Funding medical school

WayOutWestMom
Tue, 09 Aug 2016 20:24:57 +0000

Are you willing to co-sign private loans with your daughter?

Are you willing to take out a mortgage line of credit on your house?

If the answer to both is no, then there really aren’t any other loan sources than federal unsub student loans and Grad Plus loans. A few private med schools may offer their own in-house loans to students, but those are never for the full amount of the COA and are intended to supplement rather than replace federal student loans.

If you belong to credit union, you might check with them to see if they offer student loans to grad/professional students without a parent co-signer. I know our local CU does, but only up to $30K/year and $100K total. (IOW, not even close to what med school costs.) The interest rates are lower than on fed loans, but interest-only repayment starts immediately upon loan disbursement.

Your daughter has no collateral to offer banks and nothing that guarantees she’ll repay her loans. So she’s a poor risk for private lenders.

P.S. Her interest rate is bargain compared to what D1’s rates were 3 years ago–they were 7.5+%!!!

P.P.S. Your daughter will have the opportunity to consolidate and refinance her federal loans ONCE with her loan servicer. This is typically done after med school graduation when she’s done taking out new loans.