Medical Loans Central

Through scrabbling around online we’ve found a number of sites offering pieces of advice and information for medical students looking for loans to help them through medical school.

We’ve compiled a brief list of them below which we think provides a concise summary of things to look out for, and a few basic dos and don’ts. This list is not supposed to form a complete check list of things to do before you apply, the key thing is always, always seek qualified, preferably independent advice before entering into any loan agreement.

• Always seek guidance from your counsellor or financial aid, refer to them if you’re unsure of anything at any stage of your application. Your parents or guardians should also be involved in the whole process if possible, especially to assist you with questions you will face regarding your expected family contribution (EFC), income and so on.
• Another piece of advice nobody could argue with to plan ahead. You may complete the Free Application for Federal Student Aid (FAFSA) after January 1st, before you have graduated. If you do complete the FAFSA form early, ensure it is for the educational year for which you are seeking financial aid. Even before this stage you can get organized, have your financial information up to date, accurate and complete, including all income streams and tax information.
• Shop around, do your research and compare the market. Not all loans are the same, sometimes the credit schemes with the most attractive headline rates or repayment schemes may not be the best overall package for you and your individual circumstances. This is a BIG decision, do not rush into it. Research is vital, look at all the different types of medical loans on the market and take time, again, seek advice if you’re unsure of anything.
• Educate yourself on the types of loans and see which one fits your needs the best, including understanding the pros and cons of private and federal medical loans, and the difference between subsidized and unsubsidized federal loans.
• Be frugal, try to minimize your debt and not borrow more than is really necessary, this is not a free lunch and you will have to pay this money back, with interest! Spending your loan money on anything other than educational needs could be seen as fraudulent and you could be committing a criminal offense. Investigate grants and scholarships as other means of funding, you may be pleasantly surprized what you quality for.
• The devil is in the detail so they say, always check the fine print on any loan agreement so you go into it with your eyes wide open and fully aware of the terms and conditions. Again, this can be confusing so do seek advice if unsure. Check for any early settlement penalties, if you find yourself in a position to clear your debt early and save on interest, you don’t want to be penalized for doing so.
• Generally speaking, use your subsidized loan allowance before unsubsidized, the interest in subsidized loans is subsidized by the government during the duration of your education. For this same reason, you should pay interest on unsubsidized loans while you are still in school, if at all possible.
• Consolidate your loans, and if possible do so while you are still in your grace period. This may allow you to lock-in at a lower rate than when your grace period is over.
• Now the obvious, but it must be said. Meet your monthly payments, pay on time. Repaying your debts should be the top of any financial agenda, if you do not you may suffer penalties or even default on your loan. Not smart. If you find yourself unable to meet your repayments, seek advice and contact your lender right away.
• Keep up to date with your financial health and account balances at all times, actually read your statements when they arrive. If you have any spare money at any time in your student life, consider paying off a little extra on your repayments, rather than treating yourself to an extra cup of coffee.

We hope this list of ten tips is of use to you, it is by no means intended as a holy grail, and you should seek as much independent qualified advice as you can get your hands on. That’s the most important thing, whatever you read online, even here at Medial Loans Central can only be taken as a rough guide or some pointers you may find helpful. Keep organized and get help from as many sources as possible.