saving $ before dental school?

[arns51]

Just wanted to know if it would be wise to save all my money before dental school or have more fun with it. I will hopefully enter dental school in the fall of 2004 after working for 2 years. I definetly plan to do some traveling the summer before school starts, but have also thought a lot about getting a motorcycle next summer. I will probably be living off all loans throughout school, and hope to live decently (as in having the money to have cable/internet, go out once a week or so, and buy clothes now and then). Will I be able to do this living off loans and only having around 5 grand or so saved up before entering dental school? Or will this be impossible? Please let me know from your experience. Thanks.

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[critterbug]

Well, I was reading over in the financial aid forum that you have to report any savings you have, which will affect your FAFSA(?) score. Also, because you worked you will also need to claim how much you earned the preceeding year upon matriculation which will also increase your score.

Having a high FAFSA score will decrease your chances of receiving subsidized loans. I am kind wondering if I am shooting myself in the foot by working full-time.
Any advice?

To answer your question, yes you can live as comfortable as you feel like living as long as you are willing to take out more loans to do so.

 

[aphistis]

Spend it while you've got it, ams51. Like critter said, if you don't spend it on leisure, you have to report it as assets for your financial aid award and spend it on dental.

If you go to a resident public school, government loans might be enough by themselves. I'm living a pretty princely lifestyle here in my 800-sqft lakefront apartment on the edge of Indy, and I just took on a car payment and put a fairly salty engagement ring on layaway. Most importantly, I'm still keeping my debt down by limiting myself to Stafford loans (and further reducing it via my National Guard service, but that's another ball of wax).

If you go to a private or out-of-state school, finances become much more of an issue. It's discussed in greater detail other places on this board, but state schools are a tremendous bargain if you and the curriculum get along even marginally well. Some dental schools are better than others, but you can learn to be a good dentist at any of them, and $100,000 is a lot of money to pay for a brand name across your diploma.

 

[ehop24]

for fin aid reasons it can help to spend it, but that really depends on the specifics of your aid circumstances. my wife and i worked part of the year, with a combined 12k reported to irs as income. for my fafsa our savings and investments were near 6k. the only debt we show is around 4k for my wifes undergrad. in the end, of the 28k budgeted to first year students at my school, they only expect us to pay 800 dollars. thats chump change if you ask me.

so i dont think you need be concerned about 5k in savings.

you know, you are only at this point once in your life. the next 4 years will not be easy. when you graduate, you will be a different person, with different problems, and lots of debt.

life is about a lot more than 5k. it's about experiences and memories that we can't put a price tag on. sure, you will always have the money to take vacations. but, you wont always have the time or the opportunity. use your money and do something great. visit that place youve always wanted to. with the travel prices the way they are, 1500 or less should get you a week ANYWHERE in the world. make this time count.

 

[NewNameForGoogleBot]

If you are really worried about excessive liquid assets when you fill out your FAFSA, you can open an account in your parent's name or someone else you trust not to touch it and gift up to $11,000 per year tax free (they don't pay taxes). Then, they gift it back to you after you report 8 bucks in your checking and savings accounts on your FAFSA. Perfectly legal and ethical. Read more about this in the financial aid forum.

I would agree however, that 5 grand probably isn't enough to make a dffference, especially if you are going to a private school.