Need more loans... what to do?

[wannabeaDO]

Okay I'm almost the end of my third and I need more loans, more than what the Cost of attendance allowed for. I know there are relocation loans available in my 4th year. Is there any kind of loans I can get now with no payments required until I graduate or even better no payments until I finish residency?

If I have to wait until my 4th year, which bank has the highest maximum amount of of loans I can get? I've seen one for $20,000. Is there bank offering higher? Can we apply to two banks for the relocation loans and get $40,000? Just to reiterate I need the loans where I get directly.

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[Igor4sugry]

How good is your credit? If its good you can look for 0% credit cards that may give you 10k limit.

 

[RangerBob]

Usually your school can certify an increase in your cost of attendance for things like car payments, car insurance, healthcare costs, furniture, and a few other things such as travel/housing for away rotations (if the rotation was recommended by the deans). Talk to your financial aid department about it. Wells Fargo has MedCap loans which are usually at a really good (albeit variable) rate, and I don't think repayment is required until maybe 48 months after graduating. Maybe 72--it should be on their website.

I'd avoid the residency and relocation loan as long as possible--it's a much higher rate than the private loans you can take out if you get an increase in your COA and get a loan that way. Technically, I think you can take out more than one residency loan, but it would definitely have to be with different lenders, and depending on your debt level, they may not approve the loan.

I've never heard of any bank offering $20,000 for a residency & relocation loan, so if you found one that is probably the highest offer out there. Most that I know of will let you borrow up to $15,000.

A credit card with 0% APR should be your last option at this point. In general the rate skyrockets at the end of the introductory period, so you want to be sure you'll be able to pay it off. To do that you'll need a job (ie, residency). So the time where a 0% credit card makes sense is interview season, especially if you can find one with an 18-month introductory period. But you have to be very disciplined not to abuse one of those cards.

 

[DrMidlife]

Usually your school can certify an increase in your cost of attendance for things like car payments, car insurance, healthcare costs, furniture, and a few other things such as travel/housing for away rotations (if the rotation was recommended by the deans).

You're making it sound like the student gets to define their own cost of attendance, which is not the case. For federal loans you have to follow the rules, including requests for budget increases. Definitely not in the $10k range unless it's medical expenses or child care.

Talk to your financial aid department about it.

Yes.

I think if the OP is behind by $40k, that's a leave of absence, no question. Hopefully the OP can get a high-paying job and live with his/her parents for a year.

 

[RangerBob]

You're making it sound like the student gets to define their own cost of attendance, which is not the case. For federal loans you have to follow the rules, including requests for budget increases. Definitely not in the $10k range unless it's medical expenses or child care.

I'm not sure if child care is eligible. But it might be.

The odds are the OP maxed out their federal loans (unless they didn't borrow the full cost of attendance in the first place), in which case the loans would be private. But, the process of applying for a cost of attendance increase is the same regardless.

You're absolutely right--it's not up to the student to define their own cost of attendance--what is eligible is determined by the financial aid committee. You have to apply/appeal for a cost of attendance increase, and it's up to the committee to decide what to approve/decline. And then you apply for the loan with (usually) a private lender.

I probably should have mentioned that earlier...

 

[DrMidlife]

I'm not sure if child care is eligible. But it might be.

For federal loans you can get a COA increase for childcare. Reference: https://studentaid.ed.gov/fafsa/next-steps/how-calculated

If you're attending at least half-time, your COA is the estimate of
tuition and fees;
the cost of room and board (or living expenses for students who do not contract with the school for room and board);
the cost of books, supplies, transportation, loan fees, and miscellaneous expenses (including a reasonable amount for the documented cost of a personal computer);
an allowance for child care or other dependent care;
costs related to a disability; and/or
reasonable costs for eligible study-abroad programs.

And then you apply for the loan with (usually) a private lender.

No, an approved budget increase is an increase in the COA, therefore eligible for an additional federal loan, at least in med school. The servicer of that federal loan may also sell private loans (such as Sallie Mae) but COA is federal. Your school is in charge of the process and it can close budget increase requests after a deadline. Getting more fed loans for a COA increase is minimum 6-8 weeks.

 

[RangerBob]

For federal loans you can get a COA increase for childcare. Reference: https://studentaid.ed.gov/fafsa/next-steps/how-calculated

No, an approved budget increase is an increase in the COA, therefore eligible for an additional federal loan, at least in med school. The servicer of that federal loan may also sell private loans (such as Sallie Mae) but COA is federal. Your school is in charge of the process and it can close budget increase requests after a deadline. Getting more fed loans for a COA increase is minimum 6-8 weeks.

Thanks for the correction on childcare.

I didn't mean to say the increase in COA isn't eligible for federal loans--it can be if you received any scholarships, or possibly if you're at a in-state ("cheaper") school. I don't know the policy there--I'm at a private school. However, the odds are if the OP took out the full cost of attendance, then in general any loans taken in addition to the original COA determined by the school are always private loans, as the government will only lend up to the school's published COA.

 

[DrMidlife]

Thanks for the correction on childcare.

I didn't mean to say the increase in COA isn't eligible for federal loans--it can be if you received any scholarships, or possibly if you're at a in-state ("cheaper") school. I don't know the policy there--I'm at a private school. However, the odds are if the OP took out the full cost of attendance, then in general any loans taken in addition to the original COA determined by the school are always private loans, as the government will only lend up to the school's published COA.

No: COA is not static. A budget increase is a COA increase for the purpose of federal loans. A student who borrowed up to the published COA in federal loans can apply to have the COA raised for an approved expense and then apply for federal loans to cover the new amount.

I'm writing from experience and from checking official sources. If you are speculating on what seems to be common sense, I suggest you should say so.

 

[RangerBob]

No: COA is not static. A budget increase is a COA increase for the purpose of federal loans. A student who borrowed up to the published COA in federal loans can apply to have the COA raised for an approved expense and then apply for federal loans to cover the new amount.

I'm writing from experience and from checking official sources. If you are speculating on what seems to be common sense, I suggest you should say so.

I'm speaking from experience as well, and I was eligible for some Federal loans (only GradPlus as I maxed out the rest being at a private school) because of a scholarship I received, but the rest had to come from private funding.

If you could post your official sources that might help--there may have been something different about my situation than yours.