Upcoming medical student starting this year. What are the best ways to take out loans for an out of state school, where I could take the least amount of interest if not any at all, and possibly get loan forgiveness as well?
You’ll be able to take out $50k a year in federal loans. They do have interest, usually between 5-8% depending on type and rates, but at least fixed rate. You can defer them as long as you’re a student (interest will accrue) and have access to income based repayment plans, particularly handy for residency. Those can be forgiven in some circumstances (PSLF, IDR, disability.)
Due to new regulations from the current administration/current Congress, the rest will need to be private loans. They generally have higher interest rates—some extremely predatory and/or variable), 0 options for forgiveness and nearly no income based repayment options. You may need a co-signer. These are the option of last resort.
Cut costs wherever you possibly can.
morbie5 on
You start in the Fall? How much do you need to borrow?
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You’ll be able to take out $50k a year in federal loans. They do have interest, usually between 5-8% depending on type and rates, but at least fixed rate. You can defer them as long as you’re a student (interest will accrue) and have access to income based repayment plans, particularly handy for residency. Those can be forgiven in some circumstances (PSLF, IDR, disability.)
Due to new regulations from the current administration/current Congress, the rest will need to be private loans. They generally have higher interest rates—some extremely predatory and/or variable), 0 options for forgiveness and nearly no income based repayment options. You may need a co-signer. These are the option of last resort.
Cut costs wherever you possibly can.
You start in the Fall? How much do you need to borrow?