As in the case of many SO's, if you are the designated "Financial Aid Organizer" in your family, here are some tips, advice, and contact information related to financial aid during the Clinical Years:

Keep a Record

If you want to save yourself a lot of trouble, and get out of debt quickly when this is all over, keep an accurate record of your financial aid information. Make projected and actual budgets. Write down each and every loan you have taken out to this point if you have not already done so. (You don't want to be surprised by an old, lost loan reappearing in twenty years with interest.) I started an Excel spreadsheet our first term with a tab for budgets and a tab for loan details. An example can be found here.

Keep loan and budget-related papers, letters, and emails you receive from Bayshore and lenders in one place. Organize these in such a way that you can easily access this information. (I find that using a three-ring binder with tabs for each term works for me). The reason for this need of organization is that during Clinical Years, you are on your own and in charge when it comes to applying for and keeping track of loan application dates, loan disbursement dates, and determining how much money you will need (which is truly the hardest part). All the clinical students are on a different schedule, so Bayshore leaves it up to us to figure it out. This can be confusing and scary for those of us with little time on our hands and in need of some direction. Don't be shy about calling or emailing your financial aid advisor as often as you need to. If you are unsure of something, contact them immediately. Their job is to help you figure it out, so get some use out of that expensive tuition!

Summer Loan

You will receive your first loan disbursement during your clinical years (starting term 7) just after you actually start the term. This creates somewhat of a dilemma for many families who will be paying a large sum prior to the term in order to:

1) Live during the break between 6th and 7th terms
2) Pay for Step 1 and any desired review courses
3) Travel to assigned city for job interviews and to find housing
4) Move (sometimes across the country)
5) Pay first and last month's rent (if required)
6) Pay rental deposit
7) Pay a broker's fee (in the case of NJ/NY areas)

Some SO's overcome this by doing one of three things:

1) Take out full loan amount during both 5th and 6th terms in St. Vincent, and pinch pennies to possibly save enough to have money left over for the summer

2) Beg parents for money

3) Take out a special summer loan for summer expenses

For many of us, the third choice is the only way to go. Not many people know about this extra loan. For one good reason, this money remains a mystery to most students: the rate for this loan is somewhat higher that regular private loans. The summer loan is technically a residency loan which is just used during medical school. $12,000 total is allowed to be disbursed while our students are going to school. Half, or $6,000 of that money can be used during your first "break" (for Step 1 time) and the other $6,000 can be used during your second "break" (Step II time) which comes between the 3rd and 4th years. Ideally, you should apply for this money while in St. Vincent, since the paperwork is there, and you will be sure to get the money in time for summer, but you can also ask Bayshore to send the application to your home. As mentioned above, this loan is at a higher interest rate, so Bayshore does recommend that you do what you can to avoid taking it out. But when it's a choice between higher rates or not being able to afford to move... well, you get the point. Speak to your financial aid advisor for any more info on this loan money.

Loan Disbursement

During clinical years, Bayshore gives you a budget to adhere to. You are allowed the following maximums per year:

Subsidized Stafford Loans: $8,500 per academic year
Unsubsidized Stafford Loans: $10,000 per academic year
Alternative (Private) Loans: $35,000 per academic year MAX

There are three academic years during clinical terms and two different disbursement schedules available for students. Depending on whether you are a January or August start, whether your student fails Step 1, or takes any time off, your disbursement schedule will be designated for you. Ask your financial aid advisor which one you should follow:

Keep in mind how long each term is when you create a budget:

Basically, "Terms" mean nothing during your Clinical Years EXCEPT for financial aid matters. Your clinical rotations will probably not coincide with your new term beginning, so your student may be in the middle of what we call "8th term" when they start a new hospital rotation. Terms are specified in weeks only so you know when you get your money. In the real world, your student is just considered a Third Year or Fourth Year medical student.

How to get extra money

Although the private loan looks like plenty to live on, this is not really the amount you will get. The amount you receive depends on the budget Bayshore gives you. If their budget is not sufficient for your needs, you can beg for more money by any of the following:

1) Turn in a receipt for a computer purchase if you have not already done so (this amount is limitless and will be added to your budget so you get that extra money). Even if you bought the computer for first term, turn in the receipt if you need the extra money.

2) Ask for dependent care. This can be especially helpful for those with children. You may not get much more money, but speak to your financial aid advisor to find out the amount you qualify for.

3) Submit a copy of your lease to Bayshore if your rent exceeds the budgeted allotment (which will almost certainly be the case for all of us since students with SO's don't usually take on roommates). This rent increase submission has to go through a committee for approval, but don't let that stop you.

Try to Stay on Schedule

There are a lot of circumstances out there where your student may not be able to stay on schedule during clinical rotations, such as failing Step 1, or taking a leave of absence. These situations sometimes cannot be helped, and will need special attention from financial aid advisors. But if you can, try to stay on schedule with rotations and financial aid throughout your clinical years. August start students have a tighter schedule to get everything done in time to graduate, than January starters, so you really cannot make many mistakes. Staying on top of financial aid and using your advisors to ADVISE you, is the best way to make your financial life less stressful.

Links for Financial Planning

There are a number of fantastic links to visit regarding financial planning for medical school, residency, and beyond. Do you feel you'll never get out of debt? Do you plan to start a family? Buy a house? Is consolidation really right for you? What will your payments be and when will they start? Find answers to all your questions at these great resource sites:

AAMC: Layman's Guide to Educational Debt Management

AAMC: Monetary Decisions for Medical Doctors

Loan Repayment Calculator

Tips to keep your debt from spiraling out of control

AMSA: The Effect of Medical School Debt and Loans

AAMC: Money Matters Listserv

SDN: Financial Aid Forum

Click here to go to the next section, Pre-Clinical and Third Year Calendar.