Loans For Disadvantaged Students (LDS) provide long-term, low-interest rate loans (5%) to full-time, financially needy students from disadvantaged backgrounds.
The College of Medicine is responsible for selecting loan recipients, making reasonable determinations of need, and providing loans which do not exceed the cost of attendance.
Determination of eligibility is made sometime in winter quarter of each school year. Only 3rd and 4th year students are considered for these loans.
The grace period for this loan is one year, during which repayment of principal is not required and interest does not accrue. The grace period immediately follows completion or termination of full-time student status and cannot be postponed to follow any deferments for which the borrower may be eligible.
These loans require repayment in 10 years or less. The borrower may prepay all or any part of the principal and accrued interest at any time without penalty.
Deferment options are also available. A deferment period on an LDS means that interest does not accrue and the borrower does not have to make payments on the loan. LDS deferments are not automatic. Borrowers must request deferments at least 30 days before the beginning of:
- an activity that makes the borrower eligible for deferment; or
- the repayment period (i.e., the due date of the first payment) if the borrower is beginning the activity during the grace period.
Borrowers then must file deferment forms annually for each additional year of deferment.
|
Deferment Categories |
Maximum # of Years for Deferment |
|
Active duty in the uniformed services |
Up to three years |
|
Peace Corps volunteer |
Up to three years |
|
Advanced professional training- an internship or residency program or other full-time training beyond the first professional degree. |
Unlimited |
|
Leave of absence to pursue related educational activity |
Up to two years |
|
Training fellowship, training programs and related educational activities for graduates of health professions schools |
Up to two years |
For more detailed information about Loans for Disadvantaged Students please visit Bureau of Health Professions Loans .