Fafsa?

[poky]

That's one thing about med schools taking your parents into account, people can't hide money. I had friends who wrote checks to their parents so they could report no savings and then took all the money back as soon as their aid packages came through. No one can hide money in med school! They want to know about EVERY dime.

Well, you can. We "hid" a bunch of money...in our house. Paid it off before we filled out the forms. FAFSA doesn't consider the value of a primary residence to be accessible, so it doesn't count. I realize most med school applicants aren't in a position to do this, though, and it didn't end up making any difference for us anyway, but it can be done.

[TulipsAndSunscreen]

Oh Sandy that's a great point!

[PrincessFiona]

Re: Fafsa?

I am in the pay as much as you can as you go camp. Though it might sound good to put the cash aside (and if you can, put dome aside!) student loans add up quickly. The avg med student leaves schoolbwith $150,000 in debt. That doesn't seem like a big deal until you finish training and have to pay it off.

It would be great if you could pay a large portion and save some for the future ... and only had to take out a minimum loan amount!

Kris


Sent from my iPhone using Tapatalk

[DCJenn]

When setting aside some money regardless of whether you're paying as you go or financing it, don't forget that there are TONS of unexpected fees throughout this process. Some schools don't cover the STEP tests, there are interview and travel costs, there are potential equipment costs (otoscopes, stethoscopes, etc.), interview suits, and once you're in residency there are additional exams and then there are the Boards once he's finished. The combination of the the oral and written Child Neurology Boards, including travel expenses was about 5k once it was all said and done.

Not to mention, there's those other unexpected costs of life- new tires, holiday gift-giving, etc.

There are posts going WAY back where we're all sitting around asking "how in the hell are we supposed to pay for THAT?"

Jenn

[NYCHoosier]

So, I think it is awesome you're considering paying for his tuition right out of your salary but just wanted to say a couple of things:

1) That is going to be REALLY hard. It's a LOT of money and he should file for aid/loans while he thinks about it. We theoretically could do this as well and we choose not to because:
2) You need to think about what your money could make in investments while the interest on your loans is deferred. So if med school = $10,000 for 4 years (I wish!), it equals $40K. But if you took that $40K and invested it (even conservatively), you would likely have more after 4 years with compounded interest than you would have in the value of paying off his loans. We live completely off my salary and bank his loans. When he graduates, we will pay off every penny we can in a lump sum (it still won't be close to all his loans because he has undergrad loans but it will make a big dent)

My only point is that you should talk to an investment professional about investing vs. paying off immediately with your specific income and his school costs. I was all for paying as you go (if you can) but when I thought about the economics, I felt that semi-conservative investing with that exact money was likely to reap more benefits while the loans are interest defered.

Let me know if you have questions on this. It took me a few times before I got it myself.

Ditto. Talk to an investment professional or two, but this is my advice: max out your 401(k). Then go from there. YH is already losing out on so many years to invest in retirement. The key is to start early and full steam ahead. If you can max out an IRA on top of the 401(k), go for it.
Build up an emergency fund in a savings account of 3-6 months salary. Don't carry consumer debt.
Student loans are "good debt", but I understand not wanting any debt. If after the above you can still scrape by paying tuition, have loans at your disposal if needed. You can always pay off with a lump sum in the end of school before interest accumulates if you don't use them.

USMLE tests are expensive. Step 2 CS alone is $1000. So, start saving for all those incidentals. I'd say set aside $10k-$15k for interviews. You probably won't spend all of it, but it's good to have options.

And yes, your savings accounts will get boosts every April! (Man, I'll miss that, haha).

I also have to suggest Smart Couples Finish Rich by David Bach. Lots of good, logical advice in there.

[SoonerTexan]

And yes, your savings accounts will get boosts every April! (Man, I'll miss that, haha).

I also have to suggest Smart Couples Finish Rich by David Bach. Lots of good, logical advice in there.

Best part of the job I'm about to accept--PROFIT SHARING! It's dependent on the company's profit margin, but even after the crappy 2009 year, they're still getting it. An extra 10-20% of my salary will be a nice boost every year--I wish we could count on it to pay spring tuition.

I'll have to look for that book--my mom recommended Rich Dad, Poor Dad too