Most likely an old question. SORRY

[carcrazyguy]

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My wife is currently interviewing for next years entering class. I have a decent job (approx $50k a year) that covers all the bills now. However, WHEN 🙂 she gets accepted, we will move and I will have to leave that job. But I am thinking that my current income is going to hurt her chances for loans for the first year? Yes I make decent money now, but the bottom line is that after mortage payments, utilities, everyday expenses, and her health insurance there is not much left. So will the financial aid office take all this into consideration? Just asking early so I don't end up in a bind later!

 

[28657]

Unfortunately, your income most likely will hinder her ability to get a certain amount of funds. This all depends on what you're counting on receiving? Are you wanting enough money to cover tuition only, or tuition and extras?

My ex-husband and I were unemployed for the bulk of 2002 (receiving unemployment income) and we made very little...I was hoping this would help me in receiving more aid than I qualified for. I got enough for tuition and then some, but a little more can always help when you move to a new place and need to find new jobs. I actually didn't even qualify for work-study! I don't know how the govt evaulates need, but it sure has never worked in my favor.

 

[mpp]

To qualify for federal loans (Stafford) for medical school, the financial aid office will take the EFC from the FAFSA form and subtract that from their calculated annual budget (which includes tuition + living expenses albeit somtimes meager living expenses). As a spouse of a medical student, they will expect that your income will continue and so it is likely her EFC will not be adjusted for lost work income due to full-time school status. However, you can typically get the maximum in Stafford loans ($38,500 per year) if you work it right...adjusted EFC for lost work due to school or a high-priced private school such that your EFC is not even close to the annual budget. Loans above the $38,500 are private/institutional loans and are at the discretion of the financial aid office or the lender.

Money will likely be tight while in medical school but it is usually not an obstacle as lenders (private or public) seem to realize the future income potential and open up their pocketbooks.

 

[carcrazyguy]

Originally posted by mpp
As a spouse of a medical student, they will expect that your income will continue and so it is likely her EFC will not be adjusted for lost work income due to full-time school status.

So since we will be moving to an area where the my job will NOT start at $50k, or even close for that matter. We might get screwed on her first year loans? 🙁 Because even making $50K now we don't have a lot of cash in the bank. We are still just trying to get all our debt paid down to nothing (expcept mortage) before med school starts. But by doing this it appears that we won't be able to borrow much, if any to cover med school. I guess it will all work itself out later but I am worried that by paying down the debt instead of saving the money we won't be able to borrow it when we really need it!

 

[mpp]

Paying down the debt is probably the best thing to do since they will expect you to spend the money you have in savings anyway (you have to report your bank account and invest balances on the FAFSA). Some schools will make an adjustment to your EFC since they know you will lose your income when school starts but it will be expected that the spouse of the student should be earning an income. It might be smart to start looking at the less expensive schools (public and well funded private schools) as there can be a lot left over from the Stafford loans ($38,500 per year) after tuition is paid.