Residency Relocation Loan

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giznut12

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Can anyone give me some advice on residency relocation loans? Who did you borrow from? What kind of interest rates did they offer, etc..
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citibank has one where you can borrow up to 12K but the interest rate is TERRIBLE (~20%) and my credit is amazing so if yours is less than perfect it might be higher. then again, most of these loans are like that. the advantage of this loan is you dont have to pay it back the entire time youre in residency. you can apply online and youll have the check in about a week.

http://studentloan.citibank.com/slcsite/fr_apnow.htm
 
My rate with citibank is much lower than 20% and my credit is not that great because of high credit card debt. I was rejected by a few places before getting approved by citibank.

I took this from their website...

CitiAssist® Undergraduate, Graduate, Health Professions and Residency, Law and Bar Study Loans Variable4 Rates as low as 7.00% (6.39% APR)4
Note: Rates vary - Refer to APR examples for your school and loan type.
 
I took out several residency/relocation loans, including one from Citibank, and I NEVER paid anywhere near 20% interest. Mine were all 8-9%, and none have to be paid back before the end of residency. Granted interest rates have risen a little since then, but not that much! My credit score is around 730, if that helps.

Check out Access Group, I think they are one of the better companies out there.

Also check out: Sallie Mae, Key Bank, Citibank, Nellie Mae.
 
I took a $15000 residency/relocation loan from Key bank. It doesn't have to be paid back until after residency but it does accrue interest during that period. The loan has a floating rate of LIBOR +2.9% while still in medschool and LIBOR +3.75% thereafter (now). LIBOR is the rate that banks charge when they lend to other banks. LIBOR currently 5.48% but it's variable, so it could go up a lot more in the next five years or so. My rate was 7.1% last time I recieved mail from the company. Going by the current 1 year LIBOR, my loan rate is now 9.23%.

I consider this a ****ty loan and am currently looking into refinancing it. It's first on my list of student loans to repay.
 
MM9 said:
http://www.salliemae.com/get_studen...grad/med_school_loans/medloans/private/medex/

The MedEx loan from good old Sallie.

Up to 12k, rate is prime +1, and repayment doesn't start until 36 months after graduation. (interest is, of course, accumulating during that time).
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Prime rate is currently 8%, so the loan described above is a 9% loan (and rising). Not great.

A year ago prime rate was 6%.

Keep in mind we're at the early end of a period of rising interest rates. Not a good time to have a floating rate loan.
 
The great thing about RRL (and also the double edge) is you can take out more than one. My rates were around 10% for both.
 
imtiaz said:
citibank has one where you can borrow up to 12K but the interest rate is TERRIBLE (~20%) and my credit is amazing so if yours is less than perfect it might be higher. then again, most of these loans are like that. the advantage of this loan is you dont have to pay it back the entire time youre in residency. you can apply online and youll have the check in about a week.

http://studentloan.citibank.com/slcsite/fr_apnow.htm
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I couldn't read the terms without registering at the site. Does your loan accrue interest during deferrment? If not then, assuming you pay this off in the same time as the other loans mentions (SM, key bank etc.) then the bottom line would be similar. If you are accruing interested at anything close to 20% then you need to get the hell out of that loan now.
 
Holy shiite!! I had no idea residency loans weren't low interest loans like other student loans. That sucks. :(
 
Orange Julius said:
I couldn't read the terms without registering at the site. Does your loan accrue interest during deferrment? If not then, assuming you pay this off in the same time as the other loans mentions (SM, key bank etc.) then the bottom line would be similar. If you are accruing interested at anything close to 20% then you need to get the hell out of that loan now.
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All private loans accrue interest during deferments. The only loan that does not is Subsidized Stafford Loans.
 
I would suggest suntrustbank.go to their website ,suntrustbank.com.I got a good deal.I really liked it.
 
I think Wells Fargo too does Residency/Relocation Loans.
 
Here it is a list of lenders compiled by UC Davis School of Medicine

http://www.ucdmc.ucdavis.edu/ome/finaid/2009R&RChart022509.pdf

Residency and Relocation Loans: The federal Education Department (ED) has ruled that expenses related to medical residency applications and interviews are not 'educational expenses' and therefore cannot be recognized or funded with financial aid. ED defended this ruling by saying that applying and interviewing for residency positions are not required to obtain the Doctor of Medicine degree. This ruling prevents the School of Medicine financial aid office from awarding any federal or university funds specifically for residency application or interview costs.

To fill the funding void created by ED's ruling, some private lenders have developed loan programs specifically for final-year medical students who incur residency application and interview expenses. These loans do not require certification by the financial aid office. However the loans are more expensive than university or federally-guaranteed loans and are only available to students who are deemed credit-worthy.

Considerations:

Borrow wisely and do not borrow more than you need. Calculate your expense estimates carefully. Seek advice from past graduates and current residents who have been through the process. Do not overspend. Some students believe they deserve a higher standard of living than when they were students, and they may buy a new vehicle or travel, for example. Remember that as a resident, your take-home pay will not be much more than what you were living on while in medical school.

Interview expenses: If your goal is a residency position in a particular geographic location, you may save on travel expenses by planning some of your fourth-year electives in that area during the fall and winter terms. If you are able to coordinate your electives with this in mind, and can document expenses that exceed the 'transportation' portion of your student expense budget, you may qualify for additional financial aid. Talk with a financial aid staff person to learn more.

Relocation expenses: Ask yourself these questions when planning your relocation: When will I receive my first paycheck? What will my living expenses be for the period following graduation until my first paycheck? Will I need to make a security deposit on an apartment or to establish utilities? What supplies will I need to purchase in order to make the move? Other expenses to consider may include insurance premiums, automobile registration in a new state, health care premiums or expenses, and household supplies.
 
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What sort of scores have people been getting these loans with?

My score has dipped down and I'm waiting for some disputes to clear up (credit grantors have confirmed that the negative items will clear) before I apply for a R&R loan. Not sure how long it will take to go back up but hoping soon.
 
Anything above 620 should be good enough. Scores in the 580-620 range are considered 'near' prime.
 
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I have good credit with a rating of 730 and have now been denied TWICE--citibank, graduate leverage. They can't tell me why--"our underwriters make all decisions." Is anyone else having such bad luck ? I'm not sure at this point what I'm going to do other than go on less interviews...
 
I have a good credit score too, but the limiting factor is that we have so much loan debt and no income, which I don't think is factored into a credit score. The solution is to get a co-signer. Almost all of the program will lend to anyone as long as they have a good co-signer. Some people, as in my case, have no family with a good credit history and you have to be creative with who you chose. Think of people you know you will be in contact with in 10 years. Reassure them that you will have the loan paid off first before other loans, especially since it's much more expensive than government loans.

That's what I've found in my searching for a relocation loan. I'm going through Graduate Leverage.
 
katiekate said:
I have a good credit score too, but the limiting factor is that we have so much loan debt and no income, which I don't think is factored into a credit score. The solution is to get a co-signer. Almost all of the program will lend to anyone as long as they have a good co-signer. Some people, as in my case, have no family with a good credit history and you have to be creative with who you chose. Think of people you know you will be in contact with in 10 years. Reassure them that you will have the loan paid off first before other loans, especially since it's much more expensive than government loans.

That's what I've found in my searching for a relocation loan. I'm going through Graduate Leverage.
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Before you apply, be sure to ask what their aggregate loan limit is. I applied with them and didn't get it. I am like you in that no one in my family is credit worthy.

I'm considering asking a good friend if he'll co-sign but I think that means that if I die, he gets stuck with that debt. Something to ask about.

I'm a bit angry that we're in this position. The government handed money out to big banks, and now we're saddled with debt but slightly hampered in our ability to go out and get a job that later helps us pay off our debt. This experience has been very frustrating.
 
because they'll crawl up ur @ss with a uscope looking for violations of "all the money must be spent on moving" when u get cut from residency
 
three years ago I took one out via suntrust bank (a physician relocation loan). Interest rate 13.45 and my credit always has been >740. I know they are killing me on this one!!!
 
So the financial climate has changed a lot since this thread was started. Anyone have any recent experience with residency relocation loans? How much can you borrow? What are the rates and credit scores needed to be approved? How early in 4th year can you apply for them and what's the turn around time nowadays?

Thanks!
 
stiffany said:
So the financial climate has changed a lot since this thread was started. Anyone have any recent experience with residency relocation loans? How much can you borrow? What are the rates and credit scores needed to be approved? How early in 4th year can you apply for them and what's the turn around time nowadays?

Thanks!
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I just did it in September.

These are the banks that still offer them (per my financial aid office):

• Citibank – Residency, Relocation & Review Loans: www.citibank.com
• Fifth Third Bank – Residency & Relocation Loans: www.53.com
• PNC Bank – Residency & Relocation Loans: www.pnconcampus.com
• Sallie Mae – Residency & Relocation Loans: www.salliemae.com
• Wells Fargo Bank – Residency & Relocation Loans: www.wellsfargo.com


I went with Citibank because I hate Sallie Mae collection tactics, Wells Fargo requires you to be a customer already, and the others just sounded small and unknown.

I took out the full $18,000 that Citibank allows for both interview traveling and relocation. I will pay back anything leftover once I have moved and am certain I have no more major moving/relocating expenses.

My terms sucked. 3% loan fee and 11.375% interest (variable based on the 3-month LIBOR rate). And I have decent credit (720-770 last I checked my scores), but I am only 26 so I only have 8 years of credit history. If your credit sucks you can probably still get it with a cosigner.

To apply you just need to be in your 4th year (or first 6 months of residency) and need to show proof of that (a letter from your dean's office, an interview invite for a residency position [this is what I sent - super easy], or a contract from your residency program if you are already signed).

You will send your application, fax your proof of being a 4th year, and it takes 3-5 business days to get their decision. Once they approve it you fill out the rest of their paperwork, send it in and they will assign a disbursement date. My disbursement date was 2 weeks after they received all their paperwork (apparently to give you time to cancel or decrease the amount if you want to), on my disbursement date they sent me a check through the mail which I had 3 days later. Probably 3 weeks from start to money in my bank account.

I decided it was worth it, better than living like a pauper or struggling with relocation costs right before residency. I will pay it back as soon as I can (probably start 2nd or 3rd year of residency) and I plan to have it fully paid by the end of my first year as an attending. If I let it run the full 25-year course I would end up paying like 80k on an 18k loan which is absurd.
 
alwaysaangel said:
My terms sucked. 3% loan fee and 11.375% interest (variable based on the 3-month LIBOR rate).

I decided it was worth it, better than living like a pauper or struggling with relocation costs right before residency. I will pay it back as soon as I can (probably start 2nd or 3rd year of residency) and I plan to have it fully paid by the end of my first year as an attending. If I let it run the full 25-year course I would end up paying like 80k on an 18k loan which is absurd.
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Thanks! Your post was extremely helpful. Those terms are horrible, although at least to me it seems like it would be less worrisome than that much money on a credit card that has to be paid each month during 4th year and residency. Do you know if there's a way to find out each bank's rates for you without having to fill out an application at each and get the subsequent ding to your credit score?
 
stiffany said:
Thanks! Your post was extremely helpful. Those terms are horrible, although at least to me it seems like it would be less worrisome than that much money on a credit card that has to be paid each month during 4th year and residency. Do you know if there's a way to find out each bank's rates for you without having to fill out an application at each and get the subsequent ding to your credit score?
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well the rates are based on your credit so you couldnt get rates without applying. But check the rules on how much shopping around like that affects your credit score. My understanding is if you apply for multiple versions of the same loan in a 30 day period it doesnt affect you negatively. But yeah the rates sucked but i figure since its a non-guaranteed private loan to a young person its probably about as good as it gets. Especially considering most of my school loans are 8.5
 
Maybe I am being naive here as I am not American by birth, but why can't you all get money from parents/relatives for this purpose instead of going to banks and being trapped with exorbitant interests? I understand taking out student loans as that is a lot of money and not everyone has that much spare change sitting around, but surely 10-20k for match/relocation, etc. is not a big thing? Even if it is not an outright freebie, surely family can give you interest-free loans that you can pay back to them later or pay it forward by educating/helping others in the extended family? Is this mainly to establish your personal credit score or is there any other reason?

The way I grew up, the only "loan" you ever took was a mortgage for your own home, for everything else, the family chips in if you don't have enough money. Even now I feel that if I need any money for necessities, I'll approach my parents and/or brother first (not even my Caucasian husband) before going to money lenders of any sort.

In case someone thinks I am the next Paris Hilton or something, I grew up in a modest middle class family in a small town in India. I don't even own a car anymore as I feel it is an unnecessary expense as I live in one of the most expensive cities in USA on a poor post-doc's salary, and nothing I wear costs more than $25.00.

But my query is genuine and want to know if you all resort to official loans, even for small amounts, to establish some credit trail or something and if that is the reason, maybe I should consider doing so as well when I buy a car sometime next year. Once again, hope no one is offended, I just want to understand the American mindset.
 
JelloBrain said:
Maybe I am being naive here as I am not American by birth, but why can't you all get money from parents/relatives for this purpose instead of going to banks and being trapped with exorbitant interests? I understand taking out student loans as that is a lot of money and not everyone has that much spare change sitting around, but surely 10-20k for match/relocation, etc. is not a big thing? Even if it is not an outright freebie, surely family can give you interest-free loans that you can pay back to them later or pay it forward by educating/helping others in the extended family? Is this mainly to establish your personal credit score or is there any other reason?

The way I grew up, the only "loan" you ever took was a mortgage for your own home, for everything else, the family chips in if you don't have enough money. Even now I feel that if I need any money for necessities, I'll approach my parents and/or brother first (not even my Caucasian husband) before going to money lenders of any sort.

In case someone thinks I am the next Paris Hilton or something, I grew up in a modest middle class family in a small town in India. I don't even own a car anymore as I feel it is an unnecessary expense as I live in one of the most expensive cities in USA on a poor post-doc's salary, and nothing I wear costs more than $25.00.

But my query is genuine and want to know if you all resort to official loans, even for small amounts, to establish some credit trail or something and if that is the reason, maybe I should consider doing so as well when I buy a car sometime next year. Once again, hope no one is offended, I just want to understand the American mindset.
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No, personal loans won't really do anything for your credit. Open a single credit card and establish a long-term revolving credit for that.

My parents just don't have 10-20k to lend me.

Also, for some people its an independence thing. Most of us are independent at this point in life and I have a few classmates who borrow from banks because they don't want their parents sticking their nose into their finances just because they borrowed money from them.
 
There is a BIG cultural difference between the U.S and really most other cultures around the world. Granted more than a few soon-to-graduate med students may be able to get the the money from parents and family (I heard a figure at a medical conference that near 50% of medical students come from families with income >$200K), many of us do not have that luxury. So loans provide the only option. Also there is a strong compnent of Indendence/Individualism in the U.S culture and even if the money was there, it may not be available.
 
alwaysaangel said:
Also, for some people its an independence thing. Most of us are independent at this point in life and I have a few classmates who borrow from banks because they don't want their parents sticking their nose into their finances just because they borrowed money from them.
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This is interesting to me that some people would much rather allow banks/lenders (whose primary motivation is their own profit/bottom line) to stick their nose into their finances rather that family who will always have your best interest at heart, and won't be motivated by profit. Unless your family insists that in lieu of their loan, you will have to marry a person of their choice/get into residency (specialty and/or location) where they would like you to be, etc., I still feel approaching family is the best option.

EastWestN2grt said:
Granted more than a few soon-to-graduate med students may be able to get the the money from parents and family (I heard a figure at a medical conference that near 50% of medical students come from families with income >$200K), many of us do not have that luxury. So loans provide the only option. Also there is a strong component of Independence/Individualism in the U.S culture and even if the money was there, it may not be available.
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This is what I was alluding to that most medical students probably come from families who would have 10-20k to spare easily, hence I asked. As for independence, again I question, at what price-chained to a near life-time of loans, is this truly independence?

Don't get me wrong, I have been far away from family for over 13 years, rebelled a lot in every un-Indian way possible that no one can even imagine, but over the years I have realized that at the end of the day, they are the only ones who truly care for your well-being, and will always be there.

I didn't intend to hijack this thread, just really wanted answers to my burning curiosity. Thanks anyways.
 
JelloBrain said:
This is interesting to me that some people would much rather allow banks/lenders (whose primary motivation is their own profit/bottom line) to stick their nose into their finances rather that family who will always have your best interest at heart, and won't be motivated by profit. Unless your family insists that in lieu of their loan, you will have to marry a person of their choice/get into residency (specialty and/or location) where they would like you to be, etc., I still feel approaching family is the best option.
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Well thats fine but your parents are apparently far away and wouldn't be asking where the money was going or what you were spending it on or complaining about what you were doing or how you were traveling. These are issues many of my classmates face - unnecessary stress.

Even if my parents could afford it I would probably still go to the bank. I will start paying the loan off in 2nd or 3rd year of residency and will finish it off my first year as an attending. I'll pay 25k on an 18k loan over 5 years. Small change compared to my school loans and if my parents could afford it they would comment on my every choice of spending, I will gladly pay small amounts later than suffer through stress (and therefore degradation of my relationship with my parents) now.
 
meister said:
Are you sure that they don't get the full amount of interest they calculate would accrue over the full course of the loan even if you pay it off early?
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Yes. I checked that.
 
Does your loan have no interest rate cap as well? Mine's tied to LIBOR but having no cap is a little disconcerting...though historically LIBOR has never gone above 10% any time recently.
 
How has people's experience with these loans been so far this year? I'm running out of money from interviews, a hospital bill, and my crappy car is dying on me. I'm hesitant to take out of loans as the only debt I've ever had is my student loans. Is this the best option if I just need money to bridge to residency with these costs and to move?
 
FYI guys, PNC has 0% origination/application fee while other banks state 0-4% origination fee. I don't know how PNC's interest rate compare to others since everyone determines it depending on your credit history. But, this bank is a large bank (large enough to have the PNC park that Pittsburgh Pirates play in). So, I'm sure they are legit.
 
My family has a long credit history though Wells Fargo, and I was able to get loans with them as a co-signer with a very good interest rate.

Also, even with a good interest rate, make sure to check for flexibility in payback schedule, never know when you have a new home or car to pay off.
 
I just got my loan approved, looks like 15K from sallie mae, 3.25+3=6.25%interest rate (variable), my credit score was 805, I have never owned any expensive items, just 3 or so credit cards with no late payments ever that I know of
 
Interest rates are pretty low right now. Too bad that doesn't carry over to my student loans. I'd love to consolidate right now.
 
I don't know if this is helpful to anyone, but I known Discover bank (the Discover card ppl) also have personal loans. When I looked at the interest rates those are similar to what you are quoting for the residency/relocation thing. Not sure what you would qualify for as a med student but it might be worth looking in to.
Sun Trust is also known as a reliable bank in the Southeast.
 
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