Thread: Financial Aid "budget" email today and a whole new dilemma

So, I got the standard Financial Aid email today with the cost of living budget for the upcoming year, and now there is a whole new dilemma to deal with. The "budget" for clinical science was just slashed from $15,900 a semester to $12,562 (a loss of $3338 borrowing ability). Since the timing of my clinicals has already been less than ideal, this may hurt me more than most but I thought I would share what I think I may have to deal with. I do have expenses that are probably a little higher than most students but not as high as some who are trying to support an entire family on student loans. My time in clinicals, at the current time will be 5.5 semesters (6 borrowing semesters), therefore this is a "'loss" of over $19,000 that I was planning on borrowing to use for residency interviews, relocation expenses, and all the other "unforeseen events" that will pop up in the next two years. What's worse is that the alternative is a "private loan" for residency which will be at market rate, with no deferment options, and I will finish off-cycle and have 9 months of "unemployment" between finishing clinicals and starting residency. So, where does the money come from to pay back these private loans? And before you suggest "get a job", how do you explain to a new employer that you need to take off 2 days a week for 12 weeks for residency interviews? I have been ahead of the curve for a while because I have been working on the big picture since starting school but I didn't see this one coming. The one theme that I have heard from classmates is that money frequently limited the number of programs they could apply to, and then actually interview at. So, what good is a degree that cost 350K+ if you only have 1-2K for applications and interviews? I find it hard to believe that even the BEST students have a budget that small. I think most people "skim" money each semester and put it aside but the ability to skim was just wiped out for me and possibly many other students who haven't read the email and haven't been saving extra. The extra I have now will be chewed up by the time the next application cycle starts in 2013.

Suggestions, comments? And a big "thank you" to everyone who filled out those surveys with penny-pinching in mind.

Originally Posted by dreileen

So, I got the standard Financial Aid email today with the cost of living budget for the upcoming year, The "budget" for clinical science was just slashed from $15,900 a semester to $12,562 (a loss of $3338 borrowing ability).

That's a huge amount. What was the school's rational for the change? Are you an American on Fed loans?

Although your tuition rates decrease, I wouldn't think they would change the cost of living expenses and other foreseen costs as well.

The tuition is the same? ... --> $18,900/semester?

What part of the budget has changed?

If this is what it seems to be, then it is a travesty that they are only making worse. They cannot decrease total borrowing ability without decreasing tuition! I found it difficult to make everything work on the money upon which I could borrow. There are always a boatload of unforeseen costs, including fees and costs associated with residency. I cannot possibly understand how they think they are helping the situation by decreasing the total living allowance. Surely, the total indebtedness will come under a little more control over the years in regard to total government loan funding, but that doesn't include private loans and possible funding from families. What a **** move by DeVry if this is the case.


An aside about residency applications...
$1-2k is a decent number in mind to apply to quite a lot of programs. The problem occurs when applying to more than 20 programs in the same specialty. It gets really expensive, really quick. I think ERAS did this to try to avoid over-saturation of programs with unnecessary applications from applicants that are unlikely to go to place over their 20th choice. This all makes perfect sense for the USMG applicant, but really screws the IMG, like us. An IMG with less than average scores can easily send off 20+ applications and get absolutely no response. Those damn USMLE Step scores are so important to get the interview.

It is for the above reasons that I personally recommend you apply to multiple specialties, with backup plans in family medicine or whatever else you may find interest in that is less competitive, such as psychiatry, and pediatrics. Internal medicine and pathology are sort of in that list, but it seems those are getting more competitive as well. You certainly CAN apply to neurosurgery, dermatology, orthopedic surgery, radiology, etc... but you MUST have backup plans as an IMG. This should help you save a slight bit of money. I applied to 72 programs and it costs around $750. Looking back on things, I didn't apply to enough. I should have applied to well over 100 programs across the desired specialties.

Sounds daunting.....
I feel like what would be more expensive is the flight/hotel costs for all the interviews too

Also, don't forget about the Sallie Mae Residency & Relocation private loan. AUC students can get them up to a year after graduation. It is a private loan though, so don't plan on using IBR (income-based repayment) and other government style repayment options. I do remember reading that those who get the loan don't have to make payments for three years. Max amount is $15,000.

This is a good last resort option, when the money just isn't available to get done what needs to be done.

I finally spoke to someone in the AUC financial aid office today and got the following information --> "Sorry, it wasn't our decision, it was based on the student surveys and DMI (DeVry Medical Inc.) made the decision. But the good news is that there are alternate sources including private loans like MedCAP."

So, I checked on MedCAP loans and the truth is "we" aren't "really eligible" because the school has to "certify" our cost of education. Well, they already do that with the PLUS loan. And the MedCAP has an aggregate limit of $250,000 for ALL LOANS combined.

If you DIDN'T borrow the maximum you can have the pleasure of borrowing $10,000 at a current rate of 9.99% with a 20-year repayment at $139.78/mo. So $10,000 will cost you $33,547.20 over the 20-year term.

As far as the Sallie Mae loan goes, it may be a good REALLY LAST resort as the rates can be up to the base rate (LIBOR) + 11.88% but it does say that you must be "currently enrolled" and meet "other eligibility criteria" that does not seem to be disclosed until you submit an application.

Originally Posted by dreileen

I finally spoke to someone in the AUC financial aid office today and got the following information --> "Sorry, it wasn't our decision, it was based on the student surveys and DMI (DeVry Medical Inc.) made the decision. But the good news is that there are alternate sources including private loans like MedCAP."

So, I checked on MedCAP loans and the truth is "we" aren't "really eligible" because the school has to "certify" our cost of education. Well, they already do that with the PLUS loan. And the MedCAP has an aggregate limit of $250,000 for ALL LOANS combined.

If you DIDN'T borrow the maximum you can have the pleasure of borrowing $10,000 at a current rate of 9.99% with a 20-year repayment at $139.78/mo. So $10,000 will cost you $33,547.20 over the 20-year term.

As far as the Sallie Mae loan goes, it may be a good REALLY LAST resort as the rates can be up to the base rate (LIBOR) + 11.88% but it does say that you must be "currently enrolled" and meet "other eligibility criteria" that does not seem to be disclosed until you submit an application.

What..... What............ That's like my credit card APR...... That's bull.

Originally Posted by dreileen

I finally spoke to someone in the AUC financial aid office today and got the following information --> "Sorry, it wasn't our decision, it was based on the student surveys and DMI (DeVry Medical Inc.) made the decision. But the good news is that there are alternate sources including private loans like MedCAP."

So, I checked on MedCAP loans and the truth is "we" aren't "really eligible" because the school has to "certify" our cost of education. Well, they already do that with the PLUS loan. And the MedCAP has an aggregate limit of $250,000 for ALL LOANS combined.

If you DIDN'T borrow the maximum you can have the pleasure of borrowing $10,000 at a current rate of 9.99% with a 20-year repayment at $139.78/mo. So $10,000 will cost you $33,547.20 over the 20-year term.

As far as the Sallie Mae loan goes, it may be a good REALLY LAST resort as the rates can be up to the base rate (LIBOR) + 11.88% but it does say that you must be "currently enrolled" and meet "other eligibility criteria" that does not seem to be disclosed until you submit an application.

Current LIBOR rate is somewhere between 0.24 and 3.75, which makes it "up to" 12.12 to 15.63% VARIABLE. My credit score is in the low 800's but my guess is that even I would have hard time getting a loan without a cosigner because of my total loan burden, not because of credit issues.

Also the income-based repayment for regular student loans is only good if you are earning less than $70,000 a year.

Originally Posted by dreileen

Current LIBOR rate is somewhere between 0.24 and 3.75, which makes it "up to" 12.12 to 15.63% VARIABLE. My credit score is in the low 800's but my guess is that even I would have hard time getting a loan without a cosigner because of my total loan burden, not because of credit issues.

Also the income-based repayment for regular student loans is only good if you are earning less than $70,000 a year.

That's why you work in an urgent care center and make only $69,999. That's like only 10 hrs a work every week!