Loan for living expenses

[Future_D.O.]

I've been doing some research into loans for living expenses in medical school, and have come up mostly empty. I have heard that loans for living expenses are credit based, unlike the federal stafford loans for tuition which are guarunteed to every student.

I'm assuming that the majority of medical students do not live with their parents, and also that a lot of people do not have family that can pay for their living expenses while in school.

If my dream of going to medical school is to ever become a reality, im going to have to be able to get loans for living expenses.

I'm hoping those of you who have already gone through school can shed some light on this for me!

Are all medical students eligible for living expense loans? how much do people typically qualify for? I have no credit, and no one to cosign for me, so im hoping its not credit based.

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[deleted480308]

just don't be defaulted on anything and you'll be fine, the amount is set by each school as their "estimated cost of attendance"

 

[Future_D.O.]

just don't be defaulted on anything and you'll be fine, the amount is set by each school as their "estimated cost of attendance"

Sorry for being completely out of the social loop, but what do you mean by "don't be defaulted on anything"?

 

[deleted480308]

Sorry for being completely out of the social loop, but what do you mean by "don't be defaulted on anything"?

don't be defaulted on loans/credit....keep paying all your bills on time

 

[Marine to MD]

You are eligible for federal loans up the cost of attendance for the school you go to. The cost of attendance includes living expenses. Each individual school is different with regards to the amount that is budgeted for living expenses. The school I am currently at is approximately $22k/year.

The schools you are interested in should provide this information somewhere in the tuition and financial aid section of their respective websites.

 

[Future_D.O.]

You are eligible for federal loans up the cost of attendance for the school you go to. The cost of attendance includes living expenses. Each individual school is different with regards to the amount that is budgeted for living expenses. The school I am currently at is approximately $22k/year.

The schools you are interested in should provide this information somewhere in the tuition and financial aid section of their respective websites.

Thank you very much for your help. My biggest question, is am i guarunteed those loans? or is it credit based or something like that?

 

[Storph]

Thank you very much for your help. My biggest question, is am i guarunteed those loans? or is it credit based or something like that?

These loans are based on credit, but it is not based on a certain score. There is a list of "adverse history" events that cannot be present on your credit report.

Here is a link to the requirements: http://www.ifap.ed.gov/dlbulletins/attachments/DLB0703Attach.pdf

Bullet "2." is the information pertaining to credit requirements.

 

[Bru]

Gradplus loans will look at your credit (the ones linked above). Stafford do not. However Stafford only goes up to like 44K per year. If you need to take out more, most people do GradPlus but if your credit is crappy then you are out of luck.

 

[Red Lobster Actual]

Don't worry so much about getting loans. It's paying them off that you should be preoccupying yourself with.

 

[Future_D.O.]

Gradplus loans will look at your credit (the ones linked above). Stafford do not. However Stafford only goes up to like 44K per year. If you need to take out more, most people do GradPlus but if your credit is crappy then you are out of luck.

my issue is not that my credit is crappy, its that i have no credit at all, i have no credit score, i have no bad nor good marks on my credit.

 

[Red Lobster Actual]

my issue is not that my credit is crappy, its that i have no credit at all, i have no credit score, i have no bad nor good marks on my credit.

Did you receive college loans?

 

[Future_D.O.]

Did you receive college loans?

no, up until this point ive only gotten grants for school

 

[Red Lobster Actual]

no, up until this point ive only gotten grants for school

Overall, I would not be too concerned. If anything once you fill out FAFSA and the like they'll just use your family's information as collateral. Like all the posters above have said, do not worry, you'll get living expenses covered with loans.

 

[Future_D.O.]

Overall, I would not be too concerned. If anything once you fill out FAFSA and the like they'll just use your family's information as collateral. Like all the posters above have said, do not worry, you'll get living expenses covered with loans.

I have no family that will co sign for me, and the only person that is willing to has horrible credit, hope that won't be an issue

 

[Red Lobster Actual]

I have no family that will co sign for me, and the only person that is willing to has horrible credit, hope that won't be an issue

Interesting. In that case call the school that accepted you and have a chat with their Financial Aid Officer. All medical schools have one and should be able to help you in depth with this. Sorry about that. Should have said this first. 🙂

 

[ortnakas]

my issue is not that my credit is crappy, its that i have no credit at all, i have no credit score, i have no bad nor good marks on my credit.

Consider getting a low credit limit credit card to build a little bit of credit. Buy groceries and gas with it, and pay it off monthly.

 

[xffan624]

Consider getting a low credit limit credit card to build a little bit of credit. Buy groceries and gas with it, and pay it off monthly.

Good to start to now even if it does nothing for your medical school loans, you will need it as you enter residency and need a credit card/apartment/house, etc.

 

[Keladry]

Consider getting a low credit limit credit card to build a little bit of credit. Buy groceries and gas with it, and pay it off monthly.

+1
If you have a debit card with a certain bank, they're pretty likely to be willing to let you get a credit card with them. It might be a "secured" credit card, where you basically set aside the money in advance, but most places will then let you get a regular credit card after a while, and I'm pretty sure even the secured ones build your credit. Store charge cards are another good way to build credit - if there's a place you shop reasonably often, see if you can get their charge card, and again, pay it off in full each month.

 

[seminoma]

No credit is the same as good credit as far as gradplus is concerned.

 

[TrickMcJanky]

These loans are based on credit, but it is not based on a certain score. There is a list of "adverse history" events that cannot be present on your credit report.

Here is a link to the requirements: http://www.ifap.ed.gov/dlbulletins/attachments/DLB0703Attach.pdf

Bullet "2." is the information pertaining to credit requirements.

Whoa. Bullet 26. Why is the repayment amount $57K after borrowing $40K. That's way more than 7.9% interest. What am I missing here?

 

[DrBowtie]

Whoa. Bullet 26. Why is the repayment amount $57K after borrowing $40K. That's way more than 7.9% interest. What am I missing here?

Compound interest over 10 year repayment.

 

[Beargryllz]

The "cost of attendance" is figured just like the tuition is. You are given a loan that accounts for both, if you're into that sort of thing.

In my limited experience, the cost of attendance is *vastly* overestimated and I'll have a bunch of leftover loan money barring some dramatic change in my budget in the near future. I have no idea how people are going broke. I don't want to know.

 

[TrickMcJanky]

Compound interest over 10 year repayment.

Ah, right. I hope this isn't a stupid follow-up but.. if you make payments on the interest while in medical school (or in residency if you extend forbearance), would it still somehow compound? I'm wondering if in that case there's a catch or fine print we should be aware of.

 

[Red Lobster Actual]

Yes it still compounds. However, the principal amount at the very least is not increasing.

Example of not paying off interest, with $100,000 principal and 10% interest.
Year 1: $100,000 (+10,000)
Year 2: $110,000 (+11,000)
Year 3: $121,000 (+12,100)
Year 4: $133,100 etc. etc.

Example of paying off only interest every year, with $100,000 principal and 10% interest.
Year 1: $100,000 (+10,000) (Pay 10,000)
Year 2: $100,000 (+10,000) (Pay 10,000)
Year 3: $100,000 (+10,000) (Pay 10,000)
Year 4: $100,000 (+10,000) (Pay 10,000)

In summary, take out as few loans as possible and try to pay off as much principal and interest as possible starting in residency.