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I will be taking out ~65k/year in private loans and $50k/year in federal, my MD school is not offering any financial aid and I'm paying for everything myself (no co-signer/family support). I'm trying to compare loan options but I'm confused on what I should be looking for? For example, these are some from the same lender's rate check I'm looking at right now:
Option 1 - 5 years fixed, fixed payments, 5.53% APR, monthly payment $25.00 in school, $1,536.79 out of school, 36 months of grace + up to 48 months for residency and fellowship post-residency
Option 2 - 8 years fixed, fixed payments, 5.59% APR, $25.00/mo in school $1,043.14/mo out of school, same thing as 1 for grace period
Option 3 - 10 years fixed, fixed payments, 5.62% APR, $25/mo in school $880/mo out of school
Option 4 - 5 years fixed, no payments in school, $1574/mo out of school, 5.63% APR, same grace period (or 8 years fixed, no payments in school, $1,070/mo out of school, same grace period)
Option 5 - 5 or 8 years variable, 5.04% or 5.09% APR, $25/mo in school, 1488 or 1002/mo out of school, same grace period
There are a couple other very similar options. I currently make $35k/year and have never had a lot of money so paying $6000 in loans (1500x4) each month seems absolutely insane but I know when I'm an attending I will be making a solid income. I've always wanted to do peds bc i love working with kids but I've been advised by multiple people now to pick something that will be better for paying off the loans 🙁
Can anyone explain how to pick which private loan to take? Especially in terms of the 5, 8, 10 year plans, I'm really confused on if it would be better to do a faster/lower interest plan or the longer but higher interest one.
Any advice on how to pick a private loan would be much appreciated thank you!
Option 1 - 5 years fixed, fixed payments, 5.53% APR, monthly payment $25.00 in school, $1,536.79 out of school, 36 months of grace + up to 48 months for residency and fellowship post-residency
Option 2 - 8 years fixed, fixed payments, 5.59% APR, $25.00/mo in school $1,043.14/mo out of school, same thing as 1 for grace period
Option 3 - 10 years fixed, fixed payments, 5.62% APR, $25/mo in school $880/mo out of school
Option 4 - 5 years fixed, no payments in school, $1574/mo out of school, 5.63% APR, same grace period (or 8 years fixed, no payments in school, $1,070/mo out of school, same grace period)
Option 5 - 5 or 8 years variable, 5.04% or 5.09% APR, $25/mo in school, 1488 or 1002/mo out of school, same grace period
There are a couple other very similar options. I currently make $35k/year and have never had a lot of money so paying $6000 in loans (1500x4) each month seems absolutely insane but I know when I'm an attending I will be making a solid income. I've always wanted to do peds bc i love working with kids but I've been advised by multiple people now to pick something that will be better for paying off the loans 🙁
Can anyone explain how to pick which private loan to take? Especially in terms of the 5, 8, 10 year plans, I'm really confused on if it would be better to do a faster/lower interest plan or the longer but higher interest one.
Any advice on how to pick a private loan would be much appreciated thank you!
