I don’t think you can get Federal loans for a Caribbean school; you’d have to get private loans. You could probably negotiate deferment up-front when you get the loans, but of course the interest won’t be subsidized.
Stafford loans are available for the big three schools, SGU, Ross and AUC.
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Stafford loans are available for the big three schools, SGU, Ross and AUC.
Cool! I’m so happy to be wrong about that!
First of all some terminology clarification.
The “grace period” is the six months after graduation during which you do not have to make any payments on your loan, regardless of whether you plan to start payments after that or not. It is NOT negotiable as far as I can recall from our financial aid presentation.
the “deferment” starts at the conclusion of the grace period, and can continue for a total of three years.
For the situation you’re describing, Rick, the concern is that your grace period would run out before you could apply for a deferment. I am NOT SURE, and you will have to pursue this further with a knowledgeable FA person, but i believe it is possible to start making payments if you must, and THEN apply for the deferment as soon as you can. We’ve been told that we must submit a pay stub from our residency program to prove that they’re not paying us the big bucks, and that’s how we’ll qualify for the deferment. Now, you might be able to apply for a deferment based on a contract in hand that says what you are GOING to be paid, I don’t know.
Does that help?
You’ve pointed out that the “big three” Carib schools are OK for Stafford loans - that’s what I had heard too. I am pretty sure that I have also heard it said that both private lenders and Stafford loans are going by pretty much the same rules… that is, the stuff for grace period and deferment is I THINK the same. Again, these are real technical specific Qs best presented to a qualified financial aid professional. I am not an FA pro nor do I play one on TV. 
All good questions - understanding this FA stuff before you start is a real challenge and definitely puts you ahead of the game.
Mary
From my financial aid office:
Dear Students:
The US Department of Education has announced that Federal Stafford Loan interest rates will drop slightly on July 1st.
For Stafford Loans disbursed on or after July 1, 1998 the rates will be as follows:
2.77% during in-school, grace and deferment (currently 2.82%)
3.37% during forbearance and active repayment (currently 3.42%)
Quote:
From my financial aid office:
Dear Students:
The US Department of Education has announced that Federal Stafford Loan interest rates will drop slightly on July 1st.
For Stafford Loans disbursed on or after July 1, 1998 the rates will be as follows:
2.77% during in-school, grace and deferment (currently 2.82%)
3.37% during forbearance and active repayment (currently 3.42%)
Even better!
I just finished the FA apps for an on-line masters program. I expect that I’ll be able to get an in-school deferement when I get to medical school (whereever that may be), and the worst I might have to pay back starting residency would be the minimum $50/mo.