How to take out loans for medical school?

[deleted444768]

Can someone help me out and list the steps or describe the process. Hopefully I'll start medical school in the fall but wouldn't have any means to pay without loans/debt. Just clueless as to what to do

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[Doctor Strange]

Fill out FAFSA for starters....

 

[darkjedi]

The financial aid office at whatever school you will end up with will help you through the process.

As DoctorStrange said, first thing you should do however is fill out FAFSA so you are eligible for government loans.

 

[Pons Asinorum]

And if you think you'll matriculate this fall, go ahead and fill out the FAFSA now and give the school codes for the schools you think you might attend.

 

[pathologyDO]

Right, most students pay for med school with federal loans (unsubsidized stafford up to 40k or so annually, then GradPLUS for the rest) and in order for you to get those loans you need to fill out FAFSA forms and send them to your medical school. As everyone else has said, do that first and then you should receive financial aid information sometime before you start this Fall

 

[NickNaylor]

1) Fill out FAFSA and submit to all schools you could possibly matriculate at
2) Fill out school specific forms (could be a random form or something more general like NeedAccess - the school will tell you)
3) ???
4) Enjoy your indentured servitude

 

[Cookie Queen]

As long as you are a US citizen, this is very easy. As others have said, fill out your FAFSA now. Then once you select a school, the financial aid person at your school will walk you through the process. You will likely get all Direct student loans in a combination of subsidized and unsubsidized loans, then with Grad Plus to top off the remainder. If you are not a US citizen, then find other non-US citizen current medical students to help guide you because it is very different. Getting into med school is the hard part, the US govt will help fund you once you're in, so don't stress about that now.

 

[nychila]

As long as you are a US citizen, this is very easy. As others have said, fill out your FAFSA now. Then once you select a school, the financial aid person at your school will walk you through the process. You will likely get all Direct student loans in a combination of subsidized and unsubsidized loans, then with Grad Plus to top off the remainder. If you are not a US citizen, then find other non-US citizen current medical students to help guide you because it is very different. Getting into med school is the hard part, the US govt will help fund you once you're in, so don't stress about that now.

So federal loans (FAFSA and Grad Plus) should be able to cover all of a private school's tuition and living expenses, which could be $300,000? Hence, no private loans (from banks) are necessary, or do most students take out bank loans?

 

[darkjedi]

So federal loans (FAFSA and Grad Plus) should be able to cover all of a private school's tuition and living expenses, which could be $300,000? Hence, no private loans (from banks) are necessary, or do most students take out bank loans?

Private loans are very rarely necessary unless you have some crazy expenses beyond what your school predicts for you.

Your financial aid office will set a student budget for you, which includes tuition, living expenses, transportation, books, etc. You will be able to take out loans up to this amount, which should be enough for 95% of students.

 

[nychila]

Private loans are very rarely necessary unless you have some crazy expenses beyond what your school predicts for you.

Your financial aid office will set a student budget for you, which includes tuition, living expenses, transportation, books, etc. You will be able to take out loans up to this amount, which should be enough for 95% of students.

Ok thanks. I had originally thought that most students at private schools took out bank loans - I didn't even know that Grad Plus existed.

 

[dgsilvervid]

1) Fill out FAFSA and submit to all schools you could possibly matriculate at
2) Fill out school specific forms (could be a random form or something more general like NeedAccess - the school will tell you)
3) ???
4) Enjoy your indentured servitude

lulz

 

[Gauss44]

So federal loans (FAFSA and Grad Plus) should be able to cover all of a private school's tuition and living expenses, which could be $300,000? Hence, no private loans (from banks) are necessary, or do most students take out bank loans?

Sounds like some people won't qualify for Grad Plus: http://studentaid.ed.gov/types/loans/plus And there's a 7.9% interest rate. Sure it could be worse, but it isn't a good rate.

I'm not clear on what you mean by, "bank loan." Do you mean a private student loan given out by the financial aid office? Private student loans given out by financial aid do have funds that come from a bank rather than the federal government. They also have a lender and a guarantor which sometimes confuse people.

To the OP: I would have a meeting with an adviser from the financial aid office and ask them as a starting point. Assuming they give you a plan, I would then try to make sure that they didn't overlook any additional funds you qualify for, and that their plan works well enough, considering the big picture of your financial life and goals.

 

[darkjedi]

Sounds like some people won't qualify for Grad Plus: http://studentaid.ed.gov/types/loans/plus And there's a 7.5% interest rate. Sure it could be worse, but it isn't a good rate.

I'm not clear on what you mean by, "bank loan." Do you mean a private student loan given out by the financial aid office? Private student loans given out by financial aid do have funds that come from a bank rather than the federal government. They also have a lender and a guarantor which sometimes confuse people.

To the OP: I would have a meeting with an adviser from the financial aid office and ask them as a starting point. Assuming they give you a plan, I would then try to make sure that they didn't overlook any additional funds you qualify for, and that their plan works well enough, considering the big picture of your financial life and goals.

If i'm not mistaken, I believe GradPLUS is actually 7.9% haha. Unless you have terrible terrible credit, almost everyone qualifies.

Private student loans given out by financial aid do have funds that come from a bank rather than the federal government. They also have a lender and a guarantor which sometimes confuse people.

huh?

 

[Gauss44]

If i'm not mistaken, I believe GradPLUS is actually 7.9% haha. Unless you have terrible terrible credit, almost everyone qualifies.

Yeah, it's 7.9%. I've been wondering where GradPlus draws the line: Bankruptcy? No credit, no parents, and no cosigner? Debt to income ratio trouble with $150k undergrad student loan debt?...

 

[pathologyDO]

As long as you are a US citizen, this is very easy. As others have said, fill out your FAFSA now. Then once you select a school, the financial aid person at your school will walk you through the process. You will likely get all Direct student loans in a combination of subsidized and unsubsidized loans, then with Grad Plus to top off the remainder. If you are not a US citizen, then find other non-US citizen current medical students to help guide you because it is very different. Getting into med school is the hard part, the US govt will help fund you once you're in, so don't stress about that now.

Exactly right, except as of summer 2012 there are no longer subsidized government loans, only non-subsidized and GradPLUS.

Sounds like some people won't qualify for Grad Plus: http://studentaid.ed.gov/types/loans/plus And there's a 7.5% interest rate. Sure it could be worse, but it isn't a good rate.

I'm not clear on what you mean by, "bank loan." Do you mean a private student loan recommended by the financial aid office? Private student loans given out by financial aid do have funds that come from a bank rather than the federal government. They also have a lender and a guarantor which sometimes confuse people.

To the OP: I would have a meeting with an adviser from the financial aid office and ask them as a starting point. Assuming they give you a plan, I would then try to make sure that they didn't overlook any additional funds you qualify for, and that their plan works well enough, considering the big picture of your financial life and goals.

To receive federal student aid, you’ll need to…

Qualify to obtain a college or career school education, either by having a high school diploma or General Educational Development (GED) certificate, or by completing a high school education in a homeschool setting approved under state law

AND

Be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program

AND

Be registered with Selective Service, if you are a male (you must register between the ages of 18 and 25)

AND

Have a valid Social Security number unless you are from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau

AND

Sign certifying statements on the Free Application for Federal Student Aid (FAFSA) stating that

- you are not in default on a federal student loan and do not owe a refund on a federal grant and

- you will use federal student aid only for educational purposes

AND

Maintain satisfactory academic progress in college or career school

In addition you must…

Be a U.S. CITIZEN or U.S. NATIONAL

I think 100% of medical students will be eligible as long as they maintain good grades, fill out FAFSA, and are actually attending medical school.

Additionally, the GradPLUS is not that bad of an interest rate, and you don't need credit history to get the loans. The money can be used for living expenses, too. Private loans may have cheaper interest rates, but may have other hidden fees, less desirable payback policies and time frames.

 

[Gauss44]

Exactly right, except as of summer 2012 there are no longer subsidized government loans, only non-subsidized and GradPLUS.


I think 100% of medical students will be eligible as long as they maintain good grades, fill out FAFSA, and are actually attending medical school.

Additionally, the GradPLUS is not that bad of an interest rate, and you don't need credit history to get the loans. The money can be used for living expenses, too. Private loans may have cheaper interest rates, but may have other hidden fees, less desirable payback policies and time frames.

This seems to be the right website: http://www.gradloans.com/graduate-plus-loan/

"What kind of credit do I need?

A qualified Graduate PLUS Loan borrower does not have an adverse credit history (defined in regulations as being 90 days or more delinquent on any debt, or having a credit report that shows default, discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the five years preceding the date of the credit report). Note that Graduate and Professional Student PLUS loans do not use any kind of a debt-to-income ratio or FICO® score, unlike private education loans."

If this is the right loan, moral of the story: Be very careful with taxes and all bills.

I think the first website was for a different, yet very similar loan. When researching this online, I'm never quite sure if the information is current. And sometimes I'm not sure if the source is talking about the right loan.

 

[quechua]

Just FYI... This is how the Dept. of Education defines adverse credit history:

Adverse Credit History
A credit history is a summary of your financial strength, including your history of paying bills and your ability to repay future loans. To qualify for a PLUS loan, you cannot have an adverse credit history. Your credit history may be considered adverse if you are experiencing any of the following credit conditions:

Bankruptcy discharge within the past five years.
Voluntary surrender of personal property to avoid repossession within the last five years.
Repossession of collateral within the last five years.
Foreclosure proceedings started.
Foreclosure within the last five years.
Conveying your real property that is subject to a mortgage (by deed) to your lender to avoid foreclosure (deed in lieu of foreclosure).
Accounts currently 90 days or more delinquent.
Unpaid collection accounts.
Charge-offs/write-offs of federal student loans.
Wage garnishment within the last five years.
Defaulting on a loan, even if the claim has been paid.
Lease or contract terminated by default.
County/state/federal tax lien within the past five years.

**
If you need to check your credit report I recommend myfico.com. It has always been accurate for me in the past.

 

[nychila]

Private loans are very rarely necessary unless you have some crazy expenses beyond what your school predicts for you.

Your financial aid office will set a student budget for you, which includes tuition, living expenses, transportation, books, etc. You will be able to take out loans up to this amount, which should be enough for 95% of students.

Grad Plus has an interest rate of 7.9%, though it does not start accumulating interest during school I think, but that interest rate seems much higher than private bank loan rates - why is Grad Plus preferred over private bank loans?

 

[darkjedi]

Grad Plus has an interest rate of 7.9%, though it does not start accumulating interest during school I think, but that interest rate seems much higher than private bank loan rates - why is Grad Plus preferred over private bank loans?

Grad PLUS loans still accumulate interest during school, you just don't have to pay it until you graduate. Government loans have significantly more lenient terms than bank loans. It can also participate in the loan forgiveness program where your debt can be forgiven after 10 years of payment if you work in qualifying health centers. Bank loans are usually tied to the federal prime rate which can fluctuate wildly in the next decade. It can very easily jump in interest rates as the economy picks up.

 

[gandalfthegray]

I'm confused - one school I was accepted to gave me an award letter with a loan request form. Do I have to fill out? Or only if I decided to go?