egpndoc

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Just some advice for those who are going to take out some private loans to pay for dental school. If God forbid, something happens to you, your family/spouse will be responsible for paying back your private student loans. The federal loans are dismissed if you pass away. But the private ones are not. So, to protect your loved ones from this enormous debt, I advise you take out a life insurance policy that will cover your loan prinicpal and interest. Just some advice I found while looking around for ways of paying for dental school. GOod luck and sorry about the depressing subject matter.
 

dentist_to_be?

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Thanks for the advice. Correct me if I'm wrong, when you apply through FARSA, dont you get the full loan? Do you still need to go through private channels? Also, which family do they come after if you are single?
 
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egpndoc

egpndoc

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dentist_to_be? said:
Thanks for the advice. Correct me if I'm wrong, when you apply through FARSA, dont you get the full loan? Do you still need to go through private channels? Also, which family do they come after if you are single?
I am not sure if you get the full loan, but I know the maximum you get for federal loans is about $38,500 per year. So if your school cost is $60,000 per year, you need to borrow the difference from a private lender (This is just an example).It said they go after your "immediate family" or "nuclear family" even if you do not have a co-borrower.
 

msf41

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Do you have any idea how much a life insurance policy premium would be that would cover that?
 

Fullosseousflap

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msf41 said:
Do you have any idea how much a life insurance policy premium would be that would cover that?
I think we discussed this on another thread.

Unless you are married and have a few kids just join ADSA and they provide some insurance.

In any event, a term life policy on you young kids (dental students) would not cost more than a few hundred bucks a year.

Frankly, you probably do not need to insure yourself at all until your senior year or are in a residency and are married.

Trust me the loan companies will not go after your parents unless they co-sign the loan for you!
 

TucsonDDS

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The loan companies would only be able to go after your estate or your co-borrowers's estate. If you passed away (say from an irate patient jamming a high speed up your arse) and you are single without a penny to your name the lenders would have nobody that they could legally go after unless somebody cosigned the loan with you. If you passed away (say from drinking way to much listerine after hours) and had a family then the lenders could go after the estate which would include your home and savings acounts that you hold jointly with your wife. Many times lenders will tell you things that aren't quite legal to make you think that yuo have to pay. When I was in college I had a roomate that passed away after getting hit by a car on a bike. I ruitinely recieved phone calls from the hospital and other lenders that would tell me that I was responsible for the balance that he left ( I told them to f off or I was going to contact my attorney for harrassment.) I think that the best thing that you can do is get a good estate planner who can help you shelter your money and limit your families liabilities in the case of your death (say from choking on a giant ball of dental floss). And as the OP said, life insurance is a great thing also if you have a family.
 

3rdMolarRoller

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When I worked for citibank in collections and if you died, Citibank could not collect on the debt unless there was another name on the acct.

So if you die, and there is no cosigner, then your debt is written off. As far as them going after your assets after death, there is a heirarchy of who gets paid first. Student loans are unsecured debt therefore at the bottom of the list and most likely, just like credit cards, the bank never see's a cent.
 

wimmcs

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TucsonDDS said:
The loan companies would only be able to go after your estate or your co-borrowers's estate. If you passed away (say from an irate patient jamming a high speed up your arse) and you are single without a penny to your name the lenders would have nobody that they could legally go after unless somebody cosigned the loan with you. If you passed away (say from drinking way to much listerine after hours) and had a family then the lenders could go after the estate which would include your home and savings acounts that you hold jointly with your wife. Many times lenders will tell you things that aren't quite legal to make you think that yuo have to pay. When I was in college I had a roomate that passed away after getting hit by a car on a bike. I ruitinely recieved phone calls from the hospital and other lenders that would tell me that I was responsible for the balance that he left ( I told them to f off or I was going to contact my attorney for harrassment.) I think that the best thing that you can do is get a good estate planner who can help you shelter your money and limit your families liabilities in the case of your death (say from choking on a giant ball of dental floss). And as the OP said, life insurance is a great thing also if you have a family.

You are funny!!! :laugh: :laugh: :laugh: