1)
Do grades that old and/or grades for courses that won't transfer to a 4-year college still count in calculating your GPA on medical school applications?
Yes, allopathic schools do include all of your academic work; there is no expiration date on post-secondary grades, ever. All of your undergraduate post-secondary grades are averaged in together. The importance in this is that medical schools tend to use your undergraduate GPA in cut-offs and admissions formulae. In allopathic admissions, you can't erase your past, so it will affect your admissions process. However, you can remedy this somewhat by demonstrating your current academic prowess by trending as many A's as you reasonably can in a fulltime academic schedule, preferrably at a 4-year institution (although, if you must attend a 2-year institution for a good reason, it'll probably be okay; many have without a hitch). You want to attempt to raise your undergraduate GPA as high as possible. You want to make the GPA cut (which can be different for each school). Once you do that, schools look at your trends.
Osteopathic schools are more forgiving in terms of grades. While all of your post-secondary work still needs to be reported as in allopathic schools, unlike in AMCAS, AACOMAS, the primary application service for DO schools, allows for grade replacement. What this means is that you are able to retake classes and your most current grade counts in your GPA, not the previous one. Only the newest grade gets calculated into the GPA. This is awesome and of significant benefit to some people. Also, the school in which I interviewed didn't even bring up my past academic performance, they were interested in my extracurricular accomplishments and who I was as a person. My poor past performance never came up.
Bottom line: do well in all of your classes from now on; trend A's, in a fulltime schedule, if possible.
2)
Other advice:
Study like mad for the MCAT. You want to score 30+. Remember, the MCAT is both a test of your basic knowledge and a test of your test-taking abilities. Take as many practice tests as you can under real conditions. Learn from your mistakes and fill in the holes in your knowledge. Study hard and intelligently. In the initial cut in the admissions process, MCAT and GPA are both highly important factors. They both need to be as good as you can get them.
Demonstrate your commitment to medicine. Shadow doctors and learn exactly what they do. This is crucial. You will be asked why you want to be a doctor, so you need to cite real examples based on what you know about the profession. Shadowing can help you do this. My shadowing experience came up numerous times during my interview. Furthermore, you will want to obtain some clinical and volunteer experience. You can combine the two, if you want; many people do. It's important to demonstrate your commitment to community service and to show that you know what it's like to be with sick people. These activities, while important, are all secondary to your academics however. Never forget that.
There is probably some discrimination going on; it's natural since there are parts of the admissions process that are subjective. However, I think by-in-large most schools judge you more on your numbers. Older folks and non-trads tend to have a spotted academic history, so their numbers may be lower. I think if your numbers are competitive, you will be looked at, so don't dispair. Allopathic schools tend to have higher academic cut-offs and averages. The averages in Osteopathic schools are lower, but they also look at your extracurricular activities more closely. Both types of schools are successful in turning out excellent physicians. You may want to research Osteopathy, as your past academics are less likely to be used against you there.
When it comes time to apply, the usual SDN advice is to apply broadly. Make sure you write good personal statements and essays, too.
Good luck!
