Max out the loans?

[trevagandalf]

I'm really new to this financial aid stuff and I need to reply to my financial offer very soon. I got enough money from sub, unsub stafford loans + perkins loans to pay for my tuition and everything I basically need including, room, food, books,... and the truth is that I really don't need that much, and by my calculations, I could very well loan around $5000+ less and still be fine. But I'm really worried that some emergency may occur, or that I'm might not be accounting for small expenses. Should I just max out the loans, or is that financially not very wise? And if i was to reduce my loans, I would want to reduce the unsubsidized part, right? Also, I'm a little bit confused about the unsubsidized loan, does that mean that we pay the interest during medical school? And all these financial aids, do we have to pay during residency or does repayment enter after residency?

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[LivingAdventure]

unsubsidized means that interest is charged while you're in school, thus the amount you must repay increases. however, you do not have to pay these interest charges while in school. it could be a good idea though because as interest is continually added, a compounding affect occurs and therefore, if you pay interest only during the school years, you could reduce your total cost in the long run, but most people cant afford to do this.

 

[Doctor Bagel]

I know at my school you can decline loans and then pick them up later in the school year if you wind up needing them. You might want to check with your financial aid office to see how that would work at your school. If it's easy to get the loans later if you need them, I don't see any reason to borrow money you don't think you'll need.

A few things to think about, though. When you're busy with school, sometimes you might opt to spend some more money for convenience. Also, you might need some money to tide you over a little bit in the summer.