loans

[Shireiqiang]

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For those of you who are taking out loans or who already have, do you make interest payments during school on the non subsidized loans or just defer and let it pile on?

 

[215353]

I think its almost impossible to do this unless you have money already saved up to do this or you are somehow working part-time. Or possibly your rents might help you out and pay the payments during school and you would owe them.

For most students all these options are highly unlikely. If somehow you could swing it would make a significant difference in the amount of money you will ultimately owe.

I wish I could figure out a way to do it.

 

[dtrack22]

I'll have a spouse who's income will take care of rent, food, as well as her own expenses (insurance, automotive expenses, etc.). I plan on taking out the full amount year 1 to be safe and then whatever I don't use, pay back immediately following the school year. When you think about it, medical school loans are incredibly secure as far as the lenders are concerned (default rates are lower than most other loans) so to charge 8% is ridiculous IMO. Therefore I'm doing what I can to keep my principle as low as possible. Sorry, that was more of a rant on ridiculous interest rates...a little off topic.

I'd also like to hear what current and former students are doing/did in terms of their loans (if they had an excess at the end of any one year).

And studywithfury, to solve your problem all you need is a sugar momma...

 

[jpevball]

Depending on cost of living (rent, etc.), you can maybe squeeze by with the maxed out sub/unsub which is the best rate available. I took out the max and some GRAD PLUS on top (8.5% interest...sucks), and have not been paying interest although it is accruing. I plan to take out less as each year goes by, but unless you have a "sugar mama", you will most likely be using almost all of your loans. (unless you are in Iowa and can eat corn and top ramen for 4 years). ;o) jk

 

[damhsoir]

I did not have a savings when I started here last August so I have not been able to pay back the interest on my undergrad loans (about 22K) and Stafford loans for this year (40K). I did not take out a grad plus loan.

I will probably have about 1500 left at the end of this school year. I will probably spend that on a vacation....last real one was 11 years ago and that was to Minnesota :[ .

I will be taking out 40K in Stafford loans next year as well and living with a friend to save money. If I can find a part time job for the summer I will be putting all of that money towards my loans...or maybe a 2nd vacay! 😛

 

[215353]

damhsoir,

Don't you go to Scholl? That is pretty impressive that you are going to spend less than 40k this year at school. Especially since their estimated cost of living is going to be 48k this year for P1s. How the hell did you do that?

 

[damhsoir]

damhsoir,

Don't you go to Scholl? That is pretty impressive that you are going to spend less than 40k this year at school. Especially since their estimated cost of living is going to be 48k this year for P1s. How the hell did you do that?

I am very very frugal with my loan money. Here's how I do it-

I am still on my parent's health insurance-saved me $1800 this year
My car has been paid off for several years.
My parent's take care of my car insurance (part time driver and female so very cheap) and cell phone bill (family plan).
I live on campus so I only have to pay for electric ($15/month)
I don't pay for cable but I do have netflix ($9/month). I watch the rest of my shows online.
I fill my gas tank about 1x per month ($40).
If I need to clarify something from my notes I check out the textbook from the library or use wiki.
I usually take notes on my laptop or use my black and white laser printer. Color toner is crazy expensive.
When I am tempted to buy new clothes or go out to eat I remind myself that a $40 pair of jeans will be more like $80 when I pay my loans back.

 

[janV88]

I live on campus so I only have to pay for electric ($15/month)

$15/month for electricity even in the summer months when you are using the a/c?

When I am tempted to buy new clothes or go out to eat I remind myself that a $40 pair of jeans will be more like $80 when I pay my loans back.

👍👍👍

 

[dtrack22]

I was just going to post about staying on your parent's insurance. If you are a "traditional" student (23ish years old) then you can stay on your parents insurance until you are 26. I'll be done with pod school by the time I have to get my own policy...

 

[damhsoir]

$15/month for electricity even in the summer months when you are using the a/c?:

It was so mild last August so I didn't even use the AC. The wind is really strong right off lake Michigan and that kept the apartment cool.

 

[spo01]

Only loan I am paying back now (school wise) is the one from my post bac program. I was unable to defer it any longer and am paying about $80 a month for it. Just took out a grad plus loan yesterday.

 

[janV88]

It was so mild last August so I didn't even use the AC. The wind is really strong right off lake Michigan and that kept the apartment cool.

I forgot about the Lake...that'll keep most of the summer pretty cool then.

 

[Paulywog]

If you are not on your parents wing anymore and are married with at least one child, then use the governement programs to save a lot of money.
You can get free insurance (medicaid isnt the best, but I have not spent any money on health care and I have 2 kids, both births were paid by the Government. Thanks taxpayers).
Free food (Food stamps gives you about $600/month +/- $100)
Free cash (cash assistance. You can get about $300/month and some states give you a $40 gas card, 12 pairs of free scrubs, and other stuff. This is really hard to get and you have to do a lot of service work or job searching)
There are probably other free things that I dont know about. I don't feel bad using the Government programs because I will be paying back everything they gave me in the first couple of years in practice. When calculating the cost of attendance for student loans, they only do it for a single student. Married people with children do not get extra stafford loan money. I make fun of those people still living under Mommy and Daddy, but I am just jealous because you can save a lot more money if you live off of them. It has been interesting talking to the many women at the medicaid office who struggle to support their children. They get more benefits by being on welfare than to work a minimum wage job. Something needs to change, but i wont go into politics.
Do what you can to minimize your debt, but I also think it is important to enjoy the area around your school while you are there, even if that involves some money. I am excited to go from poverty to the top of the income bracket withing 10 years. Me and my family have struggled together and are going to enjoy everything we earn.

 

[G0dFather]

"I am excited to go from poverty to the top of the income bracket withing 10 years. Me and my family have struggled together and are going to enjoy everything we earn"


........AMEN ! ....Pauly

 

[crhoody12]

can i ask, what does a typical monthly loan repayment bill look like? is there a difference in amounts during payback whether your residency vs after residency years? (i've heard that repayment is percentage based off of income and since you make less during your residency years vs afterwards, the amount would change...if this is true)

 

[msuDPM]

can i ask, what does a typical monthly loan repayment bill look like? is there a difference in amounts during payback whether your residency vs after residency years? (i've heard that repayment is percentage based off of income and since you make less during your residency years vs afterwards, the amount would change...if this is true)

http://www.finaid.org/calculators/loanpayments.phtml

This link is a handy tool for trying to figure that out based on your own situation. As far as payment during residency goes, you have a few options. You can apply for economic forbearance and pay nothing (but accumulate interest), or you should be able to set something up with your lender where you make interest only payments for a couple of years or get on a graduated payment plan where your payment amount increases over time.

 

[NatCh]

http://www.finaid.org/calculators/loanpayments.phtml

This link is a handy tool for trying to figure that out based on your own situation. As far as payment during residency goes, you have a few options. You can apply for economic forbearance and pay nothing (but accumulate interest), or you should be able to set something up with your lender where you make interest only payments for a couple of years or get on a graduated payment plan where your payment amount increases over time.

If you have to claim forbearance then so be it, but you should do everything within your means to avoid doing so. It's extremely costly in the long run. Compounding interest on a principal of close to $200,000 adds up really, really fast.

 

[msuDPM]

If you have to claim forbearance then so be it, but you should do everything within your means to avoid doing so. It's extremely costly in the long run. Compounding interest on a principal of close to $200,000 adds up really, really fast.

Oh, i completely agree. I was just trying to lay out all of the options.