Loan Access and Loan Deferment on Internship?

[greypsych]

Hello,
I'm starting internship this summer and making a long-distance move to attend my internship program. My internship provides a dismal salary and obviously does not cover moving expenses. In light of this financial burden, I am looking for information from others about student loan accessibility and loan deferment options. Although this topic was discussed several years ago, I am looking for an updated discussion and more concrete examples of options.

My school/program (state school, PhD) enrolls its interns in an internship class which counts for 0 credits–which means interns do not have to pay for credits. We still pay for student fees for the year ($2500+) and have no access to student loans. If we enroll in a general studies course for 3 credits (and pay for these credits, in the thousands of dollars range), we will be considered full-time and have access to FAFSA loans. The cost-benefit of this second option seems less than ideal. Neither option seems to acknowledge the fact that we are enrolled in a program-required training year. I will actually be making less on internship year than I do as a paid full-time TA at my school, so my need for added support actually goes up on internship year.

How does your school handle your status during internship year? I'm specifically interested in hearing about programs where interns have access to student loans without requiring significant tuition payment. I'm hoping to advocate for loan-access at my school for interns in our program. Please PM me the name of your school if your school has this option. This should allow me to more successfully bargain with my university.

Finally, anyone have experience deferring loans for internship year? How did you handle this and any tips for us going on internship?

Any links to sites where these issues are discussed for psychology students would also be appreciated! So far, I have been unsuccessful at locating any national discussion of this issue for intern trainees. Thank you!

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[OneNeuroDoctor]

My program was similar in that we did not receive credit for internship as it is off campus. However, you are still eligible for student loans as I took out $30,000 for living expenses in student loans during internship year.

Since you do not begin paying back until six months after graduation and you can apply for two year forbearance you won't need to start paying back until you are fully licensed. I became fully licensed recently and I have just accepted a position that is close to double my salary of my pre license income and I now have a limited independent practice with my Postdoc supervisor.

The key is acquiring licensure as this improves your marketability and income level.

Everyone I know takes out extra student loans during internship. Some program are having students apply for internship during their third year and if matched do their internship and then return to finish their advanced courses the year after internship and teaching or doing research assistantships.

 

[greypsych]

Thanks OneNeuroDoctor! Sounds reassuring indeed!

Do you know if your school designated you as full time? My understanding is it's been difficult for students to secure loans if they are not full time...as federal loan structures require this? Were there any steps you needed to take with your loan companies or your school to allow for loan eligibility?

 

[OneNeuroDoctor]

They counted us as full time. My income took a severe deficit since beginning internship and now I am in much better shape since obtaining licensure. Once you get licensed, the job potentials opens up significantly.

I believe you qualify for Grad Plus loans. I went from income of 65,000 to 17,000 during internship and I had a $1800 monthly mortgage payment. House almost went into foreclosure but we sold it in March of that year. I had to move to small rural community during internship and tried to rent my home without any success so we decided to put it on the market and it sold in 30 days. Hindsight being 20/20 it was a good decision as I have had to move for postdoctoral fellowship and jobs were limited in the community My house was at due to saturation of clinical psychologist.

It is actually a 2-3 year process before some of us get fully licensed but your income significantly improves when you get licensed.

Now instead of a mortgage Payment, I have a 1000 per month rental and 700 per month student loan payment so it balances out.

I have heard of some students taking the maximum amount of grad plus loans during internship which is $60,000.

I believe there are different requirement and options during internship for loans. Internship is basically a year where most have to move and couples-families are separated and sometime for postdoc as well. Get use to being a Skype family. Some have spouse with good income but most have to rely on student loans.

Looking back it was a mess for my family but we are back together and doing better now. I almost was in the position of having to quit internship due to financial and family crises. I have heard of some situations where interns are 1000 of miles away from spouse and kids during internship. What a poorly developed system for family health and wellbeing!

 

[erg923]

This highlights the importance of having a savings account. Unless you have a family that is dependent on you, I would advise you to tough it out for a year. Less debt the better/happier you will be.

 

[xXIDaShizIXx]

This highlights the importance of having a savings account. Unless you have a family that is dependent on you, I would advise you to tough it out for a year. Less debt the better/happier you will be.

This highlights the importance of having a savings account. Unless you have a family that is dependent on you, I would advise you to tough it out for a year. Less debt the better/happier you will be.

I agree with erg. Regardless if you are in a PhD or PsyD program, everyone should minimize the debt they have. However, sometimes it is necessary and my wife and I understand what it is like to have to struggle financially through grad school, with moves and everything else. It seems like it may be best to take out a little so you can survive for that year, but just have a plan to repay it. Good luck OP!

 

[greypsych]

Thanks for the financial advice.

If anyone would be willing to share their experiences with obtaining full-time enrollment at their university while on internship, it would be much appreciated! I'm glad to hear this has not been an issue for some students; however, right now my school does not recognize this practice. It would be most appreciated if any students are willing to supply me with their school's name via PM so I can show my university that this is common practice in our field. I recognize the pros and cons of taking out loans. I'm hoping this forum can provide information for those who are interested in taking out loans.

 

[LMK]

My school enrolled us for one credit and we were able to be full time that way. The budget was less, but we still got loans.

 

[DynamicDidactic]

same here. Had a special single credit that counted as full time student. Able to get a waiver for certain on-campus fees. Worked out to about $700 per semester, less in the summer.

Lived off the small internship stipend.

 

[AcronymAllergy]

same here. Had a special single credit that counted as full time student. Able to get a waiver for certain on-campus fees. Worked out to about $700 per semester, less in the summer.

Lived off the small internship stipend.

Very similar to our setup--we were put on 1 credit (I believe) and listed as full-time with (again, I believe) reduced student fees.

 

[OneNeuroDoctor]

I believe we were counted as enrolled for one credit for the three semesters but we did not receive actual grade or credit on our transcript.

 

[smalltownpsych]

Also beware of the grad plus loans. I had to take one out and it has much higher interest than my other loans.

 

[AcronymAllergy]

Also beware of the grad plus loans. I had to take one out and it has much higher interest than my other loans.

Yep, although I believe they're eligible for consolidation, if that makes sense in a borrower's particular situation (or which may be necessary if the person wishes to participate in PSLF).

 

[AppsAintNoThang]

Thanks for the financial advice.

If anyone would be willing to share their experiences with obtaining full-time enrollment at their university while on internship, it would be much appreciated! I'm glad to hear this has not been an issue for some students; however, right now my school does not recognize this practice. It would be most appreciated if any students are willing to supply me with their school's name via PM so I can show my university that this is common practice in our field. I recognize the pros and cons of taking out loans. I'm hoping this forum can provide information for those who are interested in taking out loans.

My school has credits for this, we enroll in 4 of them and they cost $4 each, making us full time and eligible for loans. We don't pay any other fees during internship year.

 

[President_LeslieKnope]

My school has credits for this, we enroll in 4 of them and they cost $4 each, and make us full time and eligible for loans. We don't pay any other fees during internship year.

Ditto our school has us enroll in "internship" credits (1 credit fall, 1 credit spring, and 1 credit summer) which makes us eligible for loans. From what I understand we do have to pay for the credits we're enrolled in, but they are pretty inexpensive and worth it if it means taking out some money to defray the cost of the move!

 

[greypsych]

Thanks for all the replies!

 

[psychgirl77]

For what it's worth, my program makes us pay full tuition while on internship. I'm in a Canadian PhD program.

 

[Renee Martin]

Hi everyone, I'd like to bump this thread though I realize all the folks here have probably moved on in the intervening years. I will be on internship next year and will have completed all my program requirements and defended my dissertation, but I also have some loans from undergrad that I would like to keep in deferment. The folks in my institution have said no one has ever asked them this question before and I just have to use the six month grace period during internship, which I know is not correct based on the responses I've read here and the conversations I've had with other recent interns who not only were in deferment but also took out loans.

Would anyone who previously posted here, or anyone new to the thread who has been able to leverage a special arrangement through their school be willing to PM me the name of their institutions/talk more about their set up with me so I can go back to my own admin with more information? While this info would benefit me personally, I'd also like to try and help any future students in my program feel supported in this area by having good, up to date information about this issue. Thanks so much everyone.

 

[smalltownpsych]

From my recollection, during internship you are still an enrolled student and loan payments are not due. On the loan payment sites you can usually request deferment during this based on the fact that you are still a student. I even took out another loan at the end of my internship to make ends meet.

 

[PikminOC]

From my recollection, during internship you are still an enrolled student and loan payments are not due. On the loan payment sites you can usually request deferment during this based on the fact that you are still a student. I even took out another loan at the end of my internship to make ends meet.

The interest still accrues during that time

 

[AcronymAllergy]

The interest still accrues during that time

Yep, which is an important thing to keep in mind (although mostly unavoidable for interns, as they probably aren't making enough money to make payments that would cover interest).

I also didn't realize it was way back in 2012 that DoE stopped offering subsidized graduate student loans. Showing my age a bit.

As a general piece of advice: if you go the fellowship route, and especially if you're considering PSLF, I'd recommend trying to start making payments while on fellowship (if the employer qualifies for PSLF). Even if you aren't going for PSLF, it still might be worth enrolling in the upcoming SAVE plan, as I believe one of the selling points is that you don't accumulate interest so long as you're making your minimum payment. So you could avoid 1-2 years' worth of accumulated interest. And as we all know, there's no greater force in the universe than compound interest.