Loans/Scholarship/Tuition Reimbursement Questions Thread

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I see you guys are saying to stay away from Grad Plus loans, but what if the other money isn't enough? Are there better loan options than Grad Plus? Sorry, I've only taken out a loan once while in school, and it was only for $2,000.
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I think the GradPlus may still be better than private loans but if you can try to live off of what Stafford loans offer, it is probably for the best.
 
Avoid Sallie Mae or private loans. They both are notorious for constantly increasing the interest rates through out the year. Plus they cannot be consolidated and they love nothing more than to help you default on the loan. Check out the book - Student Loan Scam by Michael Collinge. Good book about what questions to ask and how to make the best decision one student loans.

Check out this document from FASFA online too.

http://studentaid.ed.gov/students/publications/repaying_loans/index.html
 
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SHC1984 said:
Avoid the grad plus loans. Stafford are okay, but grad plus has ridiously high interest rates. It would be foolish to take one out.
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Unless after borrowing Sub + Unsub you still do not have enough to cover living expenses... That is why they came out with the grad plus - they are still better than private loans...

DarlingNikki said:
I see you guys are saying to stay away from Grad Plus loans, but what if the other money isn't enough? Are there better loan options than Grad Plus? Sorry, I've only taken out a loan once while in school, and it was only for $2,000.
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That is why Grad Plus was created... The reasoning they use to stay away from Grad Plus is wasted - if you didn't need loans, you wouldn't take them out. If you have to take out loans, you take out subsidized before unsubsidized; unsubsidized before grad plus; grad plus before private. Saying that grad plus are bad makes very little sense - considering you really shouldn't be taking them out unless you max out the 8500 sub and the 33 nonsub loans.

OTFuturePharmD said:
Avoid Sallie Mae or private loans. They both are notorious for constantly increasing the interest rates through out the year. Plus they cannot be consolidated and they love nothing more than to help you default on the loan. Check out the book - Student Loan Scam by Michael Collinge. Good book about what questions to ask and how to make the best decision one student loans.

Check out this document from FASFA online too.

http://studentaid.ed.gov/students/publications/repaying_loans/index.html
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I do feel the book is a good resource - but often times the book is applied in the most dubious situations... The reason the book refers to the student loan scam is that people are paying more for college than they can reasonably be able to pay back. You cannot borrow 170k for a job that only pays 22k / yr. It just doesn't make sense. However, you could get that student loan approved - and that is the scam.

That being said - As a pharmacist - you should be able to pay back that 170k in student loans - it wont be fun - it is roughly a quarter to a third of your monthly salary - but it is certianly possible.

Whenever money is involved - run the numbers, and do not forget to use your head.
 
Hi,

I calculated the above figures using a compound interest calculator with interest accruing from the time the loan will be taken out. As you can see it's only around 20k more expensive than the fed sub and unsubsidized loans + gradplus using their limits. I calculated that figure with interest accruing from the time each of the unsub loans was issued at their max limit (Gradplus is unlimited so I subtracted the subsidized limit of 8.5k and the unsub limit of 23.5k from 50k to get 18k). I didnt calculate interest for the sub loan (obviously) and still came out with the above figure. If my calculations are correct private loans arent that much more expensive (relatively). Can anyone else figure out the math?

Thanks!
fhx06 said:
I think it's just the amount of money allotted to the schools, and they designate the average amount each student gets. I think you may be able to request more in some cases but that depends on the location of your school and the standard of living. I'd check with the school directly as to the maximum they are willing to give you.

@OP: I would avoid the GradPlus loan if possible. The thing about a private loan from Sallie Mae is you are expected to repay your loan regardless of your employment and/or decision to go pursue residency. Also, I think you may have done the interest calculation for Sallie Mae wrong. I'm assuming plan to take out $50,000 per year so that money will accrue interest from the moment you take it out. By the time your second year comes and you seek out another $50,000 loan, you'll already be past $100,000 with the two base loans and the interest from the first one... and it's not cheap.
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UNMorBUST said:
Shc. Going to pharm school you get less in stafford loans than going med or dental school. The max is like 33k a year or around there. As opposed to the 43k med students get.
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WHY??? Thats very unfair to pharmacy students!!! They are making it easier for med and dental students to aviod Grad Plus loans. NOT FAIR! :thumbdown:
 
SHC1984 said:
WHY??? Thats very unfair to pharmacy students!!! They are making it easier for med and dental students to aviod Grad Plus loans. NOT FAIR! :thumbdown:
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Life isn't fair - just look at how much pharmacy school adcoms openly discriminate against applicants - they're biased towards asian, female overachievers who can bs off the top of their heads :).
 
asdasdasdasd said:
Life isn't fair - just look at how much pharmacy school adcoms openly discriminate against applicants - they're biased towards asian, female overachievers who can bs off the top of their heads :).
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Attractive Asian, female overachievers are the best of the best, lets not be a hater now. ;)
 
You didn't calculate the fact that for sallie mae, cal northstate offers the smart option loan. This means you are force to pay the interest as you attend school, all of it. Your loan rate of 10% is the optimal rate also (currently its at 9.25%) however, sallie mae is variable, so if the economy goes well and interest lowers, you are good, but the smart option loan is maxed at 14% (which means this is the highest interest rate you may have to pay in the worst case scenario).

life will be harder financially if you take loans at cal northstate. Is it as ridiculous as some people on the cal northstate thread have been posting? no. (they seem not to realize that pharm loans are terrible either way). however, you do have to pay a bit more, and probably work while you attend school to pay off the interest. if you can handle that, then by all means go for it. Also you have to factor in the interest difference over the life of the loan which is 10-20years. This is going to amount alot more than the 20-30k you predict.

A question for those who attend california schools without parental financial support... how do you guys hack it without taking a grad plus loan? working part time isn't gonna cover living expenses, and federal sub and unsub barely covers the 35-40k tuition plus fees of california schools
 
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fhx06 said:
I think it's just the amount of money allotted to the schools, and they designate the average amount each student gets. I think you may be able to request more in some cases but that depends on the location of your school and the standard of living. I'd check with the school directly as to the maximum they are willing to give you.

@OP: I would avoid the GradPlus loan if possible. The thing about a private loan from Sallie Mae is you are expected to repay your loan regardless of your employment and/or decision to go pursue residency. Also, I think you may have done the interest calculation for Sallie Mae wrong. I'm assuming plan to take out $50,000 per year so that money will accrue interest from the moment you take it out. By the time your second year comes and you seek out another $50,000 loan, you'll already be past $100,000 with the two base loans and the interest from the first one... and it's not cheap.
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The loan offered at cal northstate is a smart option loan, meaning you are forced to pay the interest accrued in full as you attend school. it is both good (in the long run) and bad (in the short run).
 
Can I pay off my car with money left from the unsubsidized loan?

My thought process: get maximum amount. Even if I don't pay the full cost of car, pay at least half of the balance of the vehicle. Pay it off during year 2. One of the reasons UF is looking a lot more attractive is because it is super cheap. Thus, making grad plus loans a non issue. At my interview, $33K is the max one can borrow. Assuming tuition is 14K (8K a few years ago), then 19K remains. Pay half of the remaining balance and still have enough for living expenses. Not no mention some mullah from family here and there.
 
SHC1984 said:
Avoid the grad plus loans. Stafford are okay, but grad plus has ridiously high interest rates. It would be foolish to take one out.
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So you are coming to South in a couple months? That's really cool. I am in the C/O 2010 at South! Welcome and I look forward to meeting you and your class this summer.

But on a side note about your comment, it is impossible for some people to not take out Grad plus loans. I have unfortunately had to take out the max amount since I started. I am left with roughly $5,000 after tuition is paid (about $2,000 of it is left overs from sub and unsub loans, and I take out a $3000 in grad plus). This money is supposed to get me through 3-4 months of living expenses. My rent and utilities cost about $1,000 a month. So that puts me at about $1,000-$2,000 that can go towards everything else (for 3-4 months). I hope you realize how quick money goes out the window. I have a car payment, car insurance, food, gas, etc to pay for, and the list goes on. I have a fiance that lives with me that is also in school right now so splitting rent or living with someone isn't really an option. I could get a job, but do you have any idea how rigorous South's program is? Some people in my class have jobs, but I just can't do it if I want to make decent grades. Not to mention, how much will that REALLY help? Another $80 a week? My point is, some people have no choice but to take out the grad plus loans, so I certainly wouldn't call it "foolish" to take them out...
 
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Hi to all international students currently studying in the US,
Has anyone previously been successful in applying for student loans for F-1 visa students. Is anyone currently applying, how is it going. How does the current struggling economy seem to affect the private banks' decision on loan approval for international students.
All shared experience is much appreciated.
 
I will have a total of $70,000 in student loan debt once I finish my pre-pharmacy requirements (this also includes my bachelor's degree and MBA). If I add a PharmD to that, I will be pushing close to $225,000 in student loan debt in the end. I am a little freaked out about this, but I also know that you have to spend money in order to make money (thus taking out the loans and investing on my education).

Anyone else out there going to be this much in debt once they finish their PharmD? Or is this too much money to shell out for a PharmD? Thanks in advance!
 
Assuming 6.8%, that is a monthly payment of $2589.31 over a ten year period, or $31071.72 a year (loan calculator = awesome). That is steep, but if you make wise financial decisions, it would be doable. Median starting salaries are $90-100k so that would be about a third of your salary.

There are also different payment plans that start with lower monthly payments, increasing as time goes on, or repayments that are based on your income.

IMO, yes. But we never know what will happen in four years. Salaries may tank, or increase. Who knows?
 
jesus christ that is alot. After 6 years of prepharm/pharm...I would be in at about 100k.
 
I am guessing the OP went to an out of state school and is going to do the same for Pharmacy. That sucks : / I feel your pain
 
My fiancee and I graduated from private liberal arts colleges, went through a masters together, she's in med school now and I'm in pharmacy. We are going to end up with a cool half million in student loans by the time we graduate. Awesome...
 
You should work 8-20 hours a week during your first 3 years of pharmacy school so you can start putting a dent in that undergrad loan.
 
Hendlefe said:
You should work 8-20 hours a week during your first 3 years of pharmacy school so you can start putting a dent in that undergrad loan.
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How much $ per hour is typical for a provisional pharmacist?
 
Jetninjin said:
How much $ per hour is typical for a provisional pharmacist?
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Depends on the state. There's a whole post on this in the pharmacy section entitled something like pharmacy intern pay.
 
Get ready to eat potatoes and green beans your entire life when pharmacist salaries are cut to $40-60 k per year while having to repay $225 k. Considering salaries will probably be cut significantly, there is no point in dishing out $120 k or more to end up getting paid $40-60 k no matter what anyone says unless you like torturous academia for years without being well compensated later on.
 
DoctorRx1986 said:
Get ready to eat potatoes and green beans your entire life when pharmacist salaries are cut to $40-60 k per year while having to repay $225 k. Considering salaries will probably be cut significantly, there is no point in dishing out $120 k or more to end up getting paid $40-60 k no matter what anyone says unless you like torturous academia for years without being well compensated later on.
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Dude with MBA + PharmD doesn't have to be a pharmacist... he can work where the big money is.
 
DoctorRx1986 said:
Get ready to eat potatoes and green beans your entire life when pharmacist salaries are cut to $40-60 k per year while having to repay $225 k. Considering salaries will probably be cut significantly, there is no point in dishing out $120 k or more to end up getting paid $40-60 k no matter what anyone says unless you like torturous academia for years without being well compensated later on.
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Sigh. One of these days I'm going to make a Top Ten list of repetitive things posted on SDN, and near the top will be "oh, no, pharmacy salaries are going to drop dramatically and I'll have to eat Top Ramen the rest of my life!!" Reminds me of Chicken Little saying over and over the sky is falling.

Anyway, to the OP, everything in life is choice. What are you planning on doing if you don't get your PharmD? I was lucky to not have student loans coming out of undergrad, but I'll have plenty for pharm school. And my husband has his own. However, it's worth it to me to delay having a real job and to go into debt because I really want to be a pharmacist. If you don't think you'd be happy doing anything else, go to pharmacy school. If you think you might be happy doing something else, would that also require more school/debt?
 
ufdlim said:
Assuming 6.8%, that is a monthly payment of $2589.31 over a ten year period, or $31071.72 a year (loan calculator = awesome). That is steep, but if you make wise financial decisions, it would be doable. Median starting salaries are $90-100k so that would be about a third of your salary.

There are also different payment plans that start with lower monthly payments, increasing as time goes on, or repayments that are based on your income.

IMO, yes. But we never know what will happen in four years. Salaries may tank, or increase. Who knows?
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I definitely agree with you on that
 
dblock05 said:
jesus christ that is alot. After 6 years of prepharm/pharm...I would be in at about 100k.
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Yeah, but you have to think I already have a BA and MBA...so I was already in debt to begin with. Tack on pre-pharm and a PharmD = big time debt.
 
ret09 said:
My fiancee and I graduated from private liberal arts colleges, went through a masters together, she's in med school now and I'm in pharmacy. We are going to end up with a cool half million in student loans by the time we graduate. Awesome...
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You guys are going to be a definite power couple :) Once your loan debt is cleared up, people are going to be so jealous of how well-off you guys are. You guys are definitely making the right decisions!
 
Hendlefe said:
You should work 8-20 hours a week during your first 3 years of pharmacy school so you can start putting a dent in that undergrad loan.
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I'm going to pick up a weekend PT tech job while in pharm school.
 
DoctorRx1986 said:
Get ready to eat potatoes and green beans your entire life when pharmacist salaries are cut to $40-60 k per year while having to repay $225 k. Considering salaries will probably be cut significantly, there is no point in dishing out $120 k or more to end up getting paid $40-60 k no matter what anyone says unless you like torturous academia for years without being well compensated later on.
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I'm just going to ignore how ignorant you are (ie: MBA + PharmD).
 
FarscapeGirl said:
Sigh. One of these days I'm going to make a Top Ten list of repetitive things posted on SDN, and near the top will be "oh, no, pharmacy salaries are going to drop dramatically and I'll have to eat Top Ramen the rest of my life!!" Reminds me of Chicken Little saying over and over the sky is falling.

Anyway, to the OP, everything in life is choice. What are you planning on doing if you don't get your PharmD? I was lucky to not have student loans coming out of undergrad, but I'll have plenty for pharm school. And my husband has his own. However, it's worth it to me to delay having a real job and to go into debt because I really want to be a pharmacist. If you don't think you'd be happy doing anything else, go to pharmacy school. If you think you might be happy doing something else, would that also require more school/debt?
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I'm definitely set on pharmacy and I'm willing to take out the loans. I'm going to pursue the business aspect of pharmacy.
 
DoctorRx1986 said:
Get ready to eat potatoes and green beans your entire life when pharmacist salaries are cut to $40-60 k per year while having to repay $225 k. Considering salaries will probably be cut significantly, there is no point in dishing out $120 k or more to end up getting paid $40-60 k no matter what anyone says unless you like torturous academia for years without being well compensated later on.
Click to expand...

Salaries don't halve over night. Nor is there any indication that salaries will drop, only possibly taper off (it is currently still rising). The market also has an ability to correct itself - that is, Rphs will branch into more diverse fields. Pharmacy is not only your Wal-greens pharmacist. See: http://www.bls.gov/oes/current/oes291051.htm

As a pharmacy student you should know this. If not, I suggest you follow your own advice and drop out now. No point wasting money right?
 
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ufdlim said:
Salaries don't halve over night. Nor is there any indication that salaries will drop, only possibly taper off (it is currently still rising). The market also has an ability to correct itself - that is, Rphs will branch into more diverse fields. Pharmacy is not only your Wal-greens pharmacist. See: http://www.bls.gov/oes/current/oes291051.htm

As a pharmacy student you should know this. If not, I suggest you follow your own advice and drop out now. No point wasting money right?
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Great comment :)
 
Hey dude. I am an F1 student too. I am applying for pharmacy for the year 2010. Are you already in pharmacy school. Please let me know. Because I think there are very few students on F1 who apply for Pharmacy.
 
I just wanted to see how much money current students take out (and what future students plan to take out) in loans for things other than tution, such as rent, bills, insurance, food, going out money, and also big things like computers and books? Thanks for the input!

Adam
 
I plan to take the most that I can get according to the budget, at least for my first year. This is gonna be my first time going away, so I just want to make sure I can live quite comfortably.

I can always ask to cut the amount I want if I do end up with too much loan money anyway.
 
I took a total of $10,000 in loans. $5,000 for both fall and spring semesters.

HTH
 
tootoo30 said:
I took a total of $10,000 in loans. $5,000 for both fall and spring semesters.

HTH
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That's along the line of what I was thinking. I figured 1k a month to cover an apartment (just myself), phone, car insurance, and food is what I am looking at. I am just curious if this is more than what other people were taking out. One of the P1's at my interview said he only took out like $200 a month, kind of felt like I was taking out a lot more. Anyone else taking out as much or more?
 
AdamSanders said:
That's along the line of what I was thinking. I figured 1k a month to cover an apartment (just myself), phone, car insurance, and food is what I am looking at. I am just curious if this is more than what other people were taking out. One of the P1's at my interview said he only took out like $200 a month, kind of felt like I was taking out a lot more. Anyone else taking out as much or more?
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so r u saying aside from tuition you will take out roughly an extra 12 grand?
 
I'm taking out about $10,000 in loans besides what I need for tuition/fees, and am going to try to come up with another 5-10k through work (summer included). Living in Chicago is expensive :(
 
$1,100 a month for the 9 months Ill be in school. Suplementing that with working 10 hours a week then working FT during the summer. Im hoping to require less and less as I go through school.
 
zero!

Thats what OT shifts in the summer are for.
 
It depends on where you are living and how efficient the air conditioner/heater is in your place as well as how well the windows and doors are sealed. You also don't know what gas prices are going to do and you have to factor in how long of a commute you have including time stuck in traffic. Take it from me, you'd rather take out a few extra grand each semester to have as just a precaution in case something comes up. It won't matter much if you're paying less that $20K a year in tuition. I'm taking out $40K a year and I barely have $1K a month to live on and it's not enough. I don't go out partying all the time or eat expensive food and I'm struggling. You don't want to get into a situation where you run out of cash. If you don't use it all, then you just have to take out that much less next year. Once you graduate, you will be making enough to pay off your loans, especially if you are young, in a short amount of time. If you really think about it, what's an extra 16 grand to pay off in loans when you will be making at least 4 grand every two weeks?
 
NONE! With 6.8% compound interest you gotta be crazy to take that loan for anything besides tuition.
 
SHC1984 said:
NONE! With 6.8% compound interest you gotta be crazy to take that loan for anything besides tuition.
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Apparently a lot of people are crazy then. I took out the max. Realize that 6.8% interest is actually pretty cheap especially when loans for cars and houses are in the 5% range. (BTW, you're gonna have a hard time finding interest that isn't compounded these days)

We're going to have all of our loans paid of in a short amount of time anyway, so what is the big deal?
 
SHC1984 said:
NONE! With 6.8% compound interest you gotta be crazy to take that loan for anything besides tuition.
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Id rather kill myself in school than kill myself trying to save some bucks in intrest and working too much. The cost of the intrest is nothing near the cost of doing poorly in Pharmacy school and either having to retake courses or not having the GPA to make residency.
 
I took out an extra 10k Grad plus loan and I plan on just paying off the interest as I go to school.
 
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