Federal Direct Loan Program Changes Effective July 1, 2009 – Federal Public Service Loan Forgiveness and Income Based Repayment Option: Click here
Financial Aid: Loan Programs
- Federal Direct Subsidized, Unsubsidized, Graduate PLUS
- Federal Direct Consolidation
- Federal Perkins
- Private/Alternative
- Residency/Relocation
- Canadian Student Loan Programs
- U.S. Department of Health and Human Services Loan Programs
National Student Loan Data System (NSLDS)
The NSLDS is the U.S. Department of Education’s centralized database where you can view your complete federal student loan (Federal Subsidized, Unsubsidized, Graduate PLUS, Perkins, and Consolidation) borrowing history.
To log in, go to www.nslds.ed.gov and use the 4-digit Federal PIN Number that you use to sign your Free Application for Federal Student Aid (FAFSA). To apply for, replace, or change your PIN, go to www.pin.ed.gov.
Federal Direct Subsidized and Unsubsidized Loans
Eligibility: File a Free Application for Federal Student Aid (FAFSA) and complete any subsequent requests for information or documentation. Maintain at least half-time enrollment.
Interest Rate: Fixed 6.8%
Annual Limits:
Allopathic Medical Students are eligible to borrow up to $8,500 in Subsidized loans, and up to $32,000 in Unsubsidized loans, plus an additional $2,222 Unsubsidized for each month beyond a 9-month academic year, as follows:
Yr in Medical School Stafford Subsidized Stafford Unsubsidized Total Sub/Unsub
Year I – 10 months $8,500 $34,222 $42,722
Year II & IV – 11 months $8,500 $36,444 $44,944
Year III – 12 months $8,500 $38,667 $47,167
Aggregate Limit:
$224,000 for Allopathic Medical Students. Of this, a maximum of $65,500 can be subsidized loans. This includes all undergraduate and graduate debt, and all loans borrowed through either the Federal Family Education Loan Program (FFELP) or the Federal Direct Loan Program (FDLP).
Federal Direct Graduate PLUS Loans
Eligibility: A credit check is required. File a Free Application for Federal Student Aid (FAFSA) and complete any subsequent requests for information or documentation. Maintain at least half-time enrollment. Borrow the maximum in Federal Direct Subsidized and Unsubsidized Loans prior to applying for a Graduate PLUS Loan.
Interest Rate: Fixed 7.9%
Annual Limit: Cost of Attendance minus other financial aid.
Aggregate Limit: None
Federal Consolidation Loans
Federal Consolidation Loans allow you to combine existing federal student loans into one new loan with a weighted-average fixed interest rate. This reduces the number of monthly payments to individual lenders/servicers and may also lower monthly payment amounts.
More information about loan repayment options can be found at:
Federal Perkins Loans
Eligibility: File a Free Application for Federal Student Aid (FAFSA) and complete any subsequent requests for information or documentation. Students must provide parental data on the FAFSA and meet Campus-Based Aid criteria. Maintain at least half-time enrollment.
Interest Rate: Fixed 5.0%
Annual Limit: Actual amounts are determined by the institution and are contingent upon available funding.
Aggregate Limit $40,000 including undergraduate, and graduate debt.
Note: You must sign a new Federal Perkins Loan MPN each year that you receive a loan.
MPN with Electronic Signature Option: After you “accept” your Perkins Loan offer in WSU Pipeline, you will be directed to complete and electronically sign an MPN. This will be available from the “Financial Aid” tab under “My Eligibility.”
MPN Paper Option: If you do not wish to sign electronically, you can download and print an MPN. The original document must be submitted to our office (no faxes or photocopies.)
First-time Perkins Loan Borrowers:
Complete Perkins Loan Entrance Counseling
Perkins Loan Information and Exit Counseling can be obtained from Wayne State University’s loan servicer, Affiliated Computing Services (ACS) or by calling 800-432-2372.
Private/Alternative Loans
Eligibility: Meet credit approval requirements. If a non-U.S. citizen, obtain a co-borrower who is a U.S. citizen or eligible non-citizen.
Students who meet U.S. citizenship requirements should file a Free Application for Federal Student Aid and borrow their maximum in Federal Direct Subsidized, Unsubsidized and/or Graduate PLUS Loans before considering private/alternative loan options.
Interest Rate: Variable, no cap.
Annual Limit: Cost of Attendance minus other financial aid.
Aggregate Limit: Varies by lender; federal loan debt is taken into consideration.
Choosing a Private/Alternative Lender:
Students may initiate an application with any participating lender and are advised to compare loan programs before choosing the one that best suits their needs. A comparison should be based on such factors as: interest rates; frequency of capitalization; fees; and deferment, forbearance and repayment options. Once approved, the lender will contact the Office of Student Financial Aid to certify the loan.
Variable rate loans which are non-need based and require credit approval. The amount borrowed cannot exceed the cost of attendance minus other aid.
The borrower initiates the application process with the lender. Once approved, the lender will contact the Office of Student Financial Aid to certify the loan.
Students who meet the citizenship requirements to apply for federal financial aid from the U.S. Department of Education should file a Free Application for Federal Student Aid (www.fafsa.ed.gov) to determine their maximum eligibility in federal loans before considering a private/alternative loan.
Federal vs. Private/Alternative Loans FAQ
Private/Alternative Loan Ratings from Student Lending Analytics:
Residency/Relocation Loans
Variable interest rate loans that require credit approval. Students must meet U.S. citizenship requirements and be in their final year of medical school. These loans are intended to cover expenses associated with residency interviewing and/or relocation since these costs cannot be included in the school’s Cost of Attendance. The borrower initiates the application process with the lender; the lender disburses funds directly to the borrower.
Below are lenders who offer Residency/Relocation Loans to health professions students. You are not required to select from this list but may initiate an application with any lender of your choosing. You are advised to compare loan programs before choosing the one that best suits your needs. A comparison should be based on such factors as: loan maximums, interest rates; frequency of capitalization; fees; and deferment, forbearance and repayment options. Applications and program details are available from individual lenders.
Canadian Student Loan Programs
Canadian students do not qualify for U.S. Department of Education federal student assistance programs, but can apply for federal and provincial loans through the Government of Canada. Information is available on the CanLearn website.
Ontario Student Assistance Program (OSAP) website
Those with a U.S. co-borrower may also apply for private/alternative loans with participating U.S. lenders.
U.S. Department of Health and Human Services, Health Resources and Services Administration, Bureau of Health Professions
Primary Care Loans
Fixed 5% interest loans available to Year III and IV students. Parental data must be provided on the FAFSA and will be considered in determining eligibility. The student must enter into and remain in the primary health care field until the loans are paid in full to retain the 5% interest rate. These loans may be borrowed to replace other federal loan debt incurred while in medical school. Contact the Office of Student Financial Aid to apply. Awards are based on availability of funds.
Loans to Disadvantaged Students
Fixed 5% interest loans available to students in any year of medical school who meet the Department of Health and Human Services poverty guidelines and family income thresholds. Contact the Office of Student Financial Aid to apply. Awards are based on availability of funds.
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