Federal Perkins Loan: This is a need based campus-based federal loan program which carries 5 percent interest. Eligibility is based on expected family contribution (EFC). Allowable EFC is determined by funding levels. Effective 7/1/93, repayment commences after a nine month post-graduation grace period. Maximum yearly award is $8,000. Interest does not accrue until repayment begins. Maximum repayment of 10 years.
University Loan (UML): Donor-specified dollars made available as need-based loans to medical students (with or without restrictions). Parental and student financial information is used to determine eligibility. All University Loans are due one year after graduation (with the exception of the Galens Loan). No interest will accrue during that time. Approximately 4 months prior to the due date of the loan, Student Loan Collections will send an “Extension of Due Date Form”. If you wish to enter a repayment plan you must complete and return this form to the Student Loan Collections office within the specified time frame. If you choose to extend repayment of your loan(s), interest will begin to accrue at the rate of 5% simple at that time and continue for the life of the loan.
University Grant in Aid: Donor-specified dollars made available as need-based grants to medical students (with or without restrictions). Parental and student financial information is used to determine eligibility. Funds do not have to be repaid. Awards vary based on available funding.
Scholarship for Disadvantaged Students (SDS): * Federal scholarship available to students from "disadvantaged" backgrounds and who demonstrate need. Parental and student financial information is used to determine eligibility. School must qualify each year an allocation from the federal government.
Loans for Disadvantaged Students (LDS): * Federal long-term 5 percent loan that is offered to students from "Disadvantaged" backgrounds. Eligibility is based on expected family contribution (EFC). Repayment begins one year after student ceases to be enrolled full-time and is deferrable throughout residency. Parental and student financial information is used to determine eligibility.
Primary Care Loan (PCL): Federal loan program available only to selected students who agree to commit to a primary care residency and practice. The Department of Health and Human Services defines primary care as family medicine, general internal medicine, general pediatrics and preventive medicine. Interest rate is 5 percent and is subsidized during school and during residency. Payments are deferrable throughout residency training. Maximum repayment is 25 years after a 12 month grace period. Effective March 23, 2010, only student information is used to determine eligibility.
Service Obligation: Borrowers receiving a PCL on or after March 23, 2010 are required to enter and complete residency training in primary health care and practice in primary health care for 10 years (including years spent in residency training) or through the date on which the loan is repaid in full, whichever occurs first.
The penalty for breaking the obligation is as follows: Borrowers who receive a PCL on or after March 23, 2010, and fail to comply with the service requirements of the program will have their loans begin to accrue at a rate of 2 percent per year greater than the rate at which the student would pay if compliant. For example, the compliant rate is currently 5 percent per year, so the service default rate would be a 7 percent per year.