Offshore schools may lose federal loans

[Skipper]

Originally Posted by JKDMed

The only way that would have anything to do with the grandfather clause is if the money never came back to the government, in the form of defaults; the money eventually must be paid back, whereas subsidies are an expense. If the gov is cutting short-term expenses -- that are actually long-term investments -- then their short-sightedness is stupid.

My question is, "What is the REAL default rate of Carib students?". We know the default rate for big three grads is very low. What about the huge number of students who attend for one or two years and fail? How many of these students default? If it is a high number, then the big three are indeed a liability to the stafford program and more money may be lost than gained.

most people who fail out of the big 3 usually transfer to another island school--but i dont know how that changes things in the default situtation---

skipper

[JKDMed]

Either way, if loans are lost then I'm pretty screwed. My grades and MCAT are high enough for DO (3.4 and 25) but they are apparently very screwbally with their admissions. Carib was pretty much my only hope but now I can't afford it.

This sucks.

[Miklos]

Originally Posted by JKDMed

My question is, "What is the REAL default rate of Carib students?". We know the default rate for big three grads is very low. What about the huge number of students who attend for one or two years and fail? How many of these students default? If it is a high number, then the big three are indeed a liability to the stafford program and more money may be lost than gained.

The statistics on the website orginally provided by the Skipper show cohort default rates, which are defined as follows:

What is a cohort default rate?

For schools having 30 or more borrowers entering repayment in
a fiscal year, the school’s cohort default rate is the percentage of a
school’s borrowers who enter repayment on certain Federal Family
Education Loans (FFELs) and/or William D. Ford Federal Direct Loans
(Direct Loans) during that fiscal year and default (or meet other
specified conditions) within the cohort default period. For schools
with 29 or fewer borrowers entering repayment during a fiscal year,
the cohort default rate data includes borrowers entering repayment
over a three-year period.

The statistics for the Big 3 therefore include people who took out loans and dropped out.

[OLDPRO]

Originally Posted by JKDMed

Either way, if loans are lost then I'm pretty screwed. My grades and MCAT are high enough for DO (3.4 and 25) but they are apparently very screwbally with their admissions. Carib was pretty much my only hope but now I can't afford it.

This sucks.

How are you screwed? a semester at Ross is 12,000 You only get 18,500 a year from fed, and the rest is private, whats SGU 14,000 1&2 and 5,000 3rd semesters?

Thats 36,000 to 30,000 in tuition alone?????

18,500 is not close enough for tuition and living at school. I was adding it up isit 18,500+8,000+10,000 you can borrow to=36,000? even then you will be short about 12,000 for living.

[swimguy23]

Originally Posted by whuds

How are you screwed? a semester at Ross is 12,000 You only get 18,500 a year from fed, and the rest is private, whats SGU 14,000 1&2 and 5,000 3rd semesters?

Thats 36,000 to 30,000 in tuition alone?????

18,500 is not close enough for tuition and living at school. I was adding it up isit 18,500+8,000+10,000 you can borrow to=36,000? even then you will be short about 12,000 for living.

right but without a FAFSA number we cant take out loans from the companies we have been in the past and with say an extra approximate 2000-3000 students requiring a new place to take loans from we would overwhelm already existing companies without forcing them to drive the interest rates dramatically

[OLDPRO]

Originally Posted by swimguy23

right but without a FAFSA number we cant take out loans from the companies we have been in the past and with say an extra approximate 2000-3000 students requiring a new place to take loans from we would overwhelm already existing companies without forcing them to drive the interest rates dramatically

Well, how much is that? My loan from Sallie Mae private is at 4.5%. That is not that high. Also I would think The Big three would have to cut tuition down a bit. It is very high anyway and since they are private they have to go with the market. Also some schools still get the DOE number for defferment reasons but no money, I think?

[medstudent101]

hey just wondering if there is any news on the federal loans?

[wizard17]

dang...

when will this be decided on?? and how long will it last??

[sbturner]

The little 3 don't deserve the funding any more than SMU. The little 3 or 4, whatever, suck! Personally, I hope you lose the funding! This way you will fall even further behind SMU!

[jjb1980]

It is only because of AUC's, Ross's, and SGU's sucess in paving the way that SMU even exists. Plus, if some Caribbean schools can get federal loans it means there will be less competition for those who are willing to go to places that are without. . . something I don't personally care about, but some of the people currently attending some of the other Caribbean med schools probably wouldn't have gotten in if the competition was more even. Lastly, there was hope that sometime in the future somehow people at the other schools could somehow get federal loans (once they became more established and there was a bigger need for doctors), but now, with the trend as it is, I am sure that will probably never happen cuz they don't have to make things better for SMU and the others if it isn't better for AUC, Ross, and SGU. Anyhow, I personally think that this competition stuff between the various schools is counter productive for everyone. Plus, I hope it isn't, but these changes may indicate a growing group of people with power that may have it out for foreign medical schools. If that is the case, it could get harder for people who want to become doctors in the future.