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Can you tell me about your experience with student loans?
I live in Denver. I am married. My wife is pregnant. I want to be a doctor (MD).
Now you know all about me.
I have some of my basics from college down, but I know I have a long way to go. I can work and go to school for a while, but eventually, with medical school I'm going to need to focus only on school.
Is it really possible to get enough student loans to make it through like 6-8 years of school like that? I wouldn't mind ending up with 150K in debt, as long as I didn't have to start paying on it until I finished school.
I would basically need to loan all of my expenses. Housing... everything.
I'm looking for resources or recommendations. Anybody out there with an advanced degree do the same thing?
EDIT: I have solid credit score, and good debt to income ratio now if that helps.
EDIT 2: While I'm at it, if anyone wants to loan me 150K I promise to repay within 4 years of finishing school... :-) With interest.
Now you know all about me.
I have some of my basics from college down, but I know I have a long way to go. I can work and go to school for a while, but eventually, with medical school I'm going to need to focus only on school.
Is it really possible to get enough student loans to make it through like 6-8 years of school like that? I wouldn't mind ending up with 150K in debt, as long as I didn't have to start paying on it until I finished school.
I would basically need to loan all of my expenses. Housing... everything.
I'm looking for resources or recommendations. Anybody out there with an advanced degree do the same thing?
EDIT: I have solid credit score, and good debt to income ratio now if that helps.
EDIT 2: While I'm at it, if anyone wants to loan me 150K I promise to repay within 4 years of finishing school... :-) With interest.
voted interesting: drmatt
answers (5)
Student loans was one of the biggest mistakes of my life but it doesn’t have to be the same for you.
Here are some thoughts and ideas before you resort to Student Loans:
Get a part time job filling out applications for scholarships. (fastweb.com) Schedule it like you would work and work on it a minimum of 20 hours a week. Ask your employer of they will help you pay for you to go back to school. If that doesn’t work, look around at places that might employ you after you graduate and see if they’ll help you pay for it. Save, save, save, and save some more. Paying cash is way better than going into debt with student loans.
Here’s what I found with student loans. You end up taking more than you actually need. So before you even apply for them, figure out how much you need. Even though you want to focus on your doctorates, that doesn’t mean you can’t get a part time job that pays and counts as credit towards your degree. For example, my husband wants to go into education. His current job is an instructor for troubled youth. Guess what… he gets paid to work, and it counts as a credit towards his degree. Plus he works the night shift, which allows him to do his school work online. So look around.
Yes you can get into enough debt to pay for school, but some of the loans you’ll have to start paying interest on them right away. At the same time, some of the loans will capitalize the interest. For example, if you get a $1000 loan that has a 5% interest on it, and you get a bill for $20.00 (the bill goes for interest not principle) and you don’t pay it, then they add that $20.00 to the $1000 you already owe. The next time they charge you interest, they’ll charge you interest on the $1000 plus the other $20.00. As you can see, it quickly becomes a sick cycle.
Here’s some information on Government loans:
I’m sure others have told you, but you’ll want to fill out a fafsa online (http://www.fafsa.ed.gov/) as soon as possible. Government aide is on a first come first serve basis so try filling it out January 1st of every year. Just so you’re on top of the game. Even if you don’t qualify for Government aide, most scholarships will want to look at your Fafsa application when they consider you.
For a Graduate/professional you can get up to $12,000 a year in unsubsidized loans, and $8,500 a year in subsidized loans. (*Unsibsidized means you pay the interest as you go, subsidized means the Government pays it.) You can do this up until you have taken $73,000 in unsubsidized loans and/or $65,500 in subsidized loans.
For Medical degree you can get up to $32,000 a year in unsubsidized student loans and $8,500 in subsidized student loans. You’re limited to $158,500 in unsubsidized student loans and $65,500 in subsidized loans.
I’m not sure what you’ll need to do to get a doctorates degree, but I’d start by asking the college that you plan on attending. Can you take courses online and still work a full or part time job? Do they have night classes?
Some other questions to ask yourself: Will you go to school during the summer? If not, can you get a job to help supplement your student loans? Could you move to a smaller apartment/home while you are in school? If you are really going to focus on school, would it be better to live on campus and sell the car(s?) to save money?
Just keep in mind that Government aide will require you to get above a certain GPA (I think it’s above a 2.0 for undergraduates and above a 3.0 for graduate+ students.) You’ll also have to go attend college at least part time; if you fall bellow that, you may have to start repaying your federal student loans.
Also look into Government programs that will pay off your student loans if you work in a certain field for “x” amount of time. Example: if you get a degree in education and work in a Utah school for 2 years, the Government will pay off all your student loans. I believe the same is true for nursing. So look around. Getting loans might not be too bad if the Government will pay them off for you. Personally though, I would look for something like that, but I wouldn’t count on it. Things change, and it’s better to be careful with student loans than to regret them.
Here are some thoughts and ideas before you resort to Student Loans:
Get a part time job filling out applications for scholarships. (fastweb.com) Schedule it like you would work and work on it a minimum of 20 hours a week. Ask your employer of they will help you pay for you to go back to school. If that doesn’t work, look around at places that might employ you after you graduate and see if they’ll help you pay for it. Save, save, save, and save some more. Paying cash is way better than going into debt with student loans.
Here’s what I found with student loans. You end up taking more than you actually need. So before you even apply for them, figure out how much you need. Even though you want to focus on your doctorates, that doesn’t mean you can’t get a part time job that pays and counts as credit towards your degree. For example, my husband wants to go into education. His current job is an instructor for troubled youth. Guess what… he gets paid to work, and it counts as a credit towards his degree. Plus he works the night shift, which allows him to do his school work online. So look around.
Yes you can get into enough debt to pay for school, but some of the loans you’ll have to start paying interest on them right away. At the same time, some of the loans will capitalize the interest. For example, if you get a $1000 loan that has a 5% interest on it, and you get a bill for $20.00 (the bill goes for interest not principle) and you don’t pay it, then they add that $20.00 to the $1000 you already owe. The next time they charge you interest, they’ll charge you interest on the $1000 plus the other $20.00. As you can see, it quickly becomes a sick cycle.
Here’s some information on Government loans:
I’m sure others have told you, but you’ll want to fill out a fafsa online (http://www.fafsa.ed.gov/) as soon as possible. Government aide is on a first come first serve basis so try filling it out January 1st of every year. Just so you’re on top of the game. Even if you don’t qualify for Government aide, most scholarships will want to look at your Fafsa application when they consider you.
For a Graduate/professional you can get up to $12,000 a year in unsubsidized loans, and $8,500 a year in subsidized loans. (*Unsibsidized means you pay the interest as you go, subsidized means the Government pays it.) You can do this up until you have taken $73,000 in unsubsidized loans and/or $65,500 in subsidized loans.
For Medical degree you can get up to $32,000 a year in unsubsidized student loans and $8,500 in subsidized student loans. You’re limited to $158,500 in unsubsidized student loans and $65,500 in subsidized loans.
I’m not sure what you’ll need to do to get a doctorates degree, but I’d start by asking the college that you plan on attending. Can you take courses online and still work a full or part time job? Do they have night classes?
Some other questions to ask yourself: Will you go to school during the summer? If not, can you get a job to help supplement your student loans? Could you move to a smaller apartment/home while you are in school? If you are really going to focus on school, would it be better to live on campus and sell the car(s?) to save money?
Just keep in mind that Government aide will require you to get above a certain GPA (I think it’s above a 2.0 for undergraduates and above a 3.0 for graduate+ students.) You’ll also have to go attend college at least part time; if you fall bellow that, you may have to start repaying your federal student loans.
Also look into Government programs that will pay off your student loans if you work in a certain field for “x” amount of time. Example: if you get a degree in education and work in a Utah school for 2 years, the Government will pay off all your student loans. I believe the same is true for nursing. So look around. Getting loans might not be too bad if the Government will pay them off for you. Personally though, I would look for something like that, but I wouldn’t count on it. Things change, and it’s better to be careful with student loans than to regret them.
source(s):
Personal Experience
http://www.studentloannetwork.com/financial-aid-101/
http://uheaa.org/parentStudent02a.html
fafsa.ed.gov
fastweb.com (Fastweb.com let's you fill out information on activities that you enjoy etc. and then they contact you with available scholarships. They also look at your GPA, family back ground, location etc. It's free, and it's very very personalized. Plus the send you reminders for when scholarships are due etc.)
Personal Experience
http://www.studentloannetwork.com/financial-aid-101/
http://uheaa.org/parentStudent02a.html
fafsa.ed.gov
fastweb.com (Fastweb.com let's you fill out information on activities that you enjoy etc. and then they contact you with available scholarships. They also look at your GPA, family back ground, location etc. It's free, and it's very very personalized. Plus the send you reminders for when scholarships are due etc.)
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This answer seemed to be the most thorough. I appreciated the info about the caps on each type of loan, and the advice about repayment programs.
awesome ..i like how creative you are...let me know if you make a video on how to make one. http://instantloan.net/instantpaydayloans.php
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The first source you should check is government-sponsored loans made through a program called the Federal Family Education Loan Program ("FFELP"). The loans offered are generally either called Stafford Loans or PLUS Loans. The government offers subsidized and unsubsidized loans (for the former you are not charged interest while in school, and for the latter you are charged interest but do not have to pay it until you are out of school). These government loans are typically made through a private lender, such as a bank. What is actually happening is that the bank is the one making you the loan, but the federal government insures that loan should you choose to default. Due to the lower risk assumed by the bank, these loans have favorable rates. You will need to fill out a FAFSA before applying for a government loan.
The catch is that there is a limit to the amount of money you can borrow through the FFELP program, and that limit is certainly below what you will need. To make up the balance of tuition and living expenses, you will need to secure private loans. Banks are the primary source of these loans. You can also look to credit unions.
Finally, if there is still a funding gap, you can try peer-to-peer lending offered by a company called Lending Club. This type of loan is actually made by private individuals. See www.lendingclub.com.
For more information on financial aid in general, check out www.simpletuition.com or www.greentreegazette.com
Best wishes!
The catch is that there is a limit to the amount of money you can borrow through the FFELP program, and that limit is certainly below what you will need. To make up the balance of tuition and living expenses, you will need to secure private loans. Banks are the primary source of these loans. You can also look to credit unions.
Finally, if there is still a funding gap, you can try peer-to-peer lending offered by a company called Lending Club. This type of loan is actually made by private individuals. See www.lendingclub.com.
For more information on financial aid in general, check out www.simpletuition.com or www.greentreegazette.com
Best wishes!
I'm aware of Stafford and PLUS loans, and that I need to fill out a FAFSA. Any ideas on loan sizes though? Are they proportionate to what you are paying to go to school? Are the loans funded to me and then I pay out? Are there limitations on what the loans can be used to pay?
The Stafford and PLUS loans will be paid straight to the financial institution. If for whatever reason there is a surplus of funding, then the school will give you a reimbursement. The cap on a Stafford Loan is $20,500. The PLUS Loan size will depend on the cost of tuition and estimated cost of living. The estimated cost of living is generally very understated. Private loans will be made based on the amount of government funding already received, along with consideration for net worth and estimated cost of living. There is no limitation on what the private loans can be used to pay for.
I attended Columbia Business School, and although I took out Stafford, PLUS and a CitiAssist private loan, I still had to live off of credit cards. Then again, I did not have any savings at the time.
I attended Columbia Business School, and although I took out Stafford, PLUS and a CitiAssist private loan, I still had to live off of credit cards. Then again, I did not have any savings at the time.
I have an advanced degree, and I paid for nearly all of my education with student loans (which I am now repaying). For Federal Stafford loans, you are supposed to agree only to use the money for education-related expenses (such as tuition, books, etc.), but there's really no oversight on that. E.g. you could conceivably take out in loans 2x what tuition costs, and use the rest to buy a car if you don't have one. Not that that's the most ethical thing to do, but I've never heard of a loan officer auditing someone for misusing the funds (and I've known people to do that sort of thing).
What you have to remember, though, is that you are still going to have to pay all of the money back. $150k in debt to become an MD may seem reasonable now, but you may regret saddling yourself with so much debt by the time you graduate, especially if you fail to land your dream job. Also, consider how long it could take you after graduation to start making the big bucks. My impression of the medical field is that the high salaries of doctors are often-times consumed by student loan debt, as well as malpractice insurance and sometimes compounded by extravagant lifestyles. I can tell you that in the sciences, it's common to do a postdoc (similar to a residency for an MD) after completing a PhD, and many times these do not pay quite as much as the naive entry-level graduate student might expect. Sure, you can eventually earn six figures, but I've also known some people to land postdocs that gross more like $45k.
I would recommend you to keep borrowing to an absolute minimum. Borrowing introduces risk into your life that you may be willing to tolerate to achieve something you would be unable of otherwise. But only borrow what you need to cover your tuition, and take out as much of that as you can from federally subsidized loans, so that the interest does not accrue until you graduate.
What you have to remember, though, is that you are still going to have to pay all of the money back. $150k in debt to become an MD may seem reasonable now, but you may regret saddling yourself with so much debt by the time you graduate, especially if you fail to land your dream job. Also, consider how long it could take you after graduation to start making the big bucks. My impression of the medical field is that the high salaries of doctors are often-times consumed by student loan debt, as well as malpractice insurance and sometimes compounded by extravagant lifestyles. I can tell you that in the sciences, it's common to do a postdoc (similar to a residency for an MD) after completing a PhD, and many times these do not pay quite as much as the naive entry-level graduate student might expect. Sure, you can eventually earn six figures, but I've also known some people to land postdocs that gross more like $45k.
I would recommend you to keep borrowing to an absolute minimum. Borrowing introduces risk into your life that you may be willing to tolerate to achieve something you would be unable of otherwise. But only borrow what you need to cover your tuition, and take out as much of that as you can from federally subsidized loans, so that the interest does not accrue until you graduate.
source(s):
years of postgraduate work and a number of student loans
years of postgraduate work and a number of student loans
I plan to avoid loans for as long as possible, and I don't live any extravagant way, my concern is really for the point that I have to focus on school and won't be able to work anymore. I will still need to provide for my family, and will have no choice but to loan.
I realize repayment will take a while. Longer than I would like, but compared to the income I would make without a degree over my lifetime I consider it worth it. If without a degree I cap out at earning 40-60K a year, and with this I could, even if only someday, hit 100K+ annually, it would be worth it. I grew up lower middle class, and have no problem living below my means.
I realize repayment will take a while. Longer than I would like, but compared to the income I would make without a degree over my lifetime I consider it worth it. If without a degree I cap out at earning 40-60K a year, and with this I could, even if only someday, hit 100K+ annually, it would be worth it. I grew up lower middle class, and have no problem living below my means.
Absolutely. Much as repayment is a pain, I think it was totally worth it for the education I was able to receive.
I can say that personally, I wouldn't go that route ever again. It took several years to pay off my student loans for the criminal justice courses I took. When I do go back to school, I'm doing the "pay as you go community college thing" until I get enough credits to where I have to take the remainder of the courses at a larger university.
source(s):
Student loan experience in the early 90's.
Student loan experience in the early 90's.
I was pre-med for most of my college career and attended pre-med club meetings that have access to all of the resources you need when making a decision like this. Basically, what I learned was almost every med school has its own financial aid program that significantly covers your tuition/living expenses in the form of loans. It didn't appear like they're too concerned with how much they lend you because they know you're going to be good for it as being a doctor is rather lucrative.
I suggest checking out the financial aid departments for each individual medical school you apply for and see what they have to offer you. Also, the army, navy, and airforce have programs that pay your tuition and give you about 2k/mo or so as a stipend while you go to school in exchange for one year of paid service for each year they give you that deal.
Another route is an MD/PhD program. I've never seen an institution not completely fund tuition and give a stipend to their MD/PhD students. However, those program are super competitive. At University of Utah they admit around 5-6 a year.
One more note... if you do end up paying for the whole thing yourself with loans, be sure to check out loan repayment programs... the military has them, as well as the NIH and many other programs.
I suggest checking out the financial aid departments for each individual medical school you apply for and see what they have to offer you. Also, the army, navy, and airforce have programs that pay your tuition and give you about 2k/mo or so as a stipend while you go to school in exchange for one year of paid service for each year they give you that deal.
Another route is an MD/PhD program. I've never seen an institution not completely fund tuition and give a stipend to their MD/PhD students. However, those program are super competitive. At University of Utah they admit around 5-6 a year.
One more note... if you do end up paying for the whole thing yourself with loans, be sure to check out loan repayment programs... the military has them, as well as the NIH and many other programs.
source(s):
http://www.goarmy.com/amedd/army_health_care_corps.jsp?bnrcd=C488-ITBP-MCAU...
http://www.navy.com/healthcareopportunities/medicalcorps/
http://www.airforce.com/opportunities/healthcare/education/
http://www.financephysician.com/2007/09/10/pros-and-cons-of-military-servic...
http://medicine.utah.edu/mdPhD/benefits.htm
http://www.goarmy.com/amedd/army_health_care_corps.jsp?bnrcd=C488-ITBP-MCAU...
http://www.navy.com/healthcareopportunities/medicalcorps/
http://www.airforce.com/opportunities/healthcare/education/
http://www.financephysician.com/2007/09/10/pros-and-cons-of-military-servic...
http://medicine.utah.edu/mdPhD/benefits.htm
"It didn't appear like they're too concerned with how much they lend you because they know you're going to be good for it as being a doctor is rather lucrative."
That's exactly why I'm not too worried. I live what I consider to be well on like 35K a year now. If I'm making 125K as a doctor and live off half that, I can pay of a loan pretty quick.
That's exactly why I'm not too worried. I live what I consider to be well on like 35K a year now. If I'm making 125K as a doctor and live off half that, I can pay of a loan pretty quick.
"If I'm making 125K as a doctor and live off half that, I can pay of a loan pretty quick. "
While you can definitely earn that much rather soon in your career, don't expect to be making that right out of the gate. You will have at least two years of a low income residency you will have to worry about and then, depending on the field/location, maybe around 70-80k for a few more years. You will start paying off those loans long before you pull a 125K/yr check.
While you can definitely earn that much rather soon in your career, don't expect to be making that right out of the gate. You will have at least two years of a low income residency you will have to worry about and then, depending on the field/location, maybe around 70-80k for a few more years. You will start paying off those loans long before you pull a 125K/yr check.
That's a good point, I guess my overall belief is that the education will more than pay for itself.
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