How Do You Pay?

[toenjcha]

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I am confused. In Med-School how do you pay for rent, utilities, food, ect.? Does the Med-School pay for it all and then you pay it back in a loan which is included in your student debt? Is that how it works because I know there is such thing as a student budget. Or do I need to get a job to pay for it all?

 

[TKE340]

Student loans can pay for tuition and living expenses. It's unlikely someone can work enough hours to pay for expenses considering the time commitment of medical school.

 

[ems2doc]

My loan pays for medical school. My fiancé has a job.

 

[darklabel]

Every school has a Cost of Attendances (CoA) which should cover you for the whole year. You can borrow money up to the CoA and it should be more than adequate to cover tuition and all your expenses. Most loans are Stafford and Grad Plus loans. If you're lucky enough to get a scholarship, then it wil be included in your CoA evaluation and the rest is filled by the loans, or it can just all be loans.

Most schools, including mine, have a very generous CoA that allows you to borrow more then enough to cover all your expenses and than some. Remember though that it's in your best interest to minimize your debt and borrow the least amount that you can.

 

[Meh.meh]

I am confused. In Med-School how do you pay for rent, utilities, food, ect.? Does the Med-School pay for it all and then you pay it back in a loan which is included in your student debt? Is that how it works because I know there is such thing as a student budget. Or do I need to get a job to pay for it all?

Depends on the person, but most do so via loans. The school estimates the cost of attendance (they tend to purposely overestimate), and you may borrow that amount in federally sponsored loans. It pays for rent, school, and a small level for outside expenses (recreation).

You pay back all that money at or above cost.

 

[idkididk]

My loan pays for medical school. My fiancé has a job.

Are you allowed to take out loans for more than you need (up to COA) and invest what you don't use? Is there a rule against that?

 

[BrCo]

Are you allowed to take out loans for more than you need (up to COA) and invest what you don't use? Is there a rule against that?

It doesn't make sense to do this because of interest. It's not an investment because interests rates for the money are greater than the interests you'd collect from the $$ sitting in the bank. Every $5,000 dollars you borrow can easily turn into $15,000 you owe after interest. So unless you can some how pull off a 300% profit it's in your best interest to borrow as little as possible.

 

[Doudline]

You are born wealthy like the average medical student in the USA, or you take out federal/private loans & scholarships.

 

[CharmanderMD]

When do you actually receive loan money? Will I be able to use it for my first/last month's rent or will I need to have that money out of pocket?

The financial side of all of this is suddenly becoming much more real.

 

[grivacobae]

It doesn't make sense to do this because of interest. It's not an investment because interests rates for the money are greater than the interests you'd collect from the $$ sitting in the bank. Every $5,000 dollars you borrow can easily turn into $15,000 you owe after interest. So unless you can some how pull off a 300% profit it's in your best interest to borrow as little as possible.

But he said invest, savings is far from an investment, but yea you're right, that might be too risky especially since he won't have as much time to really do due diligence in whatever he was planning on investing on

 

[grivacobae]

Are you allowed to take out loans for more than you need (up to COA) and invest what you don't use? Is there a rule against that?

In medical school I doubt you'll be able to really put in the time for due diligence in any investment, and if you did a mutual fund or something, i would not take a loan out for such minimal return, do it during undergrad, that's what I have done, taken out a bit extra in loans and into the stock market! Very good for learning and really fun too, and who knows, you might get a great return