Loans

[megswegs82]

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Can you pay for Medical School completely with student loans? Is there anyone that has done this or is doing this currently?

I was considering the military option but after looking at the military forums they really depressed me. So I am wondering how feasible it is to pay completely with loans, and how terrible it is once you start paying those back.

Any input would be greatly appreciated.

 

[mshheaddoc]

Most medical students I know (allopathic and osteopathic) have paid their schooling via loans and/or scholarship. I know more paying entirely with school loans. The stafford max is about $35K a year and then you can get private loans quite easily for the rest of what you need.

 

[ShyRem]

I'm doing it totally with loans. Most of my fellow students are either loans or military scholarship. A very (very) few are paying cash - and either their parents are paying (one that I know of) or they cashed in their retirement/home equity.

 

[Cat48100]

I thought I would throw my 2 cents in. I am using mostly loans but I will also be getting monthly financial support from my parents and also I am working for a year before I start Medical School and I will be using that money toward expenses as well.

 

[megswegs82]

Thanks for all the input guys. I have my acceptance to DMU but I just started to freak out about all of the financial responsibilities I am about to take on.

 

[Taus]

most of my friends are going w/ 100% loans or armed forces scholarships.....and everyone I have talked to says don't take those scholarships just for the money....ie you will likely be miserable if you don't really have a desire to be in the armed forces

 

[Sarikate]

100% loans here...yee gads!

But it'll be okay. My bro-in-law was something like $200,000 in debt when he finished residency at age 29; now, at age 34, he's paid it all off! He really kicked some a$$ on those loans.

 

[Dr JPH]

100% loans here...yee gads!

But it'll be okay. My bro-in-law was something like $200,000 in debt when he finished residency at age 29; now, at age 34, he's paid it all off! He really kicked some a$$ on those loans.

100% loans here as well.

Dont know if I will be able to pay it all off by age 34, but going to try!

 

[OceanPotion]

100% loans here...yee gads!

But it'll be okay. My bro-in-law was something like $200,000 in debt when he finished residency at age 29; now, at age 34, he's paid it all off! He really kicked some a$$ on those loans.

if you don't mind me asking...what type of doc???

 

[HemaOncoDoc]

Can you pay for Medical School completely with student loans? Is there anyone that has done this or is doing this currently?

I was considering the military option but after looking at the military forums they really depressed me. So I am wondering how feasible it is to pay completely with loans, and how terrible it is once you start paying those back.

Any input would be greatly appreciated.

I'll be general.

Even though a student may be taking out a massive amount of loans, the FAFSA factors in money that the student has in their bank account and/or money that they have made in the past year through the tax return. Therefore, the EFC, estimated family contribution, would be a certain number. THe EFC is the estimated amount of money that the student is "expected" to pay from his/her own pocket. The remaining is provided by loans.

You have your -

1) Federal Stafford Subsidized
2) Federal Stafford Unsubsidized
3) Grad Plus Loans
4) Other Loans especially if you are international
5) Private and Public grants and scholarships

Note: If you have Stafford loans from undergrad or grad, there is a maximum lifetime allowance that you're able to take out. Don't worry though, it will be supplemented by your Grad Plus Loan.

The majority of people will be taking out the maximum for number 1 and 2 and some out of number 3. The estimated budget is the "max" that the school will allow you to take out for that school in terms of loans. Many take out less than the budget and survive for the whole year instead of the ten or so months you are actually in school.

The estimated budget takes into account tuition, room & board, transportation, books and equipment, fees, miscellaneous, etc...

I'm being long-winded, so refer to the financial aid information provided during your orientation or contact the financial aid office. Money is definitely a factor that most people will be considering. Be smart and do research.

 

[Dr JPH]

I'll be general.

Even though a student may be taking out a massive amount of loans, the FAFSA factors in money that the student has in their bank account and/or money that they have made in the past year through the tax return. Therefore, the EFC, estimated family contribution, would be a certain number. THe EFC is the estimated amount of money that the student is "expected" to pay from his/her own pocket. The remaining is provided by loans.

You have your -

1) Federal Stafford Subsidized
2) Federal Stafford Unsubsidized
3) Grad Plus Loans
4) Other Loans especially if you are international
5) Private and Public grants and scholarships

Note: If you have Stafford loans from undergrad or grad, there is a maximum lifetime allowance that you're able to take out. Don't worry though, it will be supplemented by your Grad Plus Loan.

The majority of people will be taking out the maximum for number 1 and 2 and some out of number 3. The estimated budget is the "max" that the school will allow you to take out for that school in terms of loans. Many take out less than the budget and survive for the whole year instead of the ten or so months you are actually in school.

The estimated budget takes into account tuition, room & board, transportation, books and equipment, fees, miscellaneous, etc...

I'm being long-winded, so refer to the financial aid information provided during your orientation or contact the financial aid office. Money is definitely a factor that most people will be considering. Be smart and do research.

This is an EXCELLENT post. Thank you for taking the time to clarify for some of your soon-to-be MS1 peers!

 

[HemaOncoDoc]

This is an EXCELLENT post. Thank you for taking the time to clarify for some of your soon-to-be MS1 peers!

Not a problem at all. I feel as though I haven't even scratched the surface, but wanted to provide an overview for those who haven't had a chance to look into financial aid yet.

For those in the midst of applications and interviewing, keep going!! This post will still be here...

PS. You can file your FAFSA in January. It is FREE! unlike medical school itself. Most schools have a deadline for filing your FAFSA. Even though you are accepted after their deadline, do not worry. As a precaution, I would file the FAFSA earlier on, so all you have to do is designate where to send the FAFSA to. (Each school has their own code). Best of luck everyone!

 

[Krazykritter]

Loans only for tuition & board testing here....

Luckily my wife's meager teachers' salary is somehow allowing us to cover living expense. I still marvel that we have been able to do this in relative comfort, but I guess miracles do happen.

 

[OlieRow]

Question about the EFC. When we did the FAFSA for undergrad the amount that came back fro the EFC was CRAZY. It was like "Your family won't have money for food or the morgage, but they can pay xxx for OlieRow to go to school." So FAFSA looks at all assets, right? Does that mean that money that my parents have put away for retirement can be looked at as what they should be able to contribute? If that's how it is, it just doesn't seem right...

 

[jkhamlin]

Question about the EFC. When we did the FAFSA for undergrad the amount that came back fro the EFC was CRAZY. It was like "Your family won't have money for food or the morgage, but they can pay xxx for OlieRow to go to school." So FAFSA looks at all assets, right? Does that mean that money that my parents have put away for retirement can be looked at as what they should be able to contribute? If that's how it is, it just doesn't seem right...

The FAFSA formula was set up by rich people in Congress who don't care about us little guys. I have looked over the actual formulas in the USC, and they do not make much sense. Here is an example: Having more than one student in the household actually counts against you. That's right, the formulas raise the EFC if you have another student in the household.

 

[supersash]

i think regardless of how much money your parents have, you will still be able to get loans. my parents have cut me off, having paid for all of my undergrad (room/board, private school tuition, study abroad) expenses. while my parents could afford to pay for my first year of grad school, i am doing it completely on loans, and i took the max amount for an off campus student.

while there is certainly truth in what everyone has posted, i think you will still be able to finance your entire medical education through loans, even if there other issues going on.

 

[HemaOncoDoc]

Question about the EFC. When we did the FAFSA for undergrad the amount that came back fro the EFC was CRAZY. It was like "Your family won't have money for food or the morgage, but they can pay xxx for OlieRow to go to school." So FAFSA looks at all assets, right? Does that mean that money that my parents have put away for retirement can be looked at as what they should be able to contribute? If that's how it is, it just doesn't seem right...

You are considered an "independent" for medical school, so your parental information is not needed. I believe that you may have to provide that information if you apply for certain scholarships from schools, but other than that, your parental financial information is not needed. As a result, your EFC should be lower unless your annual income indicates otherwise or have money saved away in the bank, stocks, etc.

 

[HemaOncoDoc]

i think regardless of how much money your parents have, you will still be able to get loans. my parents have cut me off, having paid for all of my undergrad (room/board, private school tuition, study abroad) expenses. while my parents could afford to pay for my first year of grad school, i am doing it completely on loans, and i took the max amount for an off campus student.

while there is certainly truth in what everyone has posted, i think you will still be able to finance your entire medical education through loans, even if there other issues going on.

Something unrelated to the topic...what is an epitope. I loved that question on the April MCAT!...not really, but thank you immunology 😛

 

[Yes_I_DO]

Something unrelated to the topic...what is an epitope. I loved that question on the April MCATs!...not really, but thank you immunology 😛

Ok, so another unrelated topic (but related to your unrelated topic)...Why do ppl call it MCATs?? Thank God its only one test, and quite honestly that was enough! MCAT, ppl!

 

[Yes_I_DO]

You are considered an "independent" for medical school, so your parental information is not needed. I believe that you may have to provide that information if you apply for certain scholarships from schools, but other than that, your parental financial information is not needed. As a result, your EFC should be lower unless your annual income indicates otherwise or have money saved away in the bank, stocks, etc.

You are correct on both

 

[HemaOncoDoc]

Ok, so another unrelated topic (but related to your unrelated topic)...Why do ppl call it MCATs?? Thank God its only one test, and quite honestly that was enough! MCAT, ppl!

What!? You didn't think it was more than one test!?

My bad. It is indeed MCAT. 😛

 

[Ossari]

What!? You didn't think it was more than one test!?

My bad. It is indeed MCAT. 😛

MCATs as in the collection of MCATs taken by everyone in here. right?! I'm sure. Don't worry HOD, I got your back................................................








..................................waayyyy back! lol

 

[Yes_I_DO]

What!? You didn't think it was more than one test!?

My bad. It is indeed MCAT. 😛

MCATs as in the collection of MCATs taken by everyone in here. right?! I'm sure. Don't worry HOD, I got your back................................................

..................................waayyyy back! lol

lol, im glad no one took that as an attack. 😛 im glad it wasnt MCATs for me (but I just squeaked by with only taking it once!!) soo traumatic

(err, sorry. didnt mean to throw this thread off course.) im very interested in this topic too, b/c i unfortunately already have UG debt (up to my friggin eyeballs 😱 ) so im glad im not the only one that's going to be topping out Hemas #1, 2, & 3 sources, lol (err, maybe I shouldnt laugh about that?...)

 

[HemaOncoDoc]

lol, im glad no one took that as an attack. 😛 im glad it wasnt MCATs for me (but I just squeaked by with only taking it once!!) soo traumatic

(err, sorry. didnt mean to throw this thread off course.) im very interested in this topic too, b/c i unfortunately already have UG debt (up to my friggin eyeballs 😱 ) so im glad im not the only one that's going to be topping out Hemas #1, 2, & 3 sources, lol (err, maybe I shouldnt laugh about that?...)

I tend not to take things on here to heart. No worries.

You're one of many who is going to be in debt. I'm in the same boat.

 

[Vox Animo]

Can you pay for Medical School completely with student loans? Is there anyone that has done this or is doing this currently?

I was considering the military option but after looking at the military forums they really depressed me. So I am wondering how feasible it is to pay completely with loans, and how terrible it is once you start paying those back.

Any input would be greatly appreciated.

I doing it entirely with loans.

8500 stafford subsidized
30000 stafford unsubsidized (stafford max is combined 38500
12000 +/- Graduate Plus Loan

All together i think i am borrowing about 52,000 for this year, give or take a few thousand.

Most peolple use all loans


As you 2006, all med students can qualify for the graduate plus loan, fixed at 8.5% interest, so you can completely avoid private loans!!!

 

[jkhamlin]

As you 2006, all med students can qualify for the graduate plus loan, fixed at 8.5% interest, so you can completely avoid private loans!!!

Can you clarify what you mean by this statement? Do you still have to have immaculate credit?

 

[Sarikate]

The Grad PLUS loan is an alternative to private loans and probably your best bet after Staffords have been maxed out. I believe they do take your credit history into consideration when approving you, but I don't think you don't need insanely excellent credit to get it.

 

[bkpa2med]

I think private loans require credit. Although grad loans do check I believe but as long as you have no delinquincies you'll be fine. Correct me if I am wrong.

 

[MJB]

I'm not sure I wanna see what FAFSA does to my wife and I...the thing doesn't make sense because it will do a calculation based on what we make THIS YEAR for what we should contribute after I quit my job.

Considering my wife just went back to work this year, and I have a decent job, our income has probably nearly doubled since last year...that's gonna hurt.

 

[supersash]

at the nycom open house, they talked about the staffords, the grad plus, and the private loans. but then they went on to say if you have bad credit, don't apply here. which makes me think even the grad plus loan does take your credit into account.

but like someone else said, as long as your credit isnt terrible, i'm sure you'd qualify for something.

i wish i could win the lottery!!

 

[jkhamlin]

I think private loans require credit. Although grad loans do check I believe but as long as you have no delinquincies you'll be fine. Correct me if I am wrong.

That is my understanding, as well. The point, however, is that no delinquincies = immaculate credit.

 

[HemaOncoDoc]

That is my understanding, as well. The point, however, is that no delinquincies = immaculate credit.

That's true, but if you haven't taken out loans and made payments for a car, house, credit cards, how high could your credit score possibly be?

 

[bkpa2med]

at the nycom open house, they talked about the staffords, the grad plus, and the private loans. but then they went on to say if you have bad credit, don't apply here. which makes me think even the grad plus loan does take your credit into account.

but like someone else said, as long as your credit isnt terrible, i'm sure you'd qualify for something.

i wish i could win the lottery!!

I was at the open house and they specifically mentioned that because the cost of attending the school was $63k/year. So in order to obtain all that you would need private loans because stafford only gives so much. In order to obtain the private loans good credit is required.

 

[bkpa2med]

That's true, but if you haven't taken out loans and made payments for a car, house, credit cards, how high could your credit score possibly be?

Before I had gotten a mortgage, my credit score was about 730 with using my credit cards wisely. It is easily obtainable if you have some credit cards and use them the correct way.

From my experience, if you use half of whatever credit line you have at most and pay more than the minimum payment albeit $1 more, you will develop an excellent credit history.👍

 

[jkhamlin]

Before I had gotten a mortgage, my credit score was about 730 with using my credit cards wisely. It is easily obtainable if you have some credit cards and use them the correct way.

From my experience, if you use half of whatever credit line you have at most and pay more than the minimum payment albeit $1 more, you will develop an excellent credit history.👍

That's about right, the actual threshold is 30% of available credit, but paying on time and more than the minimum goes a long way.

 

[jkhamlin]

That's true, but if you haven't taken out loans and made payments for a car, house, credit cards, how high could your credit score possibly be?

They don't go by credit score in the case of student loans. They look at what's actually on (or not on) your credit file. If you have nothing, you should be good to go. If you have positive items, even better. If you have even one negative item, from what I hear, you're screwed.

 

[MiesVanDerMom]

I'm going to have to hire a nanny for my kids. How big can this grad-plus loan be? Also, does anyone know if the schools include childcare when calculating your package?? My husband makes enough to cover food/rent etc., but nannies don't come cheap.

 

[ShyRem]

daycare, yes... nanny, no.

 

[HemaOncoDoc]

They don't go by credit score in the case of student loans. They look at what's actually on (or not on) your credit file. If you have nothing, you should be good to go. If you have positive items, even better. If you have even one negative item, from what I hear, you're screwed.

Thanks! That cleared something up. So, doing a credit check serves to ensure that your information IS your information and not someone elses. Also, it is a chance for you to deny or refute any negative points. Now for that check...

 

[jkhamlin]

Thanks! That cleared something up. So, doing a credit check serves to ensure that your information IS your information and not someone elses. Also, it is a chance for you to deny or refute any negative points. Now for that check...

Yeah, the second I got accepted I pulled my free annual report from all three major bureaus to begin work on it. My report is not immaculate... yet.

 

[HemaOncoDoc]

Yeah, the second I got accepted I pulled my free annual report from all three major bureaus to begin work on it. My report is not immaculate... yet.

So, there's a way to correct the negatives? For instance, a missed payment?...or are you talking about information that does not belong on your file. Crossing my fingers that mine is nearly immaculate.

 

[jkhamlin]

So, there's a way to correct the negatives? For instance, a missed payment?...or are you talking about information that does not belong on your file. Crossing my fingers that mine is nearly immaculate.

The Nelnet rep and the financial department guy at KCUMB both stated that paying off your missed payments will correct this, if done in time. The point, though is to keep track, and keep a file on it.

Info that doesn't belong on the file is easy to dispute on line these days, I got a few things removed that way. What I did was dispute everything, and then whatever remains, I will pay, whether I like it or not.

 

[jkhamlin]

BTW, missed payment as far as they're concerned means either judgements or collections. I don't know if they care that you were late on a credit card payment unless this put you in default and you didn't satisfy the credit card company in the situation.

 

[Vox Animo]

I'm going to have to hire a nanny for my kids. How big can this grad-plus loan be? Also, does anyone know if the schools include childcare when calculating your package?? My husband makes enough to cover food/rent etc., but nannies don't come cheap.

if you qualify for grad plus, your schools decides how much you get by their estimated cost of living. I qualify to get about 20K from grad plus. The estimated cost of living is 58K give or take a few thousand and stafford gives 38500. All the rest is grad plus. The school approves me for this amount since they are the lender. I could ask for 10K more, and a would qualify for it, but the school probably would not agree to sign/approve the money since it is not necessary. If you have additional costs such as your child's daycare, i think the school alots that on a case by case basis. Talk to your school. There are other things you can qualify for if you have children, such as things like food stamp ect. Your schools financial departmnet probably knows more.

for others, i had a credit rating of around 750, had no car, no house, an income of about 8K (while in school) and qualified for all loans without a co-singner. IN general with school loans, they are designed for people in my position, so you shouldn't have trouble being approved. I was approved from all private loans which i applied for (cancelled them when i found out about grad plus, which is new for medical students this year) without a cosigner.