Wondering if you could do this...

[TexasFight]

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Just thinking about medical school loans make me sick. I was wondering if there was someway you could at least partially compensate for the debt you will be in. Would the following make financial sense?

- Take out the maximum amount of loans you can that will not incur interest during medical school.
- Only use a certain percentage for tuition and living expenses (~75% or so)
- Invest the remainder in a high interest account for 4 years
- Immediately pay back the amount you do you have on hand as soon as you have to start paying interest again
- Use the interest you gained to pay off part of your loan.

Would this be a simple reasonable way to knock off a few thousand from your debt? Am I missing something important here?

 

[RabbMD]

Just thinking about medical school loans make me sick. I was wondering if there was someway you could at least partially compensate for the debt you will be in. Would the following make financial sense?

- Take out the maximum amount of loans you can that will not incur interest during medical school.
- Only use a certain percentage for tuition and living expenses (~75% or so)
- Invest the remainder in a high interest account for 4 years
- Immediately pay back the amount you do you have on hand as soon as you have to start paying interest again
- Use the interest you gained to pay off part of your loan.

Would this be a simple reasonable way to knock off a few thousand from your debt? Am I missing something important here?

Sure the only problem is finding those safe high interest accounts currently.

 

[yadayadadude]

High interest account? Like what, pray tell?

 

[Sol Rosenberg]

The maximum amount of loan $$$ that will not incur interest during medical school is ~$8500. Maybe $13500 (?), if you can demonstrate the need to qualify for a Perkins Loan.

I think a bigger flaw in the plan is assuming that you can live (and pay tuition) on 75% of $8500 = $6375 (or even 75% of $13500 = $10125.) I go to a [very cheap] state school, and my tuition alone costs more than that.