Tag Archives: student loans
Medical School Loans
Are you worried with the fact that your child has opted for medical education which is quite a high-ticket option and you won’t be able to support it? Think no more when medical school loans are around to help your offspring execute his or her dream to become a medical professional.
Medical student loan consolidation is quite an easy option for you. You can make best use of medical student loans rendered by both state sponsored organizations and private lenders. Many people are of the opinion that availing a medical student loan means to be in debt for years. Such burden on the shoulders of the young students may affect their studies. But this is not so. Today repayment of medical loans is quite flexible and easy.
Medical school student loans are furnished by federal sponsored programs like National Health Service Corps (NHSC) Scholarship Program. This NHSC is a very good plan for medical students who want financial aid to conclude their studies and meet all medical education expenses. NHSC loan program is financed by the United States Department of Health and Human Services Public Health Service.
Such national student loans for medical school programs are based on ‘support for service’ plan. Repayment of national financial aid is very casual. Any student who obtains such loan has to commit to serve government run health organizations or similar health care units for a few years.
This way the loan amount disbursed to a student gets deducted and you become free from debt too. National loan programs also offer medical residency loans to students who want to pursue higher education and do specialization.
The amount of medical student loan sanctioned varies from lender to lender. Most of them cover full expenses of medical studies including tuition fee, books expenses and person’s monthly stipends. The interest rates on financial aid for medical students also differ from lender to lender. Usually medical school private loan has higher rate of interest than a state or federal sponsored loan.
Besides the NHSC loans and other state sponsored loans you can take Stafford medical loans. There are two types of graduate Stafford student medical loans. One is subsidized Stafford Loan which is awarded based on the financial need of the student where interest is not charged till you start your repayment. And the other one is unsubsidized Stafford Loan. This is available for all students without financial need and the interest begins from the time the loan is disbursed.
The Association of American Medical Colleges (AAMC) too offers different types of loans to medical students. When private medical loans charge too high interest rates, such loans from state sponsored organizations serve as a better option.
You must take care of repayment of medical student loans as well. Make a proper plan and opt for those loans which offer you a flexible and affordable repayment plan. Various medical schools have facilitated counseling on medical school loans for parents and guardians to help them get easy loans without any difficulty. They guide them on rules and regulations regarding the repayment too.
Federal Student Loans vs. Private Student Loans (Page 1 of 2)
Few students can afford to pay for college out of their savings, so they use student loans to pay for school. Two major categories of student loans include federal loans and private loans. Because we believe that it is important to understand your education-funding options, this article investigates the difference between federal and private student loans.
These days, there are very few students who can afford to pay for college without some form of education financing. Two-thirds of undergraduate students have some debt, while 88% of law students need to borrow to finance their education. A typical undergraduate may graduate with more than $20,000 of debt, while graduate students may have significantly higher indebtedness. Law school students may graduate with an average of $80,000 in student loans. Typically, students have acquired both federal and private debt, but what are the differences between these types of loans? And is one better than the other? Read on for an explanation of both categories of student loans.
Many students rely on federal student loans to help finance their education. The most common federal loan is a Stafford Loan. These may be issued directly from the government to the student, or they may be issued by a private lender, such as a bank or credit union, belonging to the Federal Family Education Loan Program (FFELP). Either way, these loans are guaranteed against default by the federal government.
Something else to remember about Stafford Loans is they may be subsidized or unsubsidized. If you are eligible for a subsidized Stafford Loan, the government will pay the interest while you are in school. Subsidized Stafford Loans are generally given to students who can demonstrate financial need. If you receive an unsubsidized Stafford Loan, you will be responsible for paying all of the interest, although you may have the payments deferred until after graduation. If you choose to defer paying the interest until after graduation, the interest will be capitalized, or added to the loan amount. To qualify for an unsubsidized Stafford Loan, you do not need to demonstrate financial need.
The amount of your Stafford Loan will vary depending on your year in school. However, graduate students may borrow up to $18,500 each year (with $8,500 being subsidized) with a combined limit for graduate and undergraduate federal loans of $65,500 for dependent students. If you are an independent student, the cumulative limit you may borrow is $138,500 for your graduate and undergraduate studies.
Stafford Loans have variable interest rates, based on the 91-day T-bill, and this interest rate is adjusted each year on July 1. Stafford Loans have an interest rate cap of 8.25%. All lenders offer the same base rate for Stafford loans because the interest rate is predetermined by the government, although many lenders offer payment incentives and/or discounts to help you reduce your interest rate further. Another benefit of federal loans is you may lock in a fixed interest rate if you choose to consolidate your federal student loans. That way, you will not be affected by adjustments in the interest rate each year.