Residency Relocation

[Caeser]

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I've search on here and the information I found wasn't very helpful. Basically, I'm considering getting a relocation loan to help smooth my transition to residency. I'm currently in Texas and will be moving to Boston. I have been fortunate to be graduating from medschool without any student loans thus far( except for about $8K on my credit card from the interview process).
For the relocation loan, I'm looking at Citi and Sallie Mae. Does anyone has any experience with these lender? or does anyone know a better option? I'm looking at burrowing about $15K. some of this money will be used to payoff my credit card( since it has a higher interest rate).

I'll appreciate any suggestions or help.

Thnx

 

[The White Coat Investor]

I've search on here and the information I found wasn't very helpful. Basically, I'm considering getting a relocation loan to help smooth my transition to residency. I'm currently in Texas and will be moving to Boston. I have been fortunate to be graduating from medschool without any student loans thus far( except for about $8K on my credit card from the interview process).
For the relocation loan, I'm looking at Citi and Sallie Mae. Does anyone has any experience with these lender? or does anyone know a better option? I'm looking at burrowing about $15K. some of this money will be used to payoff my credit card( since it has a higher interest rate).

I'll appreciate any suggestions or help.

Thnx

First of all, I wouldn't get a relocation loan. I think you should relocate on the super cheap. Save up a little from your MS4 student loan. Get a Uhaul and move your own stuff. You should only need a couple thousand for a deposit and first months' rent. Eat at the hospital until you get your first paycheck. Get a job these last couple months of med school and use that money.

Second, if I did get a relocation loan, I'd hit up my parents or other relative first. You're likely to get more favorable terms.

Third, if I was dead set on borrowing even more money than I already had borrowed for school (and good on you for somehow getting through without it), I would look at Prosper and Lending Club. If you qualify for the lowest rates, they're around 6%. You might also use them to refi that credit card if it isn't zero percent. (If it isn't zero percent, maybe get one that is. 3% is the usual transaction fee. If you have it paid off in a year or so, that'll be all you pay for the credit.)

But mostly, just get out of the debt mentality. Too often what starts as an "interview loan" becomes a "relocation loan" and then a "residency living expenses loan" and then a "I've worked hard and I'm entitled to a big house and a nice car loan". Before you know it, you're 10 years out of residency, owing more than you did coming out of med school and with nada for retirement savings, and working way more than you want to.

 

[McGillGrad]

Considering that you have a total of $8000 of debt (when the average resident has roughly 120k at the end of med school), I would go ahead and get the relocation loan and make sure to pay it off with heavy payments during intern year.

Debt is nothing to fear when you have the available income and frugal living habits.

Also, enjoy your last few months and do not get a job. It is a waste of time and energy before you start slaving away in residency. Enjoy your free time.

 

[JacobMcCandles]

You've done well getting through medical school with minimal debt, why borrow so much now? I don't know where you are or where you're going but if you pay me $15,000 I'll come move all of your stuff personally. That's a ridiculously high amount of money to use for moving.

 

[shantster]

I don't know where you are or where you're going but if you pay me $15,000 I'll come move all of your stuff personally. That's a ridiculously high amount of money to use for moving.

Totally agree. $15k is insane to spend on moving (I initially read it as $1,500 and was thinking that he/she could just convince family members to donate to the moving fund as a graduation gift). You could probably sell all your furniture, buy new furniture, throw all your clothes in suitcases, and fly across the country for less than $15k.

 

[McGillGrad]

To the last two people who responded. You should read the OP's original post were he mentions that $8000 of it will be to pay off a high interest credit card, which is a good move to reduce money wasted on monthly interest.

 

[JacobMcCandles]

To the last two people who responded. You should read the OP's original post were he mentions that $8000 of it will be to pay off a high interest credit card, which is a good move to reduce money wasted on monthly interest.

$7000 is still just way too high. I'd be ok with getting a lower interest loan to pay off the credit cards, though.

 

[McGillGrad]

$7000 is still just way too high. I'd be ok with getting a lower interest loan to pay off the credit cards, though.

I forget how little most medical students know about finances and real life.

You don't have to use all of the money. You just use what you need and pay back what's left straight away.

 

[JacobMcCandles]

I forget how little most medical students know about finances and real life.

You don't have to use all of the money. You just use what you need and pay back what's left straight away.

Ha.

 

[Caeser]

Thank you all for your response. I suppose I didn't give a lot of details. But yeah the majority of the loan will be to pay off my high interest credit card( In retrospect I should have gotten the loan earlier since most of this credit card is due to interview season spending).
That said, I also have some personal things in my life I need to take care of that requires money. My family can not support me financially, in fact it is the other way around.
I won't call myself naive when it comes to handling money and trust me if I could do without the loan I would. I've managed to come this far without student loans. I'm about to finish a book called "Personal finance for the new physician" as well as other blogs about physician finances/investments.
Knowing that I've got no option but to burrow, I've been doing my research on available options. Hence my original question about feedback/opinions about relocation loan lenders especially Citi and Sallie Mae.

Thanks.