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Loan Types, Terms, and Interest Rates

Federal Direct Unsubsidized Loan

Interest: 7.048% fixed rate for 2023-24 loans disbursed on or after July 1, 2023 and before July 1, 2024..

Fees: Origination fee of 1.057%

Disbursements: Disbursements are typically made in 2 equal payments, with one in the Fall term and one in the Spring term. Borrowers should expect to have one-half of their net loan amount disbursed at the start of the Fall term and the second half disbursed at the start of the Spring term. Additional loan funds may be available for Summer using an additional application.

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 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: You must meet all of the basic eligiblity criteria for Federal financial aid, including citizenship requirements. And you must be registered for at least half-time status as defined by your School. Please refer to your School's handbook for the definition of half-time status.

The maximum amount a Medical student can borrow in Federal Direct Unsubsidized Loans is $42,722 for a first year medical student, $42,722 for a second year medical student, $47,167 for a third year medical student and $47,167 for a fourth year medical student.

All graduate students can borrow a total of $20,500 in Federal Direct Unsubsidized Loans.

All HSP students may borrow up to $5,500 in Federal Direct Subsidized Loans and $7,000 in Federal Direct Unsubsidized Loans for a total of $12,500.00 per year. The financial aid office determines eligibility for the Subsidized loan based on your Expected Family Contribution (EFC) from the FAFSA and your annual Cost of Attendance.

Federal Direct Graduate PLUS Loans

Interest: 8.048% fixed rate for 2023-24 loans disbursed after July 1, 2023 and before July 1, 2024.

Fees: Origination Fee 4.228%

Disbursements: Disbursements are typically made in 2 equal payments, with one in the Fall term and one in the Spring term. Borrowers should expect to have one-half of their net loan amount disbursed at the start of the Fall term and the second half disbursed at the start of the Spring term. Additional loan funds may be available for Summer using an additional application.

Eligibility: You must meet all of the basic eligibility criteria for Federal financial aid, including citizenship requirements. And you must be registered for at least half-time status as defined by your School. Please refer to your School's handbook for the definition of half-time status.

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.

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 typically made in 2 equal payments, with one in the Fall term and one in the Spring term. Borrowers should expect to have one-half of their net loan amount disbursed at the start of the fall term and the second half disbursed 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 (LDS)

Interest: 5% fixed

Fees: None

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 (PCL)

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

Fees: None

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.