Federal Loans
The Department of Education offers several federal student loan options to help medical students finance their education. These loan programs are primarily authorized under Title IV of the Higher Education Act (HEA).
NOTE: Be sure to always go through ConnectCarolina to complete forms and applications pertaining to loans — this is very important, as it is how we keep your records (and your to-do list) up-to-date and accurate.
Direct Unsubsidized Loans (Stafford Loans)
These loans are not based on financial need, and interest accrues while you’re in school. Medical students can borrow up to $40,500 per year, with a cumulative loan limit of $224,000 (including undergraduate loans). You must submit the Free Application for Federal Student Aid (FAFSA) to be eligible. Interest accrues from the time of disbursement, and repayment typically begins six months after you graduate or drop below half-time enrollment.
Direct Subsidized & Direct Unsubsidized Loans Website
Direct PLUS Loans (GradPLUS Loans)
These loans are available to graduate and professional students to cover education expenses not met by other financial aid. GradPLUS loans require a credit check and may require a co-signer if you have adverse credit history. Interest accrues from the time of disbursement, and repayment typically begins six months after you graduate or drop below half-time enrollment.
PLUS Loan for Parents and Graduate and Professional Students Website
HRSA Primary Care Loans (PCL)
These loans are offered to students who commit to primary care practice. They have lower interest rates and extended repayment terms. Eligibility is based on financial need, and the applicant must submit both FAFSA and the Primary Care Loan application.
Medical students interested in primary care are eligible for the HRSA PCL program. The PCL offers a 5 percent interest rate to students who agree to train and practice in primary care until the loans are paid off (capped at 10 years). Students who fail to complete the service requirement will revert to a
7 percent interest rate.