How do parents help a child for the med school living expenses?

Parents Forum
21

The Direct Loan for grad students is unsubsidized and accrues interest starting the day it is used. Same with the grad plus loans.

One way we helped, we paid the annual interest…thus WE subsidized those loans.

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22

Some did and some did not. Duke med does their own loan program and had very low rates and no accrual until graduation , but the rest was a standard grad loan plan that did. DH went to a different med school and I believe all his accrued. However: most of us did forbearance in residency: just paid the interest and not the principal, since one of us was a resident making $30k per year(resident salary is higher now, 20 yrs later) and the other was a med student on loans. We only forbeared 2-3 yrs not all 4 yrs of residency.

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23

Wow, so much to learn! Thank you so much.

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24

Unfortunately, the federal student loan rate has reached the highest. Should the admitted med school students and their parents pick the best private student loan until the federal student loan rate declines to apply for?

25

Private loans cannot be consolidated, and if there are ever loan forgiveness programs, private loans are not eligible.

AND you parents will need to co-sign a private loan.

26

This is a much bigger discussion than you can have on an anonymous message board.

How old are the parents? What are their retirement savings? How secure are their jobs? Do they have a mortgage and is their equity in the home? How much life insurance do they have-- term or whole? What is the current level of their consumer debt- car loans, credit cards, etc.? Health insurance- employer paid with a small co-pay per visit, or paying for their own insurance?

Nobody can advise you on whether the parents can or should take on loans without a full picture of your entire financial situation. There are some parents for whom taking on debt- even for a well paid medical career- is financial suicide. There are some parents for whom it’s a smart way to invest in their child’s professional success.

None of us know what your situation is. Maybe a sit-down with a financial planner (fee only, not someone who will give you a “free” session and then sell you a bunch of stuff) will help you?