What is the max you can get in government loans yearly?

[Cerbernator]

I dont understand exactly, how much can I get yearly in loans that don't require good credit?

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[mpp]

It all depends as there are many different types of loans that have different requirements and may or may not be offered by your medical school (I assume you're talking about medical school).

Federal loans are not based on your credit worthiness so there is no credit check. Every medical student will be eligible for $38,500 in Stafford loans each year provided that the cost of tuition + living expenses is greater than that amount.

Some schools offer Federal Perkins loans, up to $6,000 each year. These are need based.

Some schools have institutional loans which may or may not have eligibility requirements. All private loans will require a credit check.

 

[hndrx1a]

MPP, so what are Federal Loans based on?

 

[zinjanthropus]

MPP, so what are Federal Loans based on?

Federal loans are guranteed by the federal government - that's why their is no credit check. I believe interest rates are variable and based on the 90 Day T-Note (but can't ever exceed 8.25% and are about 2.8% now) - interest rates are not based on credit.

 

[drlexygoat]

Just to recap, here are the basic facts:

Info on Stafford government loans
-30k in unsubsidized (you pay interest in school) and it is NOT need based
-8500 in subsidized (govt pays interest) and IS need based. The criteria for determining if you are "needy" or not depends from school to school. It's generally more lax than undergrad, and most people end up getting it.
-Interest rate varies for both of these loans but is never to exceed 8.25% I believe.
-Technically, your parents shouldn't matter in these matters. However, when it comes down to the subsudized loans, schools generally want to see how your parents are doing since they give the final nod to who gets what. So prepare to shell out their information as well, even though you're considered financially independent from them.

Budgets
If you're school's budget is UNDER the 38,500 you can borrow from the govt, that's all your'e going to get from Uncle Sam. However, if your school's budget is OVER that 38500 in Stafford Loans, you need to go hunting elsewhere for additional loan money. Private lenders are more than willing, even with crappy credit, to throw money in your direction because they know you'll be able to pay it back some day...

 

[OSUdoc08]

You don't necessarily have to get money for your entire budget---sometimes they are very generous on some expenses.

Also, medical students are seen by the government as unable to work, thus having a zero income, which allows need-based aid to come to you more easily than if you were an undergrad.

 

[mpp]

Just to clarify that you should be eligible for $38,500 in Stafford loans of which $8,5000 can be subsidized based on need. So even if you aren't needy enough to qualify for the $8,500 in subsidized loans you can still get $8,500 in unsubsidized (on top of the $30,000 in unsubsidized) loans.

 

[ItsNotATumor]

38.5K sounds about right...