Help: paying for med school + COL entirely with loans?

[billbillbillbill]

Hi everyone,

Due to my parents' income, I am not going to qualify for any need-based aid at any schools. My parents are in that unfortunate* income bubble that makes paying for both my and my sister's private undergrad college tuitions all they can afford - they won't be able to give me a dime while I'm in med school. This means I'll be paying for everything with loans.

*(BTW, I mean 'unfortunate' in the sense that I won't qualify for anything because I don't deserve anything, but that doesn't mean my parents will be able to help me financially, either)

I'm a NY resident and I never considered going to an in state med school (I've been aiming higher I guess). Criticize me for this all you want but it's a decision that I already made and I'm just looking for some advice + insight going forward.

How much is this going to cost me? I can't imagine a scenario in which I am able to start paying off my loans before I graduate from med school, so all my loans will accrue interest without decreasing in principal until I am a resident making 50k a year. If cost of tuition + cost of life = around $85-90k per year at the avg med school, how am I going to survive? As in .... is it possible for me to pay this off within 10 years? Does anyone have any advice for me?

Thank you so much


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[darkjedi]

Federal loans have very favorable repayment schemes and they allow you to take out an amount up to your total cost of living.

You will only need to pay up to 10% of your salary per year, so it shouldnt be a financial burden during residency.

The average lifetime earnings for physicians is in the $2-5 million range, so you'll be able to pay it off.

Alternatively you can hope to qualify for some merit scholarships at some of the few schools that offer them.

 

[whitesheep12]

I'm not well-versed in this topic, but your current situation was basically my situation in undergrad and will be what I'm dealing with in med school as well. As someone who's previously used loans to cover entire COL it is a little challenging, but unfortunately unavoidable if your parents can't help out. During school you just need to cut costs wherever possible and get a little creative about generating additional income if time permits, not sure how this will be in med school tho because there will probably not be time for part time jobs.

The good thing is that federal loans are accommodating and you have a few different payment plans to work with after med school based on your income, etc. Again, not super well-versed in this, but I believe you could get your loans forgiven if you commit to a federal loan forgiveness program (look up PSLF) for working in underserved areas for 10 years. I suggest meeting with a financial aid adviser at one of your schools, that's how I've worked everything out so far.

Bottom line: you will be okay. It's scary, but you are not the first to take this path and you will not be the last!

 

[efle]

Wait for aid packages, some schools (e.g. WashU) tend to surprise people

 

[billbillbillbill]

Wait for aid packages, some schools (e.g. WashU) tend to surprise people

Surprise people as in give aid regardless of actual need?


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[whitesheep12]

Surprise people as in give aid regardless of actual need?


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Yeah, do you have MSAR? They give data regarding what percent of their student population receives financial aid from them. For many schools it can be in the high 80%'s

 

[Endoxifen]

Federal loans have very favorable repayment schemes and they allow you to take out an amount up to your total cost of living.

You will only need to pay up to 10% of your salary per year, so it shouldnt be a financial burden during residency.

The average lifetime earnings for physicians is in the $2-5 million range, so you'll be able to pay it off.

Alternatively you can hope to qualify for some merit scholarships at some of the few schools that offer them.

Do the loans take money before or after taxes?

 

[darkjedi]

Surprise people as in give aid regardless of actual need?


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yes, some schools do offer merit/non-need based scholarship

 

[darkjedi]

Do the loans take money before or after taxes?

after, like every other loan repayment

 

[efle]

Surprise people as in give aid regardless of actual need?


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As in they do an assessment of need, and if it's true that your parents are already barely able to afford everything, you will be assessed as having high need. WashU has a policy of matching every dollar they ask you to borrow for need with a grant. The vast majority of people get some kind of aid and the median graduating debt among borrowers is $88,000

They also give merit money

Basically I wouldn't start freaking out about a $340-360k debt load until you're actually staring at paperwork from all your schools telling you that is what it will cost

 

[billbillbillbill]

Yeah, do you have MSAR? They give data regarding what percent of their student population receives financial aid from them. For many schools it can be in the high 80%'s

Yeah I'll definitely be in that 20% bloc at every school though. My parents have high incomes but a lot of high expenses (serious medical issues in the extended family that they take care of, pricey undergrads for my sister and me). Also, they are both first gen college grads and paid for everything with loans and they are of the philosophy that I'm better off if I'm financially independent from now on..so even if they could spare me some $ I highly doubt they would be willing anyway.

Would be awesome if I were to get even a little bit of aid somewhere but I highly doubt I will....who knows though, you've given me a tad bit of hope!


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[Lucca]

alternatively, marry rich

 

[efle]

even if they could spare me some $ I highly doubt they would be willing anyway.

This, on the other hand, can screw you over. I understand why med schools have to act as if parents are always willing to support their kids when able, because otherwise suddenly everyone's parents would be unwilling if that's all it took to get aid. But for the theoretical child of high income parents that will get nothing from the parents after turning 18, undergrad + MD might actually require 500-600k loans. Smh

 

[billbillbillbill]

This, on the other hand, can screw you over. I understand why med schools have to act as if parents are always willing to support their kids when able, because otherwise suddenly everyone's parents would be unwilling if that's all it took to get aid. But for the theoretical child of high income parents that will get nothing from the parents after turning 18, undergrad + MD might actually require 500-600k loans. Smh

I know. I totally understand the logic, because if voluntary parental contribution or lack thereof were self-reported, there would be no incentive to report any parental contribution. So yeah people like me are left in the dust...a casualty of the system I guess but still I've been privileged my whole life so not in the place to complain one bit


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[libertyyne]

I don't understand the question.

1.You are making the decision to go out of state to a school that has a high cost of attendance.

2. You will probably be 400-500k in debt if you take the full amount and if you have a somewhat long residency.

3. With an income of 250k taking out taxes that leaves 150ish. Pay 100k towards loans and you should be done in under 10 years.

4. I know you said not to judge, but it is the equivalent of buying a Ferrari and complaining about the sticker price afterwards when paying off the loans. It is your life, your financial decision, you call the shots on going an expensive school and live high on the hog or go to the Toyota Camry of schools and live modestly.

 

[TaroBubbleTea]

Budget, budget, budget

When requesting federal loans, don't take the entire sum you are offered. Take out a bare minimum and request more as needed. This will at least minimize the amount of time interest is accumulating.

As other as said, wait until you receive a financial aid package before stressing out too much.

 

[billbillbillbill]

I don't understand the question.

1.You are making the decision to go out of state to a school that has a high cost of attendance.

2. You will probably be 400-500k in debt if you take the full amount and if you have a somewhat long residency.

3. With an income of 250k taking out taxes that leaves 150ish. Pay 100k towards loans and you should be done in under 10 years.

4. I know you said not to judge, but it is the equivalent of buying a Ferrari and complaining about the sticker price afterwards when paying off the loans. It is your life, your financial decision, you call the shots on going an expensive school and live high on the hog or go to the Toyota Camry of schools and live modestly.

sorry, I didn't anticipate this being a problem, and I'm not trying to complain at all. really just looking for some advice.

also, buying a Ferrari is pointless. going to a top ten med school is not.

I don't need to explain further why I didn't expect to be in this predicament because it's personal. Thanks for your other productive insight though.


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[libertyyne]

sorry, I didn't anticipate this being a problem, and I'm not trying to complain at all. really just looking for some advice.

also, buying a Ferrari is pointless. going to a top ten med school is not.

I don't need to explain further why I didn't expect to be in this predicament because it's personal. Thanks for your other productive insight though.


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I am not criticizing you. I am saying if going to an oos top 10 school is important to you , it is important to you. It may not be important to other people. Just like buying a Ferrari seems wasteful to you going to an expensive school might seem wasteful to others. A lot of your answers depend upon the residency you choose, the state of physician salaries at time of graduating from residency and ultimately where you want to practice. It is difficult to give concrete meaningful numbers because all of that is uncertain. If the past is the predictive of the future 500k of loans will be painful but manageable provided you are disciplined. But then there are some physicians who end up paying loans into their 50s.

 

[billbillbillbill]

I am not criticizing you. I am saying if going to an oos top 10 school is important to you , it is important to you. It may not be important to other people. Just like buying a Ferrari seems wasteful to you going to an expensive school might seem wasteful to others. A lot of your answers depend upon the residency you choose, the state of physician salaries at time of graduating from residency and ultimately where you want to practice. It is difficult to give concrete meaningful numbers because all of that is uncertain. If the past is the predictive of the future 500k of loans will be painful but manageable provided you are disciplined. But then there are some physicians who end up paying loans into their 50s.

Okay, thank you. I just don't really know what I'm getting into and your uncertainty/inability to guarantee any single ballpark range is informative in itself, so thanks I appreciate it


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