How much loan should I take out for living expenses?

[Iamindebt]

My med school estimates living expenses to be around 16-17k and I was wondering if this is considered to be too generous or not. I will be paying around $8000-$9000 a year in rent(including utilities) and prob around $4000 a year for food(at most).


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[eteshoe]

I always go with estimated living expenses (rent, bills, food, etc) + "5-10% breathing room"

 

[Iamindebt]

I always go with estimated living expenses (rent, bills, food, etc) + "5-10% breathing room"

If I have 6-8k saved up should I still account for breathing room? I don't want to take out more than I need to.


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[eteshoe]

If I have 6-8k saved up should I still account for breathing room? I don't want to take out more than I need to.


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A reasonable concern, especially if you have substantial UG loans. You can certainly cut down on the breathing room, but that'll depend on how much of a burn rate you want on those savings. Depending on your med school location - you'll have initial moving costs (~$1000-$2000) which you could pull from your savings. I would try to not burn through all your savings at once - it's good to have some money put away (savings, investments, etc) especially for the big moves (med schools, residency, etc) and life's emergencies.

 

[Pacna]

My school has a standard amount, no calculations by students necessary. If they give you too much, you can always pay whatever back early.

 

[Iamindebt]

My school has a standard amount, no calculations by students necessary. If they give you too much, you can always pay whatever back early.

That is a good point. I would still have to pay for the interest on the unspent amount that I took out in loans right?

 

[Pacna]

That is a good point. I would still have to pay for the interest on the unspent amount that I took out in loans right?

Interest is on the balance, not the initial amount.

 

[Bones 2020]

I always go with estimated living expenses (rent, bills, food, etc) + "5-10% breathing room"

I thought you could not get any more than the schools estimated COA? Unless you get an additional private loan

 

[Rekt]

Unless you're living at home, got a sick deal on a living situation, or are very seriously frugal/counting your living expenses by the day, then just take nearly all of it. You need to last over summer of M1, second year is also more expensive with resources for boards/traveling there. Then if you start doing audition rotations in third/fourth year, you'll need that money to travel and when you start doing applications/interviews in fourth year.

 

[pd1112]

loan the max or gtfo

 

[Ismet]

I thought you could not get any more than the schools estimated COA? Unless you get an additional private loan

Schools typically overestimate the COL. Most people at my school don't take out the full amount, it's not necessary if you live with a roommate and spend responsibly.

Also keep in mind that you can always take out more money later, up to the total COA. So hypothetically speaking (making up random numbers here) if your estimated COA is $60,000 and you take $50,000 but realize that you'll be short on cash before the next disbursement, you get in contact with your financial aid office and you can take out up to $10,000 more.

 

[LightYagami]

loan the max or gtfo

why gtfo? no disrespect

 

[LightYagami]

pharm school 20,000 living expense at least , med is more