Medical School Loans & Parental Income

[deleted50541]

Here's the situation. I'm a reapplying to medical school for admission to the class of 2010. After much improvement to my application and credentials, I feel confident I will be accepted this year. Of course nothing is ever certain .

Now as far as paying for medical school, I feel my parents have shouldered the burden of my education enough, covering about 50% of my undergraduate education and helping me out in the year after graduation when I applied to medical school the first time. Thus, I want to take on the responsibility of covering the costs of med school through loans.

However, if my understanding is correct, because my parents' income would allow them to pay for medical school, I would not receive much in the way of financial aid, no? As for my income, I have none since I work full-time at an unpaid research position. What options do I have (besides the military)?

I have just started researching this topic but have not found information sufficient to answer my questions. Any input would be greatly appreciated.

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[DrWuStar]

whether your parents' income will be counted in your financial resources varies from school to school. according to the rules of the FAFSA, graduate and professional students, and those over a certain age are considered independent and do not have to provide info on their parents' income and assets. but lots of med schools will require you to anyway.

the good news is that lots of people are in your position - with parents who would be able to foot the bill, but aren't going to, so there are many options in place for you. assuming you go to a school that counts your parent's income, you will still be eligible for many different loan programs, they just won't be need-based. i think you would be eligible for unsubsidized stafford loans, up to $18,500 per year i think? beyond that, you would need to get private educational loans. many schools offer these through their own programs, otherwise, citibank and other private lenders can give you loans. you won't have as good of interest rates as need-based loans, and you might not have as many options in terms of deferals later, but you will be able to borrow the money you need. good luck.

 

[mpp]

Every medical student is eligible for $38,500 per year in federal Stafford loans, of which $8,500 can be subsidized.

 

[deleted50541]

Ok, that's all good information for me on medical school and I think I've got things cleared up on that end.

Another question though: I've been accepted to a year long master's program and want to take out a loan to cover the cost. If I am going directly into medical school after finishing my master's, will I be able to defer my grad school loan along with any loan I take out for med school? How will taking out a loan for grad school affect approval of loans for med school?

Ideally, I would like to take out a full loan to cover my costs for this coming year, then take out another loan for med school, consolidating that loan with my grad school loan and deferring all payments until after graduating. Is that possible to do?

 

[mpp]

As long as you take out Stafford loans, they will also be deferrable when you are in school at least half-time.

You can consolidate loans if it beneficial to you...the advantages of consolidation (apart form just having one loan to pay back instead of several which is really a minor advantage) is that you lock in your rate. Stafford loans are variable rate loans. The rate changes from year to year so you don't know how much interest you will accrue in the future. When you consolidate, you lock the rate in for the life of the loan at the current rate. If the rate is high it is not wise to consolidate...if low (like it is now) then it is advantageous to consolidate.

 

[mpaty]

Every medical student is eligible for $38,500 per year in federal Stafford loans, of which $8,500 can be subsidized.

How did you find out about this? And are there any exceptions? I hope not.
You can PM me too.
Thanks!