How do people pay for med school?

[Guest Ninja Star360]

Like most people, I am still waiting to hear back from the medical schools. But I want to know how most people pay for medical school. I know banks offer a line of credit for students, but I'm hesitant to borrow into the six figures from a bank. How do government student loans work? I know that the schools offer scholarships and burseries, but no one knows who gets those until later in the summer.

 

I'm just what strategy most people use. Any advice would be appreciated.

[Guest ploughboy]

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Hey there,

 

You basically have a choice - you can go deeply into debt, or you can decide to do something else with your life than study medicine. It sucks, but that's the state of things these days in Canada. Might as well get used to the idea now...

 

OSAP (not sure what province you're in) will give you up to $11k per year, which sounds great except that meds tutition is somewhere north of $15k.

 

A few people in my class are looking seriously at the military. The CF will pay your tuition, plus give you a 2Lt's salary ($35k/yr?) for the last three years of meds, but then they own your butt for a while after med school. From the people I've talked to, money is a consideration, but not *the* consideration for going the military route.

 

15 of us at UWO...err...the Schulich Schule of Medicine have received Schulich Scholarships ($20k a year for 4 years), but pretty much everybody has hooked up with either RBC or MD Management for the big line o' credit.

 

In a perverse way, it's kind of liberating. I've lost track of how many times I've heard variations on "I'm in an insane amount of debt anyway, so I bought...". Of course, at some point all that money will have to be paid back

 

Cheers,

 

pb

 

 

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[Guest satsumargirl]

Get as much provincial student loan as you can ...OSAP raised their max limit last year to somewhere near 14k I believe. That way you don`t have to pay interest while in school.

 

Apply for as many bursaries/scholarships that you can...free money!!

 

Once you have your letter of acceptance, most major banks will be fighting to acquire your business. Generally med students can get 150k over their years of training from the banks. Downside is that you pay interest on this money while you are in school.

 

However, here at U of Ottawa, if you are a med student (or law student) you can apply for a special bursary that covers the interest you pay on your line of credit. So that helps.

 

It is scary right now, but you can be confident that you WILL pay is back relatively easily even once you start working. So I am told my an MD management advisor.

 

My bf (who did his MBA) keeps reminding me that banks don't give money to people who actually need it, they give it to people who don't need it. And considering all the free lunches and things they give us to try and gain our business, at least they think we are a pretty good investment and likely to pay them back.

 

You also have a couple of summers off where you could work if you wanted to make a little extra money that way.

 

Sats

[Guest TimmyMax]

Hey,

 

Unless you're from a pretty well off family, you're going to go into (a lot of) debt during medical school. That's the reality, so deal with it. Don't want to be in (as much) debt? There's always teachers' college! It's only one year and you get to make the big bucks as soon as you're done!

That said, debt isn't all bad. The banks know that you're (probably) good for it, so they'll loan you a $hitload of cash with minimal questions asked. My advice is that rather than sitting around brooding over how your debt grows every day with no end to the madness in sight, you should have fun with it! I made my peace with my debtload during 2nd year of medicine. Since then, I've gone on one great overseas trip and another to come in a few weeks' time! Lots of people find lots of interesting things to do with their new-found debt and you should too! When you think about it, what's the difference between 100K and 110K of debt in the grander scheme of things??? Not all that much!

 

Best of luck!

Timmy

[Guest weerdo]

med school, ha!...wait until you have kids and own a house...that's debt!

[Guest someguy]

Given the income most doctors earn once they finish their training, I wouldn't worry too much about going into debt to pay for medical school. If you are lucky enough to be admitted to med school, there is no way you should turn it down, even if you expect to go over 100k into debt. It's simple economics. Look at the lifetime income you'll have as a doctor and it should be clear that investing in a medical education is more than worth it from a strictly financial point of view. Not to mention, if you really want to be a doctor, then you'll be doing what you love for the rest of your life!

[Guest Ninja Star360]

Just to clarify, if I get accepted there is no question that I'll go into medicine. If I don't get accepted I'll work on my weaknesses and reapply. I know this is what I want to do. Although being heavy in debt is a concern, it isn't something they will change my decision. What I really wanted to know is if there is any good strategies to help lessen the debt. But given the postings so far, it does appear like the heavy debt is something almost everyone really has to suck up.

[Guest ploughboy]

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Hey,

 

You could live in a cardboard box and eat Ramen noodles to try and lessen your debt-load, but is that really living? As TMax pointed out, there's not a huge difference between $100k and $110k of debt. You could nickel-and-dime yourself to death, but personally I think medschool is far too much fun to get hung up on worrying about every last penny. Can you tell I go to Western?

 

If your philosophy is different than mine, some good ideas include: getting a roommate, not going out to the bar three times a week (not drinking - period), buying used textbooks, not buying the PanOptic gizwatch at your school's equipment sale, doing paid summer studentships, selling sperm/eggs/a kidney, not traveling to exotic locales during the summer, buying your clinical clothes at WalMart, avoiding cable/satellite TV, bumming rides from your friends instead of buying a car...basically your standard budgeting strategies.

 

As well, there are financial incentives to practice in underserviced areas (LADAU, etc) once you graduate. While not reducing your debt in med school, will help to chop it back more rapidly once you're out practicing.

 

Good luck in a couple of weeks!

 

pb

 

 

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[Guest flying kumquat]

I would highly recommend living with a roommate, if you can. Paying $4-500 for a room and splitting utilities (and maybe even some groceries!) can be a lot cheaper than paying $7-800 for your own apartment and shouldering the utilities yourself. And if you choose wisely, living with a roommate can have the added benefit of having someone else around to talk to when you feel like you just can't stand another minute of keeping your nose in the books. If you don't choose wisely, however...well, just try to make a good choice in roommates.

[Guest noncestvrai]

The LOC is there, BUT you should apply for scholarships, this year my tuition is free (~6K), and student loans and bursaries are a GREAT way to get interest-free $ (I ran out this year since it's capped at what 30K for undergrad, which medicine is...so thank god for scholarships!).

 

Yeah, of course, a 15K/year medschool is not the same...but as mentionned the LOC is there to be used.

 

There are better ways to spend your summer than a summer job...you're a medstudent, you need to live a bit before you become an angry cynical senior medstudent/resident.

 

noncestvrai

[Guest Steve MD09]

Borrowing money for investments can be a good thing. Medical school is a solid investment (financial and otherwise), so borrowing money from a bank to pay for it is definitely okay. Besides, interest rates are still relatively low, despite prime being 1.5% higher than it was last August (35% increase). Apparently we can expect a "modest further increase", but borrowing is still very affordable.

 

There's some good advice in this thread about reducing your expenses. Another way to reduce your debt may seem counter-intuitive, but sadly the way financial aid programs are administered, you are rewarded for NOT saving money prior to starting school, and NOT working during your summers. Some of the scholarships and bursaries available at most schools are worth much more than an average student could save, and they mainly look at your assets/liabilities and income to assess need, without considering your spending habits. I'm quite saddened that financial responsibility isn't valued, but that seems to be the way things are.

[Guest RoseSmurfette]

How do government student loans work for out-of-province students? I'm from BC. If I go to Ontario for med school, then do I still apply for BC student loans or do I apply for Ontario ones?

[Guest blinknoodle]

Personally, I am also saddened that financial responsibility is not valued in medical school. There are some students who are conscious of their spending, but for others, I wonder whether they are spending like they already earn $200k a year... I suppose there is always a mix of both in the real world. Living within your means is very good skill to have, no matter what your income.

 

I support bursaries and scholarships in theory, however once in medical school, everyone has the same outstanding academic and extracurricular achievements, that scholarships seem silly. I am more in favour of reducing tuition for ALL students, not simply those that are "perceived" to have an increased personal debt (how did they amass that debt?).

 

I don't believe my taxes (through OSAP forgiveness) or my tuition (university bursaries) should be footing the bill of a medical student who decides to spend 2 weeks in Africa, to purchase a new Mercedes or to finance the mortgage of a new house.

[Guest happy2bme]

Has anyone had problems getting a unsecured LOC if they already have sources of security that the banks can "hold hostage" ie your RRSP's, house, savings etc.

 

I like to get a LOC but hopefully not have to use it, but I do have assets unlike most younger applicants. I would prefer not to have to put up collateral but my fear is that the bank knows you "can" secure the LOC and will hold that against you when attempting to get an unsecured one.

 

I would like to have the LOC as my "safety net" and not my primary source of survival during my med school. As I obviously will not be able to get government Student loans or bursarys. I highly doubt that I'm scholarship material either. My overall plan is to have no debt if at all possible, but that remains to be seen. Also who knows if I actually will get in!!

 

Just wondering if any other "long in the tooth" applicants have had problems with LOC funding....

[Guest satsumargirl]

How do government student loans work for out-of-province students? I'm from BC. If I go to Ontario for med school, then do I still apply for BC student loans or do I apply for Ontario ones?

 

I believe you apply for your own province's student loans. The people in my class from Québec have PQ loans. I once had a roomate from NovaScotia and she had her loans from there as well.

 

Probably best to contact the student loan office for your province though.

 

Sats

[Guest satsumargirl]

Has anyone had problems getting a unsecured LOC if they already have sources of security that the banks can "hold hostage" ie your RRSP's, house, savings etc.

 

 

No. It won`t make a difference if you already have assets. You will get the same LOC as everyone else.

 

 

I would like to have the LOC as my "safety net" and not my primary source of survival during my med school. As I obviously will not be able to get government Student loans or bursarys

 

Actually, you may be able to still get student loans. With OSAP you can have $2000/year of RRSPs since graduating high school which they will not consider. If at your job you invested into a retirement savings plan (like HOOPP...or however you spell that, I can`t remember) then that doesn`t count since you can`t access the money until you are 55 anyway, even if you wanted to. And your primary residence is also not counted against you. If you have a cottage or something though, they will expect you to seel that to fund your school.

 

 

So...even with savings you stand a chance. In your first year since you will have been working up to Sept-ish then you probably won`t qualify for the max amount. And the provincial portion of the loan is out of the question cause it doesn`t actually assess your need based on real tuition (I think it calculates it with a tuition max of 4k?? I can`t remember)...but the Federal portion actually calculates your loan based on your actual tuition amount.

 

They will subtract the value of your car over 5K. And everything changes of course if you are married....have kids...whatever.

 

But I wouldn`t rule out the possibility of government loans.

 

And chances are at least that you will get government loans starting 2nd year (if for some reason you get none 1st year) since it is unlikely you will be making a significant income while a med student.

[Guest Steve MD09]

With OSAP you can have $2000/year of RRSPs since graduating high school which they will not consider. If at your job you invested into a retirement savings plan (like HOOPP...or however you spell that, I can`t remember) then that doesn`t count since you can`t access the money until you are 55 anyway, even if you wanted to. And your primary residence is also not counted against you.

True, but anything else will be counted against you. Student loans are determined on an annual basis, and if you have enough non-RRSP investments to pay for that year, you're expected to spend them before you're eligible for student loans. This seems fair superficially, because people with enough money to pay for their education don't really deserve an interest-free loan, but again the issue of spending habits comes into play. Those people who spent their summers taking trips around the world, or buying thousands of dollars worth of electronics don't deserve student loans and bursaries any more than people who saved their money. Of course, the people who worked hard during their summers, and perhaps part-time during the school year just to fund their undergraduate education deserve the financial assistance more than anyone, and they hopefully represent the majority of those receiving funding. However, the fact remains that anybody who's not already in copious amounts of debt (more than one can reasonably incur during an undergraduate degree) can independently fund a medical education in Canada through the banks, so financial "need" shouldn't be the primary criterion for awards.

[Guest juicyprunes]

Hi,

 

I just had a question about scholarships...I think I'm right to assume that almost everyone who enters medicine are great students with great extracurriculars. So, realistically, are there really that many scholarships available? and isn't it only the top, top students who get them? I know that there are some bursaries available, but again, there are relatively few of them and the amount that is available isn't all that significant (though, every bit helps). So, I guess I'm asking if it's really worthwhile to apply for a lot of scholarships if there are so many great candidates out there?

 

Thanks

[Guest noncestvrai]

If you don't apply you won't get any, unless the scholarships are merit based (like top top student in unit or top 5%). Need based bursaries and provincial aid, you definitely have to apply to...

 

Free money is always good.

 

noncestvrai

[Guest Talon01]

Sats, what is this bursary at UO that pays for your interest on LOC? I must have missed that one :\

[Guest kellyl20]

you apply to your own province for the loan and BC has different rules for students who leaves the province for their post secondary education vs the ones who stay in BC.

Not advantaged.