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- Aug 15, 2016
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I am a rising M1 interested in ultimately taking a position in academic medicine with some amount of clinical time and some amount of research time. I have a PhD already. My cost for med school will be about $120k for the 4 years.
I'm trying to figure out if I want to take out loans for the full amount or pay as much tuition as possible (or some middle ground). My husband works in a high paying field, but he's just starting, so we don't have $30k saved up yet for MS1. We also are interested in other investments so having the cash to use in ways besides tuition is a consideration. We don't know whether those hypothetical investments will pay off more than the interest of the loans.
I know that the interest accumulates quickly, and I've run a few simulations to determine how much interest will accrue with different payment methods. My student loans will have an interest rate of 6%. I know a little about repayment options, like PSLF and NIH LRP. I think I can apply for the NIH LRP once I start as a faculty member, but if I pay the minimum on my loans until then, my interest will have ballooned. (LRP has been granted to others who are in my field of research, so assuming that the aims of the funding agencies don't change in the next 7+ years, I think I would be eligible.)
I think the most intelligent thing is to just pay the tuition in full as we have money available and minimize loans, and therefore interest. The LRP and PSLF are not guaranteed and seem to only save us a bit of money. Also, I don't know how many years of residency and fellowship I am looking at, which could change the timeline and interest implications a lot. Does anyone have more experience with this decision or seen the implications of it down the line? Do I have to wait until I am a faculty member to apply for the LRP, or can I apply as a fellow?
I'm trying to figure out if I want to take out loans for the full amount or pay as much tuition as possible (or some middle ground). My husband works in a high paying field, but he's just starting, so we don't have $30k saved up yet for MS1. We also are interested in other investments so having the cash to use in ways besides tuition is a consideration. We don't know whether those hypothetical investments will pay off more than the interest of the loans.
I know that the interest accumulates quickly, and I've run a few simulations to determine how much interest will accrue with different payment methods. My student loans will have an interest rate of 6%. I know a little about repayment options, like PSLF and NIH LRP. I think I can apply for the NIH LRP once I start as a faculty member, but if I pay the minimum on my loans until then, my interest will have ballooned. (LRP has been granted to others who are in my field of research, so assuming that the aims of the funding agencies don't change in the next 7+ years, I think I would be eligible.)
I think the most intelligent thing is to just pay the tuition in full as we have money available and minimize loans, and therefore interest. The LRP and PSLF are not guaranteed and seem to only save us a bit of money. Also, I don't know how many years of residency and fellowship I am looking at, which could change the timeline and interest implications a lot. Does anyone have more experience with this decision or seen the implications of it down the line? Do I have to wait until I am a faculty member to apply for the LRP, or can I apply as a fellow?
