Med School Loans

[bodega]

I'm entering my 1st year of med school this fall and I'm trying to choose a lender for my Stafford Loans. There are so many lenders out there with so many different incentives - it's hard to figure out who is best!! Any advice?

I've been leaning toward AMSA's program because they offer interest free on the first year and investment options. help!

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[Mango]

I'm in the same boat. Why do they have to make all this stuff so confusing? I personally chose MedLoans. It's the one that's run by AAMC. They have a deal where you can postpone payment until after your residency is over. I thought that sounded like a good plan. I would guess that most of the lenders are almost identical really.

Also, once you do pick one, you have to call them and get an application and promissory note. I think those were due at my school a coupe weeks ago! Better get on it. Good Luck, we're all going to need it. Fin Aid gives me a headache!

[This message has been edited by Mango (edited 07-10-2000).]

 

[Snoopy]

I'll be starting second year in a few weeks and I went with T.H.E. (Total Higher Education). The bonus for the student is that there are no origination fees on either portion of the Stafford loan. Most lenders charge 3%. I get $24,000 a year from Stafford so that means an extra $740 a year in my pocket. That's $2,960 over four years. You can defer during residency and capitalization on the unsubsidized portion happens only once at repayment. In addition they have a number of incentives that reduce the amount you owe once you are in repayment. All of this financial aid can really make your head spin, but it is really to your advantage to learn about all of this stuff and investigate as many lenders as possible. I have been very happy with my choice so far. For more information about this particular lender and to find out whether your school participates, see:
http://www.northstar.org/download/2000_2001_med_terms.pdf

Note: All of this information pertains to the Stafford loans only. The link gives more information about their private loans.

[This message has been edited by Snoopy (edited 07-10-2000).]

 

[tristate]

The financial aid office at my medical school I'm attending provided the information for receiving loans through the Texas Higher Education Fund. Look into what kind of program your state offers.

 

[fiatslug]

Hey Mango-- do you know if the MedLoans have an origination fee? I'm all about keeping that extra 3% in my pocket...

 

[Mango]

Yes, they do charge origination, but I think they have no choice. That 3% goes to the lender, and not to the loan program (ie MedLoans, T.H.E., etc). However, what MedLoans does (as well as a couple others I looked at), is refund that 3% to you when you are in repayment. You get 1% back for each year of on time payments. So, in the end, you do get the money, but you have to wait a while to spend it! And you can't default on the loan. Hope this helps,