A Loan Shy Mom

[qtpi1218]

I am new here.  I am an insurance professional.  No medical background whatsoever.  My twins daughters are currently in college and one plans on dental school and the other plans on medical school.  My husband and I have been planning their college fund since shortly after they were born.  We will be able to get them out of college with no loans but even if we sell everything we own and live like paupers, there is no way we can fully fund dental and medical schools.  I know we will have to take out loans and that makes me very nervous.  My plan is to pay for their living expenses, cars, insurance, cellphones, misc. things and they can take out loans for tuition and fees.  That is the only way I can think of to help minimize the amount of loans they take out.  I have already researched the Dept. of Health and Human Services programs.  My future dentist can partake and work in underserved areas if she gets accepted.  My future doctor wants to be a surgeon, not a primary care physician.  That makes it hard for her to participate in the loan forgiveness/scholarship programs.  I am not fond of the idea of military.  They also show no interest in the military.  I would like to know from those who have gone through this or are going through it now what sources did you use for loans.  I am looking for some guidance so I can help my kids make the best decisions.

Did you use federal loans, private loans or a combination?

What is your experience with the loan servicers?

Do dental and medical schools give grants and scholarships?

Are private schools more generous than public schools if there are grants and scholarships?

Is it possible to work part time while in medical/dental schools?

Can you get accepted into medical/dental school and defer enrollment for one year (both would like a gap year to teach English in South Korea)?

 

Thank you

[jz]

"my future dentist....underserved area.....if accepted."

I can offer one data point.  My young neighbor friend won a health professions scholarship and will serve in an underserved area.  The sin qua non was that she attended a poor performance high school with low graduation rates. Without this history her application would have been a non starter.

[jhwkr542]

qtpi1218 wrote:

Did you use federal loans, private loans or a combination?

I only used federal loans.

What is your experience with the loan servicers?

I've had experience with Nelnet, MOHELA, and FedLoan servicing.  All are on autopay, so I don't interact with them much.  I've heard bad things about FedLoan servicing but not from personal experience.

Do dental and medical schools give grants and scholarships?

Yes, probably highly variable.  I got probably $2k a year at a school with tuition around $20-25k.

Are private schools more generous than public schools if there are grants and scholarships?

Not sure I understand this question.  If given the choice, I think public state medical institutions are more than adequate, especially given the cost savings.  You can become a surgeon from almost any medical school.  Probably easiest from allopathic medical schools, but depends much more on the person/student than what med. school they went to.

Is it possible to work part time while in medical/dental schools?

For medical school, not really.

Can you get accepted into medical/dental school and defer enrollment for one year (both would like a gap year to teach English in South Korea)?

Don't know, would likely depend on the school.  With the number of people wanting in, most wouldn't (pure guess), and say you can just apply next year.

[The White Coat Investor]

qtpi1218 wrote:

I am new here.  I am an insurance professional.  No medical background whatsoever.  My twins daughters are currently in college and one plans on dental school and the other plans on medical school.  My husband and I have been planning their college fund since shortly after they were born.  We will be able to get them out of college with no loans but even if we sell everything we own and live like paupers, there is no way we can fully fund dental and medical schools.  I know we will have to take out loans and that makes me very nervous.  My plan is to pay for their living expenses, cars, insurance, cellphones, misc. things and they can take out loans for tuition and fees.  That is the only way I can think of to help minimize the amount of loans they take out.  I have already researched the Dept. of Health and Human Services programs.  My future dentist can partake and work in underserved areas if she gets accepted.  My future doctor wants to be a surgeon, not a primary care physician.  That makes it hard for her to participate in the loan forgiveness/scholarship programs.  I am not fond of the idea of military.  They also show no interest in the military.  I would like to know from those who have gone through this or are going through it now what sources did you use for loans.  I am looking for some guidance so I can help my kids make the best decisions.

Did you use federal loans, private loans or a combination?

What is your experience with the loan servicers?

Do dental and medical schools give grants and scholarships?

Are private schools more generous than public schools if there are grants and scholarships?

Is it possible to work part time while in medical/dental schools?

Can you get accepted into medical/dental school and defer enrollment for one year (both would like a gap year to teach English in South Korea)?

 

Thank you

Click to expand...

Welcome to the forum and hope you find it useful.

1) No.

2) I hear lots of complaints from borrowers about crappy service.

3) Yes, but dramatically fewer than undergrad institutions. Here at WCI we offer a scholarship though! We'll be giving away over $35K this year.

4) I don't really know. Doesn't matter anyway as most med school applicants don't exactly have their pick of institutions. You're doing well to get into one.

5) Yes. But in a limited way at limited times for a strong student. I worked between the 1st and 2nd year and during the fourth year. Don't count on being able to work during the third year at all.

6) Probably varies by school, not really sure.

[StarTrekDoc]

Congrats on raising two successful young children that are pursuing great careers for themselves and debt free to this point.

IMHO, your financial job is DONE.

My parents put all three kids through college to enable us a life they only could dream of coming from overseas with only the shirt on their back.  We each funded our post-grad education by ourselves.   I am also doing the same for our children.

Your kids should be asking these questions and formulating a plan for debt and payments.  You can definitely be an influence of assistance to them, but the tuition really is their cross to bare and a good lesson in money management.

My loan experience is 20+ years old so probably worthless now in the age of PSL and reformed Stafford.

[Dr. Mom]

My son is finishing his M1 year.  Our plan is to limit any loans to Federal Direct Loans only which are maxed at $20500 per semester.  So, a possible loan total of $164000 at the end of med school.  We are helping so he will take out significantly less as he went to State U on full scholarship for undergrad and the 529s did well.  Honestly, none of our patients care that we went to a named private med school, so I wouldn't pay for a private name school if they get into your state school.  My son opted to stay in state for med school at half the tuition of a private school.  Scholarships are available but rare.  I had a full ride years ago.  But in retrospect, getting it seemed like good luck as many in my class were as deserving if not more so than I was.  Some work study is possible in med school but focusing on doing well to get into chosen field matters more.  Moonlighting opportunities in residency can often help increase income more significantly than work in med school and offer educational benefit as well.  Congrats!  I'm sure you are a proud momma!

[Dr. Mom]

BTW...I would NOT recommend that you and your husband take out any loans or cosign for their education.  If your help would require you to take out loans then simply you cannot afford to help.  They can qualify on their own.  The Federal Direct Loan I described above does not need a cosigner.  We will help our son with payments during residency if he lets us.  But, when the loans are taken out they will be in his name only.

[adventure]

Congrats on looking at the future. Graduate school loans differ in that you can apply with out the parents input. I'd suggest the kids apply on their own (help them learn how...) but don't do it in your name. They can borrow for school, but you can't for retirement.

Focus on strong applications, if there are loans, there are loans. That's life, and realistically, it'll be okay. Even in primary care. The larger issue is teaching someone to live prudently. Perhaps having them check some of this site would be cool. Student Doctor Forum is great at some conversations, this site is better at others.

Help them out if you can and want to, sure. Maybe offer to help them fund a Roth if they have a summer gig, or if they get into school or something. Lots of articles and posing here. Debt doesn't have to be avoided at all costs, it's a tool, just use it appropriately.

There are also several financial planners around here who can help make things are straightened out.

To your concern... many folks are shocked by the loan amounts often required for graduate school. The numbers can grow wildly.

 

We we both only used federal loans. Never private. Plenty of federal money to live on, even if you take summers off.

[Hatton]

I agree with above posters.  Do not cosign the loans.  They will be ahead of most docs if you help them with living expenses then they will need to borrow less money.  I concur with state schools as well.  No one outside of academics care about this.

[MrsIMDoc]

1.Did you use federal loans, private loans or a combination?

Federal Only

2. What is your experience with the loan servicers?

They all seem the same to me.

3. Do dental and medical schools give grants and scholarships?

Yes. I wish I had applied to more schools to see what other scholarships I could have gotten.

4. Are private schools more generous than public schools if there are grants and scholarships?

I have heard this, so would apply all over and see what package you an get.

5. Is it possible to work part time while in medical/dental schools?

No.  I am saying this as someone who had a job from age 15 to 22 when I started medical school.  Medical school should be your full time job.

6. Can you get accepted into medical/dental school and defer enrollment for one year (both would like a gap year to teach English in South Korea)?

Yes but that is simply delaying graduation, not a good idea overall for loan repayment.

 

Please talk to your daughters about expectations and their goals.  If your daughter who wants to go to dental school also wants to be a mom she should consider that it is VERY difficult for a private practice dentist or associate to take a maternity leave.  Look into the starting salaries for dentistry, it is quite different than for physicians, especially for women who tend to choose not to buy a practice. Think long and hard about the NHSC before you do it.  It can be very restrictive.  I have a friend who chose to do it and it has been a huge mistake.  Try to talk to practicing doctors in the field who did the NHSC.

 

[Miss Bonnie MD]

Hi, answers will probably depend on many factors - but

I qualified for financial aid for both private college and med school - basically half tuition or more in grants.  My parents had nothing saved for either and didn't make much. Med school I completely self-funded w loans and grants. Mostly federal loans. My medical school had their own loan funded by alumni offering no interest accrued until after residency.

It was cheaper for me to go to private med school (Columbia) than my state school - SUNY because of their financial aid package. SUNY only offered me loans, no grants. I tired to work part time during medical school - I lasted maybe 4 weeks. I do not think it's a good idea.

Deferment - not sure, some do, some don't, I would ask before applying.

 

My loan debt in case you are interested (although keep in mind I graduated college in 1999, med school 2009, tuition was cheaper back then...my med school tuition is already up by more than 20K...!!!) - 150K. But it grew to ~ 210K since I deferred/forbeared

[LizOB]

I attended a private med school and paid for it with federal loans.

My school did need-based grants based on your parents' ability to pay (which I always thought was dumb because my parents chose not to pay for med school so I got no grants, as opposed to someone whose parents were unable to pay so they did get grants). Gee, I wonder where my charitable contributions will be going in the future? Whatever- the loans are gone now.

I worked part time in med school- 1st, 2nd and 4th years teaching MCAT classes with one of the big review companies. I thought it was very doable.

[pulmdoc]

Welcome to the forums and congratulations on your daughters' aspirations.


1) I did not take loans.

2) n/a

3) Some scholarships are available, but less so than for undergraduate. Being proactive to find out if there are local scholarships (i.e. not school specific) may be helpful.

4) If anything, public schools may be more generous. I got scholarships to my state school and not to any private med school.

5) I did work part time (9hrs/week) through first and second years of med school, however I am the only physician I know who did that and I would not recommend it as a general rule. It is far, far more lucrative in the long run to do exceptionally well on your schoolwork and have your pick of specialties than it is to pick up a few extra bucks working during those years.

5) Some schools may do an "accept and delay", however many do not so if they want to do a gap year overseas they would delay their application by a year. This may be a wonderful life experience, but it is not a good financial decision because it trades a year of physician income for a year of teaching income.

6) Choice of physician specialty has very little relevance in regards to eligibility for loan forgiveness, either through federal programs like PSLF, Indian Health, etc.

7) Unless your daughters want to be in the military, they shouldn't go into the military for the scholarship. Others here like WCI himself with first hand knowledge, but the financial benefit of the scholarship is diluted by low pay as a military doc and lack of freedom.

[Miss Bonnie MD]

pulmdoc wrote:

 

3) Some scholarships are available, but less so than for undergraduate. Being proactive to find out if there are local scholarships (i.e. not school specific) may be helpful.

4) If anything, public schools may be more generous. I got scholarships to my state school and not to any private med school.

 

Click to expand...

I had the opposite experience, see my answers. Was much cheaper for me to attend private medical than public...prolly depends on the institution. Some private med schools have significant endowments.

My medical school is actually having a huge campaign and the ultimate goal is that ALL students graduate debt free. Too bad I missed this boat. Some crazy rich alumnus is matching donations up to 25 mill.

I do plan to donate to my school (for financial aid only).....once my loans are paid off ha.

[RetiredERdoc]

I went to school on the gi bill so I came out with minimal loans, so joining the  military is one option if they have a desire to serve. I also got a small scholarship that was basically a loan That would be forgiven if I practiced n my home state for 5 years.

i would say you did your part getting them through undergrad, and it is up to them to find ways to pay for further education. Help them with expenses if you can, but don't take out any loans for them. Not everyone goes on to actually complete dental/med school.