How Do Student Loans Work?

[gorilla3]

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Hello, my question is how are student loans typically paid off? Do you pay nothing during dental school since you are broke. And what if you decide to specialize? Doesn't the compounding interest bring up the total amount owed to an astronomical sum? Please comment if you are knowledgeable in the matter. 🙂

 

[sjv]

Hello, my question is how are student loans typically paid off? Do you pay nothing during dental school since you are broke. And what if you decide to specialize? Doesn't the compounding interest bring up the total amount owed to an astronomical sum? Please comment if you are knowledgeable in the matter. 🙂

http://studentaid.ed.gov/types/loans/plus

 

[NDPitch]

Hello, my question is how are student loans typically paid off? Do you pay nothing during dental school since you are broke. And what if you decide to specialize? Doesn't the compounding interest bring up the total amount owed to an astronomical sum? Please comment if you are knowledgeable in the matter. 🙂

Yup.

You borrow money. Interest accrues from day 1. You pay when you graduate. A ballpark rule is that if you pay the loan back over the full term of 25 years, you pay back about double what you borrowed. Generally, this is not a good idea. Borrow as little as you can and pay it back as soon as you can. And don't go to a school that costs 400k.

 

[r2thekesh]

You forgot the loans you have to take to specialize because a lot of specialty programs cost money to attend. Usually an additional 50K or more per year.