Loans
In order to cover the expenses associated with professional education, most medical students will need to identify loan sources. A loan is money that is borrowed and must be repaid. It is important to know what sources of aid are available. Outlined below are Title IV programs that are offered through the U.S. Department of Education and the details of the Hofstra North Shore-LIJ Health Loan:
Direct Unsubsidized Stafford Loan
Direct Unsubsidized Stafford Loansare awarded to students regardless of financial need. Borrowers are responsible for any interest that may accrue during the course of study or during grace and deferment periods. Interest begins accruing the day the funds are disbursed. This is not to say that the student is responsible for making payments while enrolled; however, the interest accrued on the principal amount borrowed will be reflected at the time of repayment.
| Annual Limit | Aggregate Limit | Interest terms | Origination Fee | Repayment terms | Repayment period |
|---|---|---|---|---|---|
| Varies. Based on year in school: MSI: $44,944 MSII: $42,722 MSIII: $47,167 MSIV: $47,167 |
See below* | 6.8% fixed | 1.051% | 6 month grace period after graduation or after leaving school | Payments are made monthly. Eligible for Federal consolidation, repayment, and Public Service Loan Forgiveness Programs. |
*The maximum outstanding aggregate loan limit for subsidized and unsubsidized Stafford Loans is $224,000 of which no more than $65,500 can be subsidized. Please note that these are lifetime limits (total amount borrowed during undergraduate and graduate years). Aggregate loan limits do not include accrued interest. As of July 1, 2012, the Direct Subsidized Stafford loan program has been eliminated for graduate students.
Direct PLUS Loan for Graduate / Professional Students
Direct PLUS Loans are available for students who require additional aid over and above the annual maximum allowable Stafford Loan amounts.
| Annual Limit | Aggregate Limit | Interest terms | Origination Fee | Repayment terms | Repayment period |
|---|---|---|---|---|---|
| A student may borrow all funds necessary up to the cost of attendance less any other financial aid awarded for the period of enrollment. Borrowers must first max out annual Stafford amounts. | There is no aggregate limit on the amount of PLUS loan dollars a student may borrow. | 7.9% fixed | 4.204% | 6 month grace period after graduation or after leaving school | Payments are made monthly.Eligible for Federal consolidation, repayment, and Public Service Loan Forgiveness Programs. |
North Shore-LIJ Health Loan
The North Shore-LIJ Health loan is an institutional loan program that is awarded based on financial need. To qualify, prospective students must file a FAFSA and, in addition, complete and submit an Institutional Aid Application.
| Annual Limit | Aggregate Limit | Interest terms | Origination Fee | Repayment terms | Repayment period |
|---|---|---|---|---|---|
|
Annual limits vary by year and availability of funds. |
The maximum a student may borrow is $60,000 during the 4 year program period. |
5% fixed |
0% |
48 month grace period after graduation. Refer to Application and Solicitation Disclosure Statement for additional information. |
Payments are made monthly. Not eligible for Federal consolidation, repayment, and Public Service Loan Forgiveness Programs |
Note: funds borrowed through this program will not be eligible for Federal consolidation, repayment, or forgiveness programs. Please view the Application and Solicitation Disclosure for more details regarding this loan.
Alternate Loans
Alternate loans are offered through various private lenders. These loans are issued by banks or credit unions and should be your final resort. Terms and conditions differ from loans that are backed by the Federal government. Some differences:
- Interests rates are generally higher and variable
- Interest and/or payments are not always deferred while you are enrolled in school
- Deferment and forbearance options may differ or be nonexistent (something to consider when beginning residency training)
- There may be large origination / general fees associated with borrowing
- Repayment terms are often less favorable than federal loans
- Loans are not eligible for consolidation, Income Based or Income Contingent repayment
