How much would I save by the end of residency by taking Loans for Disadvantaged Students?

psychMDhopefully

2+ Year Member
Jan 1, 2016
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Medical Student
My debt load will be high by the end of all of this, probably around 280k, had 85k from undergrad and postbac. I'm heading into 3rd year and was offered the LDS loan for 10k this year and next year, which equal 20k total. On these loans the interest rate is 5% and interest doesnt accrue while you are in school, I have to let the fin aid office know If I want to accept them or not. In order to get them I would have to provide parent information and I would rather not bother my mother at all, we don't have a great relationship. Is the amount of money that I would save on only 20k worth stirring up family problems? How much would it be?
 

dpmd

Relaxing
10+ Year Member
Sep 14, 2006
20,707
31,405
Lazytown
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Attending Physician
The LDS loan also has no interest accrual during deferment periods which residency and fellowship would qualify for, so you are looking at basically saving 6.8% on the 10 k for the first year you have the loan, then 6.8% on the 20 k for the next year plus however many years you do residency and fellowship (I used 6.8% because I assume that is the rate you would otherwise get, but if that is different than substitute that rate. Student loan interest is simple aside from capitalization which would increase the savings somewhat but is harder to calculate so I didn't bother because to me the initial $680 in savings would be enough for me to get parent info-though I do have a good relationship with my parents so you will have to decide for yourself if the 6 grand you could save assuming a three year residency is enough of an incentive or not)