New to loans....

[Ost3oclast]

---

Members do not see this ad.

So I've never taken out loans (thankfully) and I have a stupid question about loan repayment for you guys hahaha.

I've been doing my research on loan repayment as I will be taking out a SUBSTANTIAL amount of money for med school (like most of us). It seems like there are a couple of ways to pay back our loans, the most attractive to me being the PAYE program. So, for all of you loan wizz kids out there, when do we actually select our repayment program? Is it after we finish school and begin to get our monthly bill in the mail or sooner?

 

[HalfListic]

So I've never taken out loans (thankfully) and I have a stupid question about loan repayment for you guys hahaha.

I've been doing my research on loan repayment as I will be taking out a SUBSTANTIAL amount of money for med school (like most of us). It seems like there are a couple of ways to pay back our loans, the most attractive to me being the PAYE program. So, for all of you loan wizz kids out there, when do we actually select our repayment program? Is it after we finish school and begin to get our monthly bill in the mail or sooner?

yes, it will be after...and, if you do the entrance counseling online (same website as the FAFSA) it has a really cool repayment calculator that incorporates any of the repayment plans you want to check out. You estimate your debt, your income and your repayment plan and it will tell you your debt burden as well as your monthly payment.

Pretty cool.

 

[Bacchus]

yes, it will be after...and, if you do the entrance counseling online (same website as the FAFSA) it has a really cool repayment calculator that incorporates any of the repayment plans you want to check out. You estimate your debt, your income and your repayment plan and it will tell you your debt burden as well as your monthly payment.

Pretty cool.

Cool until it pulls your NSLDS information in 4 years later and is a real, concrete number :\.

 

[Ost3oclast]

yes, it will be after...and, if you do the entrance counseling online (same website as the FAFSA) it has a really cool repayment calculator that incorporates any of the repayment plans you want to check out. You estimate your debt, your income and your repayment plan and it will tell you your debt burden as well as your monthly payment.

Pretty cool.

I did the one on AAMC....thats when I came across the PAYE plan. Sounds like the best option for me personally but I dont know too much about this stuff haha

 

[Bacchus]

Not entirely true, whoops.

 

[Ost3oclast]

IBR isn't too bad during residency either. It's based off of previous year's income so as an intern your income was $. As a 2nd year your income will be 1/2 your salary and as a 3rd year it finally is based off a full year's salary.

That works out for me to be about $0 a month, $200 a month, and finally $400 a month.

Yeah thats not bad either! My main attraction to PAYE is the whole 20 year write off thing....although you do pay more in taxes on that 20th year.

 

[Bacchus]

You have to hope there is solvency though. That's why I'm not trusting PSLF.

 

[HalfListic]

Cool until it pulls your NSLDS information in 4 years later and is a real, concrete number :\.

lol, I also like to play monopoly.


I bet it gets real, really fast when its your own money for sure!

 

[Ost3oclast]

lol, I also like to play monopoly.


I bet it gets real, really fast when its your own money for sure!

I've been looking at my total COA for all 4 years and it seems like soo much money that it doesn't even seem real (or I can't comprehend hahaha).......

 

[Ost3oclast]

You have to hope there is solvency though. That's why I'm not trusting PSLF.

So are you going to be doing IBR now that you will be in residency?

 

[IH8ColdWeath3r]

Hey everyone,

I am also relatively new to the whole medical school loan thing, but have been spending the last day or two educating myself on borrowing this large sum of money for medical school. I have a few questions for you all who are currently in medical school.

I took out loans in undergrad, including federal subsidized and unsubsidized loans. I have been paying for those loans since graduating 2 years ago, but have yet to completely pay off both loans. Will my outstanding loans affect my ability to borrow the maximum amount of unsubsidized loans alloted to medical students, especially since I have been accepted OOS and waitlisted at my instate school which is significantly cheaper (~200K difference)

Also, is there a way to just combine/combine my loans from undergrad with my medical school loans, and start repayment once I have graduated from medical school? Is this what most people who have accumulated loans in undergrad do? I understand that interest will accrue during this time, but hey, nothing you can do about that right?

 

[Bacchus]

You should still be able to borrow. You can consolidate federal loans at the end of your four years.

 

[HalfListic]

Hey everyone,

I am also relatively new to the whole medical school loan thing, but have been spending the last day or two educating myself on borrowing this large sum of money for medical school. I have a few questions for you all who are currently in medical school.

I took out loans in undergrad, including federal subsidized and unsubsidized loans. I have been paying for those loans since graduating 2 years ago, but have yet to completely pay off both loans. Will my outstanding loans affect my ability to borrow the maximum amount of unsubsidized loans alloted to medical students, especially since I have been accepted OOS and waitlisted at my instate school which is significantly cheaper (~200K difference)

Also, is there a way to just combine/combine my loans from undergrad with my medical school loans, and start repayment once I have graduated from medical school? Is this what most people who have accumulated loans in undergrad do? I understand that interest will accrue during this time, but hey, nothing you can do about that right?

You should still be able to borrow. You can consolidate federal loans at the end of your four years.

bacchus is right, you are definitely able to take out federal loans. There are yearly limits to how much you can take out ($40K/year for Stafford & COA-other Financial Aid for Grad Plus). These will be unaffected by any previous loans.

Your only real potential limitation would be the lifetime, total loan, limit of somewhere around $220K. So, hopefully you didn't have to borrow an obscene amount for undergrad and you should be fine.

 

[IH8ColdWeath3r]

bacchus is right, you are definitely able to take out federal loans. There are yearly limits to how much you can take out ($40K/year for Stafford & COA-other Financial Aid for Grad Plus). These will be unaffected by any previous loans.

Your only real potential limitation would be the lifetime, total loan, limit of somewhere around $220K. So, hopefully you didn't have to borrow an obscene amount for undergrad and you should be fine.

is that what the # is? 220K? To me, this is an obscene amount of money but cost of attendance for 4 years at the DO school i've been accepted at comes to a whopping 264K. I can borrow (via Federal Stafford loans and Grad Plus loans) even though it exceeds 220 since it says UP TO COA, right?

 

[Bacchus]

220,000 is only for Stafford. Does not include GradPlus.

 

[darklabel]

220,000 is only for Stafford. Does not include GradPlus.

Does GradPlus always cover CoA no matter the amount?

 

[felix2929]

Yes but it is a higher interest rate and requires a credit check

 

[IH8ColdWeath3r]

Thank you guys for all of your help and timely responses.

 

[DrBumblebee]

.

 

[HalfListic]

Yes but it is a higher interest rate and requires a credit check

Does GradPlus always cover CoA no matter the amount?

Grad Plus does depend a bit on credit, but its just a soft check, meaning the credit score doesnt matter, you just cant have anything too negative in your credit history, or theyll make you get a co-signer. And, yes, it cover all of COA (determined by your school, not you) and it is a higher by about 1% point.

 

[Ost3oclast]

Grad Plus does depend a bit on credit, but its just a soft check, meaning the credit score doesnt matter, you just cant have anything too negative in your credit history, or theyll make you get a co-signer. And, yes, it cover all of COA (determined by your school, not you) and it is a higher by about 1% point.

Do you guys know what criteria the cosigner would need to have? I wonder if somebodies spouse would be able to sign. My credit is fine and all but I'm just curious.

 

[abolt18]

Anyone know how to calculate how much I'll owe upon exiting med school? I know that when I account for COL increase and tuition increase I end up with about 310 by the end of the 4 years BUT how do I figure out how much interest will accumulate over the 4 years?

 

[Bacchus]

My finaid office sent out a generic email saying that for every $1000 borrowed you can expect pay back an extra $400 over the life of the loan. Idk if this is 10/20/25 years.

 

[Ravizzle]

Anyone know how to calculate how much I'll owe upon exiting med school? I know that when I account for COL increase and tuition increase I end up with about 310 by the end of the 4 years BUT how do I figure out how much interest will accumulate over the 4 years?

WARNING!: THIS MAY CAUSE DEPRESSION

https://services.aamc.org/30/first/home

The amcas loan calculator is the best tool that factors in deferment through med school and residency (of desired).

Sent from my Galaxy S2

 

[LaughingMan]

WARNING!: THIS MAY CAUSE DEPRESSION

https://services.aamc.org/30/first/home

The amcas loan calculator is the best tool that factors in deferment through med school and residency (of desired).

Sent from my Galaxy S2

Ravizzle! I hope you give tours next year! Would love to meet you (granted I can even get an interview).

 

[Ravizzle]

Ravizzle! I hope you give tours next year! Would love to meet you (granted I can even get an interview).

Well I wish you luck on getting the interview!

Idk what the process is to become a student ambassador but it would be cool too give tours.

Regardless, feel free to send any questions my way. And let me know if/when you find out about the interview.

Sent from my Galaxy S2

 

[abolt18]

WARNING!: THIS MAY CAUSE DEPRESSION

https://services.aamc.org/30/first/home

The amcas loan calculator is the best tool that factors in deferment through med school and residency (of desired).

Sent from my Galaxy S2

Thank you, and yes that is more depressing than I ever imagined!

 

[abolt18]

Just wondering, upon completion of residency, does anyone know if it's possible to get a private loan to consolidate the student loans at a lower interest rate? Anyone know if there are banks or organizations that will give you 400K at 2-3% interest rate on something like a 10 yr plan? JW if there are viable options like this out there. To me, fed loans are only beneficial while in school/residency because they'll defer payment and do income based payments. Once you're out, they're awful with those grossly high interest rates!

 

[Mosonik]

Just wondering, upon completion of residency, does anyone know if it's possible to get a private loan to consolidate the student loans at a lower interest rate? Anyone know if there are banks or organizations that will give you 400K at 2-3% interest rate on something like a 10 yr plan? JW if there are viable options like this out there. To me, fed loans are only beneficial while in school/residency because they'll defer payment and do income based payments. Once you're out, they're awful with those grossly high interest rates!

It's also a benefit to stick with federal loans for any type of loan repayment programs. Most of them will only repay government loans

 

[abolt18]

It's also a benefit to stick with federal loans for any type of loan repayment programs. Most of them will only repay government loans

I was just searching/finding info on consolidating through lenders like SallieMae and banks. The fact that some of these companies offer consolidation at a 2-3% rate (at least back in '06 on the thread I was reading) is enough for me to not care about the Govt repayment. Unless I go into primary care, most repayment plans won't even pay my loans right? So a l little searching and I've found the answers to my questions.

 

[Mosonik]

I was just searching/finding info on consolidating through lenders like SallieMae and banks. The fact that some of these companies offer consolidation at a 2-3% rate (at least back in '06 on the thread I was reading) is enough for me to not care about the Govt repayment. Unless I go into primary care, most repayment plans won't even pay my loans right? So a l little searching and I've found the answers to my questions.

Not sure about that but for that kind an interest rate, I definitely understand why you're exploring. I wasn't aware of any private loans with that low of interest, unless they're variable rates, which of course, I wouldn't gamble on.

 

[user3]

You have to hope there is solvency though. That's why I'm not trusting PSLF.

IBR and PSLF are godsends

 

[Bacchus]

IBR and PSLF are godsends

I think IBR stick around, not sure if PSLF will. That's a lot of debt to just forgive.

 

[HalfListic]

I think IBR stick around, not sure if PSLF will. That's a lot of debt to just forgive.

thats my thoughts as well...Hopefully private options for loan payoffs will stick around, and increase, for those who go into PC, or even lower paid specialties in high demand.

I have heard of several people who have agreed to work, usually rurally, for a number of years at a hospital that both pays them well and forgives their school debt.

 

[IH8ColdWeath3r]

thats my thoughts as well...Hopefully private options for loan payoffs will stick around, and increase, for those who go into PC, or even lower paid specialties in high demand.

I have heard of several people who have agreed to work, usually rurally, for a number of years at a hospital that both pays them well and forgives their school debt.

Yes, but this is even a crapshoot. My aunt, who graduated from PA school 2 years ago agreed to work in a very rural area in CA. She works in a clinic and deals primarily with a large hispanic population, the majority of whom cannot even speak english and are in dire need of medical care. She speaks fluent Spanish and loves her job (and would work their regardless of whether they pay her PA school loans or not), but, part of the agreement was that she would get a salary + 25K would be tacked off from her loans for each year she worked there. However, due to budget cuts and some sort of numbering system that ranks rural areas, they informed her last year that the area no longer qualified as rural and that they would not be paying back her school loans, and that she would have to pay out of pocket using her salary. This obviously infuriated her as it would anyone else. Im not saying all programs are like this, but the particular program did this and my aunt had no choice but to pay out of pocket.

 

[IH8ColdWeath3r]

Hey everyone,
quick ? about FA. So i did the entrance counseling required at my school and filled out my FAFSA. When I was filling out the FAFSA, there was a document (a chart titled 2012-2013 Federal Direct Student Loan Terms) that showed the different types of loans (3) in total, including the direct stafford subsidized loan, direct unsubsidized, and the direct grad plus loan. However, when I looked at the FA documents online for my medical school, the 2012-2013 Federal Direct Student Loan Terms was up and the chart only showed the Direct Stafford Unsubsidized Loan and the Grad Plus Loan. My question is, can we as medical students not finance part of the COA with the SUBSIDIZED loan or are we only subject to borrowing using the unsubsidized loan and direct grad plus (assuming no scholarships, etc.)


Oh also, just curious as to what kind of repayment plans you guys found appealing and are considering. I am new to this and sat down with my dad and looked at some of the options. He was leaning toward the Extended Repayment Plan because it allows you to make minimum payments (incase you have a financial emergency) but at the same time allows you can adjust/increase monthly payments should your salary increase/promotion.

 

[Bacchus]

Hey everyone,
quick ? about FA. So i did the entrance counseling required at my school and filled out my FAFSA. When I was filling out the FAFSA, there was a document (a chart titled 2012-2013 Federal Direct Student Loan Terms) that showed the different types of loans (3) in total, including the direct stafford subsidized loan, direct unsubsidized, and the direct grad plus loan. However, when I looked at the FA documents online for my medical school, the 2012-2013 Federal Direct Student Loan Terms was up and the chart only showed the Direct Stafford Unsubsidized Loan and the Grad Plus Loan. My question is, can we as medical students not finance part of the COA with the SUBSIDIZED loan or are we only subject to borrowing using the unsubsidized loan and direct grad plus (assuming no scholarships, etc.)


Oh also, just curious as to what kind of repayment plans you guys found appealing and are considering. I am new to this and sat down with my dad and looked at some of the options. He was leaning toward the Extended Repayment Plan because it allows you to make minimum payments (incase you have a financial emergency) but at the same time allows you can adjust/increase monthly payments should your salary increase/promotion.

There are no subsidized loans for us anymore. 🙁

Repayment doesn't have to be thought of until the end of 4th year into internship. I will do IBR and hope PSLF sticks around.

 

[user3]

Yes, but this is even a crapshoot. My aunt, who graduated from PA school 2 years ago agreed to work in a very rural area in CA. She works in a clinic and deals primarily with a large hispanic population, the majority of whom cannot even speak english and are in dire need of medical care. She speaks fluent Spanish and loves her job (and would work their regardless of whether they pay her PA school loans or not), but, part of the agreement was that she would get a salary + 25K would be tacked off from her loans for each year she worked there. However, due to budget cuts and some sort of numbering system that ranks rural areas, they informed her last year that the area no longer qualified as rural and that they would not be paying back her school loans, and that she would have to pay out of pocket using her salary. This obviously infuriated her as it would anyone else. Im not saying all programs are like this, but the particular program did this and my aunt had no choice but to pay out of pocket.

so she still has to keep her part of the contract (to work there), while they don't (paying towards her loans)? Was it stated in the contract that the loan repayment was contingent on the area being considered "rural"? If not, I don't see either 1) how them discontinuing her loan repayment was not a breach of contract, or 2) if not a breach, why someone would agree to such a contract knowing the loan repayment could be stopped at any time. I'm sure there is more to the story.