Need help quickly, Dad stressed out!

[rcchief]

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My son may pass on an Air Force scholarship for medical school. The school he will attend costs about $40,000 per year and it will cost him about 15k per year to live on. Will he be able to borrow this amount through a combo of Stafford loans, alternative loans, etc. We (his parents) have a combined income of about $140,000 per year but a LOT of debt from 16 yrs of private school for him and 12 so far for his brother. We have told him we can't co sign for any loans. We will help if we can, but can't take legal responsibility for his loans. Can he get them on his own. Thanks for any help.

 

[mpp]

He can try. It would depend on his credit. He can get $38,500 in Stafford loans, possible another $6,000 in Perkins (although with your income he probably won't qualify) and apply for private loans. They will always offer loans up til the cost of attendance but qualifying for those loans is up to him (if you won't cosign...which I wholeheartedly agree that it should be left up to him). Good luck...

 

[hakksar]

He should have no problem if he can get alternative loans. Considering the minimum federal aid he will qualify for is 38,500 a year for all four years (as long as he hasn't already taken out a lot of Stafford loans) the remaining 16.5 K a year will be no problem as long as he has good/decent credit. He might qualify for a Perkins loan too. Do you know if his medical school is going to use your financial info? Some schools including most private schools do use the parents info when figuring out aid, but others such as my state school consider medical students completely independant and therefore do not use parents financial info when figuring out financial aid. If the school considers him independant he will most likely qualify for a Perkins loan if the school has funds available. In conclusion, he will definitely be able to pay for school with a combination of federal and alternative loans. It will just be a difference in how good a deal he gets with interest rates, amount subsidized while in school etc. He will have a lot of debt when he gets done but with a Physician's earning power and the low interest rates of educational loans he will be fine in the end. I like to look at it as he can spend that time serving the military or spend that time living frugally to pay down debt . . . either way it will work out.

 

[LVgirl]

I don't know much becasue my mom does all my financial aid info, but I just want to add that I was able to take out $42,944 in Stafford my first year of med school. It all depends on how long many months of the year you are in school. You should check with your school on the max Stafford loans before you apply for private loans.

 

[mpp]

You must be mistaken. The maximum Stafford loan for one academic year is $38,500. They may have included other loans such as Perkins, institutional or even private loans but they do not lend more then $38,500 in Stafford loans per academic year, regardless of the length of that year. If you had a summer session that was separate from the rest of the academic year then they may have given you more Stafford loan money for that, but not for the academic year.

 

[proman]

There must be a disconnect somewhere. I'm looking at my award letter for 04-05. I've been awarded $8500 in Direct subsidized plus $36,666 in Direct unsubsidized. This is about the same that I've received over the last 2 years.

My school's financial aid papers say that the agrregate limit is for unsub only. The Dept of Ed info online says it's both sub and unsub. I don't know how to reconcile the two.

 

[kilroth]

Just saying that I am taking out 48 grand for my upcoming first year. Try not to pressure him to sign his life away to the military because it is a personal decision that has heavy consequences. It's only money! Plus the schools usually provide enough loans to cover it.

 

[double elle]

Um - not to be a B*tch, but there are cheaper schools out there. Medical education will be what YOU make of it - from what YOU put into it.
If the money is going to be a real stressor for the family, discuss other options with your son. That is a lot of money for him to have to pay back when he's done - not to mention the interest.

We all have dreams, but when it comes to this much cash - one must be realistic.

Also - not to get all wierd...but if something is causing a lot of stress and not working out despite all efforts - I take that as a sign that, perhaps, it's not the right decision to make. He doesn't have a choice if this was his only acceptance...so, you just have to bite the bullet and borrow or he needs the military. However, if there is any way he could consider another school.....