HPSL loan Question

[DDKLA]

Hi everyone,
I'm a first-year dental student. I received an HPSL loan (amount: 16 k) as part of my financial aid package. I also received direct unsubsidized loans aka Direct Stafford Loans (amount: ~45 k) and a hardship waiver of 3 k. My tuition and expenses are ~ 53 k for this year. I am hesitant to accept the HPSL loan that is at a lower interest rate (5%) because I read that HPSL loans are not eligible for Public Service Loan Forgiveness (PSLF) unless consolidated. I do plan to pursue PSLF. I am not familiar at all with consolidating loans and not sure about the pros and cons are. Do you think my best option is to take the HPSL (16 k) + direct unsub (34 k) + hardship waiver (3 k)? or is it better to take only 5 k of HPSL+ direct unsub (the whole amount of 45 k)+ hardship waiver (3 k)?

Thanks in advance for your help

*Note: I also read that HPSL loans are NOT eligible for income-driven repayment plans

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[BasicG]

Take the loan. It's interest free until you graduate, so there's no reason not to take it. You can park it into a high interest savings account, invest it, etc. At the end of dental school, you can pay it back in full and not worry about it

 

[BasicG]

If you only put 16k into a high interest savings account, you'll get ~$653 by the end of dental school. If you put all your HPL money into a high interest account every year, you'll walk away with a few extra thousand dollars under your belt when you graduate

 

[DDKLA]

If you only put 16k into a high interest savings account, you'll get ~$653 by the end of dental school. If you put all your HPL money into a high interest account every year, you'll walk away with a few extra thousand dollars under your belt when you graduateView attachment 313096

Thanks for your help! I appreciate it, BasicG!

 

[Typical Average Student]

Chances of you actually pursuing a job that qualifies for the PSLF are slim, it's VERY difficult to get into those programs unless you plan on doing anything other than private practice.

 

[Firik]

Take the loan. It's interest free until you graduate, so there's no reason not to take it. You can park it into a high interest savings account, invest it, etc. At the end of dental school, you can pay it back in full and not worry about it

Actually, I was looking into this and read the documents, where I found no interest during 12 months after graduation. "... the annual percentage rate will be charged on the unpaid balance and that it will begin to accrue 12 months after I cease to be enrolled as a full-time student"
So, for HPSL, no interest from disbursement to one year after graduation; that's pretty cool!

 

[BasicG]

Actually, I was looking into this and read the documents, where I found no interest during 12 months after graduation. "... the annual percentage rate will be charged on the unpaid balance and that it will begin to accrue 12 months after I cease to be enrolled as a full-time student"
So, for HPSL, no interest from disbursement to one year after graduation; that's pretty cool!

Dang, guess I missed that part. The HPSL seriously beats out all other loans - no origination fees, interest doesn't accrue, and there's a 1 year grace period. People are crazy for not applying for it