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- Medical Student
My calculation for medical school debts. If anyone has some spare time, I'd appreciate it if you can go over this to see if my thinking and calculations are right.
Stafford loans: Medical School
annual loan Limits: $40,500 ($8,500 subsidized/$32,000 unsubsidized)
Subsidized Stafford loans - government pays the interest while you're in school. So let's say thats 8,500 a year times 4 = 34,000.
***This of course is if I qualify for the subsidized loans. Do they look at family income in order to determine if you qualify?
Unsubsidized Stafford Loans for the rest of the money (32k) - you have to pay all interest although you can have payments deferred until after graduation. Interest rate is fixed at 6.8 percent.
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now for my calculations:
Let's say the unsubsidized federal loans are 32k a year and accumulate at 6.8 percent a year so
first year: borrow 32k. interest = 6.8 percent. total = 34,176
second year: borrow another 32 k. interest = 6.8 percent.
so 34,176 + 34,176x1.068 = 70,675.97.
third year: borrow another 32k which is about 34,176 + (70,675.97 x 1.068) = 109,657.93
fourth year: the last 32k. so (109,657.93 x 1.068) + 34,176 = 151,290.67
so after 4 years of medical school, after borrowing 32k a year in Unsubsidized federal loans, I should expect to owe 151,290.67. (32k times 4 = 128k so interest has accumulated to about 24k - not too terrible.)
Let's say the government allowed me to borrow 8,500 a year from the Subsidized Federal Loans - that would leave me at 34k in debt after four years since I believe interest does not accumulate on that until medical school is over.
After four years of medical school I am looking at 151 k + 34 k = 185 k of debt because of the cost of medical school.
Do you know if payments are deferred through residency. Let's say they are not. 185k of debt continued at 6.8 percent. In residency it would be great if I could keep paying the interest off. So after my intern year 185k times 0.068 = 12,580. If I keep paying off 12,580 every year of residency and fellowship (let's say 6 years tops) I will still owe 185k. I'm thinking that another 4 years to pay off the rest of the debt is reasonable. (I believe they give you only 10 years after medical school to pay off Federal Loans)
Let me know what you think. Thanks a lot.
Stafford loans: Medical School
annual loan Limits: $40,500 ($8,500 subsidized/$32,000 unsubsidized)
Subsidized Stafford loans - government pays the interest while you're in school. So let's say thats 8,500 a year times 4 = 34,000.
***This of course is if I qualify for the subsidized loans. Do they look at family income in order to determine if you qualify?
Unsubsidized Stafford Loans for the rest of the money (32k) - you have to pay all interest although you can have payments deferred until after graduation. Interest rate is fixed at 6.8 percent.
----
now for my calculations:
Let's say the unsubsidized federal loans are 32k a year and accumulate at 6.8 percent a year so
first year: borrow 32k. interest = 6.8 percent. total = 34,176
second year: borrow another 32 k. interest = 6.8 percent.
so 34,176 + 34,176x1.068 = 70,675.97.
third year: borrow another 32k which is about 34,176 + (70,675.97 x 1.068) = 109,657.93
fourth year: the last 32k. so (109,657.93 x 1.068) + 34,176 = 151,290.67
so after 4 years of medical school, after borrowing 32k a year in Unsubsidized federal loans, I should expect to owe 151,290.67. (32k times 4 = 128k so interest has accumulated to about 24k - not too terrible.)
Let's say the government allowed me to borrow 8,500 a year from the Subsidized Federal Loans - that would leave me at 34k in debt after four years since I believe interest does not accumulate on that until medical school is over.
After four years of medical school I am looking at 151 k + 34 k = 185 k of debt because of the cost of medical school.
Do you know if payments are deferred through residency. Let's say they are not. 185k of debt continued at 6.8 percent. In residency it would be great if I could keep paying the interest off. So after my intern year 185k times 0.068 = 12,580. If I keep paying off 12,580 every year of residency and fellowship (let's say 6 years tops) I will still owe 185k. I'm thinking that another 4 years to pay off the rest of the debt is reasonable. (I believe they give you only 10 years after medical school to pay off Federal Loans)
Let me know what you think. Thanks a lot.
