Consolidating medical school loans
On April 14, 2008, the Department of Education (ED) issued a Dear Colleague letter (GEN-08-04) that raises the combined aggregate Stafford loan limit for certain health professions students (including medical students) from 9,125 to 4,000.The increase comes in response to a September 4, 2007, AAMC-coordinated sign-on letter from almost 60 health professions organizations to then Secretary of Education Margaret Spellings. Grad PLUS Loans: Medical students may also take out Grad PLUS loans, which are unsubsidized loans and have an annually-fixed interest rate based on the 10-year Treasury note -- 2.55 percentage points higher than undergraduate loans.If you are tight on money and cannot make monthly payments, you can consider consolidating your loans.
The PCL offers a 5 percent interest rate to students who agree to train and practice in primary care until the loans are paid off (capped at 10 years).Stafford loans for graduate/professional students have an annually-fixed interest rate based on the 10-year Treasury note -- 1.55 percentage points higher than undergraduate loans.For loans first disbursed on or after July 1, 2015, and before July 1, 2016, the interest rate is 5.84 percent.Perkins Loan Program: A Perkins Loan is a low interest, fixed 5 percent loan for medical students with "exceptional" financial need.
The Department of Education provides a programmed amount of funding to the participating institution.Students are not required to make payments while in school, but interest accrues on unsubsidized loans during that period.