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Student Finance

Academic Success

Loans

To finance expenses associated with professional education, many medical students will need to identify loan sources. A loan is money that is borrowed from a lender and must be repaid, usually with interest and/or other finance charges (i.e., loan origination fee). It is important to know what sources of aid are available and understand the terms and conditions associated with each loan. The Direct Unsubsidized loan and the Direct Graduate PLUS loan are Title IV loans offered through the U.S. Department of Education. We often refer to both of these simply as “Federal loans”.

  • Direct Unsubsidized loan

    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 and will continue to accrue until the day the loan is repaid. In addition, there is a loan fee on all Direct Unsubsidized loans. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement.

    Interest rates on these loans are subject to change each year; however, once a loan is borrowed at a certain rate it will remain fixed at that rate for the life of the loan.

  • Direct Graduate PLUS loan

    Available to graduate or professional students to help pay for education expenses not covered by other financial aid.  A separate loan application is required and must be completed annually at studentaid.gov.  Eligibility is not based on financial need, but a credit check is required. The credit check is considered a “hard hit” on an individual’s credit report. It is reflected as an actual credit inquiry, showing a potential borrower expressed interest in opening a new source of credit. Borrowers who have an adverse credit history must meet additional requirements to qualify. 

    In comparison to the Direct Unsubsidized loan, interest rates and origination fees are higher, but interest accrual is similar. Interest rates are subject to change each July 1st; however, once a loan is borrowed at a certain rate it will remain fixed at that rate for the life of the loan. Interest begins accruing the day the funds are disbursed and will continue to accrue until the day the loan is repaid. Borrowers are responsible for any interest accrual during the course of study, during grace and deferment periods.

    In addition, there is a loan origination fee charged by the U.S. Department of Education for the processing of your loan. The origination fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement.

    For more information, please visit studentaid.gov.

  • North Shore-LIJ Health loan

    The North Shore-LIJ Health loan is an institutional loan program that is awarded based on financial need and availability of funding. To qualify, students must apply for institutional aid.  Being that this is a private, institutional loan program, funds borrowed will not be eligible for Federal consolidation, repayment, or forgiveness programs.  Please view the Application and Solicitation Disclosure for more information about this loan.

    **Current students** To log in to your Heartland ECSI account, please visit https://borrower.ecsi.net/.  If you have access to your credentials and need to complete your promissory note, you may do so here: https://www.ecsi.net/prom8s/.

  • Alternative loans

    Alternative loans are often offered through various private lenders. These loans are issued by banks or credit unions and in most cases, 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)
    • There may be origination / general fees associated with borrowing
    • Repayment terms are often less favorable than federal loans
    • Loans are not eligible for federal consolidation or income-driven repayment programs

    For additional information about federal vs. private student loans, visit studentaid.gov

Federal and Institutional Loan Interest Rates by Disbursement Dates

Loan Type

First Disbursed on or after

July 1, 2019, and before July 1, 2020

First Disbursed on or after

July 1, 2020, and before July 1, 2021

Direct Unsubsidized Loan

Fixed at 6.08%

Fixed at 4.30%

Direct Graduate PLUS Loan

Fixed at 7.08%

Fixed at 5.30%

North Shore-LIJ Health Loan

Fixed at 5.0%

Fixed at 5.0%



 

Federal and Institutional Loan Information

Loan Type

Annual Limit

Aggregate Limit

Origination Fee
First disbursed on or after 10/1/19 and before 10/1/20**

Origination Fee
First disbursed on or after 10/1/20 and before 10/1/21**

Repayment Terms

Repayment Period

Direct Unsubsidized  Loan

MS1: $44,944
MS2: $40,500
MS3: $47,167
MS4: $44,944

*see below

1.059%

1.057%

6-month grace period after graduation or after leaving school

Payments are made monthly.  Eligible for federal consolidation, income-driven repayment plans, and Public Service Loan Forgiveness programs.

Direct Graduate PLUS Loan

Up to cost of attendance minus any other financial aid received for the period of enrollment.

no aggregate limit 

4.236%

4.228%

PLUS loans have no grace period. They enter repayment once they are fully disbursed but may be eligible for a deferment

Payments are made monthly.  Eligible for federal consolidation, income-driven repayment plans, and Public Service Loan Forgiveness programs.

North Shore-LIJ Health Loan

Annual limits vary by year and availability of funds.

$40,000 during the 4-year program period

$0

$0

48-month grace period after graduation beginning July 1 following graduation from the MD program.

Withdrawal or dismissal from the MD program or graduation from an alternate degree program will have a grace period extending from 9 months of graduation/separation.

Refer to the Application and Solicitation Disclosure Statement for additional information.

Payments are made monthly.  Not eligible for federal consolidation, income-driven repayment plans, and Public Service Loan Forgiveness programs.

*The maximum outstanding aggregate loan limit for Direct Subsidized and Unsubsidized loans is $224,000, of which no more than $65,500 can be subsidized. Please note that these are lifetime limits (the total amount borrowed during undergraduate and graduate years). Aggregate loan limits do not include accrued interest.

**The loan origination fee is proportionately deducted from each loan disbursement you receive.  Please keep this in mind when determining the amount you need to borrow.  The percentage is determined by the date of the first disbursement of the loan. Any subsequent disbursements of that loan, even if made on or after the relevant October 1, will have the same loan fee percentage that applied to the first disbursement of that loan.  The loan origination fee is determined by the U.S. Department of Education and is subject to change.


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