Maximize the loans for M1?

[JennaB4MD]

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Hi all,

I was wondering how you accepteds are handling your financial situation for next year. I really don't know how much money I am going to need for first year of med school. I've worked out a budget and have a general idea, but I could be way off. Is it best to take out close to the maximum amount the first year and then figure out what you'll really need for the 2nd year and adjust your loans accordingly? Can you "give back" any money you don't use that you borrowed?

I know the unsubsidized loans accrue interest like crazy, but I just really don't want to be worrying about $$ when I'm trying to do well in med school.

Thanks for your help!

 

[tms]

jenna...

you do not have to take out the max amount for your loans. you can always go back and take out more, up to the limit established by your award. my financial aid advisor told me that those funds will always be available, so i would be better off taking out less and if i need more, i can always get more up to the total.

for instance, i received only stafford loans, 38,500.00 total. tuition is 15,000.00 and my budget is around 20K. so that's what i will borrow initially, but if times get hard...i'll have a built-in 3k "buffer" that i can still receive.

 

[KyGrlDr2B]

tms is correct. You can always go back to the financial aid office in the middle of the year if you need more. I know several people who did that. My tactic was just to estimate everything and then borrow a little bit more than that just in case I estimated too low. I've been doing fine. And you can always pay that interest while you are in school if you want to or if you parents want to give you an extra present or something like that.

 

[Retro]

Hi, I am in the same position... The current unsubsidized stafford is 3.49% and the Loan from the school is 5%, so should I borrow less from Stafford or from the School?

Also, KaygrlDr2Be, how do I pay for the interest while I am still in school?

 

[KyGrlDr2B]

Originally posted by Retro
Hi, I am in the same position... The current unsubsidized stafford is 3.49% and the Loan from the school is 5%, so should I borrow less from Stafford or from the School?

Also, KaygrlDr2Be, how do I pay for the interest while I am still in school? [/QUOTE

With my loan (the t.h.e. loan), I get quarterly statements in the mail that shows how much interest has accrued and my total debt amount. You can pay right then if you want to. I don't think it's necessarily a good idea to go through and pay the interest everytime, but you can always pay at the end of the year or at the end of your four years. I've heard of several parents doing that type of thing for people to help you out in the long run.