Loans? How to pay for Dental school?

[UCF FINatic]

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So I am just looking ahead and trying to figure out how to pay for Dental school. The more I think about it the more I like the idea of taking loans out instead of going with a Navy (or other services) scholarship. That being said, does anyone know how the how loan process works?

I guess more specifically these are the answers I am trying to find:
1.) When do we have to apply for loan? (should we be working on them now?)
2.) How/where do you apply for loans for dental school?
3.) Does anyone know the interest rate for loans and how long it takes to pay them back?

That's all I can think of off the top of my head, but I am sure I will probably think of a few more right after I submit this thread lol.

Anyways thanks for your input and if you have any other important information or things I should know about taking loans out for Dental School please let me know 👍

 

[peg lateral]

So I am just looking ahead and trying to figure out how to pay for Dental school. The more I think about it the more I like the idea of taking loans out instead of going with a Navy (or other services) scholarship. That being said, does anyone know how the how loan process works?

I guess more specifically these are the answers I am trying to find:
1.) When do we have to apply for loan? (should we be working on them now?)
2.) How/where do you apply for loans for dental school?
3.) Does anyone know the interest rate for loans and how long it takes to pay them back?

That's all I can think of off the top of my head, but I am sure I will probably think of a few more right after I submit this thread lol.

Anyways thanks for your input and if you have any other important information or things I should know about taking loans out for Dental School please let me know 👍

1. You can start applying for loans in January before you matriculate.
2. FAFSA - application opens up in January - you will have to fill this out for every year of dental school you plan to take federal loans out
3. I believe federal loans are still 6.8% fixed interest, but they are doing away with the federal subsidized loan that the government pays interest on while you are in school

I forget what the max amount is you can borrow per year for federal loans-- most students attending private schools will have to take out private loans as well. The interest rates on private loans can be variable, and are usually higher than the 6.8% federal loan interest rate.

As far as how long it takes to pay off your loans, it will all depend how much you take out, which school you go to, how you live and spend money while in school, where you live when you get out of school, how you live when you get out, and what type of job you have when you get out. There are different repayment options (standard, graduated, and income-based). It will seem pretty hard to make payments the first year or so, especially if the economy doesn't pick up any time soon, but the payments will get easier to make the longer you are in practice, the better and faster you get, etc. Most repayment plans are set at a 10 year repayment period unless you change it to a longer repayment period.

How long it takes you to pay your loans off will also depend on whether or not you have a mortgage and/or practice loan on top of it. Be wise with your money. And if you get the opportunity to go to a cheaper school, go for it. You will still be a dentist when you get out.

Hearing what everyone has to say about being $300k+ in student loan debt, I am so incredibly grateful that I am only $160k, which is still a lot.

 

[oreoson]

Do thorough research before signing anything..
I threw up in my mouth after seeing this post.
http://forums.studentdoctor.net/showthread.php?t=866015
GL.

 

[2th Doc]

I forget what the max amount is you can borrow per year for federal loans-- most students attending private schools will have to take out private loans as well. The interest rates on private loans can be variable, and are usually higher than the 6.8% federal loan interest rate.

The most recent figure I've seen is just over $47,000, since they combined the former subsidized allowable limit with the unsubsidized limit so you can still get the same amount of money, but now it will all be unsubsidized (how generous).

 

[UCF FINatic]

1. You can start applying for loans in January before you matriculate.
2. FAFSA - application opens up in January - you will have to fill this out for every year of dental school you plan to take federal loans out
3. I believe federal loans are still 6.8% fixed interest, but they are doing away with the federal subsidized loan that the government pays interest on while you are in school

I forget what the max amount is you can borrow per year for federal loans-- most students attending private schools will have to take out private loans as well. The interest rates on private loans can be variable, and are usually higher than the 6.8% federal loan interest rate.

As far as how long it takes to pay off your loans, it will all depend how much you take out, which school you go to, how you live and spend money while in school, where you live when you get out of school, how you live when you get out, and what type of job you have when you get out. There are different repayment options (standard, graduated, and income-based). It will seem pretty hard to make payments the first year or so, especially if the economy doesn't pick up any time soon, but the payments will get easier to make the longer you are in practice, the better and faster you get, etc. Most repayment plans are set at a 10 year repayment period unless you change it to a longer repayment period.

How long it takes you to pay your loans off will also depend on whether or not you have a mortgage and/or practice loan on top of it. Be wise with your money. And if you get the opportunity to go to a cheaper school, go for it. You will still be a dentist when you get out.

Hearing what everyone has to say about being $300k+ in student loan debt, I am so incredibly grateful that I am only $160k, which is still a lot.

Thank you very much for you help, I really appreciate it 👍

Now lets say I end up only getting accepted to a private university and tuition is $70,000 a semester. If I can only borrow $47,000 from the government and have to take out private loans, how/when would I go about getting private loans? Would private loans be from banks?

Sorry I am so clueless to all of this, I am just starting to freak out about how I am going to pay for all of this.

 

[MrAvicii]

Thank you very much for you help, I really appreciate it 👍

Now lets say I end up only getting accepted to a private university and tuition is $70,000 a semester. If I can only borrow $47,000 from the government and have to take out private loans, how/when would I go about getting private loans? Would private loans be from banks?

Sorry I am so clueless to all of this, I am just starting to freak out about how I am going to pay for all of this.

grad plus loans haev a 7.9% interest rate! 😱

 

[happy0121]

1. You can start applying for loans in January before you matriculate.
2. FAFSA - application opens up in January - you will have to fill this out for every year of dental school you plan to take federal loans out
3. I believe federal loans are still 6.8% fixed interest, but they are doing away with the federal subsidized loan that the government pays interest on while you are in school
.

Whats everyone's oppinion of the doing away of subsidezed loans?? and does this apply towards all student loans? or just students in professional schools.
(sorry about changing the topic)

 

[peg lateral]

Thank you very much for you help, I really appreciate it 👍

Now lets say I end up only getting accepted to a private university and tuition is $70,000 a semester. If I can only borrow $47,000 from the government and have to take out private loans, how/when would I go about getting private loans? Would private loans be from banks?

Sorry I am so clueless to all of this, I am just starting to freak out about how I am going to pay for all of this.

Yep. You would apply for private loans through banks.

 

[peg lateral]

Whats everyone's oppinion of the doing away of subsidezed loans?? and does this apply towards all student loans? or just students in professional schools.
(sorry about changing the topic)

I believe it is for students just in professional schools. And I think it sucks. Thank goodness it didn't affect me, but it is going to to affect my brother.

 

[757sharp]

Thank you very much for you help, I really appreciate it 👍

Now lets say I end up only getting accepted to a private university and tuition is $70,000 a semester. If I can only borrow $47,000 from the government and have to take out private loans, how/when would I go about getting private loans? Would private loans be from banks?

Sorry I am so clueless to all of this, I am just starting to freak out about how I am going to pay for all of this.

So the annual max for the federal direct loans are about 46-47,000 dollars at a fixed 6.8% interest rate. After that, you can take out more loans from the government called Grad Plus Loans at a fixed 7.9% interest rate. The annual max for those loans are however much you need to attend that school, so technically you do not need take any private loans at all. Now, you could decide to take out private loans, but the problem is that interest rates will vary, and is generally not the popular method.

There's also federal loans with 5% interest rates that max out at about 10,000 dollars such as the HPSL and the Federal Perkins Loan, but they tend to be more competitive from my understanding.

In terms of how long it takes to repay them, you may want to look up some of the repayment plans others have mentioned earlier, such as the IBR or Public Service Loan Forgiveness. How long it takes to pay back is entirely up to the decisions you make, but it should not take more than 25 years.

 

[2th Doc]

Whats everyone's oppinion of the doing away of subsidezed loans?? and does this apply towards all student loans? or just students in professional schools.
(sorry about changing the topic)

I'm not a fan of it, but then again I'm part of the adversely affected, so of course my opinion is biased. If in the end it actually is best for the country's budget as a whole, then so be it... who am I to take advantage of something that works against the welfare of the entire nation. Then again, when I think about all the ridiculousness that comes from most politicians, I'd just as soon have them cut something else that will have just as much (i.e. none) effect on the budget as cutting subsidized loans will. But then it's just making another segment of the population disgruntled... it's a lose-lose.

 

[UCF FINatic]

So the annual max for the federal direct loans are about 46-47,000 dollars at a fixed 6.8% interest rate. After that, you can take out more loans from the government called Grad Plus Loans at a fixed 7.9% interest rate. The annual max for those loans are however much you need to attend that school, so technically you do not need take any private loans at all. Now, you could decide to take out private loans, but the problem is that interest rates will vary, and is generally not the popular method.

There's also federal loans with 5% interest rates that max out at about 10,000 dollars such as the HPSL and the Federal Perkins Loan, but they tend to be more competitive from my understanding.

In terms of how long it takes to repay them, you may want to look up some of the repayment plans others have mentioned earlier, such as the IBR or Public Service Loan Forgiveness. How long it takes to pay back is entirely up to the decisions you make, but it should not take more than 25 years.

Alright, I think I have everything worked out now. If I end up attending Midwestern University or a similar private university it is going to cost me around $70,000 a semester.
If I understand this correctly I can pay for that amount like this:

0-$47,000 - Federal Direct Loan at 6.8% interest rate (Direct Unsubsidized Loans)
$47,001-$70,000 - Grad Plus Loans at 7.9% interest rate

Now additionally I figured I would need about $13,000 a year to pay for rent, gas, groceries, and various other expenses. If I do not have a job to support myself would I have to take out a private loan from a bank to pay for these expenses? I read about the Grad Plus Loan and I don't think you can take out more than tuition costs, so I am curious about how I could pay for those other various expenses.

According to http://studentaid.ed.gov/students/attachments/siteresources/doyouneedmoney.pdf
I read, "financial need is not required" for the Direct Plus Loan which means it doesn't matter if I am a dependent of a well off family, correct? I am asking this because my parents are in one of the higher tax brackets and claim me as a dependent since they help support some of my living expenses. Also I am assuming I would have to take a Direct Unsubsidized Loans as opposed to a Direct Subsidized Loans since those do depend on need. Is the only difference between those two loans the fact that I need to pay interest on the Direct Unsubsidized Loans and I don't have to on the Direct Subsidized Loans?

Last question is also according to http://studentaid.ed.gov/students/attachments/siteresources/doyouneedmoney.pdf you can only take out $20,500 for Direct Unsubsidized Loans? I know everyone keeps posting $47,000 so I was wondering where that number comes from? Does anyone have a website or link about the loan for $47,000?

Thanks so much for all the help! I don't know what I would do without everyone's gracious help on SDN 😍

 

[757sharp]

Alright, I think I have everything worked out now. If I end up attending Midwestern University or a similar private university it is going to cost me around $70,000 a semester.
If I understand this correctly I can pay for that amount like this:

0-$47,000 - Federal Direct Loan at 6.8% interest rate (Direct Unsubsidized Loans)
$47,001-$70,000 - Grad Plus Loans at 7.9% interest rate

Now additionally I figured I would need about $13,000 a year to pay for rent, gas, groceries, and various other expenses. If I do not have a job to support myself would I have to take out a private loan from a bank to pay for these expenses? I read about the Grad Plus Loan and I don't think you can take out more than tuition costs, so I am curious about how I could pay for those other various expenses.

According to http://studentaid.ed.gov/students/attachments/siteresources/doyouneedmoney.pdf
I read, "financial need is not required" for the Direct Plus Loan which means it doesn't matter if I am a dependent of a well off family, correct? I am asking this because my parents are in one of the higher tax brackets and claim me as a dependent since they help support some of my living expenses. Also I am assuming I would have to take a Direct Unsubsidized Loans as opposed to a Direct Subsidized Loans since those do depend on need. Is the only difference between those two loans the fact that I need to pay interest on the Direct Unsubsidized Loans and I don't have to on the Direct Subsidized Loans?

Last question is also according to http://studentaid.ed.gov/students/attachments/siteresources/doyouneedmoney.pdf you can only take out $20,500 for Direct Unsubsidized Loans? I know everyone keeps posting $47,000 so I was wondering where that number comes from? Does anyone have a website or link about the loan for $47,000?

Thanks so much for all the help! I don't know what I would do without everyone's gracious help on SDN 😍

Okay, so when you take out loans, everything in the cost of attendance will be considered. These things include not only tuition, but also supply fees, book fees, and cost of living (rent, necessary gas, misc). Of course, this extra money will come with the 7.9% interest rate under the grad plus loan. With that, there really is no need for private loans unless you really want to.

Next, there will NOT be any subsidized loans for graduate students, I believe those are only available for undergraduate students. The numbers I got are from different financial aid officers I have spoken to, but they also warned me that all of this could change by next year. This leads me to also recommend talking to some of the financial aid officers at Midwestern, since you have a lot of questions and make sure all the facts are right.

One last thing I want to add, when you think about repaying loans, it is better to think of every loan dollar as actually two dollars when you pay them back. Through the life of the loan repayment, the compound interest will build up and you will come very close to paying back twice as much money as you borrowed. You can look at boreno's excel sheet to get a better idea of this, just a good thought to have while you're financing your education.

 

[UCF FINatic]

Okay, so when you take out loans, everything in the cost of attendance will be considered. These things include not only tuition, but also supply fees, book fees, and cost of living (rent, necessary gas, misc). Of course, this extra money will come with the 7.9% interest rate under the grad plus loan. With that, there really is no need for private loans unless you really want to.

Next, there will NOT be any subsidized loans for graduate students, I believe those are only available for undergraduate students. The numbers I got are from different financial aid officers I have spoken to, but they also warned me that all of this could change by next year. This leads me to also recommend talking to some of the financial aid officers at Midwestern, since you have a lot of questions and make sure all the facts are right.

One last thing I want to add, when you think about repaying loans, it is better to think of every loan dollar as actually two dollars when you pay them back. Through the life of the loan repayment, the compound interest will build up and you will come very close to paying back twice as much money as you borrowed. You can look at boreno's excel sheet to get a better idea of this, just a good thought to have while you're financing your education.

Thank you so, so, so much!!! You have been such a help to me 👍

So you have answered all my questions, now I just need to figure out about the actual numbers on the $47,000 loan amount. I plan on calling Midwestern University like you mentioned to learn more about this issue.

As far as your last paragraph, I plan on living as frugal as possible my first 5 years after dental school to pay that loan back as fast as possible. I want to pay at least $100,000 back on those loans per year.

Thanks again for all your help! 👍

 

[peg lateral]

Thank you so, so, so much!!! You have been such a help to me 👍

So you have answered all my questions, now I just need to figure out about the actual numbers on the $47,000 loan amount. I plan on calling Midwestern University like you mentioned to learn more about this issue.

As far as your last paragraph, I plan on living as frugal as possible my first 5 years after dental school to pay that loan back as fast as possible. I want to pay at least $100,000 back on those loans per year.

Thanks again for all your help! 👍

Good luck.

 

[PhoebeAZ]

Bumping this now that it's time to file FAFSAs. Someone above said that you actually don't need private loans at all, which is true. The GradPlus loan will cover the remaining cost of attendance, but it is based on your credit.

About private or alternative student loans: avoid at all costs. These are actually very dangerous. This is the advice the finance professor I had in undergrad, Richard Serlin, gave about them:

"Due to a new bankruptcy law passed in October of 2005, fully private student loans can never be discharged in bankruptcy. The only exception is for a hardship essentially about as severe as full body paralysis. For all practical purposes, you can never dismiss these loans in bankruptcy. You actually cannot dismiss fully government sponsored federal student loans in bankruptcy either, for all practical purposes; this is another change from a generation ago, but fully government sponsored student loans, also called Direct Student Loans, have important safeguards, which in fact make them quite safe."