banana5

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I'm not accepted to this (or any other) school, I was just poking around and came across this:

http://www.med.cornell.edu/education/admissions/fin_aid_bud.html

How do you make sense of this? The $8,500 is the Stafford subsidized; that much I've figured out. The Medical College loans are private loans from the school? Are these typically at more favorable rates than Stafford unsubsidized?

What about the medical college grant? Other threads in this forum make it sound like grants are a long shot, but that's a lot of grant money, right?

And then the parent + student contribution. If the parents can't/don't want to contribute and the student doesn't have a job, that's all coming from Stafford unsubsidized/Perkins, right?

This says (http://www.med.cornell.edu/education/admissions/fin_aid_deb.html) that the average student borrowed $116k to get through med school. Do you think that that's how much they borrowed, or what their debt burden was when they graduated (the difference being the accrued interest on unsubsidized loans)?

I haven't looked at many student budgets, but do you think this breakdown of federal + college loans, grants, etc. is par for the course for a private school?

EDIT:

Interestingly, I looked up a student budget for SUNY Downstate. Here's a .pdf (check out pg. 15): http://www.downstate.edu/grad/pdf/SUNY_Bulletin_2006.pdf

It's a bit outdated, but it basically shows that the cost of a year at Downstate are ~40k. Presumably, this is the ~40k coming from Stafford subsidized + unsubsidized loans. Interestingly, if you subtract the grant money from the 66k total cost at Weill for student #1 from their site, you also get to ~40k.

Does this mean that Weill makes up the difference in tuition between it and Downstate by giving you the money as a grant? Is that normal? If that's the case, how is it cheaper to go to a state school?
 
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Lesley

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The medical grant seems very large. I don't know if this is common. I think only the financial aid office can know for sure.

It is pretty common that after health profession loans (5% subsidized) and $8,500 (subsidized 6.8% Stafford) then unsubsidized loans Stafford (approx $30,000 at 6.8%) and grad plus student loan (8.5% unsubsidized up to your remaining need as determined by your school's budget) are readily available. Grad plus loans require a credit check.

Additionally, schools can provide their own loans to students that may be more favorable than federally backed loans.

I think it pays to apply to a lot of schools, in state and private schools. Private schools may offer grants that make them as affordable, possibly more affordable, than in state and very possibility more affordable than out-of-state schools.

Below is the out of state dental school expenses for Univ of Illinois; additionally they budget about $28,000 living expenses for each 12 month period which is not included in the budget below.

Many private dental schools, even without a grant are less expensive.

http://dentistry.uic.edu/depts/admissions/dds/DDS 2007-08NonresidentTuition.pdf
 

TMP-SMX

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Keep in mind that the 116k figure includes students that have their tuitions paid for by parents, scholarships, and other things. They must have a lot of rich students at Cornell as their tuition only let alone living expenses, health insurance, or fees is nearly 42k. You do the math. Everything except living expenses is 48k. Considering the school is in the heart of Manhattan the living expenses will be sky high. Also, notice they are speaking about the class of 2008. Anybody starting in the next couple of years will be paying much more than that and at a higher interest rate than even a few years ago.
 

Lesley

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banana5, This is an important thing to remember when comparing previous graduates debt with the debt you may eventually have.

Not that long ago, students who graduated in 2003/4/5 were able to consolidate their student loans at interest rates of 2.5% +/-.

For example: a $200,000 loan at 2.5% over 30 years would yield a monthly payment of $790.24, but the same loan at 6.8% over 30 years would yield a monthly payment of $1303.85.

So, the same loan amount with a higher interest rate, similar to today's Stafford loan, increases the payment 65%. With the 2.5% loan, the total interest is $84,487.36. With the 6.8% loan, the cumulative interest is $269.386.44. Note when the interest rate goes from 2.5% to 6.8%, it has more than doubled interest expenses.

Also, keep in mind that interest is accumulating on all the unsubsidized loans while you are in school, so at the end of the first year if you are borrowing from these loans, your debt will be more than you borrowed, especially when you consider the origination fees that are taken off the top.

Also, keep in mind that the budgets are based on today's costs, often they do not factor in the annual increases in the student budget, ie annual increases in tuition and fees. When tuition was only $5000/year and it went up 5%, pretty typical today, it meant an increase of only $250, but if tuition is $50,000, it increases yearly expenses by $2500. Additionally, when tuition goes up so do all the other expenses as well. Estimating an average of 5% increase in total costs per year would be pretty safe.

This is not to dissuade you, but hopefully this helps you rough out your estimation of your debt after professional school and helps you realize that the $200,000 or more someone carried a few short years ago, is a different debt story from yours.

Best of Luck and Happy Holidays!
 
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