Tips on how to pay back credit card debt with med school loans for beginners?

[reese07]

Since I wont be having a job or outside funds while in med school for the next 4 years, I have to pay my current debt somehow. How do I start paying back my debt with med school loans? Do I get a lump sum or do I get loaned in increments?

Basically, I want to be able to transfer my credit card debt (high interest) to my med school (lower interest) as fast as possible without hindering my ability to pay tuition along with living expenses but I don't know the basics of the loaning process enough to make a plan.

FYI: I'm fortunate enough to attend an instate med school with ~12k tuition/yr if that helps.

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[WhippleWhileWeWork]

Assuming you matriculate this fall, why don't you work all summer and pay off your credit cards?

Using your med school loans to pay off credit cards is not a great solution.

 

[DrEnderW]

I don't understand the dilemma.

If you can't pay it off beforehand, use your student loans to pay off the credit card to zero right when you get your check. People do this all the time, especially to pay off app/ interview expenses. This is a non-issue.

 

[Bancrofti]

Hey OP,

I had close to 10k in credit card date from college since I had trouble paying for school. You can only take up to the maximum cost of attendance of your school anyway, so don't anticipate having a bunch of money to ameliorate your debt. You'll basically need to sit down, look at your debt to see the total, know what your minimum monthly payments would be, know how much your interest rates are, etc. If you don't have too much debt, it is possible to pay off a small card with miscellaneous fees that your school may allot to your tuition. If it is excessive (as mine was) your plan will have to be a lot better and you'll have to decide of how much of a lump sum you can put towards your credit cards, while having enough to make the resultant payments, and of course factoring in how much you need for necessities like food, gas, housing, or whatever else.

For the record, I'm finishing up second year now, but I only have it down to about $5500.

 

[Chillbo Baggins]

I don't understand the dilemma.

If you can't pay it off beforehand, use your student loans to pay off the credit card to zero right when you get your check. People do this all the time, especially to pay off app/ interview expenses. This is a non-issue.

I'll still have about 11k left on my car payments when I start school. Should I do this as well?

 

[DrEnderW]

I'll still have about 11k left on my car payments when I start school. Should I do this as well?

My advice was more to small credit card debt. I'd speak with someone more knowledgable about that.

You wouldn't likely be able to take that much extra out - I managed about 6k less than recommended allowance for my school in a very expensive city. If you had to go that route, it could be doable over years with planning. Hopefully there are other options.

 

[Deadlifts]

I'll still have about 11k left on my car payments when I start school. Should I do this as well?

You bought a new car in school? I'd think your best option there would be to see what you could sell the car for and get something cheaper?

 

[Chillbo Baggins]

You bought a new car in school? I'd think your best option there would be to see what you could sell the car for and get something cheaper?

My previous car got totaled, so I got something that'll last me 10 years. I could pay off most of the remainder right now with savings, but I was seeing if it makes more sense to pay it off right away with student loans or pay off a chunk and keep having monthly payments.

 

[rainbow girl]

I'll still have about 11k left on my car payments when I start school. Should I do this as well?

You don't have to pay off your car payment all at once. And I don't think you can do it either. I think you should make your own budget according to your COA and tuition. For example, your tuition and fee cost $20k, books and insurance $3k. Your COA is $42k. So that means you have around $19k left for living eexpense, so like $1500/month. Make a budget to see how much you will have to pay for housing, utility, gas, food, ect. Check to see if your leftover can cover the car payment. At the end of the semester or the school year, if you have some cash left, make a big payment to save some interest accrued. However, you should also check with your loan institution to see if there is any penalty when paying off early. I think it is silly, but I heard of some car loans that have penalty when you pay off early

 

[colbgw02]

To answer the original question:

http://forums.studentdoctor.net/thr...ctioning-her-virginity.1061312/#post-15051385

 

[TooMuchResearch]

I'll still have about 11k left on my car payments when I start school. Should I do this as well?

The rate on your student loans will be somewhere around 6%. What is the rate on your auto loan? If it's greater than the rate of your student loans, yes, use extra loan money to pay it off.

Your best bet for the CC debt is 1) make some money before school starts and pay it off. 2) Use any savings to pay it off. 3) Use extra loan money, not loan money you need for tuition, rent, and food, to pay it off. 4) If you don't have the loan money available, look for low/no interest balance transfer offers on new credit cards...this will give you a bit more time to pay down the balance; however, if you don't pay it during the promotional rate period, expect this option to be the most expensive of those listed.