What You Should Know About Repaying Your Loan if You Drop Out Of Med School Mid-SemesterDecember 3, 2013
Sometimes, despite all the precautions you may take to ensure that medicine is the right career path for you, certain unforeseen circumstances may come up that may force you to drop out of med school. It could be some type of family commitment, a health emergency or it could be increasing academic stress. The problem that arises is that no matter what the reasons behind your decision to drop out, if you have availed of a student loan, you are still required to pay back the whole or at least a portion of the loan. This is something that you should think carefully about and make provisions for when applying for the loan and also if you decide to quit med school. The financial aid office of your school will let you know the exact amount that you will be required to pay.
With the new regulations that have been put into effect, the federal government requires that any student who requires financial aid should now earn it. What this essentially means is that there is now a refund formula that the Department of Education uses, to determine the financial aid percentage that you are considered to have earned as well as the percentage that you need to return. The formula works on this principle – if you have taken a loan, you are required to refund 50% of the amount of the loan that was not used to cover your college tuition fees. The exact percentage depends on when during the semester you send in your official letter of withdrawal.
Repayment Of Scholarships And College Loans
If you decide to drop out of college, you would also have to pay back any student loans that you received at an accelerated rate. This has to be done typically 6 months after your official withdrawal. You should also know that if you received any institutional or private scholarship, you may be required to refund this scholarship award if you drop out of school during a term in which you received funding.
Before You Think of Dropping Out – A Word Of Caution
If you are currently a student in medical school and you are contemplating dropping out, take some time to think things over and try and figure out whether you will actually be able to repay your financial loan. If you cannot afford to pay back the loan, it would result in a default and this can result in a disaster with your credit score and report, seriously hampering any future attempt at acquiring any kind of credit in the future.
Whatever the reason behind your decision to dropout, talk it with over with your academic counselor and try and brainstorm a way to stay in school. The irony of this situation really is that the only way to get out of this tight financial situation and earn enough to repay your loans is by earning a degree.