Residency loans

[da8s0859q]

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Found a few older threads on this but figured it was worth a recent one.

Looking to get a residency loan for a combination of debt consolidation and moving expenses a few states away.

Seems like the best options I've found are:

1. Discover Residency Loan: $18k maximum, highest fixed interest of ~8.75% - 9.00% in repayment depending on the usual point discounts, 9 month grace period w/ deferment through residency, interest capitalizes thereafter

2. Wells Fargo MedCAP-Xtra: $15k maximum, highest fixed interest rate of ~8.50% - 8.75% in repayment depending on usual point discounts, 36 month grace period w/ additional +24 months for deferment if >3 years of residency, interest capitalizes at medical school graduation(?), then annually thereafter

My residency contract is obviously not effective until orientation, and I will not have a cosigner.

Feedback or experiences with the above -- or similar from another lender -- would be appreciated.

 

[Igor4sugry]

Not sure if going with loan that is >8.5% is a good way to consolidate loans. Especially from a private bank that will go after you like its their job if you miss payments.

 

[da8s0859q]

Not sure if going with loan that is >8.5% is a good way to consolidate loans. Especially from a private bank that will go after you like its their job if you miss payments.

Would agree, but a good amount of the loan would be used to zero out a credit line or two which has an interest rate much higher than the loan. Not to mention the grace period and deferments on these.

Is there a better option I'm missing?

 

[CATrtb]

bump

 

[Red Beard]

If you can consolidate other consumer debt and get a much lower interest rate on it by doing this, then go for it. But I would be eating ramen and couch surfing in your new residency locale to avoid taking on any more consumer debt while you wait for your first paycheck. In addition, I would NOT defer payments on the new loan during residency.