If the Students goes to Grad School after finishing Under Grad does the Parent Plus loan get fully Due after finishing Under grad or it rollover to Grad school. I know Interest keeps piling on the Total amount but their is an option Parent can choose to not pay any amount till Student Graduate (Principal + Interest) or they can pay the min amount due each month which is basically Interest on the Principal amount Borrowed. Also I believe these loans are 10 years loans. Meaning they need to be payed off in 10 yrs its like a 10 yr Mortgage.
Yes, the loan should be able to be deferred while the student is in graduate school. As long as the student is enrolled half-time in a degree seeking program, you should qualify for deferment.
So If the student goes to Med School ( 4yr) then the loan is deferred but the interest is still adding up.?
What about when Student get into Residency after 4 yr Med School, will that count also…
Yes, the loan can be deferred in med school, but interest will continue to accrue. I am not very familiar with medical school…when the student is a resident - would they still be enrolled in classes (or units for a lack of a better description) at their admitting college?
First 2 yrs in Med School are Classes at the Campus, then last 2 yr are Rotations where they go to different Hospitals but still consider as Full time enrolled Students. After 4 yr they apply for Residency in Hospitals if they get accepted they start another 3-5 yr Residency where they get paid too by the Hospital.
Are they still considered enrolled students at the university during residency? If not, you will be unable to defer the loan during residency.
I don’t think they consider Enrolled in the University since they get their MD or DO Degree once they get accepted in Residency Program…
In that case, you would need to begin repayment as soon as the residency begins.
Loans payments will begin while in residency. The student is no longer a student at that point.
Your thread is a bit troubling. It suggests that all these extra loans (plus loans) are being taken out with the idea that the student (not the parent) will be paying them back.
This is not a good idea, particularly when a bunch of loans are being taken out as an undergrad, and then there will be huge med school loans on top of that…and then the poor, lowly paid resident has to make ridiculous loan payments on an income of $50k per year. How is the resident supposed to do that for 3+ years.
Med school is very expensive…privates can cost $75-80k per year. If a student has full Direct Loans (about $30k), and then there are also Plus loans (say $60k), and then med school loans (say $200-300k)…how is a resident supposed to make those payments???
^^ I never suggest in my posts that student will be paying that loan, We just trying to know how much time we have to payoff these loans. We already started paying off the Loan we get for him. We are very much aware of Students taking loans himself and Parents taking loans. We will pay our portion and Student will pay his portion and he is very much aware of his portion. He will payoff his portion of Direct Loans when he finish undergrad. He will get loan of $200-$300k for his Med School which he is quiet aware of and many students get those and still go to Residency. I guess that’s the Hefty Price you pay to be a MD/DO but that’s the choice they make and they have to live by that decision.
I think the student paying at least some of the parent plus loan seem reasonably as the loan are for the student’s benefits.
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^^ I never suggest in my posts that student will be paying that loan, We just trying to know how much time we have to payoff these loans.
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You are right. You never directly stated such.
There have been several parents and students who’ve posted the same question and in those cases the Plus loans were pseudo-student loans, with the parents having no intention of paying them back. The thinking was that the student is going to be a “big income” doctor and therefore can easily pay back several hundred thousand in loans. The problem is that residents and newish docs do not earn enough to suddenly be making payments on $300k-400k of debt.
If your son is a college frosh now, and you’re already paying back these loans, and your son has 7 years of schooling ahead of him (3 more of undergrad and 4 years of med school), then by the time he graduates from med school, hopefully you won’t have much more to pay back.
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He will payoff his portion of Direct Loans when he finish undergrad.
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So, he’s going to delay going to med school until after his undergrad loans are paid?
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He will get loan of $200-$300k for his Med School
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that is somewhat typical.
@mom2collegekids
He not planning to Delay going to med school. He thinks he can pay off his Stafford loans with his Work Study, Summer jobs, Winter Break job plus private tutoring he think he will start in Fall. In just 4 weeks he will finish his freshman year and will have 58 semester hr of Credit. He is thinking if he can get out in 3 yrs instead of normal 4.He will find that out in few months if School put him in HPME program.
I agree that an average starting pay for a New MD is less then $125k (Internal med, Family med…) but their are exceptions if they get into specialized fields like Surgery, ER, Dermatology, etc…where pays are slightly higher. I am sure he understand the early he pay them back the less Interest will accumulate… That may means sharing an apartment with other Residence Doctor so to pay more towards the Loan with the savings…as an e.g.
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agree that an average starting pay for a New MD is less then $125k (Internal med, Family med…) but their are exceptions if they get into specialized fields like Surgery, ER, Dermatology, etc…where pays are slightly higher. I
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You’re talking about salaries post-residency.
I’m talking about the 3+ years of residency. Those specialized fields do not pay well while the new doc is a resident for those years. During THOSE years a new MD can’t make big payments.
Yes I was talking about post-Residency salaries.
Paying loans during 3-4 yr of Residency is tough with an average income of ~$50k But their are many options which can help with the payments as listed in the Link.