I'm sorry for the repost, but I figured this would be a more appropriate place to post this but wasn't sure how to delete the other one. I just needed a little advice on loans for dental school. I've never taken out loans in the past, so this is really a new experience for me and would appreciate some help. So essentially, I want to take out the loans with the lowest interest rate, as I'm going to be paying back these loans as fast as possible (I really want to do it in the fastest way, maybe even 2 years if thats possible). Paying them back is my top priority over everything else, so I was wondering what the best option would be in terms of lenders. I estimated that I'm going to need between $66,000-$70,000 a year depending on the cheapest living situation I can find. What would be my best option? Should I take out the Federal loan, which is about $44,000? If I do, where is the best place to get the remainder of the money? Or is there a better option for me? I'd really appreciate any help you guys could provide. Thank you so much in advance!
Have you even gotten into dental school yet? If so, then have you spoken to/listened to anything your financial advisors have said?
First, let's get this out of the way and put your head in the right spot: If you're planning on borrowing $70k annually, then you'll end up with just under $300k of debt by the time you're out of school. I don't know what world you're living in that you plan on even HOPING to be able to pay that back in 2 years. I hate to sound mean but that comment leads me to believe that you have absolutely zero experience with handling finances, which probably isn't surprising if you're a 20-year old undergrad who's never had to borrow for school (ie. mom and dad are paying everything). And if you've worked your way through school, then I think a part of you is a bit delusional.
Depending on your situation: Like shootingstar said, definitely take the fed. unsub. You basically have no choice. And you'll need all that they're going to offer, which won't be enough. Also depending on your situtation, you should qualify for either a bit of Perkins loan or HPS loan (health professional student). You'll need all of that, too.
After that, you're on your own. The easy choice is the GradPlus, which at 7.9% is horrendous. You need to exercise any and all other possible options: parents, relatives, friends of parents...anyone. The truly enterprising person would look at private financing options outside of banks and do his/her best to present their need for money as an investment opportunity for whoever is willing to lend. But that admittedly takes a lot of nerve to do and is highly dependent on your relationship with whomever you're asking.
Aside from that, your only other "traditional lending" option is to go private: banks. Shootingstar talked about Wells Fargo and they're probably the most aggressive with their advertising for their school loans. She says the rates weren't really better, but they advertise their lowest interest rate at below 7% fixed. IF you can secure that (the only way to do that is most likely with a co-signer) then you'll be right in line with Stafford loan rates. If you want to be REALLY ballsy, and depending on your opinion of how the economy will be for the next 10 years or so, you could choose the variable rate option which is currently at 4.25%. I'm personally giving this a LOT of consideration.
Bottom line, you need to go talk to your dental school's financial advisor. If you haven't gotten in yet, then you need to talk to your parents about how you plan to pay for dental school. They will play a very large role, since if they're the reason why you don't have any undergrad loans then it's assumed they have additional dispensable income. Which will reduce your eligibility for other loans. BUT if they've paid for your undergrad then they should certainly be able and willing to contribute to your dental school costs.
