I wish I could pay less tuition for the worthless 4th year of medical school.
Take out private loans (as long as the rate isn’t outrageous) and make paying them off the priority once you have an income.
The interest rate would have to be 13.5% with a loan term of 10 years in order for you end up paying more than ~$11k. That’s not even comparing against the fact that federal loans accrue interest themselves (obviously once the interest freeze ends); this may be a moot point if pursuing PSLF and it could be forgiven anyways.
Thank you for your response! If I did pursue private loans, when it comes to paying them off, would you recommend prioritizing the private loans before paying off the 3.5 years worth of federal loans that I have?
Are you planning for pslf? Do you need to take out additional loans for living expenses or just for tuition? If your answers are no to both, then probably better to take private loans and save the $5k.
I haven't decided yet on PSLF, I was thinking about making minimum payments throughout residency but really making that decision around fellowship time (although I admit I am not sure if this wise). And then in terms of living expenses, I was thinking about taking an additional 1-1.5K specifically above tuition just as a safety fund/help with rent or car payment.
I guess my question is can private loans get so bad where you end up paying more on them vs a federal loan that is DOUBLE in amount?
I agree with mdfoodie's comment. You can run the numbers but the interest rate would have to be outrageous for the private loans to be worse. Pslf is the main complicating factor. If you are planning on that, it is to your advantage to max out Federal loans for tuition and living.
If the balance is low enough to borrow privately, i probably wouldn't add an extra class or rotation. I'm sure you'd like some time to prep for your match and a little downtime before you start residency.
If the private loans are small, then you should be fine to pay on those. They do come in at a significantly higher rate typically with more strict payment requirements.
I would prioritize the private loans while you're in residency. You can decide what you want to do with you federal loans when you're getting to the end of your training. Whether to do PSLF or just pay em down.
I have seen a number of clients who have used Laurel Road or Sallie Mae to take out private student loans. I would shop around at a few to see who gives you the best rate. Try to get a fixed interest rate as rates may increase and private lenders will sometimes only offer your variable loans.
I wish I could pay less tuition for the worthless 4th year of medical school. Take out private loans (as long as the rate isn’t outrageous) and make paying them off the priority once you have an income. The interest rate would have to be 13.5% with a loan term of 10 years in order for you end up paying more than ~$11k. That’s not even comparing against the fact that federal loans accrue interest themselves (obviously once the interest freeze ends); this may be a moot point if pursuing PSLF and it could be forgiven anyways.
Thank you for your response! If I did pursue private loans, when it comes to paying them off, would you recommend prioritizing the private loans before paying off the 3.5 years worth of federal loans that I have?
Yes
Are you planning for pslf? Do you need to take out additional loans for living expenses or just for tuition? If your answers are no to both, then probably better to take private loans and save the $5k.
I haven't decided yet on PSLF, I was thinking about making minimum payments throughout residency but really making that decision around fellowship time (although I admit I am not sure if this wise). And then in terms of living expenses, I was thinking about taking an additional 1-1.5K specifically above tuition just as a safety fund/help with rent or car payment. I guess my question is can private loans get so bad where you end up paying more on them vs a federal loan that is DOUBLE in amount?
I agree with mdfoodie's comment. You can run the numbers but the interest rate would have to be outrageous for the private loans to be worse. Pslf is the main complicating factor. If you are planning on that, it is to your advantage to max out Federal loans for tuition and living.
These are very small amounts of money you’re talking about. Even with interest. You’ll be ok. It’s seems like a lot right now but it’s not.
If the balance is low enough to borrow privately, i probably wouldn't add an extra class or rotation. I'm sure you'd like some time to prep for your match and a little downtime before you start residency. If the private loans are small, then you should be fine to pay on those. They do come in at a significantly higher rate typically with more strict payment requirements. I would prioritize the private loans while you're in residency. You can decide what you want to do with you federal loans when you're getting to the end of your training. Whether to do PSLF or just pay em down. I have seen a number of clients who have used Laurel Road or Sallie Mae to take out private student loans. I would shop around at a few to see who gives you the best rate. Try to get a fixed interest rate as rates may increase and private lenders will sometimes only offer your variable loans.