|
School of Medicine and Health Sciences |
Federal and State Educational Loan Programs
Program regulations may change pending Federal legislation.
FEDERAL PERKINS LOAN
The Perkins loan is a 5% interest loan awarded to graduate students who have financial need. The amount of the loan depends on estimated financial need and the amount of the other aid being received. The average award at UNDSMHS is $2,500 per academic year. Payment begins 9 months after the student ceases at least half-time enrollment. Students must complete the Free Application for Federal Student Aid (FAFSA) to apply for this loan.
The Perkins Loan offers other deferment and cancellation options. Contact the Medical School-SFAO (Phone: 701-777-2849) or the Student Loan Service Center
(Phone: 1-800-698-7397) for more information.
FEDERAL STAFFORD LOAN (Subsidized)
This is a low interest loan made to the student from a lender such as a bank, credit union, or savings and loan association. The Stafford Loan is available to graduate students enrolled at least half-time who show financial need.
The interest rate is variable but will not exceed 8.25%. Current rates are available from lenders. The Federal government pays the interest on the Stafford loan while the student is enrolled at least half-time. Origination and guarantee/insurance fees are deducted before the funds are disbursed. Repayment begins 6 months after the student ceases at least half-time enrollment.
Loan Limits (Federal Stafford Loan Subsidized)
The amount borrowed cannot exceed the cost of attendance and/or the following annual loan limits.
Graduate/Professional–$8,500
A student is eligible for a new loan maximum every academic year up to the following aggregate loan limits:
Graduate/Professional–$65,500
FEDERAL STAFFORD LOAN (Unsubsidized)
The COMBINED amount borrowed under the Stafford and Unsubsidized Stafford loan programs cannot exceed the following annual loan limits:
Graduate/Professional–$38,500
A student is eligible for a new loan maximum every academic year up to the following aggregate loan limits:
Graduate/Professional–$189,125
This loan is a funding source for students who need additional funding to meet the cost of education. Financial need is not required to be eligible to borrow an Unsubsidized Stafford Loan.
The interest rate is variable but will not exceed 8.25%. Current rates are available from lenders. The borrower must pay the interest on the loan during in-school periods, during the grace period, during any deferment period and during the repayment period. The borrower also has the option of deferring the interest during these periods; however, the interest will be capitalized. Origination and guarantee/insurance fees are deducted before the funds are disbursed. Repayment of principal and interest begins six months after the student ceases at least half-time enrollment.
The Federal Stafford Loan programs require two disbursements if the loan period is the academic year.
Entrance Loan counseling is also required before checks may be released. Exit loan counseling is required if the student drops below half-time enrollment, withdraws, or before the end of their last term of enrollment at UNDSMHS.
MINNESOTA STUDENT EDUCATIONAL LOAN FUND (SELF)
This is a loan for Minnesota residents. Interest payments are required while the student is in school. The interest rate is variable and a co-signer is requried. The minimum loan processed is $500.
SELF loans cannot exceed the student’s cost of attendance of the following annual loan limits.
Graduate–$9,000
More detailed information can be found at http://www.selfloan.org.
LOANS FOR DISADVANTAGED STUDENTS PROGRAM (LDS)
This loan program is designed to assist students from disadvantaged backgrounds who are of exceptional financial need with the purpose of helping pay for their health professions education. Based on financial need. The interest rate is 5%. The average award at UNDSMHS is $2,000 per academic year. Deferment and cancellation options are available.
To be considered for this program a student must submit a Free Application for Federal Student Aid (FAFSA). Parents’ information must be submitted even if you are an independent student.
PRIMARY CARE LOAN
The Primary Care Loan (PCL) program is a low cost federal loan program for medical students committed to primary health care practice. The interest rate is five percent. (except that borrowers who fail to fulfill the primary care residency and practice requirement will be charged 18% interest). The interest begins to accrue following a one year grace period after you cease to be a full-time student. The loan also offers deferment of principal and interest and cancellation options. The yearly maximum award is cost of attendance. Amounts beyond this may be awarded to third and fourth year students. Students must complete the Free Application for Federal Student Aid (FAFSA) to apply for this loan and must submit parents’ information even if they are independent.
MEDICAL CENTER LOAN
The Medical Center Loan (MCL) program is a state loan program for ND residents. We process requests for UNDSMHS medical students who are Soph., Jr., or Srs. And for upperclass (Soph., Jr., Srs.) dental students who are enrolled on a different campus. Based on financial need. The interest rate is 6%. The yearly maximum is $6,000 with a cumulative maximum of $18,000. The loan also offers deferment and cancellation options. Students must complete the Free Application for Federal Student Aid (FAFSA) to apply for this loan.
GABRIEL J. BROWN TRUST LOAN FUND
This is a loan for North Dakota residents. The student must be in need of financial assistance to continue their education.
Principal and interest repayment begins one year after the student graduates or leaves school and the interest rate is 5%.
The deadline for application is May 15th of each year. An application may be obtained from the Medical School–SFAO or by writing to Gabriel J. Brown Trust, 112 Avenue E. West, Bismarck, ND 58501.
NORTH DAKOTA ACADEMY OF FAMILY PHYSICIANS
This is a loan for North Dakota residents. The student must be a senior medical student who has indicated an interest in Family Medicine. The student must be in need of financial assistance to continue their education. The yearly maximum is $5,000.
Deferment of principal plus interest (up to three years) is available while participating in an approved ND Family Practice residency program. If you don’t do a Family Medicine residency in ND, payments begin immediately in the NDAFP loan. The interest rate is 5% and this loan must be repaid in twenty-five months.
AMERICAN MEDICAL ASSOCIATION–EDUCATION RESEARCH FOUNDATION LOAN FUND (AMA-ERF)
This is a loan for North Dakota residents. The student must be in need of financial assistance to continue their education.
Deferment of principal and interest is available for residency (up to three years). The yearly maximum is $2,000 with a cumulative maximum of $6,000.
Repayment begins one year after graduation with 10 years as the maximum length to repay.
This loan has death and total disability cancellation options.
MEDICAL COLLEGE ACCESS PROGRAM (MedCap) ALTERNATIVE LOAN PROGRAM
(MAL)
This loan has a variable interest rate. The annual maximum is cost of education minus other financial aid (up to $30,000) and $235,000 aggregate maximum. The origination fee is 0% at disbursement. Generally, repayment begins 36 months after graduation depending on the length of residency training or after 9 mos. if status changes to less than ½ time student. Interest is capitalized at repayment. Fifteen or twenty year maximum repayment period, depending on academic program.
Website: www.wellsfargo.com;
Phone:800-658-3567
MEDLOANS (AAMC) Alternative Loan Program (ALP)
This loan has a variable interest rate. The annual maximum is cost of education minus other aid and $220,000 aggregate maximum. The origination fee is 0% at disbursement. Interest may be deferred during school and during the three-year residency period. Unpaid interest is capitalized when repayment begins. Generally, repayment begins 3 years after graduation depending on the length of residency training or after 9 months if status changes to less than ½ time student. Twenty year maximum repayment period.
Website: http://www.aamc.org/MEDLOANS
Phone: 800-858-5050
This information is subject to change.
This information is subject to change:
The following loan programs are for senior medical students who will be graduating and pursuing a residency program. The funds must be used for residency interviewing/relocating expenses. You can only apply for ONE of the residency loan programs.
CitiAssist
Website: www.studentloan.com
Origination Fees: None
Interest Rate: Variable
Interest Capitalization: Upon entering repayment
Annual Loan Limit: $12,000
Repayment Terms: Repayment begins after residency up to 25 years
Deferment Options: Residency deferment. You can choose an interest only repayment option for 24 or 48 months.
MedCap-X-tra
Website: wellsfargo.com/student
Origination Fees: None
Interest Rate: Variable
Interest Capitalization: At repayment and at the end of each period of borrower–requested forbearance.
Annual Loan Limit: $10,000
Repayment Terms: Repayment begins 36 months after graduation or 6 months after you cease to be enrolled in full time studies, 15 or 20 years depending on academic program.
Deferment Options: No payments for up to 36 months after graduation.
MedAchiever
Website: key.com/educate/grad
Origination Fee: 2% will be added to your loan balance prior to repayment, 6% added after the final disbursement.
Interest Rate: Variable
Interest Capitalization: Only once prior to repayment
Annual Loan Limit: $15,000
Repayment Term: Begins 4 years after graduation or 9 months after you cease to be enrolled ½ time. 25 years.
Deferment Options: Payments are deferred during in school period and for 4 years after graduation.
Access Group
Website: www.accessgroup.org
Origination Fee: None
Interest Rate: Variable
Interest Capitalization: Capitalized once immediately prior to repayment.
Annual Loan Limit: $13,000
Repayment Terms: Begins 9 months after graduation or after completing residency, not to exceed a total of 57 months after grad. 20 years.
Deferment Options: Residency deferment, either make quarterly interest payments or defer the interest after graduation and let the interest accrue.
MEDLOANS
Website: www. aamc.org/students/medloans/students/medex.htm
Origination Fee: None
Interst Rate: Variable
Interest Capitalization: Capitalized when repayment begins
Annual loan limit: $12,000
Repayment Term: Begins 36 months after graaduation or 9 months after withdrawal. 20 years.
Deferment Options: Residency deferment
MEDFUNDS
Website: www.medfunds.com
Origination Fee: 0% Supplemental Fee: 6% after final disbursement. 2% at repayment.
Interest Rate: Variable
Interest Capitalization: Once at repayment
Annual Loan Limit: $15,000
Repayment Terms: Borrower has option each month of choosing payment tied to 10,15, or 25 years repayment period.
Deferment Option: Residency deferment up to 48 months.
Financial Aid Counseling
Counseling is available daily from 8 a.m. to 4:30 p.m. Monday through Friday to answer any questions or concerns that you have. Students are specifically encouraged to make an appointment to review financial needs prior to matriculation (per January-June of your acceptance). Entrance counseling is required for first time borrowers for the Federal Stafford, Federal Perkins, and Primary Care Loan programs. Students are also recommended to see the Medical School-Financial Aid Office at mid-point to review loan repayment information. Exit counseling is also required at graduation. Students should be aware that some loans are now dependent on either their credit worthiness or obtaining a co-signature.
Priority Timelines
Students must submit a Free Application for Federal Student Aid (FAFSA) each year. In the awarding process, the School of Medicine and Health Sciences Student Financial Aid Office awards aid to the most needy students first, whose applications and family financial statements are complete by March 15, and according to available money, thereafter.
Reconsideration
Those students who desire a reconsideration of their financial aid award should make an appointment with the counselor in the UND School of Medicine and Health Sciences Financial Aid Office in order to document the information which will be used in the reassessment. In the majority of circumstances, adjustments for increased budgets will be limited to Unsubsidized Federal Stafford/or ALP/MAL loans.
Short Term Loans
Loan funds have been established to assist students by providing money on a short-term basis. You may apply for a short-term loan at the School of Medicine and Health Sciences Financial Aid Office. Generally, they are to be paid back within 60 days. Simple interest is six percent on the loan. Students cannot have more than one short-term loan out at a time. These loans are repayable at the Business Office.
Verification
Either the Department of Education or UND may select you for a process called Verification. Verification is the process that we use to check the accuracy of the information that a student has given when applying for federal financial aid. The selection of an application for verification review does not mean that we believe your information is incorrect.
Students may be asked to verify information such as income; federal income tax paid; household size; number of family members enrolled at least ½ time in post-secondary education; and any untaxed income or benefits received.
During the time a student is completing the verification process, no funds may be disbursed. If you received federal financial aid because you reported incorrect information, you will have to repay any portion of the aid you should not have received. Also, any person who intentionally makes false statements or misrepresentations on a federal aid application is violating the law and is subject to fine or imprisonment or both.
This verification is required by federal regulations. We are required to adhere to these procedures. An outline of the UND policies and procedures that govern verification will be provided by the Student Financial Aid Office upon request.
Access to Records
Files containing information regarding individual students are not open to the general public under the provisions of the Family Educational Rights and Privacy Act of 1974. The release of such information shall only be made in conformance with the University’s policy as contained in Section 6-3A (1) of the Code of Student Life and the Release and Records Policy, which may be obtained from the Student Financial Aid Office.
Disbursement Procedures
Most financial aid (Federal Perkins Loans, AMA-ERF Loans, and SLND-Bank of North Dakota, Great Lakes, EAC and Montana SLP Federal Stafford and Federal Unsubsidized Stafford Loans) will direct credit against amounts owed to the University for tuition, fees, etc. Any aid in excess of amounts owed will be disbursed to the student in the form of a check. External aid checks, such as MAL/ALP Loans, Federal Stafford and Federal Unsubsidized Stafford Loans from other than the SLND-Bank of North Dakota, Great Lakes, EAC and Montana SLP will not direct credit and will be disbursed when fees are paid, if available.
Eligibility for Resident Student Status
Eligibility for resident student status (and the resulting avoidance of an obligation to pay nonresident tuition) is a technical matter that is controlled by a special North Dakota law and State Board of Higher Education guidelines. Students whose eligibility may be open to questions, especially former long-term North Dakotans or those who have moved to North Dakota from another state, should be sure to familiarize themselves with these guidelines and their requirement regarding place of residency, voting, drivers licenses, auto licenses, state income taxes filing, etc. Copies of guidelines are available in the UND Business Office. (If you are a Minnesota resident and a new Freshman medical student, you will need to complete a reciprocity form.) Minnesota students will be charged non-resident tuition until they receive approval for Minnesota reciprocity.
Direct Deposit
The UND Business Office offers direct deposit as a more convenient means of providing payments to students by enabling us to electronically transfer money to your bank account. You may have your excess aid payments deposited to any financial institution within the Federal Reserve system. If you apply thru external sources such as MAL/ALP and Stafford loans form other than SLND, EAC, Great Lakes, Northstar or Montana SLP these funds will not direct deposit or direct credit.
Direct deposit offers a safe and efficient means of receiving your payment. Having your payment(s) credited to your bank account will eliminate:
• The need for you to go to the UND Business Office to pick up your University check (excess aid).
• The risk of your check(s) being mailed to an incorrect address.
• The need for you to make a trip to the bank to cash or deposit a UND check.
If interested, contact the Medical School SFAO or UND Business Office to complete a "Direct Deposit Authorization Form".
Financial Aid on the Internet
Financial Aid Information Page – has links to many different financial aid-related sites – a good site to start your search!
http://www.finaid.org
Scholarship Searches: 2 examples:
Fast Web: http://www.fastweb.com/
Mach25: http://www.collegenet.com/
U.S. Department of Education Student Financial Assistance:
http://www.ed.gov/finaid.html
Helpful Information for completing the FAFSA:
http://www.ed.gov/prog–info/SFA/FAFSA
EFC (Expected Family Contribution)
Estimator and other calculators:
http://ww.finaid.org/finaid/calculators
Tax Benefits for Higher Education:
http://www.ed.gov/offices/OSFAP/students/taxcuts/index.html
Student Gateway to the U.S. Government:
http://students.gov
FAFSA on the Web:
http://www.fafsa.ed.gov
Personal Identification Number (PIN) Request and Information:
http://www.eac.ed.gov
National Student Loan Data System (NSLDS)-Loan Balance Information:
http://www.nslds.ed.gov
SFA Ombudsman:
http://sfahelp.ed.gov
(This person is available to work with student loan borrowers to informally resolve federal loan disputes and problems.)
(MD) Monetary Decisions for Medical Doctors: Financial Planning through your Medical Career:
www.aamc.org/md2