Loans for Residents

Finally.  Your husband has graduated from medical school and now he is going to have a real salary!  The average resident salary is sounding pretty good at this point, and you are making plans to buy new furniture and rent a cute little house.  But then you go into some credit card debt for all of those residency interviews.  And then the move (or two!) costs more than you ever expected.  You have another baby, move to a city with higher cost of living, start paying back those pesky loans, have to buy even more text books and medical equipment.  Suddenly you find yourself in the red and realize there will be no new couch, even worse you are wondering how you will make rent this month. Now what?

Fortunately, there are a few options for residents in regards to getting loans if needed including:

1)    Residency and Relocation Loan

What it is: The Medical Residency & Relocation Loan finances expenses associated with finding a residency, including travel to interviews and relocation costs which are not covered by federal student loan programs.

Repayment: Can be deferred until up to 3 years after graduation

How Much: Students can borrow from $1,000 up to $20,000, depending on the lender

Who Can Get It: 4^th year medical students

Where to Get it: Sallie Mae, 53 Education Lending, Graduate Leverage, Wells Fargo

2)    Private Residency Loans

      What it is: A way to pay for any expenses related to residency       

      Repayment: Can be deferred until up to 6 months after completion of residency.  Interest only repayments are also available up until the 2^nd year in practice, depending on the lender

      How Much: Residents can borrow $5,000 up to $75,000, depending on the lender and the where you are in your training

      Who Can Get It: 4^th year medical students, medical residents

      Where to get it: PNC On Campus, Sun Trust, also contact your local bank to find out other personal loan options

Obviously going into more debt is not desirable and your options should be weighed carefully before deciding to take out one of these loans.  Read the fine print, realize that the interest rates may be high and you may have to make payments on interest while you are still in training. 

Did you and your spouse take out one of these types of loans?  What was your experience?  Did you find other ways to finance your residency related expenses?

By Melissa Stringham