jsawyer44 Posted June 28, 2011 Share Posted June 28, 2011 Hello All! I am starting a Physician Assistant Masters program this Fall(2011), and am in the process of taking out a significant amount of federal student loans. I have been fervently seeking information about what to expect after I graduate in regards to repayment, and if there is anything I can do now and for the next two years to lower my overall debt or at least get some guidance on the best steps to take. I am considering getting a student loan adviser, but I am not sure where to go for that either and the financial aid department at my school isn't offering much help. If anyone has experience or advice on this topic, any help would be greatly appreciated. Thanks! Link to comment Share on other sites More sharing options...
just_me Posted June 28, 2011 Share Posted June 28, 2011 well www.studentloans.gov has a ton of info and you should have complete a loan entrance counseling session which also covers all of that Link to comment Share on other sites More sharing options...
Travis Posted June 29, 2011 Share Posted June 29, 2011 This is a really good question, I’m just finishing PA school and here is what I learned. 1) Only take what you absolutely need to pay for tuition and to live on (if you have a working spouse this is easier) 2) Pay the interest payments during school to avoid compounding interest (if able, spouse works) 3) If your school goes through the summer then consider taking out the maximum amounts of federal aid (subsidized and unsubsidized) and save for the summer tuition; to avoid high “grad plus”interest rates. Of course, you’re going to pay on the interest on the unsubsidized federal loans, but it will be cheaper than the grad plus loans. 4) Don’t buy anything (cars, toys) and get rid of anything you can live without, especially if you are still paying on it. 5) Most important thing is to sit down, figure out the cost, and come up with a plan. It will be different for everyone based on tuition cost, living expenses, spouses working situation, kids, and prior savings. 6) Pick the best PA school with the lowest cost of attendance… 7) Repay as fast as you can (which is my plan), but would love to hear from others that have already done it. Best of luck with your PA education Link to comment Share on other sites More sharing options...
Maverick87 Posted June 29, 2011 Share Posted June 29, 2011 Another thing you could try is scholarships or loan repayment programs. The only 2 that I know of are military-related and serving in underprivileged parts of the country. Doing either will leave you with pretty much no debt and various amounts of interest, depending on whether you go for the scholarships or the loan repayment. PM me if you have any questions about this. Link to comment Share on other sites More sharing options...
dhageremtp Posted June 30, 2011 Share Posted June 30, 2011 I am doing the NHSC loan repayment plan. Clinic has a HSPA of 15. 60,000 for 2 years of service with the chance of additional money for extension. I would pay school off in 3 years! Look into it, its a mess of paperwork and sometimes you just want to say the heck with it (I wanted to) but keep pushing, keep calling and was awarded free money! Link to comment Share on other sites More sharing options...
bvanderson Posted June 30, 2011 Share Posted June 30, 2011 I looked up the NHSC loan replayment plan, dhageremtp. Very interesting. It seems like a great way to enter the job market and gain some experience in under served areas of the population. Would I be right in assuming there is a salary in addition to the loan repayment? It's certainly not my main motivation, but a guy's got to survive, right? Link to comment Share on other sites More sharing options...
FriarMedic Posted June 30, 2011 Share Posted June 30, 2011 yes, loan repayment is separate from salary-- if you took a job for 30k/year, the collective PA world should slap you. Check out the contracts, negotiations thread for some ideas. Link to comment Share on other sites More sharing options...
jsawyer44 Posted July 1, 2011 Author Share Posted July 1, 2011 thanks so much for all of the useful advice! Link to comment Share on other sites More sharing options...
claytown Posted July 1, 2011 Share Posted July 1, 2011 I am getting loans paid off through the national health service too. I got a job at an approved site, then 6 months later I turned in my application for loan repayment. About 3 months later, $50,000 from the national health service was deposited into my bank account. This was completely separate from my salary. I now have an obligation to work at my current job for 2 years. When my time is up, I could reapply for more loan repayment. Since I was awarded the money, they increased the 2 year obligation to $60,000. A lot of these loan repayment sites are in the middle of no where or very rural. I've considered taking jobs in federal prisons as most of these are approved loan repayment sites with high scores, and most federal prisons are not as rural (check out http://www.bop.gov). Another route is the Indian Health Service (http://www.ihs.gov). They have a different loan repayment program. Again though, very rural. Link to comment Share on other sites More sharing options...
MonikaPA Posted July 9, 2011 Share Posted July 9, 2011 Can it be possible for someone to tell me the negative's (of signing up for 2 years) for the Loan Repayment Program? It is something that I may do after graduating from my PA program. Any information from those who have experienced it would be great. Thank you! Link to comment Share on other sites More sharing options...
mostrike1 Posted July 9, 2011 Share Posted July 9, 2011 I just got the NHSC 60K for 2 years and it is really sweet! I plan to stay for 4 years to take care of my mortgage sized student loan debt. There are plenty of positives and negatives - so do your research. NHSC has an excellent website that should answer many of your questions. http://nhsc.hrsa.gov/loanrepayment/apply.htm Click on the "Applicant and Program Guidelines", it is filled with information. Two things that come to mind that should be considered... 1. Keep in mind that taking a job that QUALIFIES for loan repayment does not mean you WILL get it. I was lucky and got awarded on my first try, some people have to wait for the next cycle to reapply if you don't get awarded. There are a lot of variables (HPSA score, if you apply early in the cycle, and a bit of luck) that go into the selection process. 2. There are crazy penalties for not fulfilling your 2 year contract if you take the $$$ and then quit/leave while you are still under contract. You will end up owing them a bunch of money! NHSC does has info on switching to other NHSC sites, etc Defaulting on the contract - Example provided in NHSC applicant guide.. Scenario 1: Dr. Jane Smith entered into a 2-year NHSC LRP full-time service contract effective November 15, 2010. Her service end date is November 14, 2012. She received $60,000 in LRP financial support to apply toward her qualifying educational loans. She resigned from her service site at the end of her workday on January 31, 2012. The NHSC determines that she defaulted on her LRP contract on February 1, 2012, and served 443 days of her 2-year (731-day) service obligation. Dr. Smith is liable to the United States for: (1) $23,638.85 for the loan repayments received for obligated service not completed (288/731 x $60,000) and (2) $75,000 for the months of service not completed ($7,500 x 10). Her total LRP debt of $98,638.85 will begin accruing interest at the maximum legal prevailing rate as of her default date (February 1, 2012), and is due to be paid in full on January 31, 2013. ****Exception: The minimum amount the United States is entitled to recover from a participant who breaches a commitment to serve full-time or half-time will not be less than $31,000*** YIKES!! Link to comment Share on other sites More sharing options...
winterallsummer Posted July 9, 2011 Share Posted July 9, 2011 How well do these loan repayment jobs pay in base salary compared to regular jobs for new grads? Also what are the hours like and are there any specialities to choose from or is it pretty much all FP/internal med? Would you be able to repay your loans back faster just taking a job in surgery? I am going to owe over 40K just for my undergrad (sucks as I have never worked less than full time and live very humbly, such is life) and I can only imagine what my total bill will be after PA school, with no doubt well over 100K. So loan repayment is a big deal for me. Thanks for all the info thus far that everyone has offered. Link to comment Share on other sites More sharing options...
mostrike1 Posted July 9, 2011 Share Posted July 9, 2011 NHSC loan repayment is only for primary care (FP/IM) and as other people have posted - mostly located in rural under served areas. My workplace is quite nice and, as a new grad, i make just under the median salary for family practice in my state compared to the AAPA census data. I also work in the ER additionally one weekend a month and get paid hourly for that. I can't speak to what other sites pay, as that will vary. My heart has always been in PA to work in primary care, about 3-4 people in my class of 60 are working in primary care. If you love surgery, you should do surgery. You will see what you enjoy once you are in school and have gone through rotations. Surgery may pay more, but that money will be taxed. If you make a great salary, love your job, live within your means, you will be able to pay off your loans. I want my 6 figures of loans gone in 3-5 years so loan repayment is the way I am going to go! The NHSC loan repayment money is 60,000 (not taxed!) to put right toward your loans. Mine helped pay off 3.5 loans that were at 8.25% interest (grad plus loan rate when I was in school). Lowered my monthly loan payments by 400 a month. Its the interest that really kills me, so to be able to put a lump sum payment like that down is huge. One of my loans earned 6 bucks in interest a day. A DAY! For me to do a job I love, in an area I can deal with for 3-4 years - its a win-win for me. I only have myself to consider though, no family or kids. The dog didn't get a say in where we moved :) A classmate enlisted in the Air Force during her first year of school. She committed to X years of service and they paid for her second year of school. She went to officer training school and is now working in California or something as a PA for the air force. Talk to various branches of military to find out what they have as options. Best practice is to limit what you borrow. Travis above made great points. I borrowed the maximum amount possible, and if I could do it over again, I would have figured out a budget and stuck to it! Link to comment Share on other sites More sharing options...
GREATMDPA Posted July 10, 2011 Share Posted July 10, 2011 Look into your state scholarships. I am on a scholarship sponsored by my state which pays $31,500 of my $73K tuition. The requirement is that I must return to my state to practice for 2 years or 1 year in underserved area of the state. If I don't, then I would need to pay back 50% of the scholarship which is around $15K+ over a 15-year period, so about $1k a year. I am only borrowing the $20,500 Stafford a year and am living comfortably. I always have a roommate and pay $500/month rent all utilities inclusive so I save about $200-300. I live within a mile of school so a tank of gas (about $40-50) lasts me a month. I cook at home. These are examples of things you can do you make the most out of your budget, hence lower debt amount. Link to comment Share on other sites More sharing options...
waky02 Posted July 10, 2011 Share Posted July 10, 2011 Look into your state scholarships. I am on a scholarship sponsored by my state which pays $31,500 of my $73K tuition. The requirement is that I must return to my state to practice for 2 years or 1 year in underserved area of the state. If I don't, then I would need to pay back 50% of the scholarship which is around $15K+ over a 15-year period, so about $1k a year. I am only borrowing the $20,500 Stafford a year and am living comfortably. I always have a roommate and pay $500/month rent all utilities inclusive so I save about $200-300. I live within a mile of school so a tank of gas (about $40-50) lasts me a month. I cook at home. These are examples of things you can do you make the most out of your budget, hence lower debt amount. and which state would this be? Link to comment Share on other sites More sharing options...
GREATMDPA Posted July 12, 2011 Share Posted July 12, 2011 and which state would this be? Arizona, but many states do this. GL Link to comment Share on other sites More sharing options...
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