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Med School $$$ = Confusion

Discussion in 'Medical Students - MD' started by docuw, Mar 31, 2001.

  1. docuw

    docuw Senior Member

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    Well... got my financial aid letter. The money involved is almost mind boggling. My plan is to simply put off all thoughts of the money until after residency. I am trying to figure which "alternative loans" will be the best for me with this plan. I am supposed to come up with 9500 after maxing out the Sub and UnSub Stafford Loans. I figure I will need to take about 6000, not the whole 9500. But all the options thruogh the schools "referred lenders" are crazy.

    You have Fees deducted at disbursement, Fees added at repayment, the interest rates, and your option to pay on interest while in school (which doesnt make much sense to me - I would have to take more loans to simply make those payments), or deferring on principal and interest until after graduation.

    All of these lenders have different numbers that they use, and I am driving myself crazy trying to figure out which loan is going to be best for me in 8 years (when I can finally start paying them back after residency). YIKES!

    How do you guys choose which loan to use with all these options?

    What kind of budget does your school give you guys? Do you normally spend more or less than your budget?

    Here is a break down from Creighton for this year:

    1st Year:
    Tuition 31,962
    Living Allowance 10,350
    Travel 1,000
    Hepatitis 200 (Hep B?? did it)
    Books/Supplies 2,190
    Loans Orig. Fees 1,150
    Health Insurance 200
    ---------------------------
    48,052

    So, how do you guys compare? I am sweatin about these alternate loans...

    [This message has been edited by docuw (edited March 31, 2001).]
     
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  3. gasdoc

    gasdoc Member

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    Sounds like a private school. Just feel lucky you are not going to a carribean school, which is BLANTANTLY FOR-PROFIT.

    I pay about $10,000 in tuition in a UC school.
     
  4. Pilot

    Pilot Senior Member

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    The programs change from year to year, but the "best" loan program last year was the T.H.E. program in my opinion. I cannot remember all the details (and don't want to look for my file), but it seemed to have the lowest fees and better post-grad terms. Only problem I ran into was my bank wanted to put an 11 day hold on the check since it was from out of state. Problem was solved when I switched bankers.
     
  5. On a related issue....

    Will student loans that I acquired during undergrad be deferred generally speaking until after residency (provided I get admitted)?

    I know I'm going to have to contact each lender individually to make sure, but what is your experience? Do you have to start paying back loans acquired in undergrad IMMEDIATELY after graduating (and while attending med school) or can you defer all your loans for both undergrad and med school until after or during residency?

    I dont have that much in loans from undergrad, but at the same time it would be hard for me to pay them back while in med school.



    ------------------
    "There is nothing more powerful on this Earth as a man who has nothing to lose. It does not take ten such men to change the world--one will do." Elijah Mohammed
     
  6. Homunculus

    Homunculus SDN Caveman Administrator
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    my friend Pilot is right-- T.H.E. loans are great, as far as loans go. If you take out $4500, you get a check for $4500. It's nice not to be getting screwed from the get-go with financial aid...

    take it easy

    homonculus
     
  7. docuw

    docuw Senior Member

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    They didnt offer any "T.H.E" loans on their preffered lender list. They told me to choose from CASL (Union Bank and Trust), ACCESS (The Access Group), MEDCAP (Wells Fargo), GAP (US Bank), SELECT (Educaid), MEDACHIEVER (Key Bank). Those are the preferred lenders that they reccomend b/c those are the banks that they are willing to deal with. You CAN if you want use other banks, it just that you have to deal with them on your own.

    Is the T.H.E. loan through a private lender? Which one? I might have to look at that further.
     
  8. lilycat

    Moderator Emeritus

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    baylor21, as for your question about undergrad loans, it depends upon the type of loan, and how long you are taking between undergrad and entering a grad program. I have both Stafford subsidized and a private loan from my undergrad -- for Stafford subsidized you have to enter another program within 6 months of graduating to be eligible for a deferral. Otherwise, your first loan payment is due 6 months after you graduate, and they don't grant deferrals after that point unless you enter into a program like Peace Corps or Americorps. I think this is a crappy rule considering how more and more students are encouraged to spend time in the "real world" before starting grad school -- Stafford loans need to get with the times. On the other hand, my university loan is eligible for deferral whenever I go back to school. However, it does keep accuring interest. I just have to send them a letter at least 30 days in advance from when I start school.

    By the way,totally unrelated, but I know on another thread you asked about someone's experience interviewing at OU med school -- I actually was offered an interview there, but turned it down because I had the most awful experience with the admissions office. If you apply, just make sure you stay on top of your application there.
     
  9. Annette

    Annette gainfully employed
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    Gasdoc, just because an off-shore school is for profit doesn't mean that it is more expensive than a private US school. St. Matts is approx $24,000/year. I hear Ross and Saba are about the same. Plus, you get to live on a tropical island . . .
     
  10. hopedoc

    hopedoc Member

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    I never heard about the T.H.E. program. All i'm doing is the subsidized/unsubsidized loan thing. What is the benefit of using private lenders, is it for people who aren't getting enough from the federal loans? This is all so very confusing!!
     

  11. The "benefit" of using private lenders with alternative loans is for those students who cannot borrow enough government loans to cover tuition and living expenses. With a government max of $38,500 - paying those expenses at a school with tuition fees over $30,000 is difficult at best. Hence, the need for alternative sources.
     
  12. AP

    AP Member

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    Baylor21 - One is able to defer payments on undergrad loans for reasons other than non-profit work. One can defer for unemployment reasons or if you are not able to afford the minimum payments. Happen to a lot of people so don't be ashamed to go about it that way(I did). Also, some states have lower interest rate loans (between 5-7) for health profession disciplines. Check out what your state offers.
     

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