Jump to content
Premed 101 Forums

Hopkins and Escrow


edge_w

Recommended Posts

So Hopkins has this written on their website:

 

International Students: The School of Medicine does not provide financial aid for international students. In addition, an escrow account covering 4 years of tuition and living expenses must be deposited with the school prior to matriculation. The amount of the escrow account currently is $225,000 and is subject to change.

 

Am I stupid or does this state that they want to you to pay they a quarter of a million dollars US upfront? Furthermore that they won't offer you a penny to do so?

 

 

Doesn't that seem absurdley ridiculous?

Link to comment
Share on other sites

I go to Saint Louis U and had to do essentially the same thing. I was given 2 weeks to depost close to $190,000 US in an escrow account. It is not because the school is being difficult, it is because of immigration rules. They cannot sponsor you for a student visa, which is required to study there, without adequate proof of financial means. The government requires that you must be able to support yourself financially for the full 4 years of study.

 

You can easily get that money by going to a Canadian bank and getting a personal loan. It will be f'n expensive to pay back but you can get the money. You can also apply for Canada student loans (and provincial loans) but it definately won't cover all your tuition/fees.

Link to comment
Share on other sites

I mean a QUARTER OF A MILLION dollars UPFRONT? I'm going medical school, not dealing drugs with the mafia, for god's sake. Do they accept cheque, visa, or unmarked 20s in a briefcase?

 

I suppose it really makes you think about the meaning of "universal accessibility to education," and the bull****, self-congratulatory pipe-dream of equal oppurtunity that our society propagates.

Link to comment
Share on other sites

Yeah it is excessive but I don't believe the concept of universal accessibility to education includes medical school. Med school is expensive and always has been (relative to other types of eduation: highschool, undergrad).

 

Just remember that Canadian education is subsidized by the government, which is why there are out-of-province restrictions. There are no such restrictions at private insitutions like Hopkins but that is because they aren't subsidized by the government.

 

So what you want to do? Pay a ton in tuition to go to med school in the US, and then make it all back very quickly working as a doctor, OR do you want to stay in Canada and NOT be a doctor.

 

High cost is an issue, but if you are looking into studying med in the US then you will need to get used to it.

Link to comment
Share on other sites

This is not ridiculous in the least. You are Canadian, not American. Americans schools have absolutely no obligation to provide ‘universal access’ to education to you. The escrow account requirement only exists for international applicants. If you were American and are good enough to be one of the 4% of applicants who get accepted, then Hopkins provides amazing financial aid. They would basically waive most of your tuition if you could not afford it. The same is true for the other top US schools, but almost all of them give no love to Canadians. The exceptions are Columbia and Yale.

 

Besides, the hard part is getting in – not getting the money. So once you have an acceptance in hand you can start posting with your financial woes.

Link to comment
Share on other sites

  • 4 weeks later...
These days, an all-at-once deposit may seem like the best option for going to US schools. The conversion rate in really good these days. In two to three years, it could go more in favour of the American dollar.

 

Really? I was under the impression that a bank will probably charge you more interest for an all-at-once withdrawal than for a four time withdrawal.

Link to comment
Share on other sites

Really? I was under the impression that a bank will probably charge you more interest for an all-at-once withdrawal than for a four time withdrawal.

I bet so, too.

 

Then you have to also ensure that you will not be charged interest during those 4 years that you are full-time in med. 3% a year or so may not seem like much, but not when you are talking $225,000.:eek:

Link to comment
Share on other sites

 

Am I stupid or does this state that they want to you to pay they a quarter of a million dollars US upfront? Furthermore that they won't offer you a penny to do so?

 

 

Doesn't that seem absurdley ridiculous?

The irony of it all is that Hopkins will deposit that money and potentially make $15,000-50,000 for themselves on it while you are freaking out about the interest rates and the amount of your student loans.

Link to comment
Share on other sites

The irony of it all is that Hopkins will deposit that money and potentially make $15,000-50,000 for themselves on it while you are freaking out about the interest rates and the amount of your student loans.

 

How do you figure that the school will make $15-50k off of your tuition deposit?

Link to comment
Share on other sites

How do you figure that the school will make $15-50k off of your tuition deposit?

Just put it into an index fund; last time I invested (2 years ago, I believe), the annual return on an index fund was 11%....and an index fund is considered to be a fairly conservative investment - I made 20% in 3 months on a stock with an average risk rating once, but then had to sell my account because I needed $$$ to go abroad. So imagine them making 11% on $225,000 (that's like 20 grand) during your freshman year.....then 11% on those 20 grand plus the $160,000-170,000 left over after your first year for another year (like 15 grand), etc, etc. They can make a TON of money if they get their hands on four years' worth of tuition.

Link to comment
Share on other sites

Just put it into an index fund; last time I invested (2 years ago, I believe), the annual return on an index fund was 11%....and an index fund is considered to be a fairly conservative investment - I made 20% in 3 months on a stock with an average risk rating once, but then had to sell my account because I needed $$$ to go abroad. So imagine them making 11% on $225,000 (that's like 20 grand) during your freshman year.....then 11% on those 20 grand plus the $160,000-170,000 left over after your first year for another year (like 15 grand), etc, etc. They can make a TON of money if they get their hands on four years' worth of tuition.

 

 

You seem to know a bit about finances. Unfortunately escrow accounts are not simply a bank account for the school. It is almost a joint account that the school can only withdraw from at certain times of the year and for certain amounts. This is all agreed upon in writing at the time when the escrow account is opened. The reason the money is being put into an escrow account is so that the school knows you have it, but they can't touch it outside of the agreed times/amounts. You also may not withdraw from the account unless the school agrees to it. The money in the account will collect interest and that interest is YOURS. After 4 years of medical school the money not used for tuition is YOURS and the bank will cut you a cheque when the time comes.

 

The school does not directly make money off of your money, ie) by investing in an index fund. I'm sure there is some benefit for the school that the bank gives them for MAKING the student go to that bank. When you are ready to set up the escrow account the school dictates which bank it is done at. The bank also makes a nice chunk off of the escrow account as well. For me, the bank makes $500 per year for maintaining the account. And it is not negotiable. If you don't like it, then you don't set up the account and you don't go to school. It sucks yes, but it's not as bad as Jochi1543 made it out to be.

 

Maybe other schools, like Hopkins, do set up index funds with your money, I can neither confirm nor deny that. I highly doubt it. It is probably a lot like at my school though.

Link to comment
Share on other sites

All this money stuff is completely irrelevant until you've been accepted. The order of operations is

1. Get accepted

2. Worry about money

 

Should you get accepted to Hopkins and no other more finance friendly school (highly, highly unlikely) there are oodles of ways to find money for the escrow.

Link to comment
Share on other sites

You seem to know a bit about finances.

Former economics major.:cool: ( :eek: )

 

But thanks for the correction.;)

 

SSC, I personally think this thread is totally relevant - it provides info that some potential applicants may not have come across easily when doing some basic research on the school. I wasn't planning on applying to Hopkins anyway, because I know how ridiculously expensive it is (I almost applied there as an undergrad until I stumbled on something similar for undergrad internationals), but some people may have saved themselves some nerve cells and application fees by reading this thread.

Link to comment
Share on other sites

  • 2 weeks later...
Former economics major.:cool: ( :eek: )

 

But thanks for the correction.;)

 

SSC, I personally think this thread is totally relevant - it provides info that some potential applicants may not have come across easily when doing some basic research on the school. I wasn't planning on applying to Hopkins anyway, because I know how ridiculously expensive it is (I almost applied there as an undergrad until I stumbled on something similar for undergrad internationals), but some people may have saved themselves some nerve cells and application fees by reading this thread.

 

people who dont apply to the US because it's TOO expensive are FOOLS. FOOLS I tell you. But i am sure those who are applying welcome it...

 

I love Canada more than anyone, but no Canadian school will interview me. why? because i got a freakin' 9 on verbal and my gpa is not high enough (yes 3.7 is too low in Canada). I say, welcome America with open arms. Go where oppurtunity lies.

 

I plan on being 150 K in debt, but after I become a MD I will pay that back in 7 years (less if I specialize). Not a big price to pay to chase your dream.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...