Federal Loans

Most federal financial aid for medical students nationwide is in the form of student loans from the William D. Ford Federal Direct Loan (Direct Loan) Program.

Federal Direct Unsubsidized Stafford Loan  

Eligibility:  This student loan is available to any U.S. citizen or Permanent Resident who completes the FAFSA and is not in default on a federal student loan.  There is no credit check involved, financial need does not need to be demonstrated, and a co-signer is not required as the federal government serves as guarantor on this loan.

Interest rate:  For loans first disbursed on or after July 1, 2023 and prior to July 1, 2024, the fixed interest rate is 7.05%.  

Origination Fee: 1.057%  (Most federal student loans have loan fees.  These fees are a percentage of the total loan amount.  A loan fee comes out of the amount of money that is disbursed (paid out) to a student while in school.  This means the money received is less than the amount borrowed.  Borrowers are responsible for repaying the entire amount borrowed and not just the amount received.)

Borrowing limits: First and Fourth year students may borrow $42,722 annually, while second and third year students may borrow up to $47,167 each year.  Loan amounts are divided into equal parts across the two or three semesters within each academic year.  The lifetime maximum a medical student can borrow from this loan program is $224,000.

Repayment:  Begins six months after a medical student graduates or leaves school.  The U.S. Department of Education (ED) uses several loan servicers to handle the billing and collection of loans, and students are notified by ED about which servicer their loans were assigned.

How to apply: Submit the FAFSA by UCCOM's deadline each year.  Afterwards, students complete a Master Promissory Note and Loan Entrance Counseling at FederalStudentAid. Details are available on our instructions page.

More information: Visit FederalStudentAid.

Federal Direct Grad PLUS Loan   

Eligibility: This student loan is available to any U.S. citizen or Permanent Resident who completes the FAFSA, has no adverse credit, and is not in default on a federal student loan.  The government defines adverse credit as (1) not currently 90 days or more delinquent on any debt, and (2) not having been placed in collection or charged off (written off) during the past two years, and (3) not subject to the following in the last 5 years: default determination, bankruptcy, foreclosure, repossession, tax lien, wage garnishment, or a write off of Title IV debt. The credit check the U.S. Department of Education performs is valid for 180 days and does NOT consider the following creditworthiness factors:  credit/FICO score, debt-to-income ratio, or the amount of loan funds requested.

Interest rate:  For loans first disbursed on or after July 1, 2023 and prior to July 1, 2024, the fixed interest rate is 8.05%.

Origination Fee: 4.228% (Most federal student loans have loan fees.  These fees are a percentage of the total loan amount.  A loan fee comes out of the amount of money that is disbursed (paid out) to a student while in school.  This means the money received is less than the amount borrowed.  Borrowers are responsible for repaying the entire amount borrowed and not just the amount received.)

Borrowing limits: The annual cost of attendance less all other aid received.

Repayment:  Begins six months after a medical student graduates or leaves school.  The U.S. Department of Education (ED) uses several loan servicers to handle the billing and collection of loans, and students are notified by ED about which servicer their loans were assigned.

How to apply:  Submit the FAFSA by UCCOM's deadline each year.  Afterwards, students complete a Master Promissory Note and Loan Entrance Counseling at FederalStudentAid.  Details are available on our instructions page.

Accepting a loan amount: After your financial aid offer is available in Catalyst, submit the UCCOM  Grad PLUS Loan Request Form to the Office of Financial Services to indicate the loan amount you wish to receive.

More information: Visit FederalStudentAid