loans

[almo88]

Hi All!

I've been thinking about all the debt I'm about to get myself into. My parents still claim me on their taxes (I'm 19, and a junior). That way, I'll be insured under my Mom until I'm 23. Will I be able to get a loan if my parents still claim me as a dependent? They make enough money that I don't currently qualify for any financial aid, but they don't make enough to pay for my education. Claiming me as a dependent obviously has its benefits, but is it hurting me in the process. So, in the end: Do I need to become "independent" and take out some health insurance (that I probably can't afford), or take the risk of not getting a good loan for my graduate studies.

I hope that makes sense. Sorry for the poor grammar, I'm tired.

Thank in advance.
almo88

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[Gut Shot]

Very briefly, yes, you should cut the cord and become independent. The only reason to remain a dependent is for the benefit of you parents, not you. Since you're going to assume M.D. (massive debt), you should be thinking about yourself above others.

I know some folks from high school who made major financial concessions on their loans to give their parents a relatively minor tax break. What a bunch of horsesh@t.

 

[almo88]

Great! That's what I was wanting to hear. Thanks!

 

[Juice42]

Atleast my understanding is it won't help. Even if you are independent (unless I think you can prove you have been independent for 4 years) you won't get any finicial aid. In terms of loans -- everyone (almost) will qualify for the fixed rate stafford subsidized loan. (8.5k /yr) and then the unsubsidized stafford loan (up to 25k?). I don't think being a dependent will hurt the rates at all. But ask an expert.

 

[Blade28]

IIRC, when you become a grad student (of any kind), you're considered "independent" by FAFSA standards.

Either way, it's a good time to go out on your own.

 

[yellowumbrella]

many schools will ask for your parents' income whether or not they will contribute to paying for your med school education, even if you are independent.

 

[chemphd]

Have your parents check with their insurance company (that seems to be your big concern). My dad legally emancipated me when I was 18, but his company allowed him to keep dependent insurance on me until I turned 23. He hadn't claimed me on his taxes since I was 8 years old, and kept health insurance through his company all that time. It had nothing to do with my being a dependent tax-wise. it had to do with my being a full time student.

 

[armybound]

IIRC, when you become a grad student (of any kind), you're considered "independent" by FAFSA standards.

Either way, it's a good time to go out on your own.

yes.

and even though I was independent as an undergraduate, FAFSA would never recognize me as such, I HAD to put in my parents' income.

 

[almo88]

Have your parents check with their insurance company (that seems to be your big concern). My dad legally emancipated me when I was 18, but his company allowed him to keep dependent insurance on me until I turned 23. He hadn't claimed me on his taxes since I was 8 years old, and kept health insurance through his company all that time. It had nothing to do with my being a dependent tax-wise. it had to do with my being a full time student.

Wow, that would be sweet! That is a win-win situation. I'll definitely call the insurance people. Thanks for sharing!

 

[Depakote]

You might have even better responses in the Financial Aid Forum. I'll move this there.

 

[Doctor Bagel]

Whether or not your parents claim you on their taxes should have no bearing on your eligibility for medical school loans. As Blade mentioned above, all graduate students including medical students are considered automatically independent for the purposes of federal financial aid.

Yes, medical schools do generally prefer for you to provide them with parental information, but they only use that to determine your eligibility for school-funded grants/scholarships. And even then, I don't think how your parents file their taxes has much of an effect -- instead, they just look at parental income and assets.