Is it possible to get student loans to cover student loan payments in med school

[Gauss44]

For example, if some of some of my student loans from undergrad don't have in school deferments or forebearances available, will most medical schools increase my budget or financial aid package, so that I can make those payments? Payments are currently above $700 a month.

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[RangerBob]

They might (but technically shouldn't)--you'd have to ask your financial aid department. Honestly beyond that, whatever advice you get here won't be helpful because you need to talk to your school's financial aid officer, since they're the one that would make the call. Honestly it's probably a long shot, but like I said, talk to your financial aid officer.

I would also encourage you to first contact your loan servicer--if these are federal loans they should be able to be deferred for a long, long time. Most private loans allow in-school deferments as well--I had a few private loans from undergrad, and only one small one went into repayment while in medical school. Most of the private loans I have allow for 4 years of residency deferment as well (though sometimes you have to take a careful look at the maximum time until repayment--sometimes you get in-school deferment and up to 3-4 years of residency deferment, OR 7 years since the loan was dispersed, whichever is lower. So just make sure you're on top of all that!

 

[Gauss44]

you'd have to ask your financial aid department.

I'm a pre-med so I don't have a medical school financial aid department. I plan to apply broadly.

Most of the private loans I have allow for 4 years of residency deferment as well

I'm happy for you, but mine don't.

 

[RangerBob]

I'm a pre-med so I don't have a medical school financial aid department. I plan to apply broadly.



I'm happy for you, but mine don't.

Sorry--I missed that you were pre-med. Normally you can apply for a budget increase up until ~October/Nov of the current academic year, so if you're private loans have a grace period, just make sure to talk with the financial aid department of the program you matriculate at in the first month or two after you start. I suppose you could also ask the program you decide to matriculate to before you arrive--that might not hurt because you might want to be sure you can afford those payments before you arrive. It'll also probably dictate where/how you live when you get there.

Are your private loans personal loans? I've just never heard of a private educational loan not having in-school deferment (or at least partial residency deferment). Maybe you can consolidate with Wells Fargo or Sallie Mae. Their educational loans allow deferment, so maybe they would be willing to help you out with a special consolidation loan. I believe the normal consolidation loans have no in-school/residency provisions, but it can't hurt to ask.

Either way, I would still recommend calling your loan servicer and seeing if you can work anything out with them--lenders are often willing to help you out, sometimes granting hardship forbearances, etc. If they know you're going to medical school, perhaps they'll be more willing to accommodate you (it'd be in their interest--it keeps you from defaulting and it makes them more money on the interest).

Other than that, the only other advice I have (hopefully others have additional advice) to offer is what you probably already know--live as cheaply as you can. Live with family, or a roommate, etc. Buy the cheapest non-smartphone plan, bike everywhere, consider part-time work first and second year if you can manage, etc, etc. $700/month is quite a bit, but I think it might be doable to pay that with the usual level of financial aid if you're able to really keep your expenses down and are in a lower cost of living area.

 

[Gauss44]

...just make sure to talk with the financial aid department of the program you matriculate at in the first month or two after you start.

Why matriculate at a program in the first place if you can't afford it? Unless I'm missing something, matriculating at a school you can't afford could not possibly be a good decision. Maybe I don't understand your logic?

I suppose you could also ask the program you decide to matriculate to before you arrive--that might not hurt because you might want to be sure you can afford those payments before you arrive.

Would revealing a substantial amount of student loan debt from undergrad, make me a less attractive applicant or candidate to admissions committees? My understanding is that schools are rated on "total indebtedness" or "average total indebtedness" of their graduating class. My debt could make the school look bad, right? So they might toss my application?

Are your private loans personal loans?

No. They are private student loans given to me by my undergraduate university's financial aid office.

I've just never heard of a private educational loan not having in-school deferment (or at least partial residency deferment).

Some in-school deferment options end after a "grace period." The purpose of a "grace period," as explained to me, is so that you can find a job after college without having to make payments immediately. (Back when I graduated, it was easy to consolidate private student loans. At that time, consolidating loans would renew deferments. Things have changed since then.)

Since medical school takes 4 years, and many people need to do a year of post-bacc prior to starting medical school, even limited in-school deferments can be a problem.

Maybe you can consolidate with Wells Fargo or Sallie Mae. Their educational loans allow deferment, so maybe they would be willing to help you out with a special consolidation loan.

Last time I checked (a couple years ago), both companies did NOT offer in-school deferments on their private student loan consolidations. I will check again though. It might have changed. It seems like they both wanted a cosigner too. That too might have changed, so I'll check again. Good job naming two of the three companies that still do private student loan consolidations.

Either way, I would still recommend calling your loan servicer and seeing if you can work anything out with them...

Sadly, their customer service is in India and almost every time I've called they read this script that goes, "I'll be happy to help you with that problem. You do not have any in-school deferments. Is there anything else I can help you with today?" Me: Can you make an exception for a medical student who is going to be a doctor, so that I can finish medical school? Customer service reads the same script again: "I'll be happy to help you with that problem. You do not have any in-school deferments. Is there anything else I can help you with today?" Can I speak with a supervisor? Customer service: "I'll be happy to help you with that problem. There is no one available at this time. Is there anything else I can help you with today." On and on...

$700/month is quite a bit, but I think it might be doable to pay that with the usual level of financial aid if you're able to really keep your expenses down and are in a lower cost of living area.

I'm a Massachusetts resident and a non-traditional pre-med, so I won't be able to go to UMass Medical. I am personally much more comfortable in urban areas. So, I'm not sure where that leaves me. I'm not sure what the likelihood is that I will be able to afford to go to medical school? I definitely will not have access to a cosigner either. If I want to go to medical school, it will probably have to be almost exclusively on federal loans that don't require a cosigner.

If I can't afford it, I would rather know now than later. It can be a very long process trying to get into medical school. Sometimes even years and years....

Thanks for responding.

 

[RangerBob]

Why matriculate at a program in the first place if you can't afford it? Unless I'm missing something, matriculating at a school you can't afford could not possibly be a good decision. Maybe I don't understand your logic?

I think you got my logic-I guess I was just stating the obvious

Would revealing a substantial amount of student loan debt from undergrad, make me a less attractive applicant or candidate to admissions committees? My understanding is that schools are rated on "total indebtedness" or "average total indebtedness" of their graduating class. My debt could make the school look bad, right? So they might toss my application?

I'm not sure about this. Programs generally do like to keep their total indebtedness lower, but I don't know how much it would actually hurt you. But if you wait until after an acceptance (the point at which financial aid would be willing to walk with you/answer questions) then there should be no risk of your application/acceptance getting tossed

No. They are private student loans given to me by my undergraduate university's financial aid office.

OK--I understand

Some in-school deferment options end after a "grace period." The purpose of a "grace period," as explained to me, is so that you can find a job after college without having to make payments immediately. (Back when I graduated, it was easy to consolidate private student loans. At that time, consolidating loans would renew deferments. Things have changed since then.)

Since medical school takes 4 years, and many people need to do a year of post-bacc prior to starting medical school, even limited in-school deferments can be a problem.

True--you will probably exhaust the grace period on some of your private loans. I exhausted one of mine, and they'll all be exhausted by the end of residency. (In my case I get up to 4 years of residency deferment, but there's some rule that after 2 or 3 years I "have" to use my grace period, meaning, I lose it, and go into repayment right after finishing residency.

Last time I checked (a couple years ago), both companies did NOT offer in-school deferments on their private student loan consolidations. I will check again though. It might have changed. It seems like they both wanted a cosigner too. That too might have changed, so I'll check again. Good job naming two of the three companies that still do private student loan consolidations.

You're probably right--the consolidation loans are less flexible, but there's a chance Wells Fargo (or the others) might be willing to work with you. If you can talk in person to a loan expert that always helps the most. But yes, the odds are a consolidation loan won't give you in-school deferments, I was brainstorming and thought it might be worth a shot.

Sadly, their customer service is in India and almost every time I've called they read this script that goes, "I'll be happy to help you with that problem. You do not have any in-school deferments. Is there anything else I can help you with today?" Me: Can you make an exception for a medical student who is going to be a doctor, so that I can finish medical school? Customer service reads the same script again: "I'll be happy to help you with that problem. You do not have any in-school deferments. Is there anything else I can help you with today?" Can I speak with a supervisor? Customer service: "I'll be happy to help you with that problem. There is no one available at this time. Is there anything else I can help you with today." On and on...

Yeah, I know what you mean here. I've actually had great luck with Wells Fargo--they actually let me defer a private loan that technically wasn't supposed to be eligible for deferment because I was a "non-degree student" for a year. Despite being listed as "graduated" in NSLC, Wells Fargo said to just fax over proof of enrollment and it was good enough for them. (Granted, I'm sure others have had bad experience with Wells Fargo--but I've personally appreciated them and their customer service)

I'm a Massachusetts resident and a non-traditional pre-med, so I won't be able to go to UMass Medical. I am personally much more comfortable in urban areas. So, I'm not sure where that leaves me. I'm not sure what the likelihood is that I will be able to afford to go to medical school? I definitely will not have access to a cosigner either. If I want to go to medical school, it will probably have to be almost exclusively on federal loans that don't require a cosigner.

Fortunately you don't need a cosigner for federal loans--you're pretty much guaranteed Stafford and GradPlus loans up to the max of the COA if you just apply, assuming you didn't jut go into bankruptcy, etc.

If I can't afford it, I would rather know now than later. It can be a very long process trying to get into medical school. Sometimes even years and years....

It is a long process--I was sort of a a non-trad who took three years between undergrad and medical school, doing a post-bac and working full-time. But there were lots of other post-bacs in the program with me who took far longer, whether they were career-switchers, had gotten PhDs, etc. Ultimately I think you're the only one who can decide if you can afford it--look at the worst case scenario and assume you're paying back those private loans while a medical student and resident, and then ask yourself if you can afford to live, and be happy with what you have to live on. (also, you might have already thought of this, but if you haven't, another thing to look into is extending your repayment out--could save you a few hundred a month).

If you're really determined, I do think you could do it (assuming you don't have a family, can live very cheaply, etc.). But I also think it'd be a hard life while in medical school (and residency as well), and you'd have to think about just how much are you willing to sacrifice to become a physician.

Another thing to think about is if you can afford all the loans after you finish medical school--if you have a significant amount of undergrad debt, adding medical debt on top of that is quite a bit. One thing that might be worth looking into is the military route. You get a full scholarship, stipend (more-or-less the same as the living expenses your classmates get) and usually a signing bonus (you could use that for your loan repayments). If I were single I would've thought really hard about going that route. Your pay is less, but you come out debt-free and you get to serve you country and work with great people. Of course, the military isn't for everyone...

Thanks for responding.

I don't know how to do the multi-quote thing you did, so I just inserted my answers in red. I hope my advice helps. Hopefully someone else can also chime in, since I'm certainly not a financial aid (or finance) expert by any means.