Loans/Scholarship/Tuition Reimbursement Questions Thread

[phathead]

Yeah, no one knows this answer - not even the finaid people at the school I'll be going back to. I guess it's at least a plus that the only aid I had the first time around was an academic scholarship.

I don't see why not then. I mean if they're gonna require a degree, you could always temporarily declare a Bio degree or something.

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[ArkansasRanger]

I don't see why not then. I mean if they're gonna require a degree, you could always temporarily declare a Bio degree or something.

I thought about doing that, and reflected on the following...

By visiting the premed forums often I see a lot of "what will adcoms think if I __________?"

That said, I've seen it pop up a lot that people apply to school in a post-bacc sort of sense by having declared themselves as a major in a field they never really had an intent to get a degree in. Apparently adcoms don't like that, but on the premed board they don't like a lot of trivial things like double knotted shoelaces for example.

 

[bozeefus]

Does "prepharm," which in all its glory is typically not an undergraduate path leading to a degree, allow one to receive financial aid in the form of government loans?

I ask because I'm finding that if you're not degree seeking, which I as a prepharm guy am not, then you don't qualify for financial aid. Further compounding the fact is that I already have a bachelor's degree that I received seven years ago. However, that just seems.....unreasonable.

i would was just declare a major for the sake of financial aid. in your junior and senior year, there is a grant given, 4000/yr, if u are a science major, although i don't think it's restricted to science majors only.

 

[PharmOl]

Does "prepharm," which in all its glory is typically not an undergraduate path leading to a degree, allow one to receive financial aid in the form of government loans?

I ask because I'm finding that if you're not degree seeking, which I as a prepharm guy am not, then you don't qualify for financial aid. Further compounding the fact is that I already have a bachelor's degree that I received seven years ago. However, that just seems.....unreasonable.

I just went back to school to get the remaining pre-req's and declared myself a second degree candidate, even though I'm not planning on finishing it. I have no problems with getting as much aid out as I need.

 

[ajh88]

Does "prepharm," which in all its glory is typically not an undergraduate path leading to a degree, allow one to receive financial aid in the form of government loans?

I ask because I'm finding that if you're not degree seeking, which I as a prepharm guy am not, then you don't qualify for financial aid. Further compounding the fact is that I already have a bachelor's degree that I received seven years ago. However, that just seems.....unreasonable.

I'd do was others have suggested - declare whatever major it is that most closely matches the classes you have to take, likely biology or chemistry. Depending on what your previous degree is, it might not be unreasonable to think you could finish one of those degrees (combined with the gen-eds of your previous degree) if you have a couple of years worth of science pre-reqs to take. If not, people don't finish degrees all the time for various reasons...hopefully yours is because you get into pharmacy school!

 

[gator09]

Has anyone purchased a home using their student loan money for housing to pay the mortgage? Is this even allowed? The reason I ask is because the area where I am planning to move for school has average one bedroom apartments running $800/month, which is about the cost of a mortgage.

 

[phathead]

Has anyone purchased a home using their student loan money for housing to pay the mortgage? Is this even allowed? The reason I ask is because the area where I am planning to move for school has average one bedroom apartments running $800/month, which is about the cost of a mortgage.

I can't answer the question, but make sure you consider the associated costs.

IE - Taxes, utilities, complying with city ordinances, any repairs you may have to make, insurance, etc

 

[Chinese Bandit]

Has anyone purchased a home using their student loan money for housing to pay the mortgage? Is this even allowed? The reason I ask is because the area where I am planning to move for school has average one bedroom apartments running $800/month, which is about the cost of a mortgage.

In my opinion, i find it hard to pay for a loan with another loan. Plus you have to think about resale if you move out of the area.

 

[Tinkerbell22]

I can't answer the question, but make sure you consider the associated costs.

IE - Taxes, utilities, complying with city ordinances, any repairs you may have to make, insurance, etc

This is very true. My mom was pressuring me to look into buying an apartment while in school because the area where I was at is around 1000/month for a one bedroom. BUT although a monthly mortgage payment may be in a similar ballpark, you have to add on taxes, home owners association fees, maintenance, and all that stuff which can sometimes double your monthly payment. Plus the stress of making your own repairs and stuff can be annoying if you're in school and don't have money put away for that (your fridge breaks, plumbing stops up, air conditioning is not working, etc).

 

[OldPharm]

Wow, I'm glad I'm not the only one who was thinking about doing this. If I decide to buy a condo or a house, Will I be able to get a mortgage loan with ZERO income though??

 

[PharmGrrlJax]

Has anyone purchased a home using their student loan money for housing to pay the mortgage? Is this even allowed? The reason I ask is because the area where I am planning to move for school has average one bedroom apartments running $800/month, which is about the cost of a mortgage.

I don't know that I would buy a house with student loan money for all the reasons other people have stated. My husband and I are looking at buying a house anyway, so some of my student loans may go towards living expenses which just happen to be a house, but I don't know that I would use it to buy one.

 

[BallerinaRx]

Just realize that if you use student loan money to pay for anything other than qualified education expenses, you can't take any education-related credits or deductions when you do your taxes (assuming you qualify for the credits/deductions).

 

[Tinkerbell22]

I don't know that I would buy a house with student loan money for all the reasons other people have stated. My husband and I are looking at buying a house anyway, so some of my student loans may go towards living expenses which just happen to be a house, but I don't know that I would use it to buy one.

I would totally do it in your situation since your husband is a working pharmacist. I would much rather use my additional loans (above and beyond tuition) to pay towards a home my husband and I were purchasing (rather than rent), but since most of us are single and have no income/living alone then I think it would be rough to manage. Plus, what the above poster said about getting a loan... I'm not sure how we would get one either? My mom and step dad were going to get the loan in my case, so technically I wouldn't "own" the apartment, but since I'm an only child then it would sort of work out as an investment for myself/family. I totally could not foot the bill for a condo/house right now though.

 

[PharmGrrlJax]

Just realize that if you use student loan money to pay for anything other than qualified education expenses, you can't take any education-related credits or deductions when you do your taxes (assuming you qualify for the credits/deductions).

I don't think what I am talking about goes against what students loans are used for. They do factor in living expenses into our student loan amounts, and I wouldn't be taking the loans to buy the house, I would use them as my contribution toward the living expenses which in this case just happens to be a house we might be buying (we are making sure we can afford it, not counting student loans, me working and adding the expenses of school), it would be the same if I had the loans and we still are renting the house we are in now.

 

[gator09]

Just realize that if you use student loan money to pay for anything other than qualified education expenses, you can't take any education-related credits or deductions when you do your taxes (assuming you qualify for the credits/deductions).

But wouldn't that apply also if you rented an apartment or home? I'm going to have to use my loans to pay my rent.

 

[gator09]

I figure 4 years at close to 10,000/year when you factor in utilities. $40,000. I have found many 2 and 3 bedroom condos for under $80,000. Some as low as $60,000 that look very nice. I was thinking that I could always sell it back for very cheap if I need to get it off my hands later. So regardless, I would be paying less for housing in the long run, with the possibility of making a profit or cutting even.

 

[Tinkerbell22]

But wouldn't that apply also if you rented an apartment or home? I'm going to have to use my loans to pay my rent.

You can do that... that's why the school calculates cost of living into your financial aide and gives out that info. Also on the FAFSA I'm pretty sure it's asks where you will be living so they know how much money you might need.

I know at all of the schools I previously attended they give you a refund check of any grants, scholarships, and loans that exceed the amount you owe in you student account. Then you get a check to put in your personal bank account so you can pay rent, etc. On the FAFSA I also believe there is a certification you "e-sign" stating that you will only use the money for expenses while you're attending school (rent, tuition, books, etc).

 

[phathead]

I figure 4 years at close to 10,000/year when you factor in utilities. $40,000. I have found many 2 and 3 bedroom condos for under $80,000. Some as low as $60,000 that look very nice. I was thinking that I could always sell it back for very cheap if I need to get it off my hands later. So regardless, I would be paying less for housing in the long run, with the possibility of making a profit or cutting even.

The other thing you have to factor in is you're effectively paying double interest on the mortgage. The interest from your student loans + the interest of the mortgage.

Depending on the area and the house and such, I'd make sure I'd do a PV analysis to make sure its truly worth it. To me it seems that there are too many places where it could bite ya in the rear end.

 

[confettiflyer]

Former banker here, here's my opinion:

This is fine, if you can find something where the PITI (principle, interest, tax, insurance) + any association fees and maintenance = approx. cost to rent, take the plunge.

Remember, you lose flexibility in moving (if needed) and on the back end in case you need to relocate. Assume you'll sell the place w/ 0% appreciation and factor in the 5-6% commission from the transaction and loan closing costs. Even then, I've seen the numbers work for people when compared to 4 years of rent payments.

I'm assuming you have enough to put down...if you choose this route, get a sales contract signed by april 30 to get the refundable tax credit which expires soon (no more extensions pending). If you can't meet that deadline...wait until late summer when the residual demand from the credit wears off (ie lower prices) and/or deals fall out of escrow and return to market.

As for legality -- student loans for mortgage is fine. You're paying for housing...whether you pay for an apartment via rent, home via mortgage, or some guy for space on his couch. Besides, once commingling of $$ happens, there's no way any agency can realistically track fin-aid $$ going toward approved expenses.

People use fin-aid all the time for airfare, going out money, etc... I buy things with a mileage credit card and use fin-aid to pay the CC off. The statement will have approved things (food, furniture, etc..) and unapproved things (entertainment, travel, etc..) No one will come knocking, no one cares enough about you and your small loan and whether you're blowing it on strippers.

 

[confettiflyer]

Oh, and don't overestimate the impact of the mortgage interest tax deduction on your annual returns.

Here's an idea...how old are you/what's your personal situation? Do you have parents interested in an investment? I see parents buying condos all the time for their kids (I was in this set through the boom years) as they are more likely to benefit from any tax break generated from the property. Just cover the mortgage with student loans (or don't take the extra $$ out in case they were going to pay your rent anyway).

You get a giant tax deduction from student loans/tuition expenses so the mortgage interest tax deduction will effectively do nothing for you. Again, #'s may pan out without this.

 

[OldPharm]

confettiflyer-

Thanks for the info!! You answered many questions I had.

 

[confettiflyer]

confettiflyer-

Thanks for the info!! You answered many questions I had.

oh i didn't answer your 1st question...the answer is no, you probably won't be able to get a mortgage w/ zero income (this isn't 2004). You pretty much need the "traditional" requirements, which are:

2 years of verifiable income (W-2's/1040's or pay stubs)
2 years of rental history
FICO > 720 (or 760)
20% down payment (3.5% if you go the FHA 1st time home buyer route)
Reserves (money in the bank, stocks, etc...401k's/403b's don't count)

Been out of the business for a while, so don't know if lenders are waiving requirements (used to be the norm... if you had a high enough credit score, you wouldn't need 2 years verified income/rental history, for example).

Front-end DTI should be no more than 28-33% (the mortgage payment should not be more than 28-33% of your gross monthly income). This is a nice way to see if you qualify for a mortgage before you even apply. Punch in how much you want to borrow + interest rate into any online calculator and if that monthly payment exceeds 1/3 of your monthly gross...you probably shouldn't be buying the place.

You can trick the system if you've been employed for 2yrs and buy a home while you qualify before you become a FT student.

 

[BallerinaRx]

I don't think what I am talking about goes against what students loans are used for. They do factor in living expenses into our student loan amounts, and I wouldn't be taking the loans to buy the house, I would use them as my contribution toward the living expenses which in this case just happens to be a house we might be buying (we are making sure we can afford it, not counting student loans, me working and adding the expenses of school), it would be the same if I had the loans and we still are renting the house we are in now.

I got ya. It probably also depends on how much your school allots for cost of living, if you go above that you can't take the tax deduction...

 

[FlavyFlav]

To answer your question, yes!. Perhaps my story will help a bit.

I was accepted last year to pharm school at LECOM-B in Florida. We were also between renting and buying. After about a month of searching and talking with an excellent realtor, we finally decided to buy our first home. The thing that tipped the scales was the 8k we would get back which we're using for home upgrades.

We went FHA first-time homebuyer's loan and we were able to be approved (although the ordeal made it the hardest month of our lives), however we had to finagle a few things to make it work. I had to put my current undergrad loans into deferment for a year minimum, I had to prove my income for 2 years as was stated previously. They don't care about your future income so much, which is definitely helpful. We also had to use our combined credit scores as we're not close enough to that 720 yet.

A couple things you'll want to think about have already been stated, but I'll say it as someone who's done it. You're going to pay a large amount out of pocket, and some things aren't so obvious. Of course, you'll have your down-payment (3.5% in our case) plus fees, points, whatever. You also have to turn on utilities which, in some cases requires a deposit. Then there's moving expenses which topped $700 in our case (move from Texas). Not to mention the time and money invested in finding the right house in the first place. Now you have to pay for inspections, and re-inspections if the first turned up faults. Then you have to be prepared for eventualities of home repairs, unless you have some form of warranty (more money). Short story, save save save.

It was definitely very tough to get through, but here we are a year later and I do believe it was the right choice. Counting everything we're paying out, we still are paying less than if we had rented. The best part is, the house is mine! I can do whatever I want with it, and the money I'm paying has a chance of coming back to me when I'm ready to sell. Also, tax time was much better this year because of all the deductions you can take being a house owner.

Student loans are definitely used to pay for your accommodations while in school, the government understands that, so why not put it towards your own house, and not someone elses?

Good luck.

 

[mimi45]

I am glad someone brought this up..I also want to own my home but what if you are going to be purchasing it with someone else who isn't going to be immediately employed/is planning on also being a full time student but not until the year after?? Will it be better to just put the mortgage in my name and have him pay for it? This is confusing because I don't want to take out more loans than I have to with him paying some or most of the mortgage payments but if it is in my name I will have to have proof of the loan amount to cover the payments. Ughhhhh.... I am thinking that I might just have to wait it out and talk to a loan agent on this one....

 

[FlavyFlav]

I am glad someone brought this up..I also want to own my home but what if you are going to be purchasing it with someone else who isn't going to be immediately employed/is planning on also being a full time student but not until the year after?? Will it be better to just put the mortgage in my name and have him pay for it? This is confusing because I don't want to take out more loans than I have to with him paying some or most of the mortgage payments but if it is in my name I will have to have proof of the loan amount to cover the payments. Ughhhhh.... I am thinking that I might just have to wait it out and talk to a loan agent on this one....

This is a tricky one. Like I said with my home mortgage, they did not take into account future assets/loans I may have (i.e. student loans). They were concerned with my undergrad loans which had to have deferment for at least a year, and my previous two years of work history verified with paystubs, tax returns, and bank account info.

You have to prove an income capable of supporting a home purchase, now more than ever. Whatever happens with your income after you're approved (lose job, go to school, etc.) doesn't matter to them, it's all about history.

 

[ArkansasRanger]

Has anyone purchased a home using their student loan money for housing to pay the mortgage? Is this even allowed? The reason I ask is because the area where I am planning to move for school has average one bedroom apartments running $800/month, which is about the cost of a mortgage.

I thought student loan money, or at least the federal stuff, was limited strictly to paying for school costs.

 

[FlavyFlav]

I thought student loan money, or at least the federal stuff, was limited strictly to paying for school costs.

This year, I received ~40000 in student loans from the federal government (subsidized/unsubsidized/gradplus), ~20000 went towards tuition. You can extrapolate from there.

 

[mimi45]

This is a tricky one. Like I said with my home mortgage, they did not take into account future assets/loans I may have (i.e. student loans). They were concerned with my undergrad loans which had to have deferment for at least a year, and my previous two years of work history verified with paystubs, tax returns, and bank account info.

You have to prove an income capable of supporting a home purchase, now more than ever. Whatever happens with your income after you're approved (lose job, go to school, etc.) doesn't matter to them, it's all about history.

Hmm...Thank you! This is going to be a bit more difficult that I had planned.....Sooo my b/f has a part time job but doesn't take out any loans his mother pays his full tuition. He graduates in the summer and I haven't been a full time student for 2 years. I work full time but only started in December..Yikes we might have a rough time getting approved!

 

[ArkansasRanger]

This year, I received ~40000 in student loans from the federal government (subsidized/unsubsidized/gradplus), ~20000 went towards tuition. You can extrapolate from there.

Let's see if I got this right

40,000
~20,000
________
~20,000

although momma told me not to extrapolate. said i might go blind.

 

[IrishHammer]

Has anyone purchased a home using their student loan money for housing to pay the mortgage? Is this even allowed? The reason I ask is because the area where I am planning to move for school has average one bedroom apartments running $800/month, which is about the cost of a mortgage.

Anyone remember when SDN used to be good?

 

[woot544]

Hi everyone,

I was looking at all the tuition of Pharm schools and wow i need some $$$.

For those in Pharm school already, how were you able to pay off your tuition? Also what's the name of your school, how much was your schools tuition? and if you took loans how much were they able to give you for each year?

Thank you so much!!! all your input is appreaciated!!

 

[Science Girl]

Hi everyone,

I was looking at all the tuition of Pharm schools and wow i need some $$$.

For those in Pharm school already, how were you able to pay off your tuition? Also what's the name of your school, how much was your schools tuition? and if you took loans how much were they able to give you for each year?

Thank you so much!!! all your input is appreaciated!!

I will be starting my pharm school this fall, but here is what I've already done to prepare for 2010-2011 academic year. I applied for financial aid at FAFSA, and got scholarships for my high GPA. Also my pharm school has its own app. for pharm students who are interested in more loans and grants... I got some grants, but combined with the scholarships don't seem to be enough,, I got some loans, though I haven't accepted them b/c of their high interest rate. You may need to look for outside scholarships. My academic counselor told me that some pharmaceutical industries give out scholarships for students with high GPAs (so if you are one of them, do it)... Just look for different financial resources .. My pharm tuition is about $15,000 per academic year; and I am pretty much that the tuition rate is going to be higher starting this fall....btw, the $15,000--or maybe more-- only includes pharm classes cost,, so you add living expenses, books, and other payments to that of pharm classes cost.

Good Luck

 

[Monalyce]

Nearly all PharmD students qualify for some kinds of loans. I was offered enough money to cover tuition and living expenses for the entire school year (about $48,000!). Every school has financial aid counselors that would be happy to talk to you about your options for the school they represent.

 

[PharmOl]

I applied for financial aid at FAFSA, and got scholarships for my high GPA.

Good Luck

Where did you get the high GPA scholarship from?

 

[tungsten87]

I submitted my FAFSA in early feb... what is the next step in obtaining loans?

 

[Science Girl]

Where did you get the high GPA scholarship from?

The PTK (phi theta kappa) scholarship, and I think there is a scholarship called Dean's scholarship or sth like that... I will check that once I have my orientation on June 04

 

[Science Girl]

I submitted my FAFSA in early feb... what is the next step in obtaining loans?

Call your school financial aid office and see if they offer you grants and loans, and there also might be another financial aid app. (I filled that out yesterday) that your pharm school offers once you get admitted ...

You can also access your school account and see if you get offered any grants and/or loans

 

[phathead]

I submitted my FAFSA in early feb... what is the next step in obtaining loans?

I usually wait to see how much they offer me which generally happens a month before school starts. If I need more than what they are offering, then I do a private loan.

 

[Tinkerbell22]

If you fill out a fafsa for pharmacy school you can file as an independent and not use your parents information even if you are technically a dependent and don't make very much money at all. I've been a full time student and not working that much so if you're case is similar you should be able to get a large amount in subsidized loans (those are the ones with better interest right???). Scholarships and grants are more rare for pharmacy school, so if you're taking out loans I'd just try and get the bare minimum you need to cover your expenses so you can keep your debt somewhat lower.

 

[weetzie00]

If you fill out a fafsa for pharmacy school you can file as an independent and not use your parents information even if you are technically a dependent and don't make very much money at all. I've been a full time student and not working that much so if you're case is similar you should be able to get a large amount in subsidized loans (those are the ones with better interest right???). Scholarships and grants are more rare for pharmacy school, so if you're taking out loans I'd just try and get the bare minimum you need to cover your expenses so you can keep your debt somewhat lower.

Subsidized loans don't have a different rate versus unsubsidized loans. Stafford loans are fixed at 6.8%. Subsidized loans mean the government pays the interest while you're in school. The max you can get for subsidized loans is $8,500 as long as you qualify.

 

[Science Girl]

If you fill out a fafsa for pharmacy school you can file as an independent and not use your parents information even if you are technically a dependent and don't make very much money at all. I've been a full time student and not working that much so if you're case is similar you should be able to get a large amount in subsidized loans (those are the ones with better interest right???). Scholarships and grants are more rare for pharmacy school, so if you're taking out loans I'd just try and get the bare minimum you need to cover your expenses so you can keep your debt somewhat lower.

hmm,, I think there are 5 questions in the FAFSA that determine whether someone is independent or not; here they are:
Dependency Status Worksheet
Were you born before January 1, 1987 (question 46)? Select Yes No As of today, are you married? (Answer "Yes" if you are separated, but not divorced.) (question 47) Select Yes No At the beginning of the 2010-2011 school year, will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.) (question 48)? Select Yes No Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training (question 49)? Select Yes No Are you a veteran of the U.S. Armed Forces (question 50)? Select Yes No
If your answer to any of the above questions is yes, then you are not required to provide parental info. ... I am unfortunately considered dependent.

 

[SouthernBelle10]

hmm,, I think there are 5 questions in the FAFSA that determine whether someone is independent or not; here they are:
Dependency Status Worksheet
Were you born before January 1, 1987 (question 46)? Select Yes No As of today, are you married? (Answer "Yes" if you are separated, but not divorced.) (question 47) Select Yes No At the beginning of the 2010-2011 school year, will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.) (question 48)? Select Yes No Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training (question 49)? Select Yes No Are you a veteran of the U.S. Armed Forces (question 50)? Select Yes No
If your answer to any of the above questions is yes, then you are not required to provide parental info. ... I am unfortunately considered dependent.

If you have been accepted to pharmacy school, you will be working on a doctorate degree. That should classify you as independent.

 

[Science Girl]

If you have been accepted to pharmacy school, you will be working on a doctorate degree. That should classify you as independent.

Oops!! wouldn't doctorate mean Ph.D, which we can earn after doing the Pharm.D?
Pharm.D is still considered undergraduate degree, but it is called professional degree, isn't that correct?
I am confused..

 

[weetzie00]

Oops!! wouldn't doctorate mean Ph.D, which we can earn after doing the Pharm.D?
Pharm.D is still considered undergraduate degree, but it is called professional degree, isn't that correct?
I am confused..

PharmD = Doctor of Pharmacy degree. It is a doctorate degree and it is a professional degree. Good to know as a future pharmacist

 

[jinga]

Hey guys! Pharmacy student here. Just some general tips:

Watch your interest rates on loans and borrow as little as possible...

Might sound pretty common sense...

 

[Science Girl]

PharmD = Doctor of Pharmacy degree. It is a doctorate degree and it is a professional degree. Good to know as a future pharmacist

LOL,, this is embarrassing heh , but it's ok ,, so what is the difference between Ph.D and doctorate?

 

[weetzie00]

LOL,, this is embarrassing heh , but it's ok ,, so what is the difference between Ph.D and doctorate?

PhD = Doctor of Philosophy. They take classes, write a dissertation on a particular topic of study, and do research on that particular topic. It's considered an academic doctorate versus a professional doctorate, like PharmD, JD, MD, DS, DO, OD etc.

 

[Science Girl]

PhD = Doctor of Philosophy. They take classes, write a dissertation on a particular topic of study, and do research on that particular topic. It's considered an academic doctorate versus a professional doctorate, like PharmD, JD, MD, DS, DO, OD etc.

I was missing that part .. Thanks for clarifying that

 

[Nupe954]

PhD = Doctor of Philosophy. They take classes, write a dissertation on a particular topic of study, and do research on that particular topic. It's considered an academic doctorate versus a professional doctorate, like PharmD, JD, MD, DS, DO, OD etc.

What is a DS?