Personal Expense Loan/HPSP?

[SeminoleFan3]

I know the stipend that you get is something like $1320 before taxes, and given where I'm going to live, that's really not going to be enough. Has anyone taken out a personal expense loan (something like 5K/yr) while being on HPSP? If so, exactly how does it work? Can you get that sort of loan deferred while in school?

---

Members don't see this ad.

 

[RugbyJC]

I know the stipend that you get is something like $1320 before taxes, and given where I'm going to live, that's really not going to be enough. Has anyone taken out a personal expense loan (something like 5K/yr) while being on HPSP? If so, exactly how does it work? Can you get that sort of loan deferred while in school?

I think there's another post on this somewhere here that will have more information, but here's my situation:

Some schools or maybe its the federal gov't--im not too sure--will count your stipend and tuition as income and somehow this limits you to what you can and cannot take out in loans in addition to your HPSP stipend. My first year this was not the policy and I took out about that much in loans and i was able to live comfortably. The next year I didn't take out any financial aid and increwed a little more credit card dept than I would have liked, but the standard of living where I went to med school was pretty high...and I bought a used car that year...and I think I spent more at OIS on uniforms than my active duty pay...and I bought a lot of texts/review materials that were not required. This year I tried to take out loans again, but wasn't able to get that much because of the new policy which I mention above, but for next year (my fourth year) I qualify for almost 4 grand per semester due to interviews, step II fees, transportation, etc. and I think I am going to accept all 8 grand of it to get out of credit card dept (lower interest rates on the loans) and to live a little less frugally.

Bottom line: depending on where and how you live, the 1300 per month may or not be enough, but regardless I would recommend a little extra money first year for unplanned expenses and for a little bit of a buffer when you are sending in rimbursements or health insurance, but know that after first year you might not qualify for as much in federal loans because of your "income".

 

[Dr.Inviz]

I took out loans, and my classmates did as well. Even if the stipend covers your living expenses, there will invariably be times you need a couple grand extra (interviewing at civilian programs, traveling for Step 2CS, etc).

Unlike RugbyJC, my school did not count the stipend as aid, although the tuition payments were counted. Thus I was able to take out Stafford loans to cover incidental expenses. I would ask the HPSP folks at your school to see what your situation will be.

So you participated in the HPSP program? Any benefits/negatives from your personal experience?

 

[jfitzpat]

Does anyone happen to know Creighton's policy on this?

 

[Ex-44E3A]

Lots of HPSP students take out additional student loans (your financial aid dept. will limit what you can borrow, just to keep some studs out of trouble).

It depends on cost-of-living where you are. Even living in the ghetto (which was fine... I was never really at my apartment... spent all my time at hospitals or the med school), I found that the HPSP scholarship wasn't quite enough money

I also worked full-time while in school (although we were officially not allowed to work), but that money went for other things

 

[RugbyJC]

Does anyone happen to know Creighton's policy on this?

I am so unsure of this that I probably shouldn't be posting, but I THINK the policy that I talk about above is a federal policy--not just a school one. It was implimented last year for the first time. Ill try to get more info on this for you.

 

[K-steiner]

My medical school is not in a particularly expensive city, but I found the stipend barely covered my monthly expenses. I can only sympathize for my friends in Miami and New York. I also took up a part-time job on the side to help out and received a subsidized loan to have a buffer of cash in case of the circumstances mentioned by others above (Step 2 CS, car repairs, unforeseen expenses). This has worked out well, and has kept me out of trouble . You might also check out the commissioning loan (2% over 5 years) - I think it's offered by USAA and Navy Federal Credit Union. You have to start making payments on it immediately, which you can probably take out of its principal and put the rest in savings for a rainy day. Do the math on this and see if it pencils out for you, based on how much time you have left in school.

 

[Heeed!]

I have a wife + 3 kids. I've borrowed A LOT of money to get through school. At the very least, get the $8500 in subsidized Stafford loans.

 

[SeminoleFan3]

I contacted the fin. aid department, and they said that I'm authorized to take out the difference between the cost of attendance (~$66,000/yr) and what the Navy will pay. After the stipend is included, that leaves me with about $3500 or so to take out a year. Not so bad.