Medical Student Loans Provide First Aid To Graduate Students
By
The Student Loan Staff
Those seeking a career in the medical field have some options in obtaining medical student loans, from private lenders to government secured loans. There is also an occasion when a graduate student has impressed a medical center that the center is willing to offer medical with a promise that the student works in their facility for a set number of years in return for the money. Once out of school, if the student reneges on the promise, the amount of the loan will become due. Stafford Loans for graduate students are available for either qualifying students as subsidized or unsubsidized loans. Many of these loans are administered by the Federal Family Education Loan Program, which means the money is made available through private lending sources and guaranteed by the federal government. For medical administered by the Federal Direct Student Loan Program, the funds are disbursed to the students through the school. With subsidized loans, the federal government picks up the cost of interest while with unsubsidized loans the student is responsible. With many medical are offered on a deferral, the interest accumulates from the date the loan is disbursed to the school. Students are suggested to make interest payments while in school to reduce the loan amount as well as payment amount once they begin paying back the loan. Additional Programs Available For Graduate Work Some students do not qualify for need-based assistance and can apply for Graduate PLUS loans, which are based

on credit history and rating. A cosigner may be needed if the student’s history does not meet the lender’s requirements for medical and Grad Plus loans can be deferred until after graduation. Interest on Grad Plus medical is currently a fixed 8.5 percent and begins accruing from the date the money is disbursed to the school and continues to accrue until the loan is satisfied with the lender. Making interest payments while in school is recommended. Another option may a graduate federal Perkins Loan, money from which comes from the government through the school with an interest rate of five percent. This loan can be deferred for up to nine months after graduation, falling below half-time status or dropping out of school. The student may have up to 10 years to repay Perkins medical student loans. In some cases deferment on making loan payments are available, during which time no interest accrues. However, they are not automatic and application must be made to receive a deferment.