Student Loan Questions

[spacecowgirl]

I know most retail chains and some hospitals offer various programs (with various names) all boiling down to getting money for school in exchange for working for the company for X years. Is anyone doing this? Where do you work? What are the terms and conditions? How many years are you accepting assitance? How much are you getting/year vs. how long is your commitment to the company?

I'm considering this option (hey, I need every penny I can get) but I'm worried about selling my soul and although I am married - I am afraid of commitment to a company (not that you can't pay them back but still).

Thanks!

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[dgroulx]

I know most retail chains and some hospitals offer various programs (with various names) all boiling down to getting money for school in exchange for working for the company for X years. Is anyone doing this? Where do you work? What are the terms and conditions? How many years are you accepting assitance? How much are you getting/year vs. how long is your commitment to the company?

I work for Eckerd, but we will become a CVS sometime this summer. CVS will give you $5,000 per year which you pay back with one year of service. CVS also keeps you on the payroll, so you have seniority when you graduate. They also give you an early sign-on bonus if you commit during your senior year. If I like CVS after working for them this summer, I'll probably sign up for it for years 3 & 4 of school.

 

[michelleca4]

Longs will give you $10,000 your 3rd and 4th year, if you work for them for 3 years at a specified location.

 

[tantica]

I've been thinking about this too..
What is the pay after graduation? Considerably less?

I am not sure if I want to commit for a much lower salary that I could get otherwise.

 

[jdpharmd?]

I've been thinking about this too..
What is the pay after graduation? Considerably less?

I am not sure if I want to commit for a much lower salary that I could get otherwise.

It's not considerably less. Nobody would do it if it was. I doubt it's any less. The disadvantage is that they might feel like they have you in a sticky sitaution. If they needed help at a notoriously bad store, I can see them trying to use a little leverage to get you working at that store. Of course, there is potential good too. All those years of working for the same company will surely give you a little insight about who's leaving, where the good stores are, who's good to work with, etc. If it really gets bad, there is always the option to pay it back and quit. It's not the military. That being said, I still haven't accepted any money. By the way, sign-on bonuses can do the same thing. Accepting a $20,000 sign on pretty much locks you in too. You can always pay it back if you want to leave, but remember that it gets taxed at about 35%, so you'll have to pay that money also.

 

[ultracet]

It will probably be at the same salery but more than likely (i suspect) they will tell you where to work.

 

[Glycerin]

I'm not sure how many people in the forum this affects, but I thought this news article could be beneficial somehow.

http://moneycentral.msn.com/content/CollegeandFamily/Cutcollegecosts/P83666.asp

 

[Jeddevil]

There has been talk on here recently about loans and fees, so I thought I would pipe in with something to help.

Many schools and banks that service student loans will charge you fees in either a guarantee and/or origination fees. Some will hit your for 3% of your loan amount up front and on the backend to start repayment. This is normal business. There is no need to pay these fees. There are places out there that will not charge you these fees, putting more money in your pocket. One of them is Northstar and their T.H.E. program. You can check them out at http://www.northstar.org/

They also offer loan repayment options that will save you money over other company’s options. I am not affiliated with them in any way except that I use them as my federal loan servicer. Their private loan programs also have fewer fees than conventional programs.

You do not have to use your schools preferred lender. Just call your financial aid office and tell them whom you are going to use and they can get their end set up.

The school I attend up until now has charged 3% loan origination fees. That is rip-off and they have no right to that money, IMHO. We got an email recently stating that they have finally gone over to not having any origination fees starting with next year’s loans. That is a good step, but I will still use THE as their repayment incentives are better.

I am posting this here because I think everyone should at least know that there are options out there. Schools often will give you a preferred lender and students will just take that one because it sounds fine, will get the job done, and they don't know there are better options. I have friends who went through school, paid the fees never knowing there was a difference between lenders, thinking they would all be the same. That is not the case. School is expensive enough as it is; you deserve to have every dollar you borrow in your pocket, not in a lenders pocket in the form of fees. They take the fees out of your disbursement, so you still have to pay that $6-800/year back also. I would rather have that $6-800 myself.

 

[nikkai]

Thanks OP!

More info the better, but that was great info!

 

[tomrocks]

ucsf gives a list of stafford loan lenders to choose from. does anyone have any recommendations to which has the best deal?

tom

 

[kellia]

ucsf gives a list of stafford loan lenders to choose from. does anyone have any recommendations to which has the best deal?

tom

see above post by jeddevil... i think that the list is only provided for convenience. i believe you can pick ANY lender you want.

 

[mahishrimp]

Hi all,

I have received the financial aid offer letter and I found that all the money they offer me are loans. Don't they give out free money? I originally thought the pharmacy school also gives free money like undergrad does. Please correct me if I am wrong.

Thank you very much.

Ps. free money = money I don't have to pay back.

 

[off2skl]

Hi all,

I have received the financial aid offer letter and I found that all the money they offer me are loans. Don't they give out free money? I originally thought the pharmacy school also gives free money like undergrad does. Please correct me if I am wrong.

Thank you very much.

Ps. free money = money I don't have to pay back.

There are some scholarships out there, but not many. I don't think grants are usually given for any advanced degree program.

 

[njac]

what I love is how at UNM the first two years you are eligible for federal grants and federal loans at the undergraduate level - of course I will turn 24 as my 3rd year starts!!! I have gotten soscrewed by the whole age/grant thing. I hate parents who like work real jobs and crap like that. jeez.

 

[endlesslove]

There are some scholarships out there, but not many. I don't think grants are usually given for any advanced degree program.

can someone PLEASE explain to me why med school students can get lots of scholarships (i.e free money) that are like 5-digits per year for all 4 years whereas pharm students dont'? i mean, even BEFORE students make their final decisions on where to go, many i know are OFFERED scholarships whereas we dont even get our financial aid package until the middle of the summer b4 pharm school starts and even then, they're mostly loans or grants (grants are good b/c of free money and nobody can complain that much ab it, but the bottom line is they're not the same as scholarships). I don't understand the discrepancy. why them and not us? just curious

 

[bananaface]

Perhaps their schools have endowments which our schools lack? Or, schools just choose not to spend money on us. It's not like we need free money. We can pay back loans pretty fast.

 

[endlesslove]

It's not like we need free money.

yeah we do.

We can pay back loans pretty fast

is besides the point because anything free, especially money, is always a good thing. that means the money we saved can go towards clothes ($hopping!) and vacations and stuff.

 

[jammocah]

pharm students are eligible for grants? i thought the standard was just all loans. that's news to me.. hope i get some.. but then again.. wont find out until another month or so..

i probably wont get any tho.. cuz i worked all year last year.. punishing those who work.. rewarding those who dont.. seems odd doesnt it.. ?

 

[ilovepharmacy]

not like we need it?!? jammocah and i need free monies fo' sho........ $32,316/year - with a 5% increase/year.. I wonder if any other SOP that can top that..

((sigh)) and thats just our flat 18 unit fee..

 

[Crazy_Norwegian]

cuz i worked all year last year.. punishing those who work.. rewarding those who dont.. seems odd doesnt it.. ?

I agree completely...I worked all last year too. My Expected Family Contribution (just me, I'm considered an independent student) is almost 13K...Did they actually look at what I made last year? What was I supposed to live on? And how was I supposed to pay for school, books, and gas?

 

[jammocah]

I agree completely...I worked all last year too. My Expected Family Contribution (just me, I'm considered an independent student) is almost 13K...Did they actually look at what I made last year? What was I supposed to live on? And how was I supposed to pay for school, books, and gas?

My EFC is 18K!!! Can anyone beat that??

 

[BTB]

My EFC is 18K!!! Can anyone beat that??

32k

 

[Sosumi]

Unfortunately most pharmacy schools, if not all by now, consider pharmacy students graduate students meaning no more Federal Pell Grants ("free money"). The only free money you can be eligible for are from your school's scholarship fund which is funded by donations from alumni, corporations, or other philanthropists. Those are often need based and give up to a few thousand a semester.

There are also scholarships from the U.S. military if you agree to work (i.e., be their slave) for some years after you graduate and from companies such as retail pharmacy chains if you agree to work for them after you graduate.

 

[kellia]

32k

WHAT????????????????? that is simply madness!!!! ...are you joking??

 

[jammocah]

WHAT????????????????? that is simply madness!!!! ...are you joking??

32K.. haha.. yes that's a whole lot.. is it because your parents are rich? Or did you really make that much money last year?

 

[ilovepharmacy]

32K.. haha.. yes that's a whole lot.. is it because your parents are rich? Or did you really make that much money last year?

It could be because his parents are loaded or they have no exemptions

I made one mistake on fafsa on the part about my parents' financial portion because my parents' taxes weren't done. My EFC came out as 23K! Then I sat down with the returns and realized all the mistakes I had made Luckily, it went down to 5K (whew!)

 

[TrojanAnteater]

somehow everything worked out for me that my EFC is 0, zero, zip, nada. Is this really great, or really abnormal, or both?

 

[ilovepharmacy]

somehow everything worked out for me that my EFC is 0, zero, zip, nada. Is this really great, or really abnormal, or both?

Not abnormal - most of my friends had an EFC of 0 as well...

 

[TrojanAnteater]

Not abnormal - most of my friends had an EFC of 0 as well...

phew. was hoping it wasn't an error or something that would look suspicious.

 

[NYCillini]

If you don't mind me asking, how did you get a EFC of 0? Do you have outstanding loans due from undergrad? I don't have any previous debts so I put as much money as possible into tax defered investments (so I can legally get my Adjusted income as low as possible). Unfortunately (...well it WAS fortunate at the time) I won a free Club med vacation which jacked my adjusted income 25% and bumped me up to the next tax brackett. My EFC is 5K.

 

[TrojanAnteater]

If you don't mind me asking, how did you get a EFC of 0? Do you have outstanding loans due from undergrad? I don't have any previous debts so I put as much money as possible into tax defered investments (so I can legally get my Adjusted income as low as possible). Unfortunately (...well it WAS fortunate at the time) I won a free Club med vacation which jacked my adjusted income 25% and bumped me up to the next tax brackett. My EFC is 5K.

I don't really know. My parents paid my undergrad. I don't earn anything from working. Most of the money I did make I put in my mutual fund which isn't taxable, if that matters. And i'm not sure what else is factors in.

 

[hcp]

Hi Guys

I received my financial aid award letter and got $1000 for perkins loan, $5000 subsidized federal direct, and $5500 unsubsidized federal direct loan for the 2005-2006 academic year.

I called financial aid office and was told that you can only qualify for one of the loans (direct or stafford), not both. Also, she pointed out that both loans are the same? Is this true?

Thanks in advanced,

Manuel

 

[hcp]

I confirmed this information with my undergraduate financial aid advisor. In fact, both loans are the same. The difference is that stafford loans are provided to you through banks and federal direct loans are provided by the school directly.

My estimated yearly school cost is $44,538. So I have to get private loans. Does anybody has any recommendations?

Thanks!

 

[goheel]

I confirmed this information with my undergraduate financial aid advisor. In fact, both loans are the same. The difference is that stafford loans are provided to you through banks and federal direct loans are provided by the school directly.

My estimated yearly school cost is $44,850. So I have to get private loans. Does anybody has any recommendations?

Thanks!

holy crap, that much? What school is this?

 

[hcp]

holy crap, that much? What school is this?

The school is Long Island University (Brooklyn, NY).

2005-2006 cost

tuition/fees $26868
room/board $14400
books/supplies $1750
personal $800
transportation $720

Total $44538

 

[goheel]

wow, and I thought my $20K cost is alot.

 

[cangara]

wow, and I thought my $20K cost is alot.[/QUOTE


$20K tuition fee or this includes living expenses?

 

[kayjay]

Maybe this thread belongs in the financial aid section, but I figured since it hasn't really been a topic in the pre-pharm forum, here goes..

Anybody thinking of consolidating their undergrad stafford loans before pharm school? I've done a search on loan consolidation, and all this "you can only consolidate once"/"you can consolidate again only if you have an existing loan that is not consolidated" jargon is confusing me (Does this mean I should consolidate 3 of my loans and leave one unconsolidated??). Is any of this true? Can someone please clarify? Should I wait until after pharmacy school to consolidate all my loans, including those from undergrad? (The interest rates right now are sooo low, it's tempting, and I don't think they're going to get any lower!!)

I think I'm definitely going to have to take a trip to the fin. aid office!

 

[dgroulx]

I was advised to consolidate this year as rates are expected to go up. I still have two years left of school, but at least the bulk of my loans are now consolidated at into one loan.

I think you need to look at how much debt you have now and how much you expect to rack up in the next 4 years.

 

[endlesslove]

Maybe this thread belongs in the financial aid section, but I figured since it hasn't really been a topic in the pre-pharm forum, here goes..

Anybody thinking of consolidating their undergrad stafford loans before pharm school? I've done a search on loan consolidation, and all this "you can only consolidate once"/"you can consolidate again only if you have an existing loan that is not consolidated" jargon is confusing me (Does this mean I should consolidate 3 of my loans and leave one unconsolidated??). Is any of this true? Can someone please clarify? Should I wait until after pharmacy school to consolidate all my loans, including those from undergrad? (The interest rates right now are sooo low, it's tempting, and I don't think they're going to get any lower!!)

I think I'm definitely going to have to take a trip to the fin. aid office!

3 comments:
1) a friend said to consolidate everything 'cuz rates go up in July.
2) UCSD Financial Aid lady said if you do not have any loans to consolidate (as is my case ), then it's okay' u don't have to fake take out some loans to lock in this low interest rate. she said ANYTHING can happen in 4 yrs, not just rates going up but also going down. so if you want to consolidate all but one loan, then go ahead. may be good for ya
3) for you ppl who didn't want to take out any loans in undergrad, TAKE OUT THOSE SUBSIDIZED LOANS if you were offered them!! it's like temporary free money in pharmacy school b/c no interests! i didn't realize this until my very last semester of undergrad and wasted $1125/semester *5 semesters. mmm, anything FREE is good =)

 

[endlesslove]

hey guys, scratch #3. a fellow SDNer told me i have to pay (ahhh!). does anyone know if I can return a subsidized loan? i didn't even need thisand took it only 'cuz she said temporary FREE money. the UCB financial aid lady lied to me there was no fine print (i never got a package or anything in the mail)--i got the loan in a very unorganized way. (to the OP, sorry for stealing your spot)

 

[PharmDeb]

3 comments:
3) for you ppl who didn't want to take out any loans in undergrad, TAKE OUT THOSE SUBSIDIZED LOANS if you were offered them!! it's like temporary free money in pharmacy school b/c no interests! i didn't realize this until my very last semester of undergrad and wasted $1125/semester *5 semesters. mmm, anything FREE is good =)

I'm a total igoramous about school loans! Haven't had to take any out yet, but will need to for Pharm School. Are you saying you could have taken the loans out and held onto them for Pharm School...or you should have used them in undergrad?

 

[kayjay]

hey guys, scratch #3. a fellow SDNer told me i have to pay (ahhh!). does anyone know if I can return a subsidized loan? i didn't even need thisand took it only 'cuz she said temporary FREE money. the UCB financial aid lady lied to me there was no fine print (i never got a package or anything in the mail)--i got the loan in a very unorganized way. (to the OP, sorry for stealing your spot)

No problemo The government pays the interest on subsidized loans while you are in school..so in a way it is temporary free money, but not quite because after school you pay the entire balance + interest. As far as returning the loan, I have no clue..I'm sure if you call your loan provider, they will be able to give u a straighforward answer .

I was advised to consolidate this year as rates are expected to go up. I still have two years left of school, but at least the bulk of my loans are now consolidated at into one loan.

I think you need to look at how much debt you have now and how much you expect to rack up in the next 4 years.

I'll be 6x more in debt after pharm school than I am now. So should I just wait? Also, since you've already consolidated, can you consolidate again? I've read in past posts (not particularly in this forum), that you can't consolidate more than once in your lifetime, but this seems pretty outrageous.

 

[funnyshoes84]

What does it mean exactly to consolidate your loans? and what does it have to do w/ low interest rates? Can someone explain this to me..thanks!

 

[kayjay]

What does it mean exactly to consolidate your loans? and what does it have to do w/ low interest rates? Can someone explain this to me..thanks!

Every year you are in school, you basically apply for loans..may be from the same loan provider, may be from different loan providers. Ppl consolidate their loans so they won't have to make multiple payments to several different places and at different times..makes life a heck of lot easier.

As far as interest rates are concerned, they change periodically..may go up, may go down. Usually when you consolidate your loans, you are offered a very low interest rate compared to what you would normally pay had you not consolidated.

 

[nikkai]

Every year you are in school, you basically apply for loans..may be from the same loan provider, may be from different loan providers. Ppl consolidate their loans so they won't have to make multiple payments to several different places and at different times..makes life a heck of lot easier.

As far as interest rates are concerned, they change periodically..may go up, may go down. Usually when you consolidate your loans, you are offered a very low interest rate compared to what you would normally pay had you not consolidated.

Bear in mind though that by consolidating you start your repayment all over again from day 1.

So you have to weigh how long you have been in repayment vs. how much you'd be saving with the lowered interest. Remember also that with Loan repayment, if it's anything similiar to a home loan/mortgage, the initial payments all go towards interest, not the principle.

YOu may lower your monthly payments by 100 bucks, but if you were paying 300/month and had 15 years left and consolidate to 200/month but now you reset to 30 years... that's just no good. =/

Careful careful all.

 

[kayjay]

Bear in mind though that by consolidating you start your repayment all over again from day 1.

So you have to weigh how long you have been in repayment vs. how much you'd be saving with the lowered interest. Remember also that with Loan repayment, if it's anything similiar to a home loan/mortgage, the initial payments all go towards interest, not the principle.

YOu may lower your monthly payments by 100 bucks, but if you were paying 300/month and had 15 years left and consolidate to 200/month but now you reset to 30 years... that's just no good. =/

Careful careful all.

Repayment periods are based on the amount of one's student loan debt. Even after one consolidates his/her loans, a shorter repayment period can still be requested, which also reduces the amount of interest paid.

I'm looking to get my loans payed off as soon as possible..not looking for the 20-30 year stretch to reduce my monthly payments, i honestly don't think that's a great idea. I'm still in deferment and have not begun any payments yet, as I have just finished undergrad..I don't plan on making payments until after pharm school. So my question is, would locking in the low interest rate now be a good/bad idea, considering I am still going to be 6x more in debt than I am now in the next 4 years?

 

[ForgetMeNot]

You can only consolidate your loans you have once. If you do consolidate, you can get a longer repayment period, but there aren't any fees if you pay it off faster. At least, if you use reputable companies for federal loans consolidation there aren't fees. I was advised to consolidate and keep the 30 year repayment option, but pay more than the minimum each month so I can have it all paid in fewer years (thus avoiding extra interest) while keeping the lower interest rate.

 

[endlesslove]

I'm a total igoramous about school loans! Haven't had to take any out yet, but will need to for Pharm School. Are you saying you could have taken the loans out and held onto them for Pharm School...or you should have used them in undergrad?

Hi PharmDeb, I'm not quite sure what you meant. I didn't want to take out loans unless they were temporarily completely free (like no transaction fees or anything) just b/c yeah, i hate paying even an extra penny if I can avoid it. After meeting with a Berkeley financial aid counselor, that was the impression I was under with regard to the subsidized loans. At any rate, I called Berkeley FA this morning, yes, they were able to confirm that there is a $55 transaction fee. You know, perhaps I am ignorant, but I really hate business "gimmicks" when people don't tell me the complete truth and inform me of all the strings that are attached to something that I am pursuing... for I feel like I am being deceived. Anyway, they said I could "return" the loan by logging into my Berkeley student account and declining the loan and I'm highly considering this but haven't made my final decision yet. Anyone have any input? I heard you could get subsidized loans in pharm school anyway, but only like up to $8500...*shrug* Will I regret it if I return this subsidized loan ($1125) from undergrad? PS, I am not rich. I managed to graduate from undergrad debt free (and money left over) w/o having to take out any loans just because I budget everything very carefully.

 

[hcp]

Hi Guys

I have requested a citi bank student loan for $28,500. Since my credit is good and I'm still working full time, I had no problems getting the loan approved. Now, I'm just waiting for the school to certify the amount and that's it.

To obtain this private loan, citi bank's requirement is that you must have a minimun monthly income of $1500 when you are in your undergraduate school years. At Long Island University, P3 and P4 are considered undergrad years, therefore, next year I will also have to go through this application process again. Since, I won't be working full time once I start pharmacy school, there is no way I can make $1500 a month.

I asked them and they said that for next year, I will have to get a co-signer. For P5 and P6 years, there is no income verification.

Have anyone of you faced or will face the same problem? Do all banks/institutions require a minimum income to get a loan? I mean, what if I have no one else to co-sign me for next year?

Thanks in advanced!