Student loans are a self-help aid that must be repaid. NEOMED offers loans from various programs as part of a student’s financial aid award after reviewing eligibility for grants and scholarships.
There are federal student loans available to graduate professional students. The lender is the U.S. Department of Education. The Free Application for Student Federal Aid (FAFSA) is required. Students must have a valid Master Promissory Note for each loan type, and students must complete Entrance Counseling. These requirements can be completed at StudentAid.gov.
These loans are unsubsidized, which means that interest will begin to accrue when funds disburse. The lender will deduct a loan fee from the accepted amount prior to disbursement. Repayment begins six months after enrollment status drops below half-time. Exit Counseling is required when enrollment status drops below half-time, and can be completed at StudentAid.gov. Some students may have an additional requirement for Exit Counseling.
Direct Unsubsidized Loan
Interest rate is fixed at 4.30% effective on loans disbursed between July 1, 2020 – June 30, 2021.
The loan fee on loans first disbursed between October 1, 2020 – September 30, 2021 is 1.057%.
Students are capped at the amount of Federal Direct Unsubsidized Loan each academic year based on the number of months enrolled and by the total amount borrowed through the Direct Loan program. The chart below reflects the annual and total aggregates per college:
|9 month||10 month||11 month||12 month||Aggregate|
|College of Pharmacy and MPH||$33,000||$34,389||$35,778||$37,167||$224,000|
|College of Medicine||$40,500||$42,722||$44,944||$47,167||$224,000|
|College of Graduate Studies (non-MPH)||$20,500||$20,500||$20,500||$20,500||$138,500|
For loans disbursed between July 1, 2020 – June 30, 2021, the interest rate is 5.30%.
For loans first disbursed on or between October 1, 2020 – September 30, 2021, the loan fee is 4.228%.
A credit check will be performed by the lender during the application process. Information about the credit check is available at StudentAid.Gov.
Private Educational Loans
Private educational loans are offered by private lending institutions. It is recommended that students complete the Free Application for Federal Student Aid (FAFSA) to determine their eligibility for Federal Student Loans prior to accepting a private educational loan.
Before selecting a private educational loan, students should:
- Review terms and conditions of the loan (repayment options, cosigner release options, deferment options, interest capitalization schedule, terms of interest).
- Review eligibility requirements (enrollment status, citizenship, degree program).
- Review their credit score, as the lender will base your eligibility against your credit score.
- Know that a private educational loan requires school certification. A private education loan’s eligibility will be determined by taking the student’s cost of attendance and subtracting all other accepted scholarships and loans. Certifications will be denied if the student has accepted a financial aid package up to their cost of attendance.
Students who feel that a private educational loan meets their objectives than the federal student loan program will need to complete a promissory note with the lender of their choice. A school certification form will be sent to NEOMED’s Office of Financial Aid to verify your eligibility and enrollment.
Students may be eligible for need-based loans. Students must apply for need-based aid on an annual basis. Follow the guidance on the Applying for Financial Aid webpage to apply for need-based aid. Donations to the NEOMED Foundation and funding from the Health Resources and Services Administration provide need-based loans to medicine students. NEOMED is the lender for these loan types. Upon entering repayment, Heartland ECSI will be the loan servicer.
Need-based loans that are available to third and fourth year medical students. These loans are subsidized while the student is enrolled at least half-time at NEOMED. Repayment begins 3 months after the student is no longer enrolled at least half-time. The repayment length is 10 years (120 payments). The loan will begin to accrue interest once repayment begins. The interest rate on the NEOMED Loans is 5%. There is one loan opportunity with no interest that will be offered to those students that demonstrate the greatest financial need.
LOANS FOR DISADVANTAGED STUDENTS
Need-based loan that is available to medical students that come from a disadvantaged background. Disadvantaged background includes students whose parents adjusted gross income is at or below 200% of the poverty guideline, students who are from a Medically Underserved Area, and students who are a first-generation college student. Parent information is required on the student’s FAFSA and need-based aid application in order to be considered.
The loan is subsidized while the student is enrolled at least half-time at NEOMED. Repayment begins 12 months after the student is no longer enrolled at least half-time. Borrowers can request a deferment during residency. The deferment option for residency training, which must be completed annually, is available for the duration of the training. The repayment length is 10 years (120 payments). The loan will begin to accrue interest once repayment begins. The interest rate on the Loan for Disadvantaged Students is 5%.
PRIMARY CARE LOAN
Need-based loan that is available to medical students that agree to practice primary health care. Students must enter and complete a primary care residency training program. The service obligation of the loan is fulfilled either when the loan is repaid in full or ten years from the beginning of repayment. Parent information is required on the student’s FAFSA and need-based aid application in order to be considered.
The loan is subsidized while the student is enrolled at least half-time at NEOMED. Repayment begins 12 months after the student is no longer enrolled at least half-time. Borrowers can request a deferment during primary care residency. The deferment option for primary care residency training, which must be completely annually, is available for the duration of the training. The repayment length is 10 years (120 payments). The loan will begin to accrue interest once repayment begins. The interest rate on the Primary Care Loan is 5%.
Penalties for non-compliance by borrower – The loan will no longer be subsidized. Interest will begin to accrue at a 7% interest rate, beginning on the date of noncompliance and ending when the loan is paid in full. The borrower is not eligible for the deferment provisions.