Medical School Avg Indebtedness

[joy14]

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I've been looking a lot at average school indebtedness upon graduation but then I realized this number means nothing beause of the MD/PHD and full merit scholarship students get a full ride and others get small scholarships or outside funds and so the number is irrelevant to the vast majority.

to the average student who is footing the entire bill, how does accruing 200k of debt or more play out. how many years upon graduating from med school can one expect to be paying such a debt off?

Sorry if this has been discussed already but i feel that no one else is really thinking about the amount of loans we are taking out...

 

[CopaceticOne]

I think I've heard of some program where your loan payments can be adjusted to match up with your earnings throughout your career. If you maintain a good payment record after 20 years the remaining amount is forgiven.

Now, I don't remember where I read about this, when it was happening, or if it is/will be available for future students. (Too lazy to search right now.)

 

[Bro Dude]

I've been looking a lot at average school indebtedness upon graduation but then I realized this number means nothing beause of the MD/PHD and full merit scholarship students get a full ride and others get small scholarships or outside funds and so the number is irrelevant to the vast majority.

to the average student who is footing the entire bill, how does accruing 200k of debt or more play out. how many years upon graduating from med school can one expect to be paying such a debt off?

Sorry if this has been discussed already but i feel that no one else is really thinking about the amount of loans we are taking out...

Good point, actually I never took this into account. I always wondered, how could a private school who gives most people nothing (or little gift aid) with a tuition of $45k/yr and cost of living of $25k/year result in debt of only, say $180k, whereas it should be 4x(45k+25k)=$280k? 😱

 

[candav]

Good point, actually I never took this into account. I always wondered, how could a private school who gives most people nothing (or little gift aid) with a tuition of $45k/yr and cost of living of $25k/year result in debt of only, say $180k, whereas it should be 4x(45k+25k)=$280k? 😱

Financial aid? Many of these private schools have average indebtedness hovering around $100,000 (if I remember correctly -- admittedly, as an international, I tended to zone out during the financial aid seminars), despite a cost of attendance in excess of $70,000/year.

 

[Bro Dude]

Dude, but how? Is the average lowered by the free-rider outliers, or do many students receive significant scholarships?

 

[thlaxer]

Dude, but how? Is the average lowered by the free-rider outliers, or do many students receive significant scholarships?

Some students have significant financial support from their parents. Some other students receive substantial merit and/or need-based scholarships. So a school isn't necessarily going to be cheaper for you just because it has a lower average indebtness. You need to calculate it out for each school.

 

[candav]

Dude, but how? Is the average lowered by the free-rider outliers, or do many students receive significant scholarships?

Completely anecdotal, but I have two friends, both firmly middle-class, who attend Ivies: one at Harvard College, the other at Yale SOM. Although the advertised cost of attendance is ~$60,000/year at both, both pay less than $10,000 per year out-of-pocket. I think these private schools have a ton of money to dedicate to financial aid, so they really are quite generous with need-based scholarships.

 

[Bro Dude]

Some students have significant financial support from their parents. Some other students receive substantial merit and/or need-based scholarships. So a school isn't necessarily going to be cheaper for you just because it has a lower average indebtness. You need to calculate it out for each school.

👍 Thanks. Just from my med student friends and other med students I have talked to (e.g. student hosts, interview luncheon students), their tuition coverage comes overwhelmingly - if not entirely - from loans. Talk about a biased sample.

 

[Ilovewater]

Don't forget, a lot of students have parents who pay for them. My school's cost of attendance is around $68,000 (x4 = 272k), but the average indebtedness is only $130,000. They don't give out a lot of scholarships either. Quite a few of my classmates have parents who are willing to pay for everything or most of the cost.

 

[Bro Dude]

Don't forget, a lot of students have parents who pay for them. My school's cost of attendance is around $68,000 (x4 = 272k), but the average indebtedness is only $130,000. They don't give out a lot of scholarships either. Quite a few of my classmates have parents who are willing to pay for everything or most of the cost.

They're lucky. I, on the other hand, am just a poor boy from a poor family. Spare me my life from this monstrosity.

 

[MT Headed]

I pestered the Tufts financial aid people on their stats, and they said that their "average indebtedness" only includes those students that actually have debt. Those with rich parents who pay 100% do not artificially lower their averages.

That being said, they admitted that previous classes had access to subsidized stafford loans which were $6800 of interest free money, so one would be stupid not to accept it (and just put it into a bank account) and pay it off later when it begins to accrue interest. This program is no longer available to the class of 2016 and beyond. Tufts readily admitted that they expect their "average indebtedness" to skyrocket to a more expected level as students from more well-to-do families decline the unsubsidized loans of the future.

I'm a non-trad, and if I decide to get a student loan I am certainly going to get a low interest home-equity loan and not a gigantic 6.8% unsubsidized stafford student loan (or 7.9% grad plus 😱).

 

[CopaceticOne]

I'm a non-trad, and if I decide to get a student loan I am certainly going to get a low interest home-equity loan and not a gigantic 6.8% unsubsidized stafford student loan (or 7.9% grad plus 😱).

Humph... I didn't even think about that path.

 

[dwdrums2112]

Completely anecdotal, but I have two friends, both firmly middle-class, who attend Ivies: one at Harvard College, the other at Yale SOM. Although the advertised cost of attendance is ~$60,000/year at both, both pay less than $10,000 per year out-of-pocket. I think these private schools have a ton of money to dedicate to financial aid, so they really are quite generous with need-based scholarships.

Thank god. I guess there is hope then?

 

[IMSingular]

...

I'm a non-trad, and if I decide to get a student loan I am certainly going to get a low interest home-equity loan and not a gigantic 6.8% unsubsidized stafford student loan (or 7.9% grad plus 😱).

If it is your parent's home equity loan you have to be careful. Stafford loans need not be paid if a student dies or disabled. Home equity loan needs to be paid. You probably should get a life insurance or disabilty insurance that will pay that loan. In any case you should apply for Stafford loan as a back up; you can use it to the extent you need it in case home equity loan is not sufficient. Also there are programs which will reduce your Stafford Loan obligations.

Grad+ loan needs to be avoided. They charge you 4% upfront fee: You only get $96 of $100 loan you are obligated.

 

[tantacles]

If it is your parent's home equity loan you have to be careful. Stafford loans need not be paid if a student dies or disabled. Home equity loan needs to be paid. You probably should get a life insurance or disabilty insurance that will pay that loan. In any case you should apply for Stafford loan as a back up; you can use it to the extent you need it in case home equity loan is not sufficient. Also there are programs which will reduce your Stafford Loan obligations.

Grad+ loan needs to be avoided. They charge you 4% upfront fee: You only get $96 of $100 loan you are obligated.

Aren't home equity loans dischargeable in bankruptcy, though? Which might make them a better option if your parents have a paid off mortgage but not much money.

 

[MT Headed]

There are programs like IBR that reduce the required payments when income is low, but that just means the loan builds even faster in the background. There are other programs by states (montana has the MRPIP) that offer to pay some principle on the loans as well.

In the financial aid forum we discussed these payment programs, and the conclusion was that at 6.8% that starts to build on day 1 of medical school, even these state sponsored loan payment programs (up to $100K - $150K) are not worth it. It is truly scary how expensive stafford loans are today.

 

[IMSingular]

Aren't home equity loans dischargeable in bankruptcy, though? Which might make them a better option if your parents have a paid off mortgage but not much money.

Yes they are dischargable. But if you can take a home equity loan means that there is equity, and on bankruptcy you/parent will loose that equity.
Also the first mortgage and the home equity loan will have to be 80% of the home value. You don't want your parents to loose there home if unfortunate circumstances to pass. Life insurance for people in 20s is pretty low.

In some states, for example Texas, you can't get home equity loan unless it is used for home upgrade, pay property tax or home owner association fees etc.

Keep your options open: Apply for FAFSA but you don't have to use the money if you don't need it. Be frugal but have flexibilty.

Addendum: Interest on home equity loan is fully tax deductible.

 

[MT Headed]

Interesting issues related to taking out a HELOC on somebody else's home. In my case I meant borrowing against my own house, which is obviously not a common scenario among the more traditional students.

If I die, I'm not too concerned about taking care of financial matters from beyond the grave. I'll have more important things to worry about. If I'm disabled though... I would be caught with my pants down. Stafford loans essentially come with a hidden disability insurance. I might want to buy some disability if I decide to go the HELOC route. Thanks for the head's up!

 

[crimedawg]

I think the whole indebtedness issue is one that is frequently over-looked. It seems most pre-med students have the attitude, "I'll pay for it later when I am making 350k a year"

Student debt needs to be rigorously examined on a case by case bases for each student. You need to weigh out all of your possibilities (worst case, average, best case) and make an educated decision. Look at all the students who went to college because they were told higher education will guarantee a better job. Not the case. I know it is a stretch to relate the two, but there are some similarities. You are going to be in a world of hurt if you graduate with 250k in debt and are a PCP making 145k.

It is a good thing the OP brought this up and is thinking about it.

 

[tantacles]

Yes they are dischargable. But if you can take a home equity loan means that there is equity, and on bankruptcy you/parent will loose that equity.
Also the first mortgage and the home equity loan will have to be 80% of the home value. You don't want your parents to loose there home if unfortunate circumstances to pass. Life insurance for people in 20s is pretty low.

In some states, for example Texas, you can't get home equity loan unless it is used for home upgrade, pay property tax or home owner association fees etc.

Keep your options open: Apply for FAFSA but you don't have to use the money if you don't need it. Be frugal but have flexibilty.

Addendum: Interest on home equity loan is fully tax deductible.

I don't quite understand what the bolded portion means. My parents' first mortgage is completely paid off.

In any case, I'm still a little confused insofar as how the house could be lost if my parents were to declare bankruptcy. The way I understand it, which could be completely wrong, is that if they declared bankruptcy, the home equity loan would be completely discharged. Yes, the equity of the house would be gone, but my parents only have one home, so they wouldn't be losing much else if they were in that situation. Their 401K is also protected against bankruptcy, so they at least have that going for them.

Besides the destruction of their ability to find credit, what else is in store if this fate befalls them?

As an aside, I'm almost certainly not going to use my parents' home equity to pay for med school. I'm interested in the option as an emergency measure should everything fall through, but let's be honest. My parents wouldn't be eager to take out a huge loan on their house in any case.

 

[IlDestriero]

I think he meant that in TX you can only borrow up to 80% of the value of your home.
I am not aware of limitations on what you spend that money on. It's yours to spend, but you can't deduct the interest from your taxes for a boat or Ferrari. They could lose their home if they can't pay and the bank forecloses on them. Other loans in TX are excluded from attaching your home when they come after you, but not a home loan.

I don't quite understand what the bolded portion means. My parents' first mortgage is completely paid off.

In any case, I'm still a little confused insofar as how the house could be lost if my parents were to declare bankruptcy. The way I understand it, which could be completely wrong, is that if they declared bankruptcy, the home equity loan would be completely discharged. Yes, the equity of the house would be gone, but my parents only have one home, so they wouldn't be losing much else if they were in that situation. Their 401K is also protected against bankruptcy, so they at least have that going for them.

Besides the destruction of their ability to find credit, what else is in store if this fate befalls them?

As an aside, I'm almost certainly not going to use my parents' home equity to pay for med school. I'm interested in the option as an emergency measure should everything fall through, but let's be honest. My parents wouldn't be eager to take out a huge loan on their house in any case.

 

[Donnie1310]

If it is your parent's home equity loan you have to be careful. Stafford loans need not be paid if a student dies or disabled. Home equity loan needs to be paid. You probably should get a life insurance or disabilty insurance that will pay that loan. In any case you should apply for Stafford loan as a back up; you can use it to the extent you need it in case home equity loan is not sufficient. Also there are programs which will reduce your Stafford Loan obligations.

Grad+ loan needs to be avoided. They charge you 4% upfront fee: You only get $96 of $100 loan you are obligated.

They are awful but as a non-home-owning student from the middle class (without tens of thousands to spare), I don't know how I'll have a choice. I have a good feeling I'm in that middle chunk that won't qualify for need-based but also don't have med school-amount of extra lying around. The grad plus will have to make up the substantial majority of the cost of attending for me since only, what, ~10k can come from an unsub stafford?

 

[IMSingular]

I don't quite understand what the bolded portion means. My parents' first mortgage is completely paid off.

In any case, I'm still a little confused insofar as how the house could be lost if my parents were to declare bankruptcy. The way I understand it, which could be completely wrong, is that if they declared bankruptcy, the home equity loan would be completely discharged. Yes, the equity of the house would be gone, but my parents only have one home, so they wouldn't be losing much else if they were in that situation. Their 401K is also protected against bankruptcy, so they at least have that going for them.

Besides the destruction of their ability to find credit, what else is in store if this fate befalls them?

As an aside, I'm almost certainly not going to use my parents' home equity to pay for med school. I'm interested in the option as an emergency measure should everything fall through, but let's be honest. My parents wouldn't be eager to take out a huge loan on their house in any case.

Usually home equity loans will only give loans up to 80% of the value of the home, inclusive of first mortgage if there is any. Interset on home equity could be about 2% higher than the first mortgage. If there is no first mortgage left then it may be better to take out first mortgage rather than home equity loan. Interest now is about 4%.

Well if you take a home equity loan and that loan cannot is not paid of then in bakruptcy proceeding the creditors can foreclose the house. Some times homestead may be protected in bankruptcy but they are not protected if there is any obligation collateralized by the houe. At present mortgage is paid off but instant you take a home equity loan the home becomes a collateral. It doesn't matter how small is the loan if it is not paid off there would be forecloser if bakruptcy process starts.

 

[IMSingular]

I think he meant that in TX you can only borrow up to 80% of the value of your home.
I am not aware of limitations on what you spend that money on. It's yours to spend, but you can't deduct the interest from your taxes for a boat or Ferrari. They could lose their home if they can't pay and the bank forecloses on them. Other loans in TX are excluded from attaching your home when they come after you, but not a home loan.

In Texas due to homestead protection second mortgage and home equity loans are impossible; too much risk for creditors.

 

[tantacles]

Usually home equity loans will only give loans up to 80% of the value of the home, inclusive of first mortgage if there is any. Interset on home equity could be about 2% higher than the first mortgage. If there is no first mortgage left then it may be better to take out first mortgage rather than home equity loan. Interest now is about 4%.

Well if you take a home equity loan and that loan cannot is not paid of then in bakruptcy proceeding the creditors can foreclose the house. Some times homestead may be protected in bankruptcy but they are not protected if there is any obligation collateralized by the houe. At present mortgage is paid off but instant you take a home equity loan the home becomes a collateral. It doesn't matter how small is the loan if it is not paid off there would be forecloser if bakruptcy process starts.

Oh, I get it. So since the house itself is used as collateral for a home equity loan, it doesn't matter that the loan is discharged in bankruptcy. Your house can still be seized.

Oh, and also, I'm from MA, so I'm not 100% sure if the process is different here.

 

[lkthlttr]

They are awful but as a non-home-owning student from the middle class (without tens of thousands to spare), I don't know how I'll have a choice. I have a good feeling I'm in that middle chunk that won't qualify for need-based but also don't have med school-amount of extra lying around. The grad plus will have to make up the substantial majority of the cost of attending for me since only, what, ~10k can come from an unsub stafford?

Keep in mind Harvard and Yale (with their billions of dollar endowments) are not representative of every private school. Try and pay only $10k at schools like Drexel, Jefferson, USC, Tufts, etc. Only for the most stellar applicants, or the most needy, will these types of financial offers be available for the majority of schools.



I believe the unsub Stafford is now $0. It used to be $8500, but not anymore.

I'm pretty sure the unsubsidized Stafford has an annual max in the range of $40k, while it's the subsidized loan that has been eliminated.

 

[Donnie1310]

I'm pretty sure the unsubsidized Stafford has an annual max in the range of $40k, while it's the subsidized loan that has been eliminated.

I just checked into it a little for the sake of science. Unless this is wrong, it looks like it's $12k max for unsub.

And you're right about subsidized being eliminated, I'm positive on that.

 

[lkthlttr]

From the disclaimer at the bottom of that website: "This Stafford Loan website is a service of Student Loan Network, an Edvisors Online Education company.
© 2012 Edvisors. All rights reserved. 1250 Hancock Street, Suite 703N, Quincy, MA 02169...
Stafford Loan dot com is not a United States Government website or associated in any way with the William D. Ford Federal Direct Loan Program, the U.S. Department of Education or Federal Student Aid. "

 

[lkthlttr]

Double post.

 

[lkthlttr]

https://www.aamc.org/services/first/first_factsheets/112390/stafford_loans_101.html

This is a better resource. The financial aid presentations I've seen during interviews have all quoted annual maximums of $40-45k for Stafford unsubsidized.

 

[FrkyBgStok]

MT- equity for med school on your own home? That sounds fine and dandy, but as a home owner, not only do i not have $250k in equity, I don't have a $280k home. Banks won't let you do 100% anymore. If you have a $500k house, good for you, but why are you going to med school? I understand you are also much older than me, but you have to move for med school, likely for residency, so if you have enough money to get a large enough home equity loan to cover med school, wouldn't it be exponentially better to sell your home, put the money in a savings account, and pay cash as needed? Even gaining interest at .5% is better than paying 3%.

 

[IMSingular]

Oh, I get it. So since the house itself is used as collateral for a home equity loan, it doesn't matter that the loan is discharged in bankruptcy. Your house can still be seized.

Oh, and also, I'm from MA, so I'm not 100% sure if the process is different here.

I think homestead laws gove stronger protection in Texas that other states. Uninted consequence, of course, is that lender won't give you second mortagage or home equity loan since the homestead protection makes these loans risky. If home is completely paid then your parents could take a first mortgage, or if they are old enough (I believe older than 62) they can take reverse mortgage. They can give you up to 26,000 gift per year, and after you start earning you can give them gift to pay it off. More than 26,000 there will be some gift tax complication. Interest on mortgage will be fuly deductible. It is a good way to about but I would suggest that you should insure yourself so that your parent don't hold a short end of stick under unfortunate circumstances.

 

[IMSingular]

MT- equity for med school on your own home? That sounds fine and dandy, but as a home owner, not only do i not have $250k in equity, I don't have a $280k home. Banks won't let you do 100% anymore. If you have a $500k house, good for you, but why are you going to med school? I understand you are also much older than me, but you have to move for med school, likely for residency, so if you have enough money to get a large enough home equity loan to cover med school, wouldn't it be exponentially better to sell your home, put the money in a savings account, and pay cash as needed? Even gaining interest at .5% is better than paying 3%.

Well. Since home prices are at the bottom it may not be good idea to sell home right now. If you wait fro 5 years prices might move by 15% and you will be OK. Men while you can rent your home if you are not living there. Home equity line may be way to go. Then you will pay interest only on what you use. May be you should take advice from Financial Planner who are either Certified Financial Planners(CFP) or Chartered Financial Analysts(CFA).

 

[FrkyBgStok]

Well. Since home prices are at the bottom it may not be good idea to sell home right now. If you wait fro 5 years prices might move by 15% and you will be OK. Men while you can rent your home if you are not living there. Home equity line may be way to go. Then you will pay interest only on what you use. May be you should take advice from Financial Planner who are either Certified Financial Planners(CFP) or Chartered Financial Analysts(CFA).

what? i was making conversation, not trying to give financial advice. And i don't need financial advice. But that would make sense. Home prices do suck.

 

[Donnie1310]

https://www.aamc.org/services/first/first_factsheets/112390/stafford_loans_101.html

This is a better resource. The financial aid presentations I've seen during interviews have all quoted annual maximums of $40-45k for Stafford unsubsidized.

"Medical school students are permitted to borrow additional unsubsidized funds beyond the annual maximum as higher limits are available to health professions students."

That's what tripped me up, the last time I dealt with them I was a grad student, not med so the amount I could take from unsub was way lower.

Financial aid sometimes confuses the hell out of me, thanks for the link. I feel better now that I won't have to take so much grad plus. 🙂

 

[MT Headed]

MT- equity for med school on your own home? That sounds fine and dandy, but as a home owner, not only do i not have $250k in equity, I don't have a $280k home. Banks won't let you do 100% anymore. If you have a $500k house, good for you, but why are you going to med school? I understand you are also much older than me, but you have to move for med school, likely for residency, so if you have enough money to get a large enough home equity loan to cover med school, wouldn't it be exponentially better to sell your home, put the money in a savings account, and pay cash as needed? Even gaining interest at .5% is better than paying 3%.

I'm going to med school because I want to put my skill and talents to their best use helping the people of my mountain community. I'm not sure what owning a house free and clear has to do with whether or not to go to medical school in any case. It doesn't speak to how much cash I might have on hand, nor my motivations.

Buying and selling houses is expensive. There are some huge transaction costs on either side, and I generally have the worst real estate timing. I intend to return to my community when I am done with this adventure, so I don't see much point in giving up my house. I probably couldn't afford to buy it again in 8 years.

Fundamentally I do have some cash, a house, and an expensive education on the horizon. Do I borrow against my house? Do I spend my cash? Do I borrow from the government (pledging my future income as collateral)? They are all possibilities, and they all have their associated interest rates. It's a temporary hit to my assets anyway, because even if I loaned to the max from some source, I would have it all paid back by the end of my first year as an attending. I get my living expenses and spending money from an alternate source which won't be disappearing. I know I am not the norm, and my decisions have little relevance to the bulk of SDN.

 

[FrkyBgStok]

I'm going to med school because I want to put my skill and talents to their best use helping the people of my mountain community. I'm not sure what owning a house free and clear has to do with whether or not to go to medical school in any case. It doesn't speak to how much cash I might have on hand, nor my motivations.

Buying and selling houses is expensive. There are some huge transaction costs on either side, and I generally have the worst real estate timing. I intend to return to my community when I am done with this adventure, so I don't see much point in giving up my house. I probably couldn't afford to buy it again in 8 years.

Fundamentally I do have some cash, a house, and an expensive education on the horizon. Do I borrow against my house? Do I spend my cash? Do I borrow from the government (pledging my future income as collateral)? They are all possibilities, and they all have their associated interest rates. It's a temporary hit to my assets anyway, because even if I loaned to the max from some source, I would have it all paid back by the end of my first year as an attending. I get my living expenses and spending money from an alternate source which won't be disappearing. I know I am not the norm, and my decisions have little relevance to the bulk of SDN.

And that makes sense. I forgot about the commissions and whatnot to sell the house. And it definitely makes sense if you plan to return. And as you said, timing sucks. Mainly just curious. Being older as has an advantage as it is more likely to have a house paid off. Good for you.

 

[joy14]

wow the responses here are much more than i expected! thanks for all of the input and information 🙂

that being said... financial aid/200k+ in loans still worry me

here's to some good news in late march/april

 

[IMSingular]

I'm going to med school because I want to put my skill and talents to their best use helping the people of my mountain community. I'm not sure what owning a house free and clear has to do with whether or not to go to medical school in any case. It doesn't speak to how much cash I might have on hand, nor my motivations.

Buying and selling houses is expensive. There are some huge transaction costs on either side, and I generally have the worst real estate timing. I intend to return to my community when I am done with this adventure, so I don't see much point in giving up my house. I probably couldn't afford to buy it again in 8 years.

Fundamentally I do have some cash, a house, and an expensive education on the horizon. Do I borrow against my house? Do I spend my cash? Do I borrow from the government (pledging my future income as collateral)? They are all possibilities, and they all have their associated interest rates. It's a temporary hit to my assets anyway, because even if I loaned to the max from some source, I would have it all paid back by the end of my first year as an attending. I get my living expenses and spending money from an alternate source which won't be disappearing. I know I am not the norm, and my decisions have little relevance to the bulk of SDN.

In your situation best would be to get a home equity line; interest rates could be some where around 5%. Rent your house and that may pay the loan inerest and taxes. If you have some other income, such as the rent for the house itself, interest would have tax shield etc. With equity line you will only pay interest on the loan you use.

With your stats I will be surprised if you don't get some scholarship.

 

[calvnandhobbs68]

"Medical school students are permitted to borrow additional unsubsidized funds beyond the annual maximum as higher limits are available to health professions students."

That's what tripped me up, the last time I dealt with them I was a grad student, not med so the amount I could take from unsub was way lower.

Financial aid sometimes confuses the hell out of me, thanks for the link. I feel better now that I won't have to take so much grad plus. 🙂

People are getting confused here...what's happening to these subsidizied Stafford loans is that they're being rolled into the unsub loans. So instead of being able to borrow $32,000 unsub and $8,500 sub its all gonna be $40,500 unsub max every year. This is not currently reflected on most websites.

The home equity idea is a good idea if you're gonna have to dip into Grad Plus loans anyway, because you're going to be paying those off as you go. I know financial aid advisors HATE this but you can also take out some private loans if you've maxed out your Staffords and you feel like gambling. Right now most of these loans are below Stafford interest rates if you have a good cosigner or really good credit but they are variable and interest rates can vary widely depending on what they're based on. If you're pretty confident the 91 Day T Bill or the LIBOR is gonna stay rock bottom for a while, you can get loans at 5% right now though (most banks set this as a minimum after the crash but you might find some that will be even lower).

The risk of course is that if those rates come back up, you could be paying a decent amount of interest. The benefit is if you don't have any way to pay off a PLUS loan or home equity loan now, these loans defer the same way regular student loans do.