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:

Fixed rate for the life of each loan which is tied to the academic year under which it was borrowed. For loans first disbursed on or after July 1, 2025 and prior to July 1, 2026, the fixed interest rate is 7.94%. The rate for the 2026-27 academic year will be announced by June 2026.

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:

Annual limits are based on a student's academic level. For 2026-27, first-year MD students may borrow up to $50,000. Second - and third-year students may borrow up to $47,167, while fourth-year students may borrow $42,722. Loan amounts are divided into equal parts across two or three semesters within each academic year. Aggregate and lifetime borrowing limits for this loan program also apply.

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:

Starting July 1, 2026, this student loan program will be eliminated except for students who qualify for a limited exception. Continuing students may qualify for this limited exception if they remain continuously enrolled in the MD program at UCCOM and if they had a Federal Direct Loan (Direct Unsubsidized or Grad PLUS) disbursed before July 1, 2026. These borrowers must also complete the FAFSA annually and have no adverse credit. The limited exception ends when they compelte the MD program graduation requirements, or by June 30, 2029 (whichever is sooner).

Students who enter medical school in Fall 2026 and beyond are not eligible for this loan due to statutory changes in federal law.

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:

Fixed rate for the life of each loan which is tied to the academic year under which it was borrowed. For loans first disbursed on or after July 1, 2025 and prior to July 1, 2026, the fixed interest rate is 8.94%. The rate for the 2026-27 academic year will be announced by June 2026.

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