Loan Types, Terms, and Interest Rates

Federal Direct Stafford Loan

Interest:  For loans disbursed after 7/1/6: 6.8% fixed rate.   For loans disbursed prior to 7/1/6: Interest rate is variable and changes every July 1 based on the 91-day U.S. Treasury Bill. The interest rate is capped at 8.25%. For loan statuses of In-School, Grace and Deferment, the interest rate is the 91-day T-bill rate plus 1.7%, which is 1.88% for the period of July 1, 2009-June 20, 2010 and for loan statuses of Forbearance and Repayment, the interest rate is the 91-day T-bill rate plus 2.3%, which is 2.48% for the period of July 1, 2009-June 30, 2010.

Fees: Origination fee of 1.0%

Disbursements:  Disbursements are made in 2 equal payments over the length of the academic year. Borrowers should expect to received one-half of loan proceeds at the start of the fall term and the second half at the start of the spring term.

Repayment:  Begins after a 6-month grace period from when you cease at least half-time enrollment.  An Income Based Repayment Plan can be used during residency or repayment and can be postponed during residency using forbearance.  Standard Repayment length is 10 years from date first payment is due; can be extended for some borrowers to 25 years.

Eligibility:  The maximum amount a Medical student can borrow in Federal Stafford Loans is $42,722 for a first year medical student, $44,944 for a second year medical student, $47,167 for a third year medical student and $44,944 for a fourth year medical student.  All graduate students can borrow a total of $20,500 in Federal Unsubsidized Stafford Loans. All HSP students may borrow up to $5,500 in Subsidized Stafford loans and $7,000 in Federal Unsubsidized Stafford Loans for a total of $12,500.00 per year.  The financial aid office determines eligibility for the Subsidized Stafford loan based on your Expected Family Contribution (EFC) from the FAFSA and your annual Cost of Attendance.

Federal Direct Graduate PLUS Loans

Interest: 7.9% fixed (for loans originated after 7/01/2010)

Fees: Origination Fee 4%

Disbursements: Disbursements must be made in 2 equal payments over the length of the academic year. Borrowers should expect to receive one half of loan proceeds at the start of the fall term and the second half at the start of the spring term.

Eligibility: There is a credit check associated with the GradPLUS Loan. To qualify, borrowers must not have an adverse credit history which is defined as: 90 or more days delinquent on any debt or if, within the past 5 years of the date of the credit report, you have: a bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, or defaulted Federal Student loan.

The annual loan limit is the difference between the Cost of Attendance minus all other annual financial aid.

Federal Perkins Loan

Interest: Fixed 5%

Fees: None

Eligibility: The Financial Aid Office determines eligibility based on your Expected Family Contribution (EFC), calculated using information about you, your spouse (if applicable) and your parents.

Disbursements: Disbursements are made in two payments over the length of the academic year. Borrowers should expect to receive one half of loan proceeds at the start of the fall term and the second half at the start of the spring term.

Repayment: Begins after a 9-month grace period from when you cease at least half-time enrollment.  Repayment can be postponed during residency with deferment or forbearance for borrowers who qualify.  Interest must be paid during periods of forbearance.  Repayment length is 10 years from date first payment is due.  Cancellation of loan for service maybe available to some borrowers. 

Massachusetts Medical Society Loans

Interest: Accrues at a rate of 1% from the date the loan is made and through the first 3 years of residency. Interest accrues at a rate of 2% for the next 2 years and accrues at a rate of 6% for the remainder of the loan.

Fees: None

Eligibility: Students must be either a third or fourth year medical student and demonstrate financial need. The Financial Aid Office determines financial need based on your Expected Family Contribution (EFC), calculated using information about you, your spouse (if applicable) and your parents.

Repayment: One annual payment due on July 1.  Repayment of interest is required while the borrower is in school.  Repayment of principal and interest is required after the student earns his/her MD degree.

Institutional Loans (LDS, PCL, AMA-ERF and Worcester Medical Student Loan)

Interest: 5% fixed

Fees: None

Eligibility: The Financial Aid Office determines eligibility based on your Expected Family Contribution (EFC), calculated using information about you, your spouse (if applicable) and your parents.

Disbursements: Disbursements are made in 2 equal payments over the length of the academic year. Borrowers should expect to receive one half of loan proceeds at the start of the fall term and the second half at the start of the spring term.

Repayment: Begins after a 6 month grace period from when you cease at least half-time enrollment.  Repayment can be delayed with deferment during residency. Interest does not accrue during deferment.  Repayment length is 10 years from the date first payment is due.

Loans for Disadvantaged Students

Interest: 5% fixed

Fees: None

Eligibility: The Financial Aid Office determines eligibility based on your Expected Family Contribution (EFC), calculated using information about you, your spouse (if applicable) and your parents.

Repayment: Begins after 12 month grace period from when you cease full-time enrollment.  Repayment start may be deferred during residency and fellowship.  Repayment length is 10 years from date first payment is due.

Primary Care Loan

Interest: 5% fixed. Interest rate is 7% for students who do not fulfill the Primary Care service requirement.

Fees: None

Eligibility: The Financial Aid Office determines eligibility based on your Expected Family Contribution (EFC), calculated using information about you, your spouse (if applicable) and your parents. Borrowers must commit to a career in Primary Care for the life of the loan.

Repayment:  Begins after a 12-month grace period from when you cease full-time enrollment.  Repayment start may be deferred for up to 4 years for residency.  Repayment length is 10 years from date first payment is due.