borisd

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Hi, I just wanted to know how taking out loans work out....Do you receive a check from them and it pays for rent and everyday living? Can someone please explain how this process works? I'd appreciate it.
 

dara678

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basically yeah ... you apply for your loans, the loan company gives your school money, the school takes out all of your tuition and fees, then gives you a check for the difference. you use this money to pay for everything besides school (books, rent, food, etc.). at my school the check comes once a semester, but I think it varies from school to school. So you really have to budget your money well, cuz it doesn't come out to very much ...
 

docchick

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The money is usually enough for rent, car expenses, and other misc. stuff...you can't live like a king - but people still go out for dinner and shop and stuff....
 

Man In The Box

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It's enough to cover your expenses. I feel rich cause I was so broke in college! Just remember that you've got to pay it back so try not to borrow excessively. On the other hand, it's better to borrow more than you need than not enough as medical school is more than stressful enough without having to worry about your looming electric bill. Some may disagree, but if you don't have parents with $$$ I'd borrow at least $1000 more than you think you'll need if you can. Remember, some years you will probably be eligible for more aid than others so plan for this ahead of time. Particularly make sure that you have enough to cover your interview travel expenses during your 4th year (the year that typically allows you to borrow the least).
 

Man In The Box

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No, there is a set limit to the amount that you can borrow each year based on your school's estimated cost of attendance which varies some from year to year based on length of the term (eg M1 year is 9 months whilst M3 year is 12 months), textbook prices, etc. The maximum amount that you can borrow may be lowered if you have other student loans or bad credit. I suppose that if you had a really loaded bank account you'd might disqualify yourself for some of the more favorable loans such as the subsidized Staffords and have to take out less-favorable loans instead. I'm fairly certain that it wouldn't alter the maximum that you can borrow because I know quite a few people from wealthy families who take out school loans and use it to buy a house or whatever.
 

nellish

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I have read that you can't use federal loans to pay for car payments. If you are like me and aren't loaded, what is the best way to pay for a new car during medical school?
 

DrThom

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nellish said:
I have read that you can't use federal loans to pay for car payments. If you are like me and aren't loaded, what is the best way to pay for a new car during medical school?
Don't let them find out...
 

gary5

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borisd said:
Hi, I just wanted to know how taking out loans work out....Do you receive a check from them and it pays for rent and everyday living? Can someone please explain how this process works? I'd appreciate it.
I'm a nontrad. Before med school, I called the finaid dept and asked if I'd be able to borrow money to pay for my mortgage. They said "yes". As is often true in life, people give wrong answers. Now in med school, the reality is that fin aid dictates your budget. They calculate an amount and you have to survive on it. If you're coming from undergrad, it'll probably be fine. If you're a nontrad who is used to being able to buy things, you'll feel dirt poor. Anyway, it's survivable. Plan on just getting by. If you get really cheap rent, you may have more money to spend, but if fin aid can, they'll just reduce the money that you get.
 

Man In The Box

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They take out your tuition then cut you a check for whatever is left. The estimated cost of attendance includes living expenses which is obviously meant to be spent on things like rent, car, etc. They don't ask what you spend it on...you could spend it on heroin if you wanted :) .
 

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nellish said:
I have read that you can't use federal loans to pay for car payments. If you are like me and aren't loaded, what is the best way to pay for a new car during medical school?
Technically you're not allowed to, but it's not uncommon.

For us, financial aid gave us a breakdown of how much they budgeted for each part of living expenses (i.e. rent, food, insurance, etc.). But those are just their estimates, so in order to add a car payment in, you just have less available for other stuff. Which is what you'd do with any sort of income. They don't follow what you do with the money after they give it to you. The only difficulty I ran into was that I couldn't get a loan by myself without a job (since obviously my only income would be loans) so my father ended up co-signing the loan. It's still my car and I make all the payment, but his name had to be on the loan, which also isn't uncommon.
 
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Blade28

Financial aid sent me a check every semester (though it's been via direct deposit the last 1 1/2 years). They deduct the cost of tuition and fees, then send me the rest.
 

Bigsheed920

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Can anyone post ballpark numbers for how much money they recieve with this loan check per semester. I would like to hear from students who do not recieve any financial help from their parents.
 

brody17

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How much is usually budgeted for a car payment and insurance? Any suggestions on appropriate cars?
 

Man In The Box

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Bigsheed920-

I have about 10K left over after tuition is paid to cover all of my expenses.
 

fun8stuff

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Man In The Box said:
Bigsheed920-

I have about 10K left over after tuition is paid to cover all of my expenses.
per semester? per year?
 

EvoDevo

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fun8stuff said:
per semester? per year?
Okay, here's a back of the napkin example:

TX students have a state-mandated budget of ~28K per year. This is broken down into two semester payments for the M1 & M2 years (b/c you're only in school 9 months). So you have -

UT San Antonio tuition is ~ 11K/year --> 5.5K per semester.
Annual budget: 28K/year --> 14K semester.

(Semester budget) - (semester tuition) - (origination fees, ~ 4%) = What you get back.

($14,000) - ($5,500) - ($560) = $7,490 per semester.

Of course these numbers will vary by school, and I believe that you can borrow private money above the budget amount.

Hope this helps.
 
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Blade28

Bigsheed920 said:
Can anyone post ballpark numbers for how much money they recieve with this loan check per semester. I would like to hear from students who do not recieve any financial help from their parents.
I borrow around $35k per year, so that's around $17k per semester. After tuition and fees are taken out, I'm left with around $9k per semester to live on.
 

Man In The Box

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fun8stuff said:
per semester? per year?
Sorry guy for not elaborating. It's per semester. When calculating your budget make sure that you take into account the following things that many people forget: health insurance (probably required at your school), car insurance, gas money, school books, fast-food, etc. Even if you skimp on textbooks, which probably isn't a bad idea as long as you know some people who do have them, you'll undoubtedly still spend lots of $ on review books. $800-1000 a semester is a reasonable estimate although you could probably get by with spending around $400 if you only buy the bare minimum needed to pass (not something I recommend). Make sure to overestimate your budget by about $1000 if possible. There will always be unexpected expenses in life and this way you won't be s.o.l. when your car breaks down or whatever. Good luck with school!
 

skiz knot

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brody17 said:
How much is usually budgeted for a car payment and insurance? Any suggestions on appropriate cars?
Check with your school. They may have a one time ability to increase your financial need so you can pay for a car (or at least a portion of it). UIC will increase your financial need by 5k for auto expenses. Keep in mind that this loan will likely have to be from a private lender. Either an education loan (easier to get b/c you are a student) or a regular old private loan. Keep your credit in good order!

Anyway, get something cheep and reliable. It would not be time to buy that 67 Camaro you have always wanted because someone is selling one that needs work for 10G. You might want to think about leasing a sub/compact car for 3-4 years during med school.