Undergrad+SMP+Med School LOANS... Financially Doable????

[HopefullPreMD]

Ok, seriously folks...I keep reading threads after threads of people going for different postbac/SMP programs, but no body is talking about the financial burdens. I for one, would like...MORE LIKE NEED...to apply to BU MAMS. Now, I have about 35 k worth of undergrad loans, which BU (with the inclusion of living expenses+tuition for TWO years) will probably add about 80k if not more and Medical School about 250 k. I just want to know if there are financial opportunities that I am missing. Additionally, is close to 400k worth of debt even DOABLE considering that my undergrad will have ridiculous interest rates by the time i finish. In the same note, wouldn't that render me incapable of borrowing money by the time i reach 3rd or 4th year of medical school considering that I will have hit the cap before I even get to that level. What did/would you all do? Any feasable plans? Helppppp

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[smiley27]

I'll be finishing up a postbac this year with only a couple thousand or so in credit card debt, thanks to the help of my parents. Although I can't keep taking from them forever so I'm planning to take out the 50k or whatever for an SMP then another 200+ or whatever for med school. I won't be surprised if I'm 200-300k in debt by the time I finish med school.

I suppose if you still need loan money you can always get private loan money later on but you should ask yourself if you think this path is worth the financial risk. If you're gonna end up with 200-300k in debt and end up taking a 120k/year job it might not be the best financial decision if you want to raise a family and own a nice home and decent car and save up for retirement.
A lot of people on here are so "I'm not in it for the money." Of course we're not, or else we would be going into business. But money is a huge concern for me and it does affect my decisions.

 

[HopefullPreMD]

Very well said, I am not in it for the money either. It's too much work and stress for it to be the only factor, but yes money is definitely a huge concern. Unfortunately, there is no way I can borrow from my family, but I do hope to find another feasable plan to pay off my undergrad loans somehow...at least my undergrad. I don't understand how they claim to have shortage of doctors, but make it insanely impossible to attend a medical school in every aspect. Thank you for your response though!

 

[deleted248403]

I don't understand how they claim to have shortage of doctors, but make it insanely impossible to attend a medical school in every aspect. Thank you for your response though!

Do some reading on this topic and it should clear it up for you nicely...

Med schools aren't really worried about having too few applicants due to the cost of attendance...

 

[DrMidlife]

I fail to understand why people who have no student loan debt are always the first to offer commentary in threads about student loan debt.

If any sizable portion of a mid-six-figure student loan debt is non-federal, you're toast.

If you are on a GPA comeback and you can't get into your state's public schools, you're looking at much more than $250k for med school.

If you have any consumer debt (car loan, credit cards), you're toast.

If you fail out of med school or need to remediate, you're toast.

Otherwise, you're not alone, but find another career if at all possible. Also look into military scholarships etc.

Best of luck to you.

 

[darklabel]

Ok, seriously folks...I keep reading threads after threads of people going for different postbac/SMP programs, but no body is talking about the financial burdens. I for one, would like...MORE LIKE NEED...to apply to BU MAMS. Now, I have about 35 k worth of undergrad loans, which BU (with the inclusion of living expenses+tuition for TWO years) will probably add about 80k if not more and Medical School about 250 k. I just want to know if there are financial opportunities that I am missing. Additionally, is close to 400k worth of debt even DOABLE considering that my undergrad will have ridiculous interest rates by the time i finish. In the same note, wouldn't that render me incapable of borrowing money by the time i reach 3rd or 4th year of medical school considering that I will have hit the cap before I even get to that level. What did/would you all do? Any feasable plans? Helppppp

The ABSOLUTE limit to borrowing from Stafford Loans is: $224,000 when enrolled in a health science major

Source: http://studentaid.ed.gov/types/loans/subsidized-unsubsidized

You then have GradPlus which will cover the cost of attendance but has a steep price of 7.9%.

Source: https://www.aamc.org/advocacy/meded/79232/federal_student_loans.html

If the 35k is from Undergrad and you anticipate 80K for two years that equates to about 115k in loans from the federal government and you can only borrow 109k for medical school through Stafford. You will then have to rely on GradPlus and that will only cover what the school deems "necessary". You can easily get a private loan if you have decent credit, but expect your debt load to increase substantially. Realize also that SMPs don't equate to any guarantees and may destroy your chances of any MD (or even DO depending how poorly you do).

I hope more people look into this before funding expensive SMPs on loans.

 

[deleted248403]

The ABSOLUTE limit to borrowing from Stafford Loans is: $224,000 when enrolled in a health science major

Source: http://studentaid.ed.gov/types/loans/subsidized-unsubsidized

You then have GradPlus which will cover the cost of attendance but has a steep price of 7.9%.

Source: https://www.aamc.org/advocacy/meded/79232/federal_student_loans.html

If the 35k is from Undergrad and you anticipate 80K for two years that equates to about 115k in loans from the federal government and you can only borrow 109k for medical school through Stafford. You will then have to rely on GradPlus and that will only cover what the school deems "necessary". You can easily get a private loan if you have decent credit, but expect your debt load to increase substantially. Realize also that SMPs don't equate to any guarantees and may destroy your chances of any MD (or even DO depending how poorly you do).

I hope more people look into this before funding expensive SMPs on loans.

So what do you suggest then? Selling meth? Loans is the only way.

I'm not sure how much I believe the numbers and the rules you posted either - plenty of people have done UG, SMPs, Med school on loan money and not had to take the last year or so out on gradplus only.

I'll ask around at school on Monday and see what people did (several good friends did SMPs) - but it just doesn't make it up

 

[darklabel]

So what do you suggest then? Selling meth? Loans is the only way.

I'm not sure how much I believe the numbers and the rules you posted either - plenty of people have done UG, SMPs, Med school on loan money and not had to take the last year or so out on gradplus only.

I'll ask around at school on Monday and see what people did (several good friends did SMPs) - but it just doesn't make it up

What is there to believe? I listed the websites (one is even directly from AMCAs).

I'm not against SMPs (Doing one myself), I'm just saying students should be wary of expensive ones and if it is right fit for them and they know they can do it, then just understand the numbers and get A's. I said you won't have a problem finding loans, but Strafford has a hard limit. GradPlus will cover the rest of medical school but only what the school deems as the cost of attendance (could be less than your apartment, etc). We don't know where he might get in. If it is a state should then it wouldn't be a big deal, but if it were a private medical school then the debt load will be quite high.

"The average debt is $205,674 for osteopathic medicine students and $162,000 for allopathic students." Source: http://www.ama-assn.org/amednews/2012/08/27/prsb0827.htm

So if he tacks on another 80k onto 162k (I assume he's gunning for MD) and 32k from undergrad, his potential total debt load will be 274k + interest. Not too bad a doable, but hopefully the 80k pays off for the OP with an MD acceptance.

 

[DrMidlife]

Honestly what I'm finding is that most of my classmates come from families that are writing large checks and agonizing about loading their kids with debt. So it's like you get an SMP for your birthday, or whatnot.

Meanwhile my school has started providing info on how to get on food stamps, for those who don't have the family wealth. And I have classmates who honestly don't seem to understand that they were badly mistaken in coming into med school with credit card debt, a car loan, and/or a consumer credit payment plan. No, you actually may not be able to have an iphone with a data plan, if you have to make payments toward consumer debt. Really.

At this point, it's fairly clear to me that I'll be able to borrow my school's $320k cost of attendance, and I'll be able to pay it off, and that some acronym will still be available (PSLF/IBR/ICR/PAYE/etc) and that making sense of the details for both the borrowing and the repayment will never be less than about 5 hours a month of work. There are now GL advisers who will manage your student debt for you, as a paid service, but there is no chance I'd hire somebody to "take care of" my student loans.

Bah.