Medical Student Loans - Because Tuition Really Really Hurts
One of the most obvious truths about medical school is that it is not cheap. Four years in medical school, even at a public university, will cost in excess of $60,000, and that amount is for tuition, nothing else. Debt incurred in medical school, especially on high interest medical student loans, is a rising problem among new graduates who still have several years of internship and residency before they can expect to make significant incomes in the medical profession, but fortunately many medical schools are beginning to address this problem.
If you are looking for a way to finance medical school without mortgaging your future, you do have some alternatives to medical student loans. If your academic credentials are impressive enough, you may find a medical center which will provide you with medical student loans in return for your guarantee that you will join their staff for a specific time. If you back out of the deal, you will be responsible for repaying the loan.
Stafford Medical Student LoansYour best chance to limit the amount of interest you are charged on medical school loans is to apply for a Stafford loan from the Federal student loan program and often administered either by the medical student loans office or through the Federal Family Education Loan Program, or FELP. They can apply for FELP medical student loans through private lenders, and the funds will be guaranteed by the government. If you choose a loan from the Federal Direct Student Loan Program, you money will be administered through your school loan office.
You should definitely see if you can qualify for a subsidized medical student loan, because if you can the interest on the loan will be paid by the government, saving you thousands of dollars in repayment costs. The interest on your loan will start mounting the day the school gets your money.
If you are unable to get a subsidized loan, and have the financial means to do so, start making your interest payments before you graduate. You'll decrease the total amount of your loan significantly and also reduce your monthly payments when you reach your official repayment period.
Grad PLUS Medical Student Loans
If your financial situation prevents you from being eligible for a necessity based loan, look into a PLUS loan which will take your credit history into consideration. If you have a limited or poor credit history, you may still be able to get a PLUS loan with the help of a qualified cosigner. Repayment of a PLUS loan, like that of Stafford loan, can be deferred until you have graduated
Graduate PLUS medical student loans carry a rather hefty 8.5% fixed interest rate, which accrues from the day your medical school receives the money and keeps building until the loan is paid off. So once again you should begin, if at all possible, to make payments on the interest while you are in school.
You might also investigate the Federal Perkins Loan at a 5% rent which has a post-graduate repayment deferment of up to nine months, and allows ten years to fully repay the loan.
Article Title : Medical Student Loans - Because Tuition Really Really Hurts
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Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.