Private student loans for medical school

[rodmichael82]

I just called my bank today and they provide up to $250k in student loans for medical students with an interest rate of 3.5 % which is half of the federal student loans which is 7.5 %

Why the hell shouldn't us medical students just take private loans?

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[Pons Asinorum]

Be careful to consider the repayment terms re: forbearance and the options for outside repayment. Maybe you know you'll never want to do it, but federally-backed loans have the option to be payed off by a number of programs, most aimed at serving underserved populations, post residency.

 

[DrOwnage]

Be careful to consider the repayment terms re: forbearance and the options for outside repayment. Maybe you know you'll never want to do it, but federally-backed loans have the option to be payed off by a number of programs, most aimed at serving underserved populations, post residency.

^^ This.

Plus, do some research. I got the same thing from Discover in the mail promising certain rates, but the catch is none of them are fixed and have a higher cap rate than you would believe. Give them a call too, most private companies have a legal obligation to tell you to take out federal loans as your primary source of money for higher education such as professional school.

 

[EngrSC]

Hello - I'm not familiar with student loans (never had to use one) but I am considering taking out a small private loan (no more than $5000) for my vet school prereqs (I'm a post-bacc student). This may be an incredibly dumb question - if I apply and am approved for a loan, will the money be deposited into my account automatically or can I only take a hundred dollars here and there as I need it? So far I've been able to pay for my classes out of pocket but would like to have the loan as backup but really only pull money from it as needed. Does that make sense? Any help would be greatly appreciated, thanks!

 

[Pons Asinorum]

Hello - I'm not familiar with student loans (never had to use one) but I am considering taking out a small private loan (no more than $5000) for my vet school prereqs (I'm a post-bacc student). This may be an incredibly dumb question - if I apply and am approved for a loan, will the money be deposited into my account automatically or can I only take a hundred dollars here and there as I need it? So far I've been able to pay for my classes out of pocket but would like to have the loan as backup but really only pull money from it as needed. Does that make sense? Any help would be greatly appreciated, thanks!

I think you should call or stop by your bank of choice and ask there. I'm sure it's been done, the LOC that you may draw down at any time, but the financial climate is...variable these days. Just go talk to someone at the bank. Also, what you're talking about sounds suspiciously like a credit card.

 

[EngrSC]

I think you should call or stop by your bank of choice and ask there. I'm sure it's been done, the LOC that you may draw down at any time, but the financial climate is...variable these days. Just go talk to someone at the bank. Also, what you're talking about sounds suspiciously like a credit card.

Thanks! And meh, I have 1 credit card and I really only keep it on hand for emergencies and/or unexpected expenses that come up

 

[theshellyb]

Hello - I'm not familiar with student loans (never had to use one) but I am considering taking out a small private loan (no more than $5000) for my vet school prereqs (I'm a post-bacc student). This may be an incredibly dumb question - if I apply and am approved for a loan, will the money be deposited into my account automatically or can I only take a hundred dollars here and there as I need it? So far I've been able to pay for my classes out of pocket but would like to have the loan as backup but really only pull money from it as needed. Does that make sense? Any help would be greatly appreciated, thanks!

Just be aware that when you take out private loans, especially for things like pre-reqs, that when you actually start school there is no obligation on the part of the lender to put the loan in deferment while you're in school (as opposed to the federal loans, which go into deferment automatically). So you might have to be paying that loan back while you're a student making no money.

 

[EngrSC]

Just be aware that when you take out private loans, especially for things like pre-reqs, that when you actually start school there is no obligation on the part of the lender to put the loan in forebearance while you're in school (as opposed to the federal loans, which go into forebearance automatically). So you might have to be paying that loan back while you're a student making no money.

Good to know!!