Debt Management

We realize that the prospect of repaying student loans can be overwhelming to newly graduated physicians and scientists. The following resources may help you develop a financial plan for your education.

College Cost and Loan Calculators

http://www.finaid.org/calculators
http://www.salliemae.com/tools/calculators/repayment

Monetary Decisions for Medical Doctors

The Association of American Medical Colleges (AAMC) has developed a comprehensive, three-part program that will assist your financial planning during the three phases of your medical education. The program covers pre-medical study, medical school, and residency and early practice. Topics include making a successful transition to medical school, controlling credit and consumer debt, types of financial aid, the financial aid application process, and relevant reference materials.

Budgeting Tips

• Make a conservative budget, and stick to it.
• Live at home, if possible.
• Share an apartment. Rent as inexpensively as possible.
• Do not buy expensive furniture or other household items that are not covered by the financial aid budget.
• Eat at home, when possible. Bring a packed lunch instead of eating at restaurants.
• Minimize credit card use. Credit card and other consumer debt are not covered by the financial aid budget.
• Cut transportation cost by carpooling.

Debt Management Tips

• Maintain a record of loans, including amount, lender, interest, and date due.
• Borrow only when absolutely necessary.
• Take into consideration future earnings and estimated monthly payments.
• Know your rights and responsibilities as a borrower.
• Know your repayment options. Consult the Financial Aid Office for more information. Options include loan consolidation, deferment, forbearance, a graduated repayment plan and other loan repayment programs.
• Stay in contact with your lenders, to avoid loan default. Defaulted loans carry severe penalties, including loss of financial aid eligibility, assignment to collection agencies, and withholding of federal and state tax refunds and lottery winnings, and will negatively affect your credit rating.
• Pay bills on time. If you cannot pay a bill, call the lender before the due date and negotiate an alternate plan.
• Use student loan repayment calculators on the Web.

Your Credit History

Some loans require a credit check, to verify that you were not delinquent or in default on any previous loan. To protect your credit rating, pay bills on time. Request and review your credit report periodically. To receive a free copy of your credit report from the three national credit bureaus, call Equifax at (800) 685-1111, Experian at (888) 397-3742, and TransUnion at (800) 888-4213.

Consumer Credit Counseling Service offers free counseling services. Call (800) 388-2227 to locate the office nearest you.

Please note: USC is unable to provide financial assistance to students whose credit status makes them ineligible for a loan.