Stafford subsidized loans not an option?

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.
G

guitarguy23

Full Member
10+ Year Member
Joined
Dec 9, 2009
Messages
448
Reaction score
72
I just received a letter from my financial aid office before enrolling for my M1 year this fall basically stating that subsidized stafford loans were no longer an option for the 2012-2013 school year, and that I would have to choose the unsubsidized "version". This came after I was notified to complete an Independent Verification Form. The office then sent me a letter notifying me that I did not need to be verified, since unsubsidized Stafford loans were the only ones available at this time.

Is this a federal mandate that applies to all incoming M1's? If someone could clarify this for me that would be awesome, because I thought we were eligible for subsidized Stafford loans. Thanks!
Members don't see this ad.
 
Obama killed subsidized Staffords for graduate/professional students last year. He cares about students like that.
 
Members don't see this ad :)
but I'm sort of surprised at how many people haven't heard about this yet, didn't they cover it during the financial aid talk during interviews?
 
armybound said:
Obama killed subsidized Staffords for graduate/professional students last year. He cares about students like that.
Click to expand...

Obama?!? Are you effing kidding? Try the insane republican congress that feels austerity and tax cuts solve everything... And when they don't, blame the democrat in the WH. Republitards are ridiculous.
 
but which side cut the subsidized grad loans? they are the guilty ones.

Sent from my SPH-D600 using SDN Mobile
 
RockFoot said:
but which side cut the subsidized grad loans? they are the guilty ones.

Sent from my SPH-D600 using SDN Mobile
Click to expand...

Obviously both sides are to blame. Congress (GOP-led) drafted it and Obama signed because he's a spineless president.
 
guitarguy23 said:
I just received a letter from my financial aid office before enrolling for my M1 year this fall basically stating that subsidized stafford loans were no longer an option for the 2012-2013 school year, and that I would have to choose the unsubsidized "version". This came after I was notified to complete an Independent Verification Form. The office then sent me a letter notifying me that I did not need to be verified, since unsubsidized Stafford loans were the only ones available at this time.

Is this a federal mandate that applies to all incoming M1's? If someone could clarify this for me that would be awesome, because I thought we were eligible for subsidized Stafford loans. Thanks!
Click to expand...

Since you don't seem up on your loan knowledge keep in mind that you aren't really missing that much. Subsidized Stafford would have covered less than 1/4th of your loans anyways. Mine was the last class to get subsidized stafford.
 
Last edited:
FunnyCurrent said:
Since you don't seem up on your loan knowledge keep in mind that you aren't really missing that much. Stafford would have covered less than 1/4th of your loans anyways. Mine was the last class to get stafford.
Click to expand...

People now get unsubsidized Stafford loans. They're still Stafford loans. They still come with a 6.8% interest rate.
 
armybound said:
Obama killed subsidized Staffords for graduate/professional students last year. He cares about students like that.
Click to expand...

Really??? Are you kidding me? This was the job of insane republicans who refused to budge until this and that were cut. All told this move, saved what like $7billion over 10 years or some other paltry sum which is basically like a rounding error on defence budget.

Put this blame rightly where it belongs, republicans. They are currently out there again preventing subsidized stafford loan interest rates from staying at 3.4%
 
Members don't see this ad :)
RadicalRadon said:
Obviously both sides are to blame. Congress (GOP-led) drafted it and Obama signed because he's a spineless president.
Click to expand...

No Sire, not true. Both sides are not to blame. Blame the republicans for this move. Yes Obama signed it. What other option did he have. Have the country default on its obligations because the other party refused to raise the debt limit. That would have had catastrophic consequences.
 
While it is difficult for medical students and future medical students in the near term, including myself, it is ultimately a good thing. Why should the taxpayers of this country have to subsidize my education? I am the one that will receive the benefit. Someone who chose to work instead of continuing education, maybe out of necessity, should not be forced to help pay for the education of someone who is in a much better or at least will be in a much better financial situation. Easy access money, i.e. subsidized loans, are the reasons medical schools have been able to raise tuition to ridiculous levels.
 
chronicidal said:
People now get unsubsidized Stafford loans. They're still Stafford loans. They still come with a 6.8% interest rate.
Click to expand...

I think he meant to say subsidized Stafford loans covered very little of your total loans. So little that you're probably looking at an extra few grand of interest when it's all said and done. Unfortunate, but an extra $3000 in interest payments is a drop in the bucket when you consider most people will be $150,000+ in debt to begin with.
 
I think we'd all be better off if the government never got involved in student loans in the first place. Things always get more expensive when the government is subsidizing something.

Imagine banks competing with each other to get medical students (an incredibly safe investment by the banks). We'd see lower interest rates and generally more favorable borrowing terms. Imagine actually being able to discharge student loans by declaring bankruptcy. That being said, undergrads would probably see a higher interest rate (more risky investment by the banks).
 
VivaLaVida said:
Because I only benefit myself by becoming a doctor. I will only provide services to me.
Click to expand...

I receive the financial benefit of my own education, the taxpayers who were previously compelled to subsidize my loans receive no financial benefit by me providing them services. By that logic the government should pay for every type of education that provides a service to the taxpayers.
 
ch3201 said:
Easy access money, i.e. subsidized loans, are the reasons medical schools have been able to raise tuition to ridiculous levels.
Click to expand...

False. Give evidence if you disagree. This is utterly, utterly false.
 
Naijaboiler said:
Really??? Are you kidding me? This was the job of insane republicans who refused to budge until this and that were cut. All told this move, saved what like $7billion over 10 years or some other paltry sum which is basically like a rounding error on defence budget.

Put this blame rightly where it belongs, republicans. They are currently out there again preventing subsidized stafford loan interest rates from staying at 3.4%
Click to expand...

Naijaboiler said:
No Sire, not true. Both sides are not to blame. Blame the republicans for this move. Yes Obama signed it. What other option did he have. Have the country default on its obligations because the other party refused to raise the debt limit. That would have had catastrophic consequences.
Click to expand...

I agree with you. Republicans are idiots that hold the country at gunpoint for political gain. They disgrace this country with their actions.

It doesn't change the fact that Obama is spineless. In negotiation, the person who plays the insanity card wins. Obama should have been just as stubborn and taken the option away. He should have said, "I will veto anything like this regardless of the consequences. Period. If you don't compromise, I will veto and we will default... and it will be both my fault and the GOP-led congress. We will then have to address the consequences of such a disastrous situation."

Maybe there would have been compromise, if the Republicans didn't know in advance that Obama would cave. If not, financial catastrophe can always be fixed after the fact.
 
Last edited:
ch3201 said:
I receive the financial benefit of my own education, the taxpayers who were previously compelled to subsidize my loans receive no financial benefit by me providing them services. By that logic the government should pay for every type of education that provides a service to the taxpayers.
Click to expand...

Government DOES do this with undergraduate student loans. It's irrelevant anyway. Do wealthy folks paying 15% capital gains benefit taxpayers such that they deserve a dramatically lower tax rate? Um, your rationale for no subsidized loans is completely ideological.
 
RadicalRadon said:
False. Give evidence if you disagree. This is utterly, utterly false.
Click to expand...

I do disagree, here is a good study that also cites a number of other studies http://centerforcollegeaffordability.org/uploads/Introducing_Bennett_Hypothesis_2-1.pdf

The same thing is happening with all education from undergraduate to graduate level. The housing bubble and subsequent great recession were at least partly the result of easy access to money that resulted in artificially inflated home prices. When demand goes up because of easy money the price goes up as well.
 
armybound said:
Obama killed subsidized Staffords for graduate/professional students last year. He cares about students like that.
Click to expand...
Yeah, let's pretend the tea party had no small part of that either. A voting block that consists of older upper middle class white people really has student's interests at heart.
 
Im surprised the OP was surprised by this, every interview I went on this was brought up several times. Everyone just hope and pray the new student loan debt act passes (highly unlikely, but still)
 
You must log in or register to reply here.
Next unread thread

Similar threads

S
Do Residents Typically Receive Subsidized Health Insurance?
Replies
25
Views
1K
Wolvvs
Wolvvs
P
Realistic Residency Options?
Replies
4
Views
996
Putkernerinthehall
P
J
Using private loans to get slightly nicer apartment?
Replies
15
Views
1K
annoyedpsychiatrist
A
U
SF Match No Step 1 Three Digit Option
Replies
5
Views
1K
Undes1
U
D
how much loans is too much?
Replies
43
Views
5K
AnonymousDoctorGuyPerson
AnonymousDoctorGuyPerson
Top