Resources for Consolidation of Chiropractic Education Debt
Fight the High Default Rates
Student loan consolidation for chiropractic students is a pressing topic in light of how many chiropractic graduates default on loans in contrast to their more traditional medical school brethren. The factors that contribute to the situation are directly related to the ability of new grads to float solo. Med students are seemingly absorbed into the larger medical system, but chiropractic graduates must often practice alone or find a small practice with which to associate. In the meantime high student loan debt puts them at risk for default.
Challenges of Chiropractic Financial Aid
The Chiropractic program price tag at Cleveland College is close to $75,000. This might not reflect accurate debt totals in other regions of the country because licensure requirements vary from state to state.
When the federally funded HEAL program was discontinued in 1998, it left a void of funding for chiropractic students. There are few specialized loans for these students, so they must resort to federal graduate school and private student loans.
Consolidate Federal Chiropractic School Loans
Chiropractic students will have undergraduate and graduate loans either through the U.S. Department of Education’s Direct Federal Loan Program, through a Federal Family Education Loan Program (FFELP) lender, or a combination of both. The federal loan program includes a consolidation loan.
- Chiropractic students with Direct Federal Loans may qualify for consolidation with the Direct Federal Consolidation Loan Program. Borrowers qualify in one of two ways, with one or more Direct Loans, or with at least one FFELP loan not eligible for consolidation through a FFELP lender. Direct Consolidation Loans offer a fixed interest rate that will not exceed 8.25; no credit check; no fees; and flexible repayment.
- Chiropractic students with one or more FFELP loans may apply for Federal Consolidation Loan either through their primary lender or another that qualifies outside borrowers. Lenders offer competitive incentives to attract consolidation borrowers. Loan terms already set by the feds include those outlined above in the Direct Consolidation Loan; but lenders may manipulate interest rates by offering incentives for deductions. Make consecutive on-time payments and you will likely earn a deduction and setup your payments so they are automatically deducted from your checking account and you may earn another deduction. Some lenders also reward new-grads that consolidate during their six-month grace period.
Consolidate Private Chiropractic School Loans
Private, or alternative, student loans are now big business. Private lenders package a variety of credit-based private loans, some for undergrads, some for grads. Lenders realize that students require an "out" for high-interest and multiple student loans and are now offering consolidation loans to fit the bill. Private consolidation loans are only suitable for private student loans.
Private student consolidation loans may be found at large student loan providers such as Sallie Mae or Nelnet, or regional banking lenders. You should shop carefully for private consolidation loans. If you don’t have good credit you may apply with a creditworthy co-borrower. Interest rates are usually variable. Look for associated fees and make sure there are no penalties for early repayment. Depending on how much you finance you could face a repayment period of up to 30 years.
