how do out-of-staters & private-schoolers get by?

[hicksto2592]

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almost all out of state schools or private schools have expected yearly expense of ~$50,000. you can get $38,500 from gov loans. so how is everyone making up the difference? some schools i've interviewed at don't have encouraging words beyond "ask relatives". so what's everyone doing to make ends meet?

 

[coachB]

almost all out of state schools or private schools have expected yearly expense of ~$50,000. you can get $38,500 from gov loans. so how is everyone making up the difference? some schools i've interviewed at don't have encouraging words beyond "ask relatives". so what's everyone doing to make ends meet?

private loans. pretty automatic up to the school's budgeted total cost.

 

[babyruth]

...and usually at lower interest than regular loans and most have special deals depending on the lender. Your school should help you with this because it's not news to them. And yes, budgets are higher depending on if you are single or have dependents.

 

[hicksto2592]

really? everyone just gets private loans?

it's odd because schools would tell us their average graduating debt which would be around $120k. the schools would say that was average of everyone who took out loans. i would have expected something closer to $200k. so i'm wondering if there was some other option people were doing to get from $200k to $120k.

but if it's just loans people are getting, how can average graduating debt be $120k?

 

[MNgrrl]

I agree, there does seen to be a bit of a disconnect between what admissions says and what would make sense, but you do have to consider all those people getting very little loan money because they go to their own state school. I'm not sure how it works out like that for private school. Also, that $38500 is money in unsubsidized loans - you can get another 4000 or so in subsidized. I'm taking out the max which covers tuition (about $42,000 out of state at my school), and then I'm lucky enough to have some money saved from working the past couple of years and having parents who help some with my rent so I don't have to take alternative loans. Plus, I live really cheaply...A lot of my out of state friends are taking out much more than I am. You have to consider your earning potential as a physician however - yep you are going to be neck deep in loans, and you won't feel all that great about it, but as a physician, you'll probably do well enough to pay the loans back and live comfortably. It's really more of an attitude adjustment than anything else - plus, everyone has a ton of loans, and misery loves company!

 

[vigils]

Also, that $38500 is money in unsubsidized loans - you can get another 4000 or so in subsidized.

This is actually incorrect. The total combined staffored subsidized and unsubsidized is 38500 a year. The subsidized acounts for 8500 dollars of that amount. You can also qualify for Federal Perkins loans, school grants/scholarships and other private medical school loans, just like someone already mentioned. The reason for the disconnect between total loan indebtedness and amount you can borrow is that fact that many people get great scholarships, have families that pay, and other things that don't require them to borrow the full amount.

 

[v-tach]

While we're on the subject, what really bothers me is that a lot of schools require parental information and use it to determine the aid you get from them, without considering whether your parents are actually going to help pay for school or not--they say this is the most fair way to do things, but it doesn't seem fair to those of us who are on our own. Anyone else feel this way?

 

[babyruth]

Definately, I think you have to be 25 or 26 to even claim independency from your parents! sucks. Luckily I'm married and my husband is also a student so we are both poor 🙂

 

[DadofDr2B]

Definately, I think you have to be 25 or 26 to even claim independency from your parents! sucks. Luckily I'm married and my husband is also a student so we are both poor 🙂

When starting professional school you are considered independent by the admissions department and lending companies. They may want your Mom and Dad to cosign but the amount of loans will be based on your need.

Just went through this and had the daughter to use the loans at 3% and invest the tuition money in the market earning more money. When she graduates, we will pay off all loans and she will have the extra interest to use for a car or house downpayment.

 

[MNgrrl]

Also, that $38500 is money in unsubsidized loans - you can get another 4000 or so in subsidized.

This is actually incorrect. The total combined staffored subsidized and unsubsidized is 38500 a year. The subsidized acounts for 8500 dollars of that amount. QUOTE]

Sorry, I misspoke earlier, but 38500 is still incorrect - the max unsubsidized you can get is $8,500, and the max unsubsidized is $32,744, so the max sub+unsub is $41,244.

Don't mean to be nitpicky -- I actually looked it up on my loans because I couldn't understand how the max could be 38500 when my tuition costs more than that 🙂

 

[jonb12997]

or you could be like me and end up taking $55k+ a year for tuition plus living expenses...

 

[ice_23]

While we're on the subject, what really bothers me is that a lot of schools require parental information and use it to determine the aid you get from them, without considering whether your parents are actually going to help pay for school or not--they say this is the most fair way to do things, but it doesn't seem fair to those of us who are on our own. Anyone else feel this way?

Sort of. I see your point, but there are also many students whose parents don't have any money, and the grant money that they should get because of that fact would go to every other person (because if all you needed was your parents to say that they wouldn't foot your bill to get grant money, why wouldn't everyone get their parents to say that? It's like a free 30g's a year!).

It ends up screwing people who actually need the money (because parent's don't have any to give for real). It is true, though, that people in your situation get the worst brunt of the situation...

-Ice

 

[hypersting]

medloans (4% right now) ... unless your credit rating really sucks you won't have a problem. If you get in, they will help you pay for it. The trick is delaying the post-residency upgrade of SoL to pay it off quickly.

 

[E.A. Poe]

When starting professional school you are considered independent by the admissions department and lending companies. They may want your Mom and Dad to cosign but the amount of loans will be based on your need.

Just went through this and had the daughter to use the loans at 3% and invest the tuition money in the market earning more money. When she graduates, we will pay off all loans and she will have the extra interest to use for a car or house downpayment.

Do you want to be my dad?

 

[ColoMD]

When starting professional school you are considered independent by the admissions department and lending companies. They may want your Mom and Dad to cosign but the amount of loans will be based on your need.

Just went through this and had the daughter to use the loans at 3% and invest the tuition money in the market earning more money. When she graduates, we will pay off all loans and she will have the extra interest to use for a car or house downpayment.

I'm fairly certain that this is illegal. If the money is federal student aid, there are literally hundreds of regulations regarding its use and "investment" isn't one of them.

 

[SarahGM]

almost all out of state schools or private schools have expected yearly expense of ~$50,000. you can get $38,500 from gov loans. so how is everyone making up the difference? some schools i've interviewed at don't have encouraging words beyond "ask relatives". so what's everyone doing to make ends meet?

Some private schools (such as mine) have awesome financial aid. I was a NC resident last year, and Columbia ended up being LESS expensive.

 

[coachB]

I'm fairly certain that this is illegal. If the money is federal student aid, there are literally hundreds of regulations regarding its use and "investment" isn't one of them.

ok, look at it like this then. he is using the loan money to pay for education. the payments go directly to the school anyway. then he is using the money he would have spent to invest as described. you can argue all you want about the spirit, but there's no problem with the letter of the law.

 

[jonb12997]

I know a couple PhD students who have a stipend to get paid from their grad school and still have taken out stafford loans. They used it to buy a car or whatever... people do it all the time

 

[traumamonkey]

Some private schools (such as mine) have awesome financial aid. I was a NC resident last year, and Columbia ended up being LESS expensive.

yeah, one thing about some private schools is that they can offer scholarships/grants/etc that can help reduce your debt. unfortunately i can't say that columbia is cheaper than my state school would have been--but it is in NYC! 🙂

in any case, i'm making up the difference by selling my soul. that probably won't cover it though, so outside loans should help.

 

[babyruth]

Hey me too! I wasn't using it anyways...😉

 

[missmod]

You can always cut down from the money you spend on food, housing, going out, general fun, even books and supplies. I feel like the way most schools budget for all costs outside of tuition is pretty generous.

Lots of private schools will give need based scholarships to fill the gap between the 38K you borrow and the 50K+ that the school budgets you for. Some schools will have their own interest free loans in addition to the Stafford and Perkins that you get... A lot of times, those scholarships and interest free loans will actually make the private school a better package than some state schools (certain private schools have bigger reputations for being good with fin aid)