Subsidized loans

TxDPT14

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Aug 22, 2011
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  1. Pre-Rehab Sci [General]
    Okay, so I think I already have this figured out, but I want other opinions:

    I have money saved up for school (about 30 grand), but due to some family circumstances right now, I do not know if all of that money will be available for me to actually utilize for PT school. (The total cost for the school I am attending is about 35,000 for the entire program).

    My school is giving out SUBSIDIZED loans UNTIL July 1, 2012. I start school May 29, 2012 so I WILL be able to get a subsidized loan (meaning interest does not accrue until after I graduate). They are not giving out subsidized loans AT ALL after that date.

    I am thinking it would be wise for me to go ahead and take the subsidized loan out right now and then use whatever is left of my savings later. Does this sound like a good plan?:thumbup::thumbdown:

    My only other option would be to use my savings now and then possibly take out an unsubsidized loan when I run out of savings, but this would mean that interest would accrue while I am in school.

    Thanks!
     

    DancerFutureDPT

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      I was in a similar position as you...I used my savings for living expenses and everything except tuition (because I didn't want to graduate without any savings left - that thought scared me.) Definitely take out the subsidized, since theoretically you can pay them right after graduating and never pay interest (before it capitalizes).

      It's great that you have savings, but do the math to make sure that you have enough money to live on in case something happens...I decided to take loans out because I figured it'd be better to make monthly payments on them but have a nice chunk of change in the bank rather than not have monthly payments but run the risk of not having any money in case of an emergency. But, it's personal preference so it's up to you.
       
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      babaO98

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      May 20, 2011
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      1. Pre-Rehab Sci [General]
        I am also in a similar situation. I have some money saved up, but I know I'm going to need to take loans later in my program. I decided to take the subsidized loans now, while they're still available, and use my own money later. I'd rather not pay thousands in interest on lots of unsubsidized loans, so I think this is the best option!
         

        PTapp

        DPT
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        Oct 9, 2007
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        1. DPT / OTD
          It's really great that you guys have some money saved up, however there's no reason for you guys to freak out about accumulating some student loans. Student loans are like the best loans you can take out really, and the government pays the interest on the subsidized loans until you graduate. And if you do traveling PT, the amount of money you will be making will help you pay them off in no time. Good luck to all.
           

          TxDPT14

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          Aug 22, 2011
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          1. Pre-Rehab Sci [General]
            Good im glad some people are in the same boat!

            PTapp I guess you're right. It's just that sometimes the DPT loan amount versus salary amount gets discussed quite a bit on this forum and no one seems the think the salary balances out most loan repayment amounts very well.

            Thanks for the advice!!
             

            ktrieu05

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              Okay, so I think I already have this figured out, but I want other opinions:

              I have money saved up for school (about 30 grand), but due to some family circumstances right now, I do not know if all of that money will be available for me to actually utilize for PT school. (The total cost for the school I am attending is about 35,000 for the entire program).

              My school is giving out SUBSIDIZED loans UNTIL July 1, 2012. I start school May 29, 2012 so I WILL be able to get a subsidized loan (meaning interest does not accrue until after I graduate). They are not giving out subsidized loans AT ALL after that date.

              I am thinking it would be wise for me to go ahead and take the subsidized loan out right now and then use whatever is left of my savings later. Does this sound like a good plan?:thumbup::thumbdown:

              My only other option would be to use my savings now and then possibly take out an unsubsidized loan when I run out of savings, but this would mean that interest would accrue while I am in school.

              Thanks!
              35,000 for the entire program?? If you don't mind me asking- what program are you attending? I've only been looking at socal schools only and they're roughly 70-100k. Thus, I have considered going out of state because I have heard Texas is relatively cheap. If anyone is more familiar with cheaper tuition programs, such as ones in Texas and be able to elaborate on their experience there, it would be greatly appreciated. (Maybe I can PM you>)
               

              PTapp

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              Oct 9, 2007
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              1. DPT / OTD
                Good im glad some people are in the same boat!

                PTapp I guess you're right. It's just that sometimes the DPT loan amount versus salary amount gets discussed quite a bit on this forum and no one seems the think the salary balances out most loan repayment amounts very well.

                Thanks for the advice!!

                Most students are really worried about the student loans on this forum, and the ideal situation would be to graduate loan free, however, not everyone can save up the kind of money that you had saved up, so you are actually very lucky (well most of it is hard work on your part :) ) I am going to have close to 150k when I graduate (private grad school + undergrad) and I gotta tell you... I am not as worried as some people on this forum, because I know last year's graduates who have been working as traveling therapists and they have been paying double and even triple of what they are required to pay to the loans, because they have been making so much money. Most have paid off their credit card debt and now living a comfortable life down in south.

                Seriously, you guys need to stop worrying about these loans too much. Study hard, graduate from a DPT school, and you will love your job and life. Just focus on the positives and make a good plan to make turn the negatives into positives. Attend the APTA conferences, serve as ushers, focus on professional development while you're in school, not on the student loans. This is a great career guys. I am so glad I am in this field. :)
                 

                blewis15

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                Apr 10, 2012
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                1. DPT / OTD
                  Most students are really worried about the student loans on this forum, and the ideal situation would be to graduate loan free, however, not everyone can save up the kind of money that you had saved up, so you are actually very lucky (well most of it is hard work on your part :) ) I am going to have close to 150k when I graduate (private grad school + undergrad) and I gotta tell you... I am not as worried as some people on this forum, because I know last year's graduates who have been working as traveling therapists and they have been paying double and even triple of what they are required to pay to the loans, because they have been making so much money. Most have paid off their credit card debt and now living a comfortable life down in south.

                  Seriously, you guys need to stop worrying about these loans too much. Study hard, graduate from a DPT school, and you will love your job and life. Just focus on the positives and make a good plan to make turn the negatives into positives. Attend the APTA conferences, serve as ushers, focus on professional development while you're in school, not on the student loans. This is a great career guys. I am so glad I am in this field. :)


                  Thank you for being positive!
                   

                  TxDPT14

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                  Aug 22, 2011
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                  1. Pre-Rehab Sci [General]
                    35,000 for the entire program?? If you don't mind me asking- what program are you attending? I've only been looking at socal schools only and they're roughly 70-100k. Thus, I have considered going out of state because I have heard Texas is relatively cheap. If anyone is more familiar with cheaper tuition programs, such as ones in Texas and be able to elaborate on their experience there, it would be greatly appreciated. (Maybe I can PM you>)

                    Im attending Texas Tech University Health Sciences Center! My bill for the summer semester (not including books) was only 2,500 and that is for 8 hours of credit. Now I know that in Texas, out of state would cost much more than that, but I also hear that Texas Women's University and UT Southwestern offer pretty much all out of state students a scholarship to cover the extra cost. So definitely look into those!
                     

                    ktrieu05

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                      Yeah I definitely will. Still, paying the out of state fee is relatively cheap compared to these California schools! However, I noticed that on PTCAS none of the Texas schools are recognized. Do you or anyone know why? Should that be taken into consideration when applying to PT schools?
                       

                      TxDPT14

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                      Aug 22, 2011
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                      1. Pre-Rehab Sci [General]
                        Yeah Texas PT schools have their own individual applications so you'll have to go to each schools website to apply, it's not as time consuming as it may seem but I can't compare it to PTCAS because I never used it
                         

                        rangardrum

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                        Nov 14, 2010
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                        1. Rehab Sci Student
                          I also have about $30k saved, but I'm not touching it because it's in a retirement account that should (on average at least, haha) beat the 6.8% interest rate on Stafford loans. In addition, there would be a 10% penalty to withdraw this money, making it even more costly to access.

                          I am choosing to take out loans as a result for covering my living expenses. It's going to be expensive to fund living expenses for three years, but at least I'll know my other account will hopefully be gaining in value.
                           
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