How Are You Guys Paying for Medical School?

[BMW M3]

I'm debating between going Sallie Mae (Nellie Mae) and going private. I still don't know if Sallie Mae is the best route because of their INSANE interest rates. Also, my friend sent me a couple of articles saying how Sallie Mae rips students off:

http://www.cbsnews.com/stories/2006/05/05/60minutes/main1591583.shtml

http://www.ripoffreport.com/reports/ripoff59942.htm

http://www.calicocat.com/2003/10/student-loan-rip-off.html

So any REALISTIC suggestions on how to pay off the cost of attending Medical School with minimal interest?

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[Miami_med]

Stafford loans through sallie mae or any other lenders will have the best rates. For this year, those are fixed at 6.8%. Yes, this isn't good compared to previous years, but it is the best you'll do this year unless your family can lend it to you. You also have advantages with Staffords, mainly that you get automatic forebearance of payment during residency (For future neurosurgeons, this means you don't have to pay during the last 3-4 years of residency when your hardship deferment runs out). I believe that this all applies to the Grad Plus loans as well, though the interest rate is a less appealing 8.5% .

Private loans are not worth it if you can avoid it. These are not fixed, and if the Fed keeps raising the prime rate, they can go up INFINITELY!!!. These could easily top 10% during repayment or MUCH MORE. Borrow in your school budget and take private loans only in emergencies. The Grad Plus should make many of the private loans obsolete .

 

[cbgray]

I would stay away from Sallie Mae at all costs. There are numerous stories (including an expose on 60 Minutes) about them being incredibly unwilling to relent on loans for graduates who are experiencing financial difficulty. They receive government subsidies and are given an extremely long chain in their methods for getting their money back. To make it worse, they are known for giving universities kickbacks in return for advertising their loans and/or using them as a "preferred" lender. Stafford Loans all have the same rates, but that does not mean the lenders are all the same.

It has been said above that their private loan rates are through the roof. I seriously pity those students who get roped into their "Tuition Answer" trap. There are other sources of funding out there, you would be wise to seek them out. It makes me sad that they are somehow portrayed as a governmental agency lending money out of the kindness of their heart. While that may have once been true, they have since lost all semblance of any such benevolence.

FWIW, I have full-on Staffords at my school - through Nelnet.

 

[Pewl]

I would stay away from Sallie Mae at all costs. There are numerous stories (including an expose on 60 Minutes) about them being incredibly unwilling to relent on loans for graduates who are experiencing financial difficulty. They receive government subsidies and are given an extremely long chain in their methods for getting their money back. To make it worse, they are known for giving universities kickbacks in return for advertising their loans and/or using them as a "preferred" lender. Stafford Loans all have the same rates, but that does not mean the lenders are all the same.

It has been said above that their private loan rates are through the roof. I seriously pity those students who get roped into their "Tuition Answer" trap. There are other sources of funding out there, you would be wise to seek them out. It makes me sad that they are somehow portrayed as a governmental agency lending money out of the kindness of their heart. While that may have once been true, they have since lost all semblance of any such benevolence.

FWIW, I have full-on Staffords at my school - through Nelnet.

Do NOT use Sallie Mae! My god that story on 60 Minutes...

 

[racerx]

FWIW, I have full-on Staffords at my school - through Nelnet.

I have all my UG loans through nelnet, and they have been great so far. When I saw that they were on the prefered lender list for my med school, I didn't hesitate to choose them.

I also chose nelnet for my consolidation. And no, I am not an employee of nelnet.

 

[njbmd]

Hi there,
I am moving this to the Financial Aid Forum for more comments.

njbmd

 

[BMW M3]

thnx for the comments guys, keep them coming

 

[bangtheroo]

Does anyone know anything about myrichuncle.com as a lender? i know they're fairly new to the scene, but from their website they seem like a good possibility? besides nelnet, anyone have good experiences with other lenders? thanks...

 

[twester]

I have all my UG loans through nelnet, and they have been great so far. When I saw that they were on the prefered lender list for my med school, I didn't hesitate to choose them.

I also chose nelnet for my consolidation. And no, I am not an employee of nelnet.

My lender is a non-profit called CollegeInvest. I don't know if they're specific to Colorado or not. But my loans are serviced by Nelnet. I talked with a customer service rep yesterday and he was really helpful. So I've had a great experience with them too - and with CollegeInvest.

 

[edubbs5]

What other lenders on your schools preferred lender list? What other things do you take into consideration when you choose a lender? For profit/non-profit? Repayment incentives? School recommendation?

I am just curious!

 

[racerx]

The school actually divides the list into preferred and acceptable lenders.
Preferred:
Health Education Solutions (Nelnet)
Wachovia Education Finance

Acceptable:
Access Group
Citibank
Wells Fargo - MEDCAP
M&T bank
AMS
HSBC

For UG, I had chosen M&T bank because I had a previous business relationship there. As it turned out, nelnet services those loans. I was happy with nelnet, so I chose Health Ed Solutions (serviced by nelnet) for medical school through nelnet because they charge no origination fee, whereas M&T charges an origination fee. As both are serviced by nelnet, I will get the same great service.

What other lenders on your schools preferred lender list? What other things do you take into consideration when you choose a lender? For profit/non-profit? Repayment incentives? School recommendation?

I am just curious!

 

[OSUdoc08]

I'm debating between going Sallie Mae (Nellie Mae) and going private. I still don't know if Sallie Mae is the best route because of their INSANE interest rates. Also, my friend sent me a couple of articles saying how Sallie Mae rips students off:

http://www.cbsnews.com/stories/2006/05/05/60minutes/main1591583.shtml

http://www.ripoffreport.com/reports/ripoff59942.htm

http://www.calicocat.com/2003/10/student-loan-rip-off.html

So any REALISTIC suggestions on how to pay off the cost of attending Medical School with minimal interest?

T.H.E. is better than Sallie Mae.

http://www.northstar.org

For some reason, your poll didn't include any loan company other than Sallie Mae. Odd.

 

[ESPNdeportes]

great....I got $64k in debt to Sallie Mae.....Luckily, I'm gonna start paying in residency to avoid compounding interest.

 

[edubbs5]

T.H.E. is better than Sallie Mae.

http://www.northstar.org

For some reason, your poll didn't include any loan company other than Sallie Mae. Odd.

I was thinking the same thing.... I thought it was funny that only Sallie Mae was listed as an option. There are a lot of other lenders out there!

By no means should you feel that if "sallie mae" is your only option!

 

[DD214_DOC]

I would seriously look into some of the federal programs. The health service corps offers the same benefits as the military I believe. I live so much better than my non-HPSP counterparts, at least for now. Don't be fooled, though, because you will earn all that money in the future.