What kind of loans to take?

[Isradoc1983]

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Hello,
So, I really need an advice on what kind of loans I should take for my dental school. I was accepted into my #1 choice (BU), but unfortunately it costs alot of $$ and I have no real sources of income. So, I am going to pay for my education with loans. 🙁
anyway, I am going to take all the subsidized and unsubsidized loans that BU offers, but I will need additional loans to cover the costs. I was wondering whether people here took the direct graduate plus loan or did they found some private loans to pay for their education? The economy is bad right now so the APR% is relatively low for private loans vs the 7.9% for the PLUS loan. People usually advice against taking private loans when you can take government loans, but I was wondering whether someone chose to take private loans. Anyway, any advice on loans will be great!

 

[pietrodds]

Dental school is nothing but a big, rediculous game and after 4 years you get the same degree from anywhere... so go where it's the cheapest and take out the least amount of loans. You'll thank me in 10 years. Also, consider the military route.

 

[Isradoc1983]

yeah, I would def' go where its cheaper but I must stay in MA for personal reasons at least for the next 4 years... I am considering the military route, but idk if i am eligible b/c I served in the Israeli military already. Any input about the loans?

 

[SugarNaCl]

I only had to take out the direct stafford loan because my husband's job pays our living expenses... but that maxes out at $44,500 I believe. If I had to take out more, I would probably stick with the Grad Plus just for ease in consolidation afterward. Having loans out with too many different people concerns me esp private loans where interest rates can fluctuate within the 4 yr span. Luckily though, I haven't had to worry about any additional loans but the friends that I have in school that need extra income over tuition have mostly done Grad Plus.

While the military route may be enticing, remember what you are committing to. They do cover your expenses etc, but your wages are also generally lower. For 4 years, if you are willing to go whereever they tell you to go then it is definitely a good, viable option. I know a lot of people going that way and I am definitely jealous of their zero dental school debt, but as a personal choice... I couldn't do it. I want to determine where I live, where I work etc. I want to make some of my own calls from the get go.

 

[Isradoc1983]

thanks,
does anyone here isn't taking the PLUS loan?

 

[Frizzle]

thanks,
does anyone here isn't taking the PLUS loan?

myself and most of my friends in my class took out PLUS loans, but nova is kinda pricey so it depends where you go (Stafford Unsubsidized/Subsidized max is ~44,000 per year i believe)

i didnt really look too much into who i was borrowing from which was a big mistake. SallieMae (who I have) makes you pay pretty stiff fees up front, which were just taken out of my allotted amount. I think it worked out to about 2000 out of ~ 76000 for the first year. doesnt sound like much, but over 4 years, thats 8,000 that I DONT EVEN SEE that will have been accruing interest (8.5% 👎) the entire time. not sure how the economy is gonna affect the rate you get, if at all.

So look at your lenders carefully, see who doesn't try to shaft you with origination fees (if any of them dont), and if your parents are willing/able, see if having them cosign will get you a better interest rate.

also (i know it's not feasible for most people, but) see if you can work out a way to pay off your interest while in school. if it doesnt strap you too hard for cash, it will be worth it in the long run IMO

good luck

edit: my advice would be to NOT do military if it is only for the money... I looked into it, and it sounds like a pretty good deal until you start crunching numbers. You shouldn't have problems paying back after consolidation of your debt upon graduation, and even if you do, you could do IHS or rural health (who pay between 25,000 and 35,000 of your debt per year, depending on your length of time with them + salary). their contracts are 1 or 2 years with options to extend, not 4 year active duty + 4 years inactive duty commitments!

I talked to Army, Navy, and Air Force recruiters at the beginning of last semester... Army and Navy haven't stopped calling me, even though I told them I am not interested! (guess they are hurting for dentists)

 

[Isradoc1983]

Thanks alot for the advice, I did alot of research and it seems that the private loans will screw you over the long run especially with a variable APR that is based on the LIBOR index and fees... I guess i'll go with the GRAD Plus loan and suck it up with 7.9APR!

 

[bluejays]

Hey, I'm also having difficulties with getting loans. I've never done them before and have no idea how to do them. Do you think Stafford subsidized, unsubsidized, GRAD PLUS loans are enough to cover for everything? My school is about 75k/yr. Are these 3 good enough?

 

[Isradoc1983]

hi yeah that should cover all your costs including housing

 

[zriceman]

anyone know how much we can take out Health Proffessional Loans?

 

[bluejays]

What is the health professional loans? Is it only rewarded for students in medical, dentistry, etc...? Is it loan that is subsidized too? The HPL is only given to certain schools, right or can anyone apply for one?

 

[Mamona]

If after all the loans (subsidized, unsubsidized, GRAD plus, etc) I need more over my COA which companies do you guys recommed? and how soon can I ask for that money?
My case is a little different, we (my husband and I) have a house, which is underwater, so we can't sell it. I am a big part of our income and in August that income is gone, so my husband definitely need money to continue with our debt.... Due to all this he can't even move and live with me, his job can't be done in my new future hometown... So any info you guys can give me I'll appreciated

 

[Isradoc1983]

from what i have checked sallie mae is the "best" but again private loans will try to screw you over so try to take the max on the grad plus loan. Again look at the different indexes. Sallie mae works with the libor index, so if the libor index comes back to be what it was about 2-3 years ago you'll be paying around 10-12 % APR. So be very carefull with private loans.