By completing a FAFSA form most students are eligible for federal Stafford loans, regardless of credit history. Most students are eligible to borrow $42,000 - $47,000 each year in Unsubsidized Stafford loans. The current interest rate on the Stafford loan is fixed at 6.8%.
All federal Stafford loans that are available to medical students are unsubsidized. With unsubsidized loans, the borrower is responsible for the interest accrued while in school, in deferment, and in forbearance. Although interest accrues on the loan from the date of disbursement, no payment is required on Stafford loans while the student is actively enrolled, in deferment, or in a forbearance status.
Repayment begins after a six-month grace period immediately following a change in enrollment status. This change in status occurs when a student terminates their enrollment at the College of Medicine due to completion of the program, a leave of absence, or a full withdrawal. Students have several options for repayment and can select the repayment plan that best fits their financial circumstances. Most recently-graduated medical students will enter repayment during residency. However, residents can request a forbearance from their servicer allowing a postponement in payment until after the completion of their residency program.
