HPSP and financial aid

[stonewall22]

So I understand that schools set the estimated cost of attendance, subtract estimated family contribution and scholarship money from other sources, and what's left is what you can borrow from Uncle Sam. Since HPSP pays tuition, fees, etc., obviously what you can borrow comes way down. My question specifically is concerning the living stipend. Does the stipend count as a scholarship or salary? If it's a scholarship then this would count against the amount you can borrow, but if salary it could raise your expected contribution but wouldn't be directly subtracted from the estimated cost of attendance. Anyone know? I've got kids and a wife. I really want them to be able to eat while I'm in medical school. Just looking at different options, two of which are HPSP and the ASR Student Recruiters in the Guard. Just trying to see if I'd be able to take more loan money if I were HPSP. Thanks!

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[SeminoleFan3]

So I understand that schools set the estimated cost of attendance, subtract estimated family contribution and scholarship money from other sources, and what's left is what you can borrow from Uncle Sam. Since HPSP pays tuition, fees, etc., obviously what you can borrow comes way down. My question specifically is concerning the living stipend. Does the stipend count as a scholarship or salary? If it's a scholarship then this would count against the amount you can borrow, but if salary it could raise your expected contribution but wouldn't be directly subtracted from the estimated cost of attendance. Anyone know? I've got kids and a wife. I really want them to be able to eat while I'm in medical school. Just looking at different options, two of which are HPSP and the ASR Student Recruiters in the Guard. Just trying to see if I'd be able to take more loan money if I were HPSP. Thanks!

I think I can take out about $4K a semester with HPSP. However, remember that there may be some mandatory fees that the Navy won't cover, so you'll need the loans for that (a few hundred $ a semester).

 

[teacherman84]

This was discussed recently in the HPSP FAQ. I dont know how the numbers work out but as long as you dont live extravagantly you will be ok. I know 2 af docs who lived comfortably with their 3 kids stay-at-home wives. One pulled off a pregnancy in MS-4

 

[2000 Man]

I had this question and went to my school's financial aid office to get an answer. They told me that the HPSP stipend is considered a scholarship and is deducted from your cost of living budget with regards to how much you can borrow. They also said that there have been a number of schools that had not been following this guideline and allowing their students to borrow above and beyond the stipend. Apparently the powers-that-be got wind of this and are now cracking down on this practice. So bottom line, if the stipend (plus the bonus if you got that too) equals or exceeds your school's cost of living budget, then you are not eligible to borrow any more money.

It is interesting to note that with the Navy HSCP (paid as an active duty E-6 while in school, but tuition is not paid), you would still be able to borrow against the cost of living as the money you are making is placed in your contribution section as regular earned income.

 

[stonewall22]

I had this question and went to my school's financial aid office to get an answer. They told me that the HPSP stipend is considered a scholarship and is deducted from your cost of living budget with regards to how much you can borrow. They also said that there have been a number of schools that had not been following this guideline and allowing their students to borrow above and beyond the stipend. Apparently the powers-that-be got wind of this and are now cracking down on this practice. So bottom line, if the stipend (plus the bonus if you got that too) equals or exceeds your school's cost of living budget, then you are not eligible to borrow any more money.

It is interesting to note that with the Navy HSCP (paid as an active duty E-6 while in school, but tuition is not paid), you would still be able to borrow against the cost of living as the money you are making is placed in your contribution section as regular earned income.

The odd thing about this is the stipend is taxed and reported income on the FAFSA, so in effect you're getting nailed twice for the same money.

 

[IlDestriero]

When I had the scholarship they still paid all the fees. The living allowance was taxed however, and I'm guessing that it still is. The university had a scholarship fund for students going into the military. I applied, and the got a grant paying me back the taxes and a few other things that they said were not covered by the scholarship. It was $4-5000 per year. You never know what scholarships are out there at your school if you don't ask. Prior to my application, the scholarship, which had been established during WWI, had not been used by a medical student in recent memory. It was there, but nobody asked about it. My roommate was furious that I could get a scholarhip when I was already getting a free ride, and had assets from a previous (brief) career, and he was going to be $250k in debt.
I got an "ancestral" scholarship in college based on my relation to a distant relative that died a century ago. It had not been claimed in some time. You have to see what's out there!
Regards,

 

[notdeadyet]

I got an "ancestral" scholarship in college based on my relation to a distant relative that died a century ago. It had not been claimed in some time. You have to see what's out there!

No chance. I for one know that this sort of digging into my family will be much more likely to turn up unpaid debt than unclaimed money.

 

[IlDestriero]

No chance. I for one know that this sort of digging into my family will be much more likely to turn up unpaid debt than unclaimed money.

That's pretty funny.

 

[AFDuck]

At my school the HPSP scholarship covers all tuition, fees and student health insurance. Since the cost of living expenses that the school outlines are not covered I am eligible for stafford loans to cover these. I have been taking out the subsidized loans at 8500/year because they're free money until 6 mo after graduation. The stipend isn't enough on the fafsa to lead to any big expected student contribution so it doesn't really effect loan eligibility (at least thats my experience).

 

[bco001]

I am married and have two chilren so I am trying to figure out a rough budget for the upcoming 4 years of my life and the monthly stipend is not enough to cover my monthly expenses. So I am hoping that someone could help me figure all of this out.

I am attending a state medical school, and my cost of attendance is 41,892 with tuition being 13,600 (I know its cheap but HPSP is right for me). I get 11 months of a stipend at 2,000, so 22,000 + 13,600 = 35,600. That leaves around 6,100 left over, and I think that I can get by with that on top of the stipend.

Can I count on that 6,100 extra? I know the air force will cover books, most fees, and a laptop, but how does that work? Am I suppoesd to go purchase the books, pay for the fees and laptop, and then send my receipts to the Air Force in which they will send me a check? I am trying to get financially prepared and I don't want any surprises. Does anyone have any experience in dealing with this?

 

[IlDestriero]

I am married and have two chilren so I am trying to figure out a rough budget for the upcoming 4 years of my life and the monthly stipend is not enough to cover my monthly expenses. So I am hoping that someone could help me figure all of this out.

I am attending a state medical school, and my cost of attendance is 41,892 with tuition being 13,600 (I know its cheap but HPSP is right for me). I get 11 months of a stipend at 2,000, so 22,000 + 13,600 = 35,600. That leaves around 6,100 left over, and I think that I can get by with that on top of the stipend.

Can I count on that 6,100 extra? I know the air force will cover books, most fees, and a laptop, but how does that work? Am I suppoesd to go purchase the books, pay for the fees and laptop, and then send my receipts to the Air Force in which they will send me a check? I am trying to get financially prepared and I don't want any surprises. Does anyone have any experience in dealing with this?

Some have reported here that they are not necessarily covering all the fees anymore. They will pay for your insurance, but not for your family. Expenses not submitted through the school, like books. Insurance, equipment, etc will need to be payed upfront by you and you will get reimbursed a couple months later. Any shortfall between what the Military pays and the expected expenses (the Schools numbers) can be covered by a loan. Make sure the school doesn't have scholarship money available for you. Ask about money for military people and money for grad students with families .

 

[meister]

My school counts the stipend as a salaried income and you are still able to take out all available loans to cover cost-of-attendance. Thus, you get $2k/month stipend plus you are able to take out $26k a year in loans on top of that if you need to.

If they don't let you do that then I don't see how doing HPSP with a family is any better than not doing it at all. That would be a total rip off...

 

[BlueIsis]

If they don't let you do that then I don't see how doing HPSP with a family is any better than not doing it at all. That would be a total rip off...

Yup, this is the boat that I'm in. I went to medical school thinking I could take out loans on top of the stipend to support my family. Instead I was told, "loans are to support the student, not the student's family and your stipend means that you have no need, therefore, no loans for you". The good news is that I have no student loans. The bad news is oodles of credit card debt, spending all of our retirement savings and still trying to figure out how not to declare bankruptcy between now and graduation.

Bottom line, if your stipend exceeds the estimated cost of living (for a single student), you are not eligible to take loans, regardless of family, medical expenses etc. (I had $11000 worth of non-insured medical expenses that my school would not consider in my need because they were for my husband, not me). This from a school that prides itself on being "military friendly".

I really despise my school...but that's a whole 'nuther topic.

 

[BOHICA-FIGMO]

Yup, this is the boat that I'm in. I went to medical school thinking I could take out loans on top of the stipend to support my family. Instead I was told, "loans are to support the student, not the student's family and your stipend means that you have no need, therefore, no loans for you". The good news is that I have no student loans. The bad news is oodles of credit card debt, spending all of our retirement savings and still trying to figure out how not to declare bankruptcy between now and graduation.

Bottom line, if your stipend exceeds the estimated cost of living (for a single student), you are not eligible to take loans, regardless of family, medical expenses etc. (I had $11000 worth of non-insured medical expenses that my school would not consider in my need because they were for my husband, not me). This from a school that prides itself on being "military friendly".

I really despise my school...but that's a whole 'nuther topic.

Sounds like where I went to school! Unless you want to take out private loans, then you are SOL until 4th year. Then you can take out a "residency and relocation loan" of around $15k or the USAA loan of around $25K.

 

[meister]

Instead I was told, "loans are to support the student, not the student's family and your stipend means that you have no need, therefore, no loans for you".

Exactly what I was told. I guess they don't get that if I am forced to drop out to get a job to pay bills then they don't their tuition and fees from me, do they?

 

[meister]

nm

 

[teacherman84]

woah, calm down. So what if you need to get food stamps or put your kid on medicare? I know a guy who went through med school with 3 kids and a stay at home mom on loans...its possible.