Financial Aid Office

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Loan Information 2005-2006

MD Loan Comparison Chart

The array of loan options available to finance medical education is potentially confusing. The Financial Aid Office will work closely with you throughout your years of medical school to assure that you have the information necessary for making informed decisions.

FIRST... a Subsidized Federal Stafford Loan

The primary source of aid for any medical student who is a US citizen or permanent resident is the federally subsidized Stafford loan. While eligibility for the subsidy – interest payments during in-school or deferment periods – is based upon financial need, almost all medical students qualify because parent income is not a factor in eligibility determination. Because the federal government guarantees repayment, no collateral is required nor must a borrower have established credit. Currently, the amount available annually is $8,500.

THEN...an Unsubsidized Federal Stafford Loan

Most students require more than $8,500 and obtain additional funding through an Unsubsidized Stafford loan. Like the Subsidized Stafford, an Unsubsidized Stafford is federally guaranteed, but there is no interest subsidy while the borrower is in school or deferment. Generally borrowers accrue rather than pay the accumulating interest during this period. For loans obtained through the Federal Stafford loan program, accrued interest is not capitalized until the beginning of repayment. Currently the total unsubsidized Stafford loan amount available annually is $30,000 - $36,666, depending on the length of your academic year.

The interest rate on Federal Stafford loans is variable, based on the 91-Day Treasury bill + 1.7%. The interest rate is adjusted annually @ July 1 (For 7/1/05-6/30/2006, 4.70%) and is capped at 8.25%. Interest accrues and capitalizes at repayment.

APPLICATION PROCESS

Federal Stafford loans are obtained simply by submitting a FAFSA (Free Application for Federal Student Assistance) and additional materials as described in the financial aid application materials provided to all interviewed applicants and current students. Promissory notes for Federal Stafford loans will be mailed along with your financial aid award.

FINALLY, IF NECESSARY...

Most students will find these loans, in combination with family support and/or other financial aid, sufficient to meet their needs. If this is not the case for you, please refer to the Outside Loan chart for alternative private loans and details. Staff in the Financial Aid Office can help you compare their relative merits or provide you with additional alternatives.

Call or stop by our office weekdays between 8:00 a.m. and 4:30 p.m. where our staff is available to assist you, or visit our website: http://www.urmc.rochester.edu/smd/finaid/.

Margaret Christian
Assistant Director of Financial Aid
margaret_christian@urmc.rochester.edu

Ellen Poole
Financial Aid Advisor
ellen_poole@urmc.rochester.edu