Expert: Terry Leeders - 1/17/2008

Question
Hi,

This may not exactly be a "law" question but you obviously know a lot about money so that's why I'm going to ask you.

I'm from Chicago. I have $140,000 student loan debt from college and graduate school. All of that is in deferment now because I am starting medical school, and my credit score (as of yesterday) is in the high 700s.

My issue is, I have transferred to a foreign med school and am in my 2nd year (2 more to go). I will have to take a personal or private loan to pay for school. Luckily this school is quite cheap compared to what I paid for my undergrad, etc. it is only about $6,000 a semester and that includes all tuition, housing, books, and meals. So per year about $18,000 - not bad because most med schools are around $50,000 a year, regardless of US or foreign.

Since the school is affordable compared to others, there are no real "lenders" that it uses, almost everyone pays out of their pocket. But I am broke at the moment and have so much debt from before.

What do you think I should do. Take out a personal loan from a bank? Direct to borrower loan?

Do you have any idea what someone in my situation should do.

Thanks,
Ana

Answer
You may want to contact the US department of Education first, as there are benefits to be able to cap interest and defer /forbearance as needed.  If they can't help, then you can go to any bank for help.  Talk to the financial aid department at school, because I am sure you aren't the first person with this issue. Good Luck