FINANCING YOUR HEALTH PROFESSIONS EDUCATION: Managing Debt
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Are There Things I Should Be Doing Now to Prepare for the Cost of Medical School?
What should I know about the process of applying for aid?
What are my options if I can’t finance my education using my own financial resources?
What can I do to reduce the cost of medical school once I’m there?
What can I expect in terms of financing my medical school education?
What should I know about the loans I am offered?
What impact will these loans have on me after medical school?
Who is responsible for knowing about my loans?
How do I get organized?

Are There Things I Should Be Doing Now to Prepare for the Cost of Medical School?

• Talk with your family.
• Find out if and how much they can help.
• Look for scholarships thru private, gov’t & school sources (see web sites).
• Use credit cards sparingly.
• Check your credit history.
• Pay off all consumer debt.

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What should I know about the process of applying for aid?

• What’s the philosophy of financial aid at the institution?
• What specific grants and loans are available to meet my need?
• Can I meet my full need using those resources?
• Will my parents be expected to provide financial information? Do I have any options if they refuse?
• What should I know about the loans I am offered?
• What are deadlines?

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What are my options if I can’t finance my education using my own financial resources?

• Federal grant and loan programs
• Service obligated scholarships
• Armed Forces Health Professions
• National Health Service Corps
• New York State Regents Scholarships
• Private scholarship programs
• Private loan programs

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What can I do to reduce the cost of medical school once I’m there?

• Borrow as little as possible.
• Don’t use those credit cards!
• Make a spending plan and stick to it.
• Find a roommate/s to share expenses.
• Call collect to Mom and Dad.
• Don’t eat out/take your lunch/dinner every day.
• Find receptions/lectures with free food.

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What can I expect in terms of financing my medical school education?

• Grant and loan assistance programs (Federal student aid programs)
• Service obligated scholarships - Armed Services, National Health Service Corp., etc.
• Private loan programs
• Private scholarship programs
• Work-study
• Relatives!!

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What should I know about the loans I am offered?

• Loan amount offered and max on loan
• Co-signer requirements, if any
• Interest rate
• Impact on my credit history
• Availability of alternatives
• Repayment terms/grace period
• Deferment options

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What impact will these loans have on me after medical school?

• Disposable income reduced while in repayment.
• If you default, plan to have difficulty in your practice, your personal financial life, and taxes.
• If you have difficulty paying loans, ask lender about forbearance!! Do not ignore your obligation to repay these loans.

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Who is responsible for knowing about my loans?

• YOU ARE!!
• Keep records of all information regarding your loan, amt. of loan, lender, repayment schedule, interest rate.
• The lender may sell your loan to another company.  You are responsible whether or not your lender changes.
• Inform all lenders of any address changes.

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How do I get organized?

• Buy a file cabinet.
• Make files for each individual loan or grant that you receive.
• Weed out dated material on a regular basis.
• Get and stick to a budget.

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