Medical School Debt

[RokChalkJayhawk]

So I guess what I'm getting at--is there a realistic option besides unsubsidized loans?

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[alwaysaangel]

So I guess what I'm getting at--is there a realistic option besides unsubsidized loans?

Why do you need one??

Unsubsidized loans are at an incredibly reasonable rate set by the federal government. They're easy to get because the government backs you on them.

Why would you want another option?

 

[RokChalkJayhawk]

Goodness gracious!!!! I was asking a question... The answer was either yes, or no. The previous poster had said "Unsubsidized loans are the devil" and I was curious to know why this person's opinion was such.

 

[alwaysaangel]

Goodness gracious!!!! I was asking a question... The answer was either yes, or no. The previous poster had said "Unsubsidized loans are the devil" and I was curious to know why this person's opinion was such.

Well I wasn't trying to be rude, I'm honestly asking why you think you need one? What kind of loan option do you want? I'm just trying to understand so I can find a way to answer your question.

And until I know what you think is wrong with unsub'd loans I can't. So other than a guy claiming they're the devil - what do you think is wrong with an unsub'd loan?

 

[RokChalkJayhawk]

Well I wasn't trying to be rude, I'm honestly asking why you think you need one? What kind of loan option do you want? I'm just trying to understand so I can find a way to answer your question.

And until I know what you think is wrong with unsub'd loans I can't. So other than a guy claiming they're the devil - what do you think is wrong with an unsub'd loan?

I thought they were fine and I was planning on taking out a bunch of them. So when the other person said that they were the devil he made it sound like there was a more attractive alternative out there. I was curious as to what it was.

 

[RokChalkJayhawk]

I would imagine that better alternative is probably either a winning lotto ticket or a rich grandma.

 

[alwaysaangel]

Goodness gracious!!!! I was asking a question... The answer was either yes, or no. The previous poster had said "Unsubsidized loans are the devil" and I was curious to know why this person's opinion was such.

And I guess if you just want a yes or no answer.

Yes, the other option is private loans, which have higher interest rates and often can't be deferred during school or residency.

 

[RokChalkJayhawk]

And I guess if you just want a yes or no answer.

Yes, the other option is private loans, which have higher interest rates and often can't be deferred during school or residency.

Thank you.

 

[alwaysaangel]

I thought they were fine and I was planning on taking out a bunch of them. So when the other person said that they were the devil he made it sound like there was a more attractive alternative out there. I was curious as to what it was.

There isn't. This was kind of what I was trying to get out of you with my other post. I was trying to figure out if you were just asking because of what he said or if you were asking because of something you thought on your own.

There are 3 kinds of loans:
Sub'd stafford loans
Unsub'd stafford loans
Private loans

Sub'd are the best obviously - the gov't pays the 6.8% interest for you while you're in school.

Unsub'd are less desirable because the interest is accumulating while you're in school/residency and is capitalized when you start repayment.

Private loans are expensive and sometimes hard to get.

I'm not sure why Iceman is claiming unsub'd loans are the devil - especially since any med student who isn't getting a scholarship or having mommy and daddy pay will be taking them out. They're not the devil - they're an excellent way to pay for your education.

 

[alwaysaangel]

I would imagine that better alternative is probably either a winning lotto ticket or a rich grandma.

Don't we all wish...

 

[Doctor~Detroit]

Yup. And the only diff between a sub and an unsub is for unsub they are adding interest while you're in school that apparently capitalizes when you enter repayment.

Having unsubsidized loans is not that big of a deal.

how often are unsubsidized loans compounded (is that the right word for charginig interest?)? the interest at 6.8% on a 30k loan is 2,040. if compounded only yearly, wouldn't the interest hit around 20k for borrowing 120k unsubsidized total?

 

[alwaysaangel]

how often are unsubsidized loans compounded (is that the right word for charginig interest?)? the interest at 6.8% on a 30k loan is 2,040. if compounded only yearly, wouldn't the interest hit around 20k for borrowing 120k unsubsidized total?

This I dunno, I thought it capitalized every 4 months and then someone told me that wasn't true (still haven't verified that thought).

Anyone know this?