anilt007

premedgator
10+ Year Member
May 30, 2006
7
0
Status
Pre-Medical
Hey guys,

So im pretty sure this isnt the best place to get financial advice, but I did want to see what everyone was doing to pay for med school this fall. Cost of Attendance at Tourocom - NY this fall is around 60,000 a year. Now thats just money I dont have nor do my parents have so its loan time. The obvious loans are the Stafford Loans Subsidized and Unsubsidized (fixed interest at 6.8%for up to 40,500). I will be taking those out. The hard part is after that for the remaining 20,000. The Federal Grad Plus loan has a fixed interest rate of 8.5% and it can be consolidated after graduation. The problem is 8.5% is RIDICULOUSLY high! Private student loans have prime rate right now at 5.5 percent but it is variable meaning it can go up and down every month (and will go up and down every month) I have looked at the past 5 years of interest rates and it has gone as high as 9.1 percent and as low as 4.5 percent.

So my thing is should I taked out the grad plus and eat the 8.5% or take out the private loan and risk the variable interest rates. My credit is excellent so I will have no problem taking the private education loan.

For those of you taking out loans and need more than stafford...what are you guys doing?
 

ATrain

10+ Year Member
Feb 25, 2008
290
0
Biddeford, ME
Status
Medical Student
Hey guys,

So im pretty sure this isnt the best place to get financial advice, but I did want to see what everyone was doing to pay for med school this fall. Cost of Attendance at Tourocom - NY this fall is around 60,000 a year. Now thats just money I dont have nor do my parents have so its loan time. The obvious loans are the Stafford Loans Subsidized and Unsubsidized (fixed interest at 6.8%for up to 40,500). I will be taking those out. The hard part is after that for the remaining 20,000. The Federal Grad Plus loan has a fixed interest rate of 8.5% and it can be consolidated after graduation. The problem is 8.5% is RIDICULOUSLY high! Private student loans have prime rate right now at 5.5 percent but it is variable meaning it can go up and down every month (and will go up and down every month) I have looked at the past 5 years of interest rates and it has gone as high as 9.1 percent and as low as 4.5 percent.

So my thing is should I taked out the grad plus and eat the 8.5% or take out the private loan and risk the variable interest rates. My credit is excellent so I will have no problem taking the private education loan.

For those of you taking out loans and need more than stafford...what are you guys doing?
I'm going with the Grad Plus. That rate may seem high, but there are certain benefits to going the federal route, as you have insinuated
 

prionsRbad

Mooooo
10+ Year Member
5+ Year Member
Mar 23, 2007
1,907
4
Status
Resident [Any Field]
I'm taking out the remainder of my loan (~$12,000) in Grad Plus.

Ed America offers the Grad Plus with NO origination fee, 0% default fee and 0.60% interest reduction fee if you enroll in auto-payment.:thumbup:
 

ATrain

10+ Year Member
Feb 25, 2008
290
0
Biddeford, ME
Status
Medical Student
I'm taking out the remainder of my loan (~$12,000) in Grad Plus.

Ed America offers the Grad Plus with NO origination fee, 0% default fee and 0.60% interest reduction fee if you enroll in auto-payment.:thumbup:
Wachovia isn't too bad either...I am running with them for my Staffords as well
 

prionsRbad

Mooooo
10+ Year Member
5+ Year Member
Mar 23, 2007
1,907
4
Status
Resident [Any Field]
Wachovia isn't too bad either...I am running with them for my Staffords as well
Ah nice. DCOM gave us a recommended lenders list and Wachovia wasn’t on it, although we didn't have to choose one from the list, but I went ahead with Ed America for my Staffords and Grad Plus.
 

Kateb4

10+ Year Member
Nov 28, 2006
871
2
Chicagoland
Status
Attending Physician
In my brain (which is not financially inclined) I think Federal Loans = defered until done with school/residency, private loans = won't always defer (I know some do, but not all). With our economy as low as it is now, I understand that you may get lower rates outside of the fed loans, but I think that in 4, 8, 10 years when you will be paying on it, the rates will have increased pretty substantially from that teaser rate of 5.5 if it's adjustable.