low interest regime we are in.

yea, but what's a student to do? sounds like it's an oligopoly with a few institutions all offering the same bad deal

 

[r1d1]

Don't forget the hidden costs: moving, equipment, exam preparation, traveling for rotation/interviews, etc. Without any scholarship you can easily get 300~400k in loan debt. What's worse is that, esp. if you attend a private medical school, you'll meet people whose parents pay for their tuition, bimmers and armani suits. Some people even have their own houses.

 

[ArmyWife1153]

Those in med school are given additional student loan coverage up to a max of $234k. Traditionally this amount has gone up every now and then. So, the max you can take it out in subsidized and unsubsidized loans for undergrad plus grad is $234k. Also, if you max out at the $234k, you are not eligible for the grad plus loans. You would have to secure your own private loan. The grad plus loan is a private loan that does a credit check but tends to be easier to get than other private loans.

 

[r1d1]

Those in med school are given additional student loan coverage up to a max of $234k. Traditionally this amount has gone up every now and then. So, the max you can take it out in subsidized and unsubsidized loans for undergrad plus grad is $234k. Also, if you max out at the $234k, you are not eligible for the grad plus loans. You would have to secure your own private loan. The grad plus loan is a private loan that does a credit check but tends to be easier to get than other private loans.

No wonder the avg grad debt on MSAR never goes above 234k. The f/a offices do not know how much private loans the students borrow. So next time when I see a school boast 200k avg grad debt, I'll read: Title IV 200k+unkown private.

 

[atlhawks29]

No wonder the avg grad debt on MSAR never goes above 234k. The f/a offices do not know how much private loans the students borrow. So next time when I see a school boast 200k avg grad debt, I'll read: Title IV 200k+unkown private.

wow-- did not know that bit about private loans not being included in the numbers. basically means that if a school's nearing that 200k+ max, it's anyone's guess how high it actually is. good to know. what do you think med schools would say when directly confronted with why they dont more openly disclose the fact that the actual number may be much higher due to private loans