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Is this a good plan?

--Gem

Full Member
Oct 25, 2019
97
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6 Feet Away
  1. Medical Student
Incoming M1 here, going to private med school with COA of 80k (by my own estimation and the school's). Credit score is good from never missing credit card payments, but not perfect since I've never taken out loans before.

I have $13k in savings (to use for moving/fun/misc expenses) and a college savings account from a parent (currently 8k, previously over 20k when the economy wasn't on fire).

My plan:

M1 - Max out my direct subsidized/Stafford loans (20k, 4.5% interest right now) and then cover the rest with Grad PLUS (60k, 5.5% interest).
M2 - Assuming economy is better and interest rates are back up, use my student savings account (hopefully 20k), max out Direct (20k), cover rest with Grad PLUS.
M3 - Same as M1
M4 - Same as M1, but also apply for specialty-dependent scholarships.

Residency - Start repayment with PSLF and/or income-based repayment.
Attending - Would like to do Indian Health Service loan forgiveness or other public service out of personal interest and PSLF repayment.
 

cpants

Member
10+ Year Member
Sep 29, 2007
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425
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  1. Attending Physician
Reasonable plan unless you got in to any cheaper schools. Make sure you are on a very tight budget. Knocking 10-15k/year off cost of living will save you 6 figures when all is said and done. Don't assume you will get loans forgiven. You end up paying a large portion of the loans even if PSLF works out.
 
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The Brodie

New Member
Apr 11, 2019
7
6
36
  1. Medical Student
The direct loan limit is higher than 20k as a medical student. Should be around 40k the first 2 years and then closer to 46k once your enrolled 11+ months a year. That'll save you a decent amount in interest!

Really try to keep your budget a tight as you can without making yourself miserable. I've lived on 15-17 k a year from loans (without any family help) and am glad I chose to sacrifice going to restaurants or living somewhere nice now that I'm nearing graduation. I have plenty of classmates that have maxed out loans and are just starting to realize how much that extra 15 k a year can add up to.

Btw 4th year usually cost more than the first three given the away rotations and traveling for interviews you might need to do.

Congrats on starting med school! However much we may complain about it, it has truly been an extraordinary experience.
 
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The PA Investor

Full Member
Jan 21, 2020
28
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Congratulations on getting into med school that's great. I did a rotation in Indian Health Services and I've been told their benefits are pretty nice if you work for them. With that being said I think your plan is pretty good but I would change just a couple of things. Take out the necessary loans that you need the first year because under the Cares Act, federal student loan interest rates will not be accruing until September 30th of 2020. After September, I would use your savings and eventually whatever is in your college savings account when it returns back to its 20k or more. Best of luck.
 

FutureInternist

Probationary Status
10+ Year Member
Aug 24, 2007
1,895
1,080
276
Where Bugs Bunny should have made a left turn
  1. Attending Physician
Incoming M1 here, going to private med school with COA of 80k (by my own estimation and the school's). Credit score is good from never missing credit card payments, but not perfect since I've never taken out loans before.

I have $13k in savings (to use for moving/fun/misc expenses) and a college savings account from a parent (currently 8k, previously over 20k when the economy wasn't on fire).

My plan:

M1 - Max out my direct subsidized/Stafford loans (20k, 4.5% interest right now) and then cover the rest with Grad PLUS (60k, 5.5% interest).
M2 - Assuming economy is better and interest rates are back up, use my student savings account (hopefully 20k), max out Direct (20k), cover rest with Grad PLUS.
M3 - Same as M1
M4 - Same as M1, but also apply for specialty-dependent scholarships.

Residency - Start repayment with PSLF and/or income-based repayment.
Attending - Would like to do Indian Health Service loan forgiveness or other public service out of personal interest and PSLF repayment.

Is the student savings account a 529?
If so, then your plan looks good, but if not then try to reserve some of that 20K for unexpected issues that come up - cars, needing to move, etc.

Due to a mess up in my forms, I got declined for loans my 2nd year (info didn’t change yet they said it was wrong the 2nd time around!??), and by the time it would have been sorted, the start date for 2nd year would have passed.
Had to use my emergency fund (and a very understanding Dean) to start 2nd year on time.
 
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