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Educational Loan Programs

Comparison of Title IV Federal Loans
UA College of Medicine

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  FEDERAL SUBSIDIZED STAFFORD FEDERAL UNSUBSIDIZED STAFFORD FEDERAL GRADUATE PLUS LOAN
Sample Loan Amount $8,500 * $27,500 $3,000
**Maximum Fees:
Origination Fees
Federal Default Fee

1.5%
1%

1.5%
1%

3%
1%
Approximate net loan if awarded $8,287.50 $26,812.50 $2,880
Interest accrual to student while in school 0% Fixed 6.8% Fixed 8.5%
Grace period 6 months after drop to less than half-time, withdraw, or graduate 6 months after drop to less than half-time, withdraw, or graduate None. Repayment begins 60 days after final disbursement.  In-school deferment available.
Interest during repayment period Fixed 6.8%

 

Fixed 6.8% Fixed 8.5%
Repayment period 10 years, or 25 years for borrowers eligible for Extended Repayment (subject to minimum monthly payment) 10 years, or 25 years for borrowers eligible for Extended Repayment (subject to minimum monthly payment) 10 years, or 25 years for borrowers eligible for Extended Repayment (subject to minimum monthly payment)
Aggregate maximum (undergrad and grad, subsidized and unsubsidized) $65,500 (subsidized) $189,125 (subsidized and unsubsidized, College of Medicine students, including undergraduate loans) None. Annual limit is cost of attendance minus other financial aid.

*Nine month maximum for medical students is $40,500 less the amount of subsidized Federal Stafford Loan for which the student qualifies. Total aid may not exceed the cost of attendance as determined by the school.   The cost of attendance at the UA College of Medicine for 2008-2009,  including living expenses, is about $36,311 for first-year students not living with parents.

**Some lenders pay a portion of these fees on your behalf.

 

TERMS MAY VARY depending upon the academic year the Federal Stafford Loan is borrowed.  Beginning for loans disbursed on or after July 1, 2006, Federal Stafford Loans have a fixed interest rate of 6.8%.  This is a change from previous law which utilized a variable interest rate with a cap of 8.25% over the life of the loan.  

 Under certain conditions, deferment of repayment is available for limited times. Graduated or income sensitive repayment schedules are also available. Ask your lender for more details.

Information is based on federal laws in effect at this writing and is subject to change.

GLOSSARY OF TERMS: DEBT MANAGEMENT

For a glossary of frequently used terms and information on Debt Management, you may want to review the wealth of information provided by the Association of American Medical Colleges website for students and residents: http://www.aamc.org/students/.

 

SAMPLE REPAYMENTS:
Repayment amount will depend upon amount borrowed, the interest rate and the date interest begins to accrue, amount of interest capitalized and how frequently it is capitalized. A helpful calculator along with other information is available at http://www.finaid.org/calculators/.

HOW MUCH WILL YOU NEED TO BORROW?
The cost of attendance used by the school may vary from your own budget, particularly in the area of living costs, so do your own assessment of your needs and resources. The maximum financial aid you may receive is determined by the school's cost of attendance. If you will be dependent upon loans, apply for scholarships and be conservative in your spending to keep your loan indebtedness to a minimum. With loans you are spending your future income; while it is an investment in your future, you may also pay back $1.50 to $3.00 or more for that item which originally cost you $1.00.


How Much Should You Borrow?

or "Controlling that Dreaded Debt!"

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