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Medical Student Financial Services

Private Educational Loans

Private educational loans are offered by banks and lending institutions as an alternative to the federal Grad PLUS loan. Students interested in receiving a private educational loan are encouraged to discuss their borrowing needs with the assistant dean for student financial planning.  

Lenders: 
A list of lenders currently offering private educational loans can be found at finaid.org/loans/privateloan.phtml.

Because the availability and terms of these loans change frequently, this list may not be complete or up to date. Look for loans designed specifically for medical students.

How to Apply:
Submit the Private Educational Loan Request Form to the Financial Services Office.

 



Grad PLUS Loan


Private Educational Loan

     

Lender

Federal government

Bank or lending institution.

Application Process

Follow the UC COM financial aid application instructions.

Follow the application process specified by the lender.

Interest 

Rates and Fees

Rates set every year based on the 10-year Treasury Bill plus an add-on percentage. 

Rates apply for the life of the loan. Rate for 2017-18 is 7.00%

4.276% origination fee.

Variable interest rate. Variable rates will rise and fall depending on market conditions. They can change as frequently as every three months. The interest rate you receive will depend on your credit score. 

Fees vary by lender and may be as low as 0%. 

Using a co-signer might lower your interest rate. Some lenders provide a co-signer release provision during repayment.

Co-signer

A co-signer (endorser) is required only if you have adverse credit.

Using a co-signer will NOT lower your interest rate.

If you do not meet the lender’s credit criteria, you might receive the loan if you apply with a credit-worthy co-signer.

Using a co-signer might lower your interest rate.

Loan Limits

Cost of attendance minus your other financial aid.

Cost of attendance minus your other financial aid.

Disbursement

Equal disbursements over the terms of the academic year required.

Borrower can specify disbursement amounts and dates.

Deferment and Forbearance

All deferment options attached to federal student loans are available. You are entitled to mandatory forbearance of payments during residency if you request it. See studentloans.gov

Some loans offer forbearance of payments during residency, usually for a specified number of years, which may not cover long residencies. Do not borrow a loan that does not offer this option.

Repayment Term

All repayment options attached to federal student loans are available. See studentloans.gov. Loan can be paid off early without penalty.

Limited repayment options. Standard repayment term is usually 20 years. Loan can be paid off early without penalty.

Loan Forgiveness

Eligible for the federal Public Service Loan Forgiveness program

Not eligible for the Public Service Loan Forgiveness program

Death/Disability

Loan is discharged upon death or total and permanent disability of borrower.

Most loans are NOT insured against death or disability. Lender will attempt to collect the loan from the borrower’s estate.