Subsidized loans deferred during internships?

[KittyRex]

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Just wondering whether subsidized loans (Stafford, Perkins etc) aquired both in undergrad and in veterinary school can be deferred during an internship year.

If so, does interest still accrue? Or is that deferred as well?

Seems like it would be impossible to keep up with the interest alone accruing on 150K+ in loans while making something like 26K per year as an intern! (1 year of accrued interest at 8.5% would be something like 1/2 of an intern's yearly salary!!!)

Just another thing to think about while I compare a very very expensive school that I LOVE to a much less expensive school that I like.

 

[Pandacinny]

I'm not sure about vet school, but I know I can defer my current student loans (from undergrad) if they make up more than a certain proportion of my income. I'm guessing if the loans made up over 50% of your income, you'd be able to defer at least some of them. At least, I hope so!

 

[chris03333]

you cannot defer any loans for internship. You have to do forberance..

 

[frozen_canadian]

Just another thing to think about while I compare a very very expensive school that I LOVE to a much less expensive school that I like.

Please please take the less expensive school if you are doing this with loans. I guarantee you will never regret that decision.🙂

 

[david594]

Please please take the less expensive school if you are doing this with loans. I guarantee you will never regret that decision.🙂

I seem to hear this from every vet I know and am fully planning to go to the cheapest school I get into.(although I didn't apply to any schools I was adverse to)

What about the Income contingent repaymment option for federal loans when we are poor interns?

 

[chris03333]

What about the Income contingent repaymment option for federal loans when we are poor interns?

I believe that is an option. You will then be making payments. If you can that is great, otherwise forberance it is.

 

[KittyRex]

Please please take the less expensive school if you are doing this with loans. I guarantee you will never regret that decision.🙂

Really? I wonder, though, if I would regret not pursuing the school with a curriculum/program and opportunities that are ideal for my interests and learning style in exchange for a few less years of debt.

 

[VAgirl]

Really? I wonder, though, if I would regret not pursuing the school with a curriculum/program and opportunities that are ideal for my interests and learning style in exchange for a few less years of debt.

Only you can really decide what you will and won't regret. And even then it's always just a best guess.

On the plus side, maybe not something to stress over too much...

http://www.ted.com/index.php/talks/dan_gilbert_asks_why_are_we_happy.html

Take a look at this talk about synthetic happiness...it'll blow your mind.

 

[sumstorm]

Just note that forebearance is only for a certain amount of time, and I believe if you used forebearance before, it takes that amount of time out of what you are allowed in the future. Not absolutly positive, since my forebearance was granted unrequested post Katrina/Rita.

 

[critterologist]

I went to the financial aide discussion at Cornell recently, and they had very interesting things to say on this topic. It seems that most of the loans require repayment to begin at a set time after school is finished ( 6, 9, or 12 months depending on the loan). Forbearance is an option, but has some limitations. There is one loan however, that specifically states that repayment begins AFTER internship and residency. I think it is called the health professions loan. In addition to that nice feature, it also has an interest rate of 5% and is up to about $120,000 (don't quote me on that number). I don't know how much you can actually get in the form of that particular loan, and I know that they don't care if you are 50 and married, they still require your parental info, but it is nice to know that it is out there.
Good luck!

 

[EqSci]

Only you can really decide what you will and won't regret. And even then it's always just a best guess.

On the plus side, maybe not something to stress over too much...

http://www.ted.com/index.php/talks/dan_gilbert_asks_why_are_we_happy.html

Take a look at this talk about synthetic happiness...it'll blow your mind.

Very cool, thanks for the link!

 

[sumstorm]

I went to the financial aide discussion at Cornell recently, and they had very interesting things to say on this topic. It seems that most of the loans require repayment to begin at a set time after school is finished ( 6, 9, or 12 months depending on the loan). Forbearance is an option, but has some limitations. There is one loan however, that specifically states that repayment begins AFTER internship and residency. I think it is called the health professions loan. In addition to that nice feature, it also has an interest rate of 5% and is up to about $120,000 (don't quote me on that number). I don't know how much you can actually get in the form of that particular loan, and I know that they don't care if you are 50 and married, they still require your parental info, but it is nice to know that it is out there.
Good luck!

Not all schools offer the health professional student loan (hpsl) but well worth checking into! There is a post of the pre-vet about financial aid/loans/etc that talks about it as well.