D.O. without private student loans? Is it possible? Probable?

[Gauss44]

Is it possible and/or probable to earn a D.O. without taking out private* student loans?

This assumes no college savings, only money from scholarships, grants, and federal (non-private) student loans like stafford, ford, and direct lending.

*Private student loans are NOT federal. They are the ones that are generally not dischargeable in death, bankruptcy, disability, etc.

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[corpsman33]

Is it possible and/or probable to earn a D.O. without taking out private* student loans?

This assumes no college savings, only money from scholarships, grants, and federal (non-private) student loans like stafford, ford, and direct lending.

*Private student loans are NOT federal. They are the ones that are generally not dischargeable in death, bankruptcy, disability, etc.

Almost every DO student I know only takes federal loan money for school. First you can max out the stafford loan amount, however you only qualify for unsubsidized loan money while in med school. This currently has an Interest rate of 6.8% and is not credit based. Then for whatever loan money you still need you can qualify for "grad plus" loans, which is also federal loan money but has a higher interest rate. Grad plus loans are also based off of credit, so if your credit sucks you may have to get a co-signer.

 

[NeuroLAX]

I'm doing quite well without private loans. I am very thankful of that.

 

[futuredoc331]

Almost every DO student I know only takes federal loan money for school. First you can max out the stafford loan amount, however you only qualify for unsubsidized loan money while in med school. This currently has an Interest rate of 6.8% and is not credit based. Then for whatever loan money you still need you can qualify for "grad plus" loans, which is also federal loan money but has a higher interest rate. Grad plus loans are also based off of credit, so if your credit sucks you may have to get a co-signer.

The unsubsidized stafford loan is NOT based on credit? But the grad plus is? Do you have any idea how bankruptcy could affect obtaining these loans? I may need to do this and want to attend med school in 2-3 years. Think I will be okay as long as I get a cosigner?

Thanks in advance

 

[corpsman33]

The unsubsidized stafford loan is NOT based on credit? But the grad plus is? Do you have any idea how bankruptcy could affect obtaining these loans? I may need to do this and want to attend med school in 2-3 years. Think I will be okay as long as I get a cosigner?

Thanks in advance

Yes the grad plus IS based on credit and the unsubsidized stafford is not. I am not entirely sure about how bankruptcy will affect the process. I would definitely call and speak to a loan officer at whichever medical school you are thinking of attending (or just call any school) and ask them this question. I know there are different forms of bankruptcy and they all have different rules, outcomes, etc. I am not knowledgeable enough to answer this with any level of certainty so I would definitely investigate it before declaring.

I do know, however, that large unpaid deliquent debt is a huuuge red flag that may disqualify you.

 

[futuredoc331]

Yes the grad plus IS based on credit and the unsubsidized stafford is not. I am not entirely sure about how bankruptcy will affect the process. I would definitely call and speak to a loan officer at whichever medical school you are thinking of attending (or just call any school) and ask them this question. I know there are different forms of bankruptcy and they all have different rules, outcomes, etc. I am not knowledgeable enough to answer this with any level of certainty so I would definitely investigate it before declaring.

I do know, however, that large unpaid deliquent debt is a huuuge red flag that may disqualify you.

Appreciate it. I will have to do some investigation. Not sure which would be worse, my current financial situation or the one I'll be in after bankruptcy.

 

[Dmr6186]

Adverse Credit History

A credit history is a summary of your financial strength, including your history of paying bills and your ability to repay future loans. To qualify for a PLUS loan, you cannot have an adverse credit history. Your credit history may be considered adverse if you are experiencing any of the following credit conditions:

Bankruptcy discharge within the past five years.

Voluntary surrender of personal property to avoid repossession within the last five years.

Repossession of collateral within the last five years.

Foreclosure proceedings started.

Foreclosure within the last five years.

Conveying your real property that is subject to a mortgage (by deed) to your lender to avoid foreclosure (deed in lieu of foreclosure).

Accounts currently 90 days or more delinquent.

Unpaid collection accounts.

Charge-offs/write-offs of federal student loans.

Wage garnishment within the last five years.

Defaulting on a loan, even if the claim has been paid.

Lease or contract terminated by default.

County/state/federal tax lien within the past five years.

Source: http://studentaid.ed.gov/glossary#Adverse_Credit_History

 

[MedPR]

Is it possible and/or probable to earn a D.O. without taking out private* student loans?

This assumes no college savings, only money from scholarships, grants, and federal (non-private) student loans like stafford, ford, and direct lending.

*Private student loans are NOT federal. They are the ones that are generally not dischargeable in death, bankruptcy, disability, etc.

You don't pay attention at interview day do you?

 

[Gauss44]

You don't pay attention at interview day do you?

I haven't been to any interviews yet. (Tempted to say, "Yeah, I fell asleep when they were talking..")

 

[MedPR]

I haven't been to any interviews yet. (Tempted to say, "Yeah, I fell asleep when they were talking..")

Oh. Well med school in the United States for united states residents can be covered completely by federal loans.

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[Ravizzle]

Oh. Well med school in the United States for united states residents can be covered completely by federal loans.

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Sent from my Galaxy S2

 

[NeuroLAX]

Oh. Well med school in the United States for united states residents can be covered completely by federal loans.

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Sent from my Galaxy S2

Thank God. I don't even want to know how high of an interest rate I would get for a private loan of that magnitude.

 

[titleist975j]

how much interest do these federal loans have?

 

[NeuroLAX]

how much interest do these federal loans have?

6.8% for Direct Stafford and 7.9% for GradPLUS. Both rates are fixed.

 

[Ravizzle]

Thank God. I don't even want to know how high of an interest rate I would get for a private loan of that magnitude.

Funny thing is the interest rates are lower for private, just the repayment options aren't as nice as federal loans.

Sent from my Galaxy S2

 

[darklabel]

Funny thing is the interest rates are lower for private, just the repayment options aren't as nice as federal loans.

Sent from my Galaxy S2

Do Canadians have to fund medical school by private loans only?

 

[Ravizzle]

Do Canadians have to fund medical school by private loans only?

Yeah. Pretty much. Or lines of credit.

This is for Canadians studying medicine outside of Canada.

Sent from my Galaxy S2

 

[HalfListic]

Funny thing is the interest rates are lower for private, just the repayment options aren't as nice as federal loans.

Sent from my Galaxy S2

I was going to write this too.

Although with private loans, the rate depends on credit score, while fed loans dont care about score and only grad plus requires a cosign if there is adverse credit history (but still no minimum credit score).

 

[MedPR]

Yeah. Pretty much. Or lines of credit.

This is for Canadians studying medicine outside of Canada.

Sent from my Galaxy S2

I was going to write this too.

Although with private loans, the rate depends on credit score, while fed loans dont care about score and only grad plus requires a cosign if there is adverse credit history (but still no minimum credit score).

Are there any private lenders with fixed rates? I have really good credit, perhaps this is something I should consider.

 

[Ravizzle]

Are there any private lenders with fixed rates? I have really good credit, perhaps this is something I should consider.

Yeah. Sallie Mae and discover both offer fixed rates. Just remember though, no IBR option with private loans.

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[MedPR]

Yeah. Sallie Mae and discover both offer fixed rates. Just remember though, no IBR option with private loans.

Sent from my Galaxy S2

Yea that's definitely a concern.

 

[HalfListic]

Yeah. Sallie Mae and discover both offer fixed rates. Just remember though, no IBR option with private loans.

Sent from my Galaxy S2

+1

And the fine print for deferment can be tricky if you have a residency that is more than 3-4 years. You could find yourself in full repay, with out income based repayment, while still a resident!

 

[Ravizzle]

Yea that's definitely a concern.

I'm still trying to figure out if I should do variable or fixed. Variable rates are super low right now, but lots of uncertainty. Fixed is higher, but certain.

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[MedPR]

+1

And the fine print for deferment can be tricky if you have a residency that is more than 3-4 years. You could find yourself in full repay, with out income based repayment, while still a resident!

I'm still trying to figure out if I should do variable or fixed. Variable rates are super low right now, but lots of uncertainty. Fixed is higher, but certain.

Sent from my Galaxy S2

I'm considering it mainly because my girlfriend (who I plan to marry within the next few years) doesn't have loans and might be able to help me until I get to Attending status; then I can pay her back plus finish paying loans. And if privates lead to less interest paid in the long run, it would be worth it.

 

[HalfListic]

I'm considering it mainly because my girlfriend (who I plan to marry within the next few years) doesn't have loans and might be able to help me until I get to Attending status; then I can pay her back plus finish paying loans. And if privates lead to less interest paid in the long run, it would be worth it.

They could be compared to grad plus, and if your plans dont change! (Im sure they wont, just being thorough here)

With stafford loans, interest is deferred, so they will be the cheapest option for sure. Especially with an aggressive repay plan like you see to have.

Im not sure how expensive your school is going to be (Im not sure where you are going) but if you can do it all with Stafford, then thats the best option.

If you need extra, then you can compare private v grad plus. As long as you(your gf) can pay at least the interest while in school and they have a lower fixed rate, they can be better. Again, youll have to be sure you can handle their full payments when they begin, even if that means during your residency. If you future wife is around to pick that up (and I'm sure she will be), great option there for sure!

 

[MedPR]

They could be compared to grad plus, and if your plans dont change! (Im sure they wont, just being thorough here)

With stafford loans, interest is deferred, so they will be the cheapest option for sure. Especially with an aggressive repay plan like you see to have.

Im not sure how expensive your school is going to be (Im not sure where you are going) but if you can do it all with Stafford, then thats the best option.

If you need extra, then you can compare private v grad plus. As long as you(your gf) can pay at least the interest while in school and they have a lower fixed rate, they can be better. Again, youll have to be sure you can handle their full payments when they begin, even if that means during your residency. If you future wife is around to pick that up (and I'm sure she will be), great option there for sure!

I used up most of my stafford eligibility in undergrad. I was one of those who went to an expensive private school without knowing the first thing about student loans.

As of right now, the school I'm going to will probably put me in about 160k more debt. My top choice (waiting for post-interview decision) will probably be closer to 250k; a bit less if we move in together for M2-M4. My gf and I will be able to stay closer together and the ridiculously higher cost is worth it for me and for us. So yeah, hopefully our plans don't change lol.

Oh and, fwiw, we're both looking to go into specialties that are on the more lucrative end of the spectrum. Obviously for me it's a lot of speculation at this point, but she's well on her way (GI).

 

[HalfListic]

I used up most of my stafford eligibility in undergrad. I was one of those who went to an expensive private school without knowing the first thing about student loans.

As of right now, the school I'm going to will probably put me in about 160k more debt. My top choice (waiting for post-interview decision) will probably be closer to 250k; a bit less if we move in together for M2-M4. My gf and I will be able to stay closer together and the ridiculously higher cost is worth it for me and for us. So yeah, hopefully our plans don't change lol.

Oh and, fwiw, we're both looking to go into specialties that are on the more lucrative end of the spectrum. Obviously for me it's a lot of speculation at this point, but she's well on her way (GI).

OK nice...well good luck with the decisions.

I think if it comes down to it, and the private loans don't look clearly better, for certain, then government loans are always the safe way to go. I think grad plus as a full package, will be tough to beat. It seems like youll be able to afford playing it safe, and avoiding the slight chance with private loans. But its worth shopping around.

 

[corpsman33]

They could be compared to grad plus, and if your plans dont change! (Im sure they wont, just being thorough here)

With stafford loans, interest is deferred, so they will be the cheapest option for sure. Especially with an aggressive repay plan like you see to have.

Im not sure how expensive your school is going to be (Im not sure where you are going) but if you can do it all with Stafford, then thats the best option.

If you need extra, then you can compare private v grad plus. As long as you(your gf) can pay at least the interest while in school and they have a lower fixed rate, they can be better. Again, youll have to be sure you can handle their full payments when they begin, even if that means during your residency. If you future wife is around to pick that up (and I'm sure she will be), great option there for sure!

Unfortunately interest is never deferred while in medical school (even with the stafford). During medical school you only qualify for unsubsidized stafford loans (interest continues to accumulate while in school). Undergrad you can qualify for a combination of both (subsidized and unsubsidized stafford), and it used to be that you could also qualify for subsidized during medical school, but this is no longer the case.

The stafford is still better than grad plus which has 1.1 higher interest rate and is credit based to qualify. Most students have to take both to get through though.

After school if you need deferment or IBR your interest rate continues to accumulate at the full rate (just like during school), but you are able to pay less or nothing at all.

 

[HalfListic]

Unfortunately interest is never deferred while in medical school (even with the stafford). During medical school you only qualify for unsubsidized stafford loans (interest continues to accumulate while in school). Undergrad you can qualify for a combination of both (subsidized and unsubsidized stafford), and it used to be that you could also qualify for subsidized during medical school, but this is no longer the case.

The stafford is still better than grad plus which has 1.1 higher interest rate and is credit based to qualify. Most students have to take both to get through though.

After school if you need deferment or IBR your interest rate continues to accumulate at the full rate (just like during school), but you are able to pay less or nothing at all.

You're right! Thanks for the catch. But yes, stafford still comes out on top.

 

[corpsman33]

You're right! Thanks for the catch. But yes, stafford still comes out on top.

No problem!

 

[koojo]

If it's a public school, then many states will give in-state tuition for out of state students or even free tuition to those who are in the Army/Air Force National Guard in that state. It's a good deal, considering you are only obligated to be in for 8 years....and you are not deployable during med school & residency...which is a total minimum of 8 year. Consider that. I was able to get the in-state tuition at my med school, take out only subsidized stafford loans and pay the rest with the National Guard salary. I'm graduating with ~$36k in loans. Not too shabby.

 

[Fifty 3rds]

If it's a public school, then many states will give in-state tuition for out of state students or even free tuition to those who are in the Army/Air Force National Guard in that state. It's a good deal, considering you are only obligated to be in for 8 years....and you are not deployable during med school & residency...which is a total minimum of 8 year. Consider that. I was able to get the in-state tuition at my med school, take out only subsidized stafford loans and pay the rest with the National Guard salary. I'm graduating with ~$36k in loans. Not too shabby.

Is there an age restriction for signing with the Air Force National Guard? Also, does it affect how the match works? Do you have to sign up before you are accepted to med school? Do you have to do your two weeks a month over the summer between MS years? If so, doesn't that impact the time most students have available for research?