Medical Student Loans
So, you have decided to become a doctor. How do you think you are going to pay for it? There are many programs out there to help with financial aid. The below is giving you some guidelines about eligibility and such.
The purposes of such programs are to enable needy medical students to obtain medical school loans and funds to pursue a degree of medical doctor (M.D.) or doctor of osteopathy (D. O.) at the college or university of your choice.
ELIGIBILITY:
To be eligible for loan consideration, an applicant must:
1. Be accepted for enrollment or be enrolled full-time at an approved school of medicine with priority consideration given to residents of the state,
2. Meet designated academic standards,
3. Demonstrate financial need, and
4. Not be in default on any previous student loan(s).
APPLICATION:
Applications must be obtained from the Financial Aid Office of the educational institution to be attended or are currently attending.
SELECTION AND NOTIFICATION:
The institutional Financial Aid Office is responsible for
(1) Determining eligibility for the loan and
(2) Notifying individual students of the action taken. Funding availability may limit the number of awards or the value of individual awards.
RENEWAL:
Students are permitted to seek loan assistance for each year until the course of study is completed. An annual application may be required. The educational institution is under no obligation to approve subsequent student loan requests even though all eligibility requirements are met.
ANNUAL LOAN AMOUNT:
The maximum annual loan amount cannot exceed $10,000.
REPAYMENT:
The first payment will be due one year following the date the borrower ceases to be a full-time student at a school of medicine that participates in this Program with a maximum of 10 years to repay the loan (principal and interest). Students will be eligible for payment deferment during periods of required military service or approved additional medical training, including internships, residencies or fellowships (not to exceed 5 years). The minimum repayment amount shall be no less than $50.00 per month.
INTEREST:
The rate of interest charged on all outstanding loans awarded on or after September 7, 2002 shall be the prevailing Federal Stafford Loan interest rate at the beginning of the repayment period and shall accrue, except for periods of authorized deferment, from the beginning of the repayment period.
LOAN FORGIVENESS:
Loan indebtedness (principal and accumulated interest) will be forgiven at the rate of up to $5,000 for each period of twelve consecutive months of full-time practice in an approved designated medically underserved area in a medical specialty designated as a critical shortage field in the state. Once the student enters practice he/she needs to complete and submit the Postponement of Loan Payment form. At the conclusion of each 12 consecutive months of full-time practice, the Certification of Service for Loan Forgiveness form needs to be completed and submitted to obtain credit for the past year of practice.
These are just general guidelines on eligibility to apply for a student loans in your chosen college or university. The actually guidelines may vary a little, but these are the basics you need to look for.
Remember to always read the fine print and do not be afraid to ask questions. If the answers do not seem right to you do not sign.
