Trying to wiggle money from a state school?

[AnonymousDoctorGuyPerson]

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My top choice this cycle has always been my local state school not only due to the cheaper tuition but the school itself, location, etc. I have very little desire to go anywhere else, however, finances are a huge issue for me. I'm already entering med school with about 200k debt (big oof I know).

One of the private schools I was accepted into is offering enough to actually be somewhat cheaper (~8k a year) than the base tuition at the local state school and is also in a lower COL area. What's the best way to approach getting money if it isn't offered by the state school? I assume state schools also have less to work with, are there other options available?

Also, is there also a way to make schools more aware of circumstances outside of FAFSA? They recommend including your parents on the form, and while they don't make that much my mother became a nurse after I graduated high school and so her income is much higher than it used to be, but FAFSA also doesn't seem to take into account that this doesn't mean I'm receiving anything from my parents who I haven't lived or received any finances from for 10 years now.

Thank you! <3

 

[Wolvvs]

FAFSA also doesn't seem to take into account that this doesn't mean I'm receiving anything from my parents who I haven't lived or received any finances from for 10 years now.

This is true for most people applying into medical school who don't come from wealthy families. Parental income is used to determine eligibility for institutional aid only, not Federal aid.

You could definitely ask the state school if they have any flexibility, you can say you have an offer from another school and ask if they would be able to match it, but I wouldn't bet on it. If finances are the most important thing for you, your best bet might be just to go to the private school. Are there any disadvantages to that school that you're concerned about? It's not an ideal situation, but once you become an attending you should be able to pay everything off.

 

[deleted994889]

Your FAFSA will default to independent status for graduate students and you don't have report parental income. If your school does institutional aid (scholarships), they may require you to report parental income to be eligible regardless of whether you actually depend on them or not. This is the same for AAMC's FAP.

Ask your state school if they will match or have any other aid/scholarship available. If not, then I suggest attending the private school if you deem the savings is worth more than other factors. Cost difference in tuition will be approx. $39,131.22 at the start of residency and $48,043.68 at the start of attending/PGY4 (see below).

Some very important things to note:
1. The aid at the private school may not be renewed every year i.e. you might receive $8,000 M1 but less (or nothing) M2-M4. Check with the school.
2. If your going into med school with a $200k debt already, you'll probably hit the $224,000 aggregate limit for Federal Direct loans (Stafford + Direct Unsub). After that, you can only pull out Grad PLUS or private loans. I suggest sticking with Grad PLUS despite the origination fees and (potentially) since a Federal repayment plan is often the best choice for someone graduating with large debt.
3. Grad PLUS loans require credit. You can get a cosigner if you have adverse credit.

~Let's do some math~
Assumptions:
-This is only for difference in tuition and disregards other factors of cost of attendance i.e. living, transport, books, fees, etc.
-You pay $8,000 less at the private school, and the amount is renewed every year (this may vary year to year)
-The $8,000 is loaned every year as Grad PLUS (some of your loans your first year will be Direct Unsub, but you'll likely hit the aggregate limit your first semester so the last $8,000 will be taken as Grad PLUS anyways)
-Fees and interest are current (2019-2020) and remain the same for all 4 years (these are subject to change every year)
-Interest is incurred biannually for the 2 disbursements (fall/spring) in M1-M4 and annually after (the actual disbursements are variable)

	Fall M1	Spring M1	Fall M2	Spring M2	Fall M3	Spring M3	Fall M4	Spring M4	PGY1	PGY2	PGY3	PGY4/Employment
Tuition (incurred beginning of term)	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	0.00	0.00	0.00	0.00
4.236% Origination fee	169.44	169.44	169.44	169.44	169.44	169.44	169.44	169.44	0.00	0.00	0.00	0.00
7.079% Interest (over 1/2 year M1-M4)	0.00	4,317.02	8,786.84	13,414.86	18,206.70	23,168.14	28,305.20	33,624.08	39,131.22	41,901.32	44,867.51	48,043.68
Total	4,169.44	8,486.46	12,956.28	17,584.30	22,376.14	27,337.58	32,474.64	37,793.52	39,131.22	41,901.32	44,867.51	48,043.68

Disclaimer: I claim no liability for my math(ematical errors). Please run the numbers yourself before making any decisions 🙂

 

[AnonymousDoctorGuyPerson]

Your FAFSA will default to independent status for graduate students and you don't have report parental income. If your school does institutional aid (scholarships), they may require you to report parental income to be eligible regardless of whether you actually depend on them or not. This is the same for AAMC's FAP.

Ask your state school if they will match or have any other aid/scholarship available. If not, then I suggest attending the private school if you deem the savings is worth more than other factors. Cost difference in tuition will be approx. $39,131.22 at the start of residency and $48,043.68 at the start of attending/PGY4 (see below).

Some very important things to note:
1. The aid at the private school may not be renewed every year i.e. you might receive $8,000 M1 but less (or nothing) M2-M4. Check with the school.
2. If your going into med school with a $200k debt already, you'll probably hit the $224,000 aggregate limit for Federal Direct loans (Stafford + Direct Unsub). After that, you can only pull out Grad PLUS or private loans. I suggest sticking with Grad PLUS despite the origination fees and (potentially) since a Federal repayment plan is often the best choice for someone graduating with large debt.
3. Grad PLUS loans require credit. You can get a cosigner if you have adverse credit.

~Let's some math~
Assumptions:
-This is only for difference in tuition and disregards other factors of cost of attendance i.e. living, transport, books, fees, etc.
-You pay $8,000 less at the private school, and the amount is renewed every year (this may vary year to year)
-The $8,000 is loaned every year as Grad PLUS (some of your loans your first year will be Direct Unsub, but you'll likely hit the aggregate limit your first semester so the last $8,000 will be taken as Grad PLUS anyways)
-Fees and interest are current (2019-2020) and remain the same for all 4 years (these are subject to change every year)
-Interest is incurred biannually for the 2 disbursements (fall/spring) in M1-M4 and annually after (the actual disbursements are variable every year)

	Fall M1	Spring M1	Fall M2	Spring M2	Fall M3	Spring M3	Fall M4	Spring M4	PGY1	PGY2	PGY3	PGY4/Employment
Tuition (incurred beginning of term)	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	0.00	0.00	0.00	0.00
4.236% Origination fee	169.44	169.44	169.44	169.44	169.44	169.44	169.44	169.44	0.00	0.00	0.00	0.00
7.079% Interest (over 1/2 year M1-M4)	0.00	4,317.02	8,786.84	13,414.86	18,206.70	23,168.14	28,305.20	33,624.08	39,131.22	41,901.32	44,867.51	48,043.68
Total	4,169.44	8,486.46	12,956.28	17,584.30	22,376.14	27,337.58	32,474.64	37,793.52	39,131.22	41,901.32	44,867.51	48,043.68

Disclaimer: I claim no liability for my math(ematical errors). Please run the numbers yourself before making any decisions 🙂

Thanks for this well-structured post! I've been fortunate to keep my credit in decent shape despite my debt by keeping up with my payments, so luckily I'll still be able to manage Grad PLUS loans.

Seeing how much a difference of 8k can make, would it be prudent to continue paying at least interest while in school rather than deferring? I make a decent amount via private tutoring, and even 5-10 hours a week can net a decent income. Or, and of course this is subjective, is that interest in the grand scheme of attending salary rather minimal and I should use that money to actually enjoy myself a bit for once haha.

 

[deleted994889]

Thanks for this well-structured post! I've been fortunate to keep my credit in decent shape despite my debt by keeping up with my payments, so luckily I'll still be able to manage Grad PLUS loans.

Seeing how much a difference of 8k can make, would it be prudent to continue paying at least interest while in school rather than deferring? I make a decent amount via private tutoring, and even 5-10 hours a week can net a decent income. Or, and of course this is subjective, is that interest in the grand scheme of attending salary rather minimal and I should use that money to actually enjoy myself a bit for once haha.

~Let's do some math~
Scenario: You work during M1-M2 and save $100 each month for loan payments. M3-4 are too busy for you to work.
Assumptions:
-10 month academic year, 5 month terms
-You go into deferment and make no payments during residency
-7.079% interest (2019-2020) and remain the same for all 4 years (this may change every year)
-Interest is incurred biannually for the 2 payments (fall/spring) in M1-M2 and annually after

	Fall M1	Spring M1	Fall M2	Spring M2	M3	M4	PGY1	PGY2	PGY3	PGY4/Employment
Tutoring income	500.00	500.00	500.00	500.00
Interest	0.00	17.70	36.02	54.99	74.64	154.56	165.50	177.22	189.76	203.19
Total	500.00	1,017.70	1,553.72	2,108.71	2,183.35	2,337.91	2,503.41	2,680.63	2,870.39	3,073.58

In this example, you could save approx. $3,073.58 by the start of attending. Your initial $2,000 would grow 54%. The total savings might seem small, but I can think of A LOT of things I'd rather spend $3K on. I bet you could too 😉

Med school is gonna be tough so I wouldn't count on being able to work regularly. But if you are able to manage extra payments (without sacrificing grades or health), you can definitely reduce your financial burden. Unless you've got better things to do with the extra money (like what, upgrading from Top Ramen to Shin Ramyun Black? 😆), even a small amount here and there will help. And absolutely consider repayment during residency because it will make a big difference in the long run regardless of federal or private financing.

We shouldn't forget the importance of vacation and quality of life improvements. But we need to really evaluate if something is necessary before spending on it because we tend to err very much on the frivolous side. Aggressive saving before and modest living during (and sometimes after) school are the best ways to minimize debt.