By completing a fafsa form most students are eligible for federal Stafford loans, regardless of credit history. Also, these loans do not require a cosigner.
Most students are eligible to borrow between $42,722 and $47,167 each year in Subsidized and Unsubsidized Stafford loans depending on their year in school:
|
|
Med 1
|
Med 2
|
Med 3
|
Med 4
|
|
Subsidized
|
$8500
|
$8500
|
$8500
|
$8500
|
|
Unsubsidized
|
$34,222
|
$34,222
|
$38,667
|
$38,667
|
Maximum Lifetime Limit (includes undergraduate, graduate, and professional school): $224,000
The current interest rate on the Stafford loan is 6.8%.
The interest on subsidized loans is paid by the federal government while the student is attending school or in deferment. Whereas, the borrower is responsible for the interest on unsubsidized loans while in school, in deferment, or in forbearance. The student can chose NOT to make interest payments on the unsubsidized loan and allow the interest to accure on the loan. Therefore, no payment is required on the Subsidized and Unsubsidized Stafford loans while you are in school, in deferment, or in a forbearance status.
Students have several options for repayment, so you can select the repayment plan that best fits your financial circumstances. Repayment begins six months after you stop attending school or graduate. However, most medical students can submit the Internship/Residency forbearance form to delay payment until after they have completed their residency program. For more information regarding repayment options visit the Loan Repayment Options web site.