Low interest loan, good credit.

[Magyarzorag]

I estimate that I will need to borrow only about $40,000 for a loan during the last few years of medical school (maybe less if I get some scholarships). My parents are willing to lend me that amount, but I don't want to take advantage of them or burden them with that much money. I have an excellent credit score (I've reached 760 a few months ago). I saw that there were many private student loans with interests as low as 3.3%. Have you actually been able to get a loan under 4% interest or 4%-5% interest?

Also, might be a stupid question, would it be possible to pay the school in automobiles (like donating a new truck or van to them), since auto loans are less than 2%.

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[MusicDOc124]

I estimate that I will need to borrow only about $40,000 for a loan during the last few years of medical school (maybe less if I get some scholarships). My parents are willing to lend me that amount, but I don't want to take advantage of them or burden them with that much money. I have an excellent credit score (I've reached 760 a few months ago). I saw that there were many private student loans with interests as low as 3.3%. Have you actually been able to get a loan under 4% interest or 4%-5% interest?

Also, might be a stupid question, would it be possible to pay the school in automobiles (like donating a new truck or van to them), since auto loans are less than 2%.

No, you cannot pay your school in automobiles.

 

[Espressso]

I estimate that I will need to borrow only about $40,000 for a loan during the last few years of medical school (maybe less if I get some scholarships). My parents are willing to lend me that amount, but I don't want to take advantage of them or burden them with that much money. I have an excellent credit score (I've reached 760 a few months ago). I saw that there were many private student loans with interests as low as 3.3%. Have you actually been able to get a loan under 4% interest or 4%-5% interest?

Also, might be a stupid question, would it be possible to pay the school in automobiles (like donating a new truck or van to them), since auto loans are less than 2%.

Why aren't you borrowing via student loans through your school.

 

[Tenk]

I wish my med school tuition would have only been two Honda Civics...

 

[Xaos]

I estimate that I will need to borrow only about $40,000 for a loan during the last few years of medical school (maybe less if I get some scholarships). My parents are willing to lend me that amount, but I don't want to take advantage of them or burden them with that much money. I have an excellent credit score (I've reached 760 a few months ago). I saw that there were many private student loans with interests as low as 3.3%. Have you actually been able to get a loan under 4% interest or 4%-5% interest?

Also, might be a stupid question, would it be possible to pay the school in automobiles (like donating a new truck or van to them), since auto loans are less than 2%.

Based on your previous posts it sounds like you're still in undergraduate and haven't yet started medical school, so setting aside how you plan to pay tuition and expenses for the first few years of medical school, I would not count on being able to accurately estimate your financial situation and credit history four years down the road.

If your parents can and will lend you money, the smartest thing is to do that. If you feel bad about it, pay them back with interest.

If you really want to owe someone else money, read the fine-print on those 3.3% interest rates to make sure they're not variable. Generally with good credit, you can go with a) federal Grad Plus loans, which have better repayment plans with lower payments but higher interest, or b) private loans, which may have lower interest but less flexibility (and you need to do your research on servicer, terms and rates).

 

[samac]

No, you cannot pay your school in automobiles.

I’m sitting in the waiting room at the dentist and just laughed out loud. Hard enough people are staring.
thanks for that.

 

[allantois]

Why not pay them in chickens

 

[Schwifty]

No, you cannot pay your school in automobiles.

 

[DexterMorganSK]

I estimate that I will need to borrow only about $40,000 for a loan during the last few years of medical school (maybe less if I get some scholarships). My parents are willing to lend me that amount, but I don't want to take advantage of them or burden them with that much money. I have an excellent credit score (I've reached 760 a few months ago). I saw that there were many private student loans with interests as low as 3.3%. Have you actually been able to get a loan under 4% interest or 4%-5% interest?

Also, might be a stupid question, would it be possible to pay the school in automobiles (like donating a new truck or van to them), since auto loans are less than 2%.

FAFSA it up.

Federal loans might have a higher interest rate but in the long run..they are always the better/safer option than any private loan!

 

[clinicallabguy]

I estimate that I will need to borrow only about $40,000 for a loan during the last few years of medical school (maybe less if I get some scholarships). My parents are willing to lend me that amount, but I don't want to take advantage of them or burden them with that much money. I have an excellent credit score (I've reached 760 a few months ago). I saw that there were many private student loans with interests as low as 3.3%. Have you actually been able to get a loan under 4% interest or 4%-5% interest?

Also, might be a stupid question, would it be possible to pay the school in automobiles (like donating a new truck or van to them), since auto loans are less than 2%.

Not clear on the situation here. So you have the cash on hand to cover expenses for the first few years of medical school? Anyway, there are few considerations here. Yes the interest rate on direct Federal Loans sucks. I'm not sure what it is for new loans right now in medical school. My loans are at or around 6.7% or something close to that. But some positives for federal loans:

1. Repayment programs. Federal loans have income driven repayment (IDR) options. In my personal situation during residency, I could not have afforded the standard repayment of my students loans, so having my payment be a low portion of my income was crucial. Of course, my debt has continued to grow, because I haven't been able to keep up with the interest with my payments. But I hope to pay it off at an accelerated rate as an attending next year.

2. Public Service Loan Forgiveness (PSLF). You have probably heard about this, but it is something worth considering. The articles published the last year stating that high 90% of applications were declined were largely due to the applications not being complete, or some applicants were not eligible to begin with. But it may be possible for you to have your loans forgiven after 120 payments if you work at a qualifying nonprofit. Residency counts! If you're going into academics, it is worthwhile to learn the details about this program. It is only available if you have direct federal loans. It is not available for any other loans.

At the end of medical school, I needed extra money for expenses for residency application, interview traveling and moving to my residency. I looked into residency relocation loans at Sallie Mae and Discover, and ended up getting one. Not excited to have more debt, but it allowed me to cover my expenses.

Your credit score is good. Your income is also taken into account for the amount of loans that are offered to you from banks and not through the direct federal loan program. If you have a low income or no income, it may be harder to get a private loan for that amount before or during medical school.

 

[nimbus]

Smartest strategy is to take the loan from your parents, then pay them back with your inheritance after they die. They were gonna spend that money on a bathroom remodel anyway.