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loans? parents?

Started by thethethe
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thethethe

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how do you guys plan on paying for medical school? my parents can afford to pay the tuition in full but my business friends tell me that taking out loans would be a better idea. they say having money now is more important than having it later.... what do you guys think?
 
thethethe said:
how do you guys plan on paying for medical school? my parents can afford to pay the tuition in full but my business friends tell me that taking out loans would be a better idea. they say having money now is more important than having it later.... what do you guys think?
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If you come from a family that can afford to put you through medical school, then leave the aide alone for the rest of us.

If need to have good credit and repaying loans on time is the best way to have good credit, but do the math...why would you ever want to be in that much debt when you don't have to.

Sorry if this seems harsh. My family is very blue collar, so it's a hot spot for me.
 
if i do take out loans, wouldn't i owe the same thing if i payed every year, or at the end of 4 years. when i'm in school, i don't think i have to pay interest.
 
Interest starts building on the UN-subsidized loans right away, and not sure where you go to school, but you're probably not be able to cover tuition just from subsidized loans.

I guess if you could take out loans and then immediately pay them back with the money from your folks then the interest wouldn't hurt you too bad. Not sure how much that would your credit as that would be only the reason I can see to do that.

What about living expenses? Are they going to be covering the cost for that as well?
 
So, I think that you are saying that your parents would loan you the money to pay for your tuition/etc. If your parents paid it for you, would they charge you interest? If not, definately go that way.

As for the interest on federal loans, you are always accruing interest, unless you get a subsidised loan, which would be a small portion only. They defer your payments, so you don't have to pay until you are actually working, but you are accruing interest from day one.
 
First, if your parents have money to pay your tuition, I'd bet you're not going to be eligible for the lowest interest federal need-based loans.

Second, interest rates on federal student loans were around 4% for a while there, but not anymore. More like 8% lately. From an investment perspective it used to be that getting student loans made more sense than pulling money out of an investment, but that's no longer a solid assumption.

Third, who would be paying back these loans? Your parents aren't responsible for them, you are.
 
If I asked my parents to pay for my medical school tuition, they would tell me to go **** myself. But only after they regained their composure after about an hour of continuous, intense laughter.
 
TexasTriathlete said:
If I asked my parents to pay for my medical school tuition, they would tell me to go **** myself. But only after they regained their composure after about an hour of continuous, intense laughter.
Click to expand...

No kidding. My parents wouldn't pay the 1,500 per semester for my undergrad. They bought their house for about as much as my first year loan will have to be.

I say go for the interest-free loan from your parents. No question.
 
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thethethe said:
how do you guys plan on paying for medical school? my parents can afford to pay the tuition in full but my business friends tell me that taking out loans would be a better idea. they say having money now is more important than having it later.... what do you guys think?
Click to expand...

Well, there isn't much to consider. If you don't have to borrow to pay the COA at a school, then don't. Owing money sucks.

The only substantial consideration, in my opinion, is going to emotional. Make sure there are no hidden and unacceptable conditions on the "parental loan," i.e., no strings attached. I'd rather have freedom to choose my life and be in horrible debt than to owe my parents something that I don't want to give. Family money can come with all kinds of burden, some of which you don't discover until much later. Other than that, if it's clean money, then get your parents to pay for it. I think it's the better option.
 
I had a friend that was in this pridicament. He allowed his parents to pay for his school. Then took out loans at a low interest rate and placed the money in a mutual fund making more than the interest was on the loans. Hence at the end of the four years he had accrued interest at about 2-4% can't remember exactly this wouldn't be much money if you were talking about 38K a year. Then you would come up with about 50K plus on just the 2% abve the loan interest. Not sure if this is coming across clear but I would do that if I had someone willing to pay for college for me.
 
sounds like a good idea but what loans allow you to just put the principle into a mutual fund? It does make sense though
 
Go with the parents! If you screw up your life and can't pay them back, then it's no biggie, and they still HAVE to love you 🙄. However, if you screw up and owe $$$$$$ to Sallie Mae (or whoever!), it's a different story. Now, I'm not saying that you'll screw up, but if my parents made enough to pay for my medical school, hell yes I would take it! Who in their right mind wouldn't? That's just another thing that you don't have to worry about while in medical school. It may not teach you 'proper values,' but you'll be making enough money after residency that it shouldn't matter a whole heck of a lot. But, as I said before, even if you do screw up, it's no biggie.

Just my $.02
 
you have the option of:
1- take out loans to pay for medical school, go into residency with ~$150,000 debt, OR
2- have medical school paid for, begin your residency with no debt and one less thing to panic about.

am I missing something here?
 
brgotch said:
you have the option of:
1- take out loans to pay for medical school, go into residency with ~$150,000 debt, OR
2- have medical school paid for, begin your residency with no debt and one less thing to panic about.

am I missing something here?
Click to expand...

sometimes when life isn't complicated, i feel people have the urge to make it that way...sigh...who else here as loans from undergrad to add to the med school loans?
 
amathew said:
sometimes when life isn't complicated, i feel people have the urge to make it that way...sigh...who else here as loans from undergrad to add to the med school loans?
Click to expand...

I have loans from undergrad and grad. I won't even speak (or type) the amount I already owe. 😱
 
I am taking out loans, but my parents are going to pay them back for me...I think that is the best situation lol.
 
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