Financial Wellness

Budgeting can be a challenge since you are not able to work during medical school. However, it is necessary. Creating and following a budget can help you avoid borrowing more loan funds than what you actually need. It can also help you manage your student loan funds so you don’t run out of money before your next disbursement is scheduled.

Steps to creating a budget:

1. Calculate your total monthly income.
2. Determine your monthly expenses.
3. Compare your income to your expenses. Your income should be equal to or more than your monthly expenses. If it isn’t, you will need to cut back on your spending.
4. Use one of the many on-line sources to create a budget and track your spending.

Here are some budgeting tips:

• Differentiate between needs and wants.
• Be realistic.
• Stick with it.
• Have an emergency fund set aside for unexpected expenses such as medical bills or car repairs.
• Be conservative.
• Review often and revise as needed.

Ways to Cut Spending:

• Don’t buy things you cannot afford.
• Get a roommate.
• Carpool or bike to school.
• Avoid eating out.
• Make your own coffee.
• Avoid ATM fees.
• Shop smart.
• Don’t impulse buy. Wait on purchases.

Online Budgeting and Money Management Resources We Recommend:

• Money Management Tips
• Mint
• AAMC FIRST
• My Money
• Better Money Habits
• Great Lakes
• FedLoan Servicing
• iGrad
• Practical Money Skills

Credit scores are important because they rate your credit worthiness. The higher your score, the more likely you will get approved for future loans. A low score could impact many areas of your life such as Graduate PLUS loan eligibility, employment opportunities, and housing.

Ways to Improve Your Score:

• Pay bills on time.
• Keep balances low on credit cards.
• Manage credit cards responsibly.
• Don’t close unused accounts.
• Don’t open numerous credit accounts.
• Check credit report for mistakes.

Credit Reporting Agencies:

• Equifax
• Experian
• TransUnion

You can also request a free copy of your credit report online here.

The IRS offers tax breaks for higher education. For more information visit:

• NASFAA
• IRS

It is important to plan out how you will repay your loans once they go into repayment. Start planning before, during, and after graduation. The decisions you make now will affect how you will be able to live your life later.

• Take a realistic approach.
• Estimate what your take-home pay will be during residency and beyond. There are many free online net pay calculators you can use.
• Keep a close eye on your loan balances by visiting www.nslds.ed.gov.
• Calculate what your monthly loan payments will be. We recommend using the following websites to calculate your future monthly loan payments:

• Federal Student Aid
• FinAid

There are many Direct Loan Repayment Plans available to choose from once your loans enter repayment. You can find detailed information on the following websites:

• AAMC First
• Federal Student Aid

You can also contact your student loan servicer(s) to discuss your repayment plan options.