Hello, I am looking to finance my medical education with private loans. In the case that I only take out private loans to pay for medical school, would I need to fill out a FAFSA? I understand a FAFSA is necessary to determine eligibility for Federal Aid such as Stafford, Plus, and Perkins. I would just like to take out one loan that would make it easier to track. And I have checked the interest rates from some private lenders which is actually less than say those for GradPlus. Does anyone have any experience?
I would tread carefully with non-government loans. Yes, the private loans are lower now, but they are generally variable rate loans. Also you might not get deferred during residency. Additionally, unlike federal loans, if your interest is capitalized continuously, you will end up paying interest on interest during your deferment. While you collect interest on your non-subsidized federal loans, the interest is rolled into the loan at the start of repayment (called capitalization), so you won't pay interest on the interest until you start repayment.
The OP may be attending RVU, which is not eligible for federal loans yet. So Stafford loans may not be an option for them.
OP, contact your schools financial aid office for specifics. They may have agreements with certain lenders that are better than the terms you see online.
