Private loan vs. working

[clinicallabguy]

First I'll post my question, and then some explanation:

Which would you do if you were me:

Take out direct to consumer private loans (about $5K per year)

OR

Work ~10 hrs/wk at 22+$ an hour.


Okay, explanation: I am married and will soon have 2 kids. I will start medical school this year, and the cost of living included in the COA at my medical school is $17K. That's about $1,400 a month, and will not cover the expenses for a family of four. My wife will likely not be working, unless we absolutely need her to. I also know some M1's w/ families at the same medical school, and the school did not increase the COA for them (but I'm still going to ask).

I think that I need about $1,800 a month (or $400 more a month) which would be another $5K a year that I need. I can either get a direct-to-consumer loan for that amount, or I can work as a medical technologist on friday or saturday nights at ~$22/hr. That would give me an extra $10K a year.

There are pros and cons to both. I've read many posts about not working in medical school, and I don't want my grades to suffer. But, in residency I will have to start repaying my direct-to-consumer loans back right away, right?

What would you do?

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[joz1234]

Hi! Wife of a PGY-3 resident here. When we were in med school we took out government loans (they let you have a larger max if you have family). I stayed home with our son and we took out about $40-45 K per year.

You may not be able to work 10 hours a week and your family will want to see you a little bit. I would say for your sanity and for your marriage, look into having your government loans enlarged for family circumstances. Don't do private loans until you absolutely must, around 3rd or 4th year...and even then, make sure they will defer until after residency. Also, never consolidate any loans with your wife's (if she has any from college). This way she will not have that debt if something happens to you.

Hope this helps.

 

[dragonfly99]

I would just caution you about thinking you can work during med school.
I don't know, maybe you CAN do it, but in my case personally, I seriously don't know if I would have passed 1st and 2nd year if I had tried to have a job on the side. I don't know of even one person in my class who had any kind of paying job during med school...we truly had all we wanted just keeping our heads above water academically speaking...but maybe some other med schools are different. I suppose that you could try it 1st semester of 1st year and see how it goes...depending on your class hours (i.e. just in the a.m. vs. all day), etc. maybe you can make it work.

I agree with the above post. I'd look into seeing if you can get more Stafford loans and/or other gov't backed loans. Try to avoid private loans as much as possible. In the end, 5k/year more in loans isn't going to make or break you in terms of paying those back later.

 

[GeraldMonroe]

Working isn't a good idea.

You want to pass medical school. The loss for failing is gigantic.

You want the best grades you can possibly get in medical school. The rewards for scoring the competitive residency of your choice can be substantial - including financial rewards that will dwarf the interest paid on even a private loan. Some medical specialties consistently pay $100k or more above the average physician salary, and will probably continue to pay that well for decades.

 

[clinicallabguy]

Hi! Wife of a PGY-3 resident here. When we were in med school we took out government loans (they let you have a larger max if you have family). I stayed home with our son and we took out about $40-45 K per year.

I agree with the above post. I'd look into seeing if you can get more Stafford loans and/or other gov't backed loans. Try to avoid private loans as much as possible. In the end, 5k/year more in loans isn't going to make or break you in terms of paying those back later.

Thanks for your responses. Yes, I agree. If I can get more gov't backed loans, then it's a no brainer. My dilemma is that according to 2 current MS1's at my med school, this medical school does not increase the cost of attendance for students with families. I will probably not be able to increase the stafford or grad plus loans. That's why I'm wondering which of the two evils (work one shift a week vs. private loans) is the lesser one.

I would just caution you about thinking you can work during med school.
I don't know, maybe you CAN do it, but in my case personally, I seriously don't know if I would have passed 1st and 2nd year if I had tried to have a job on the side. I don't know of even one person in my class who had any kind of paying job during med school...we truly had all we wanted just keeping our heads above water academically speaking...but maybe some other med schools are different. I suppose that you could try it 1st semester of 1st year and see how it goes...depending on your class hours (i.e. just in the a.m. vs. all day), etc. maybe you can make it work.

I hear you. And, I've had anxiety over the thought. I would not consider it for extra spending money. The reason I'm considering it is because my family needs health insurance, and my kids need diapers. Would you take out a private loan instead, in that case?

 

[dragonfly99]

I don't know...I just know at my school that nobody managed to work an outside job, that I know of. I mean honestly we/they would have just failed I think, if trying to work and study. But it might work at a PBL school or one that has all pass/fail grading in the 1st two years. I don't know.

But 5k extra/year, even if it's private loans, likely isn't going to make or break you later.

Can't your wife get some little part time job, or take in a kid to babysit or something? Just an idea...