sig194 Posted October 15, 2015 Share Posted October 15, 2015 Hey current PA students/ practicing PAs - I'm entering a PA program in January and, as you all probably did as well, I'm starting to see how these student loans are really going to add up! What do you wish you would have known about (student loans, repayments, programs, etc) when you were starting out? Please - impart some sagely advice to us newbies to help us make the wisest decisions possible regarding all things student loan-ey. Thanks! Link to comment Share on other sites More sharing options...
MT2PA Posted October 16, 2015 Share Posted October 16, 2015 This may be counterintuitive to what you are looking for, but don't try to take out the absolute minimum loan amount. Sure, if you find some great, cheap housing that is drastically lower than what your COA allows, you don't need to accept all of it. But don't try to live bare bones for 2-3 years just to reduce your loans by $10k at the end of it. You are going to have unexpected expenses, you may have the opportunity for an out of country trip or long distance clinical rotation, you won't start working immediately after graduation (at least have to pass PANCE), so it's a nice idea to have a little cushion for yourself during the process. You are also going to want to grab a drink once in a while or go out to eat and it is SO nice not to have to count pennies for every meal. Yes, not going out and cooking at home can save you a great deal over 2 years but you need a LIFE! Don't live destitute, it will add even more stress than school alone. Personally, when my loans are disbursed, I set a little aside into my savings account for emergencies and future needs so I don't see it as something I can be spending. This is especially helpful if you are starting school with no money saved up. Link to comment Share on other sites More sharing options...
PAtoB Posted January 4, 2016 Share Posted January 4, 2016 x Link to comment Share on other sites More sharing options...
PA-S LP Posted January 8, 2016 Share Posted January 8, 2016 thank you for the tip MT2PA Link to comment Share on other sites More sharing options...
greenmood Posted January 22, 2016 Share Posted January 22, 2016 Even though I did the same thing MT2PA mentioned, I have to say I really regret it. I'm sitting here 2.5 years out of school with a mountain of debt that's preventing me from living my life, funding my retirement, and making a better future for my kid. And I make a FABULOUS salary for a relatively new PA. All I can say is... plug yourself into a debt calculator like unbury.us BEFORE you take out the loans. It will be sobering, I assure you. Link to comment Share on other sites More sharing options...
Disciple3 Posted January 22, 2016 Share Posted January 22, 2016 I think you're kinda stuck, have to take the loans to survive and you only live once. If you can try and get any family to chip in for living expenses or live with family/friends during clinicals if possible. I'm looking at the NHSC or possibly the National Guard once I graduate to help finance everything with little debt a few years out, barring all that I'll just have to work two jobs for a bit. Link to comment Share on other sites More sharing options...
MT2PA Posted January 23, 2016 Share Posted January 23, 2016 Even though I did the same thing MT2PA mentioned, I have to say I really regret it. I'm sitting here 2.5 years out of school with a mountain of debt that's preventing me from living my life, funding my retirement, and making a better future for my kid. And I make a FABULOUS salary for a relatively new PA. All I can say is... plug yourself into a debt calculator like unbury.us BEFORE you take out the loans. It will be sobering, I assure you. I fully expect to be in that situation, too. Just saying, for me personally, living bare during school wouldn't have put a dent in the amount of loans I need to take out in the long run. Having a cushion for when I get out of school and have to make it through the red tape before I can work is worth the few extra thousand I'm taking out over 3 years. Like Disciple said, students are kind of stuck. Everyone can't go to the cheapest program or get family help. You take out the loans, take on the debt, or you don't go to PA school. It's unfortunate. Link to comment Share on other sites More sharing options...
DejaBlu Posted February 9, 2016 Share Posted February 9, 2016 I'm no expert about this topic but if you take out more than you need so you can a have a life and have a little extra for emergencies, how is that a bad thing? Nobody said you have to spend it all but it's nice to have in case you need it. Just because it's there doesn't mean you HAVE to spend it. If you take out more than you need, it will definitely provide a little cushion and alleviate some stress during school because not being able to have any type of fun at all will not do you any good in school. Do what MT2PA said and put a chunk of it into your savings account so you know it's not for random spending. Then when you're done with school, if you haven't dipped into that pot of money you put away, you can put a big chunk down on your loans. It might have earned some interest while you were in school but it's worth it if it gives you peace of mind! Then when you're done with school, if you put that chunk back on your loans it will significantly reduce the amount of your debt. Am I way off base here? Please let me know if I am because this is what I am planning on doing. I will plan on living very frugally but at the same time I'm certain I'm going to need a life too. Link to comment Share on other sites More sharing options...
MT2PA Posted February 10, 2016 Share Posted February 10, 2016 I'm no expert about this topic but if you take out more than you need so you can a have a life and have a little extra for emergencies, how is that a bad thing? Nobody said you have to spend it all but it's nice to have in case you need it. Just because it's there doesn't mean you HAVE to spend it. If you take out more than you need, it will definitely provide a little cushion and alleviate some stress during school because not being able to have any type of fun at all will not do you any good in school. Do what MT2PA said and put a chunk of it into your savings account so you know it's not for random spending. Then when you're done with school, if you haven't dipped into that pot of money you put away, you can put a big chunk down on your loans. It might have earned some interest while you were in school but it's worth it if it gives you peace of mind! Then when you're done with school, if you put that chunk back on your loans it will significantly reduce the amount of your debt. Am I way off base here? Please let me know if I am because this is what I am planning on doing. I will plan on living very frugally but at the same time I'm certain I'm going to need a life too. You may be overestimating how large those 'chunks' of money are. You can only borrow up to the cost of attendance - so there is a limit there - as well as being limited by the federal total limit (may be an issue for students with undergrad loans). The COA is set to reflect the tuition, fees, and cost of living in the area of the school. They aren't going to estimate that rent will cost you $2k a month if the average is $800. My 'chunk' is maybe a couple hundred dollars/semester - so it's not going to be paying down anything significant when I finish school but it also isn't going to make a huge difference on my total loans if I didn't take it out. It is however nice to have for when I finish school and have to pay for PANCE and licensing fees and potentially have to wait months for licensing to happen, possibly have to move for a new job (they may reimburse relocation, but you're responsible up front), etc. There is also the chance I'll need it during school (unforeseen car repairs costing $1000? Yep, that happened). This may vary wildly by person and location of the program so there is no one right answer. This is just what I chose to do/what is right for me. Link to comment Share on other sites More sharing options...
greenmood Posted February 11, 2016 Share Posted February 11, 2016 I'm no expert about this topic but if you take out more than you need so you can a have a life and have a little extra for emergencies, how is that a bad thing? Nobody said you have to spend it all but it's nice to have in case you need it. Just because it's there doesn't mean you HAVE to spend it. If you take out more than you need, it will definitely provide a little cushion and alleviate some stress during school because not being able to have any type of fun at all will not do you any good in school. Do what MT2PA said and put a chunk of it into your savings account so you know it's not for random spending. Then when you're done with school, if you haven't dipped into that pot of money you put away, you can put a big chunk down on your loans. It might have earned some interest while you were in school but it's worth it if it gives you peace of mind! Then when you're done with school, if you put that chunk back on your loans it will significantly reduce the amount of your debt. Am I way off base here? Please let me know if I am because this is what I am planning on doing. I will plan on living very frugally but at the same time I'm certain I'm going to need a life too. Big chunk? Not happening. You're in school for two years. Determine how much of a life you "need" versus "want." I think taking out additional unneeded loans so that you can have fun in PA school is financially unsound practice. To each his/her own, though. And like I said... I did it, and I regret it. So that's my perspective. Link to comment Share on other sites More sharing options...
Thirteen44 Posted February 11, 2016 Share Posted February 11, 2016 I wish I could take out more. My school is going to allow me the equivalent of $1375/month for living expenses (rent, transportation, food). Ok... sure. I also have another household to support that isn't in the state I'm moving to (alone, because my husband's job is where it is, and we need that). It would be nice to be able to pull out more so that I didn't have to worry so much, but they've said no, they won't approve beyond that. Link to comment Share on other sites More sharing options...
fakingpatience Posted February 11, 2016 Share Posted February 11, 2016 I feel the opposite of MT2PA. Personally I am taking out the bare minimum loans I can to get by, especially the first year. The loans accrue from day 1. I am living in one of the cheapest places I could find that it close to school. It might not be in the nicest area, but it's safe and more than what I need. I am also in the very fortunate situation that, if an emergency were to arise, my parents can loan me money, for example to get my car fixed. It might be hard on your pride, but I think that asking family for a loan for school, if they have savings, is a financially sound idea. I have also picked up a PRN job, and have been working shifts here and there, just dependent on school and testing schedule. Was able to make a nice paycheck over thanksgiving week, working all the days we didn't have classes. But then again, I really enjoy my job, and I don't have a family I need to devote my free time to. Everything is so dependent on your individual situation Oh another thought on loans; my school allows you to put in an exemption form of sorts if you have some unusual need, to increase your COA estimate and loans. Qualifying examples include a new computer, car repairs, child care, and other extenuating circumstances. After jumping through a ridiculous amounts of hoops, one of my classmates was able to increase his COA due to a premie baby at home requiring his wife to stay home instead of utilizing daycare. Link to comment Share on other sites More sharing options...
MT2PA Posted February 11, 2016 Share Posted February 11, 2016 Big chunk? Not happening. You're in school for two years. Determine how much of a life you "need" versus "want." I think taking out additional unneeded loans so that you can have fun in PA school is financially unsound practice. To each his/her own, though. And like I said... I did it, and I regret it. So that's my perspective. I agree - money for fun and to take trips is not smart. Like I said, the few hundred dollars I could do without each semester is NOT going to put a dent in my overall loan amount so I find it important to have it ready for after school when loans are gone and jobs haven't started as well as incidentals during school. I'm not planning crazy vacations or partying every weekend. I'm living in an average apt (not the cheapest out there but for the area I could easily be paying more) and I watch my spending. I'm certainly not advocating taking out significantly more than you need, but living bare bones for 2-3 years would make me miserable and make my time in school more stressful and thus isn't an option for me. (And yes, sometimes you just need to be able to afford a glass of wine or two to unwind with friends/classmates and not worry that you can't buy groceries the next week). Link to comment Share on other sites More sharing options...
DejaBlu Posted March 4, 2016 Share Posted March 4, 2016 Thanks for all of the info everyone. I want to clear something up though. I didn't mean that you should take out extra loans so you can take crazy vacations and go out partying every weekend. All I meant is that you have to have a life. Living so frugally for the entire program without being able to go out with your friends once in a while or take a long weekend getaway to refresh yourself will do you more harm than good in the long run. You need to blow off some steam once in a while. Also, like many others mentioned, what if there is a dreaded car or home repair that is needed? What about the PANCE fees? What if you don't find a job for 6 months after school? That's all I meant about the extra money. It's nice to have a little cushion for those emergency situations. For myself, I am lucky to be enrolled at a school with one of the lowest tuitions I have seen. I plan on taking the max government (unsubsidized) loans for each year. I am hoping that will be enough since I don't have a family to support...just two dogs. LOL. Link to comment Share on other sites More sharing options...
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