Notice: class-feed.php is deprecated since version 4.7.0! Use fetch_feed() instead. in /var/www/html/somdev/wp-includes/functions.php on line 3958 Loan programs « Financial Aid

Loan programs

Federal Direct Unsubsidized loan

Medical students can borrow up to $47,167 annually (depending on year in school). The Federal Direct UnsubsidizedLoan is available regardless of need.Interest begins accruing at time of disbursement. Students may either pay the interest while in school or they can defer payments until after graduation.

The interest rate for a loan, once established, will apply for the life of the loan – that is, the loan will be a fixed-rate loan. As a result, it is likely that many borrowers will have a set of fixed-rate loans, each with a different interest rate.

  • Loans first disbursed 7/1/2016 – 6/30/2017 will have a fixed interest rate of 5.31%.
  • The loan fee for loans first disbursed on or after 10/1/2016 and before 10/1/2017is 1.069%.

First-time Federal Direct loan borrowers must complete the following requirements:

Entrance loan counseling and the master promissory note are located online at studentloans.gov. Select “Wayne State University” as your school and not Wayne State University School of Medicine.

The annual Federal Direct Unsubsidized Loan maximum is based on the length of the academic year:

Year in program # Months enrolled Maximum amount
M1 9 $40,500
M2 11 $44,944
M3 12 $47,167
M4 9 $40,500

The aggregate loan limit, including all undergraduate and graduate loans, is $224,000. Of that amount, $65,500 can be Subsidized Loans borrowed through either the Federal Direct Loan Program (FDLP) or the Federal Family Education Loan Program (FFELP).

Federal Direct Grad PLUS loan

The WSU Office of Student Financial Aid includes federal Unsubsidized Loans in financial aid award offers but does not automatically include Grad PLUS Loans. Students who want a Grad PLUS Loan must apply on the Federal Student Aid website:studentloans.gov.

How to determine your Grad PLUS loan amount

  • Once you have been awarded, review your financial aid award information on the “Financial Aid” tab in Academica. Select the “Financial Aid” tab.
  • You will be able to view the Cost of Attendance, the amount of aid already offered, and the remaining “unmet need.” You can apply for up to the “unmet need” amount in a Grad PLUS Loan.

How to apply for a Grad PLUS loan

  • Apply on the Federal Student Aid website: studentloans.gov
  • Log in with your Federal Student Aid (FSA) ID(the same thatyou use to sign the FAFSA)
  • Select “Complete PLUS Request Process”
  • A credit check will be run as part of the loan approval process. If you are denied credit, you will be given options that include resolving adverse credit information or obtaining an endorser (loan co-signer). See the Credit Denial section below.

First-time Federal Direct loan borrowers must complete the following requirements:

Entrance loan counseling and the master promissory note are located online at studentloans.gov. Select “Wayne State University” as your school and not Wayne State University School of Medicine.

Credit denial

If your credit is not approved, you will be asked to select one of three options for how you want to proceed: (1) not pursue a Direct PLUS Loan, (2) obtain an endorser, or (3) appeal the decision. A fourth option of not sure also is available. However, if you select it, our office will be unable to continuing processing your loan request until you select option 2 or option 3.

Option 1: If you will not pursue a Direct PLUS Loan, please notify the School of Medicine Office of Student Financial Aid of your decision via email:finaidmed@wayne.edu. Please include your 9-digit WSU ID number or your AccessID.

Option 2: If you will pursue a Direct PLUS Loan with an endorser, the endorser must complete an online Endorser Addendum, which is the agreement to repay the loan if you do not repay it. He/she must select “Wayne State University” and not WSU School of Medicine” to complete the Endorser Addendum. He/she will need the loan reference number, which is located on theStudentLoans.gov site under the heading “Completed Direct PLUS Loan Requests.” Note: Since an endorser promises to repay the loan if you fail to repay it, the endorser will need to be “credit worthy.” Endorsers are not eligible to appeal adverse credit information. The loan will become a part of the endorser’s credit records (TransUnion, Experian, and/or Equifax).

Option 3: If you believe there are extenuating circumstances related to the adverse credit information that should be considered in evaluating your eligibility for a Direct PLUS Loan, you may begin the appeal process in one of two ways:

  1. Log in to StudentLoans.gov and select “Document Extenuating Circumstances” on the left navigation bar. Follow directions. Applicant Services will contact you with further instructions.
  2. Contact Applicant Services between 8:00 AM to 8:00 PM, Eastern Time, Monday through Friday. Applicant Services may be reached toll-free, at 1-800-557-7394.

Note: Endorsers are not eligible to appeal adverse credit information.

Federal Direct Grad PLUS Loan eligibility

Credit history: A credit check will be performed by the U.S. Department of Education is part of your application process. You must not have an adverse credit history as the result of: 1) being 90 or more days delinquent on any debt or 2) within 5 years of the date of the credit report, being the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Federal Student Aid debt such as a federal student loan.

Endorser option: If an adverse credit history exists, an endorser (co-borrower) who does not have an adverse credit history will be required to co-sign your loan. An endorser is someone who agrees to repay the loan if you do not repay it. If you borrow with an endorser, you will be required to complete a new Master Promissory Note each year.

Enrollment: You must maintain at least halftime enrollment in a graduate or professional program and meet all other eligibility requirements for federal student aid. School of Medicine enrollment: Full-time = 24 to 50 credits, halftime = 12 to 23 credits.

Changes to enrollment: If your enrollment status is changed for any reason, contact the Office of Student Financial Aid to determine whether a financial aid adjustment will be required.

Loan limits
You may borrow up to your full Cost of Attendance, minus all other financial aid (including Federal Direct Unsubsidized Loans, Federal Work-Study awards, and grants and scholarships.) If additional financial aid is awarded after your loan amounts are calculated, your loan amounts will be reviewed, and if necessary, they will be decreased.

Interest rate and loan fee

  • Loans first disbursed 7/1/2016 – 6/30/2017 will have a fixed interest rate of 6.31%.
  • The loan fee for loans first disbursed on or after 10/1/2016 and before 10/1/2017is 4.276%.

In-school and post-school deferment
The Federal Direct Grad PLUS Loan qualifies for deferment while you remain enrolled at least halftime and for an additional six-month post-enrollment period. Your loan servicer will notify you before your deferment ends.

Repayment strategies
The Federal Direct Graduate PLUS Loan qualifies for forbearance during eligible periods of medical residency, and deferment during eligible periods of graduate fellowship. There are multiple repayment plans including Standard, Graduated, Extended, Income Based, Income Contingent and Income Sensitive. Interest begins to accrue at the time Federal Direct Graduate PLUS Loans are disbursed.

Consolidation
You may consolidate your Federal Direct Grad PLUS Loan with your other eligible student loans into a single consolidation loan after you leave school. If consolidating loans that have a grace period with loans that do not, consider waiting until all grace periods have ended.

National Student Loan Data System
View your federal loan borrowing history at NSLDS.ed.gov. Federal student loans include Federal Subsidized, Federal Unsubsidized, Federal Consolidation, Federal Parent PLUS and Grad PLUS, and Federal Perkins Loans. Your loan history, as well information about your federal grants, is reported to NSLDS by each school that you attend. Your NSLDS history is available to lenders, guarantee agencies, and institutions that the U.S. Department of Education authorizes as users of the system.

Loan revisions

Primary Care Loan (PCL)

The U.S. Department of Health and Human Services provides Primary Care Loans to full-time, financially needy students who pursue a career in Primary Care. The interest rate is fixed at 5%. Interest accrual and repayment begin after a 12-month grace period and residency training.

Fourth year students who match into a Primary Care residency may contact the SOM Office of Financial Aid for application. Primary Care Loans may be used to repay outstanding balances on other higher-interest loans borrowed during medical school. The Department of Health and Human Services defines primary care as family medicine, general internal medicine, general pediatrics and preventive medicine.

Service obligation

Medical students who obtain a Primary Care Loan must agree to (1) enter and complete residency training in primary care within four years after graduation and (2) practice in primary care for 10 years or through the date on which the loan is repaid in full, whichever occurs first. For borrowers who receive a PCL but fail to comply with the service requirements of the program, the interest rate will be increased from 5% to 7%.

Loans to Disadvantaged Students

The federal government offers a long-term, low interest loan to students who are enrolled full-time in the MD program and come from a disadvantaged background as defined by the U.S. Department of Health and Human Services, http://bhpr.hrsa.gov/scholarshipsloans/programs/lds.html The interest rate is currently 5%. Contact the Office of Student Financial Aid to apply. Amount and number of awards are based on availability of funds.

Alternative (Private) loan

Alternative (private) loans generally are more expensive, have variable interest rates, and have fewer repayment benefits than federal loans. Generally, the annual loan limit is the cost of attendance minus other financial aid.

Before considering an alternative (private) loan, borrow the maximum in Federal Direct Unsubsidized Loans and Federal Direct Grad PLUS Loans, both of which require U.S. citizenship and submission of the Free Application for Federal Student Aid (FAFSA).

Non-U.S. citizens may borrow alternative (private) loans but must obtain a co-borrower who is a U.S. citizen or eligible non-citizen.

Students may initiate an application with any participating lender. They should compare loan programs before choosing the one that best suits their needs. Comparison should be based on such factors as interest rates; frequency of capitalization; fees; and deferment, forbearance and repayment options. Once the loan is approved, the lender will contact the WSU Office of Student Financial Aid to certify the loan.

You are advised to compare loan programs before choosing the one that best suits your needs. A comparison should be based on such factors as loan maximums, interest rates; frequency of capitalization; fees; and deferment, forbearance and repayment options. Applications and program details are available from individual lenders.

Alternative loan comparison– ELM Select Loan Comparison Tool

  • You have the right to borrow from any lender. You should compare alternative loan lenders to determine which lender best meets your needs. Wayne State University has no financial interest in a student’s choice of lender.You may usethe ELM Select Loan Comparison Tool to compare lender terms, rates, and repayment options.
  • The ELM Select Loan Comparison Tool includeslenders who provided 10 or more loans to Wayne State University students for the 2014-2015 academic year. This list does not imply endorsement, is reviewed periodically and can be changed at any time.

Federal Consolidation Loan

Federal consolidation loans allow you to combine existing federal student loans into one new loan with a weighted-average interest rate of the interest rates on the loans included in the consolidation, rounded up to the next higher one-eighth of one percent. Loan consolidation reduces the number of monthly payments to individual lenders/servicers and may also lower monthly payment amounts.More information about online:Federal Direct Loan Consolidation.

Residency/Relocation Loan

Residency/Relocation Loans are private loans that are intended to cover expenses associated with residency interviewing and/or relocation above the standard allowance in the M4 Cost of Attendance.They may have a fixed interest rate or a variable interest rate and require credit approval. The interest rate will be based on your credit history and other factors including your cosigner’s (if any) credit history. Students must meet U.S. citizenship requirements and be in their final year of medical school. The borrower initiates the application process with the lender; the lender disburses funds directly to the borrower.

Canadian Student Loan Programs

Canadian students do not qualify for U.S. Department of Education federal student assistance programs, but can apply for federal and provincial loans through the Government of Canada. Information is available on the CanLearn website, the Ontario Student Assistance Program (OSAP) website, and the website of Global Education Management Services.

Those with a U.S. co-borrower may also apply for private/alternative loans with participating U.S. lenders.

BACK TO TOP