Federal Direct Stafford Loan
Federal Direct Loan Programs
The United States federal government provides loans for students who are U.S. citizens, permanent residents or eligible non-citizens. The Federal Direct Unsubsidized Loan and Federal Direct Graduate PLUS Loan Programs are available to students who meet the qualifications. (Effective July 1, 2012, the Budget Control Act of 2011 eliminates the interest subsidy for graduate/professional students.)
An Unsubsidized Stafford loan is the primary source utilized by students to finance their medical education. Students who are interested must complete a Free Application for Federal Student Aid (FAFSA) to begin the application process. The Financial Aid Office will determine your eligibility for these loans. Effective July 1, 2013, the interest rate for this loan is fixed at 5.41 percent and the origination fee is 1.072 percent for loans disbursed between July 1, 2013 to June 30, 2014. The loan fees are deducted from loan proceeds prior to the disbursement of funds and borrowers are responsible for repayment of all such fees.
Interest on the Unsubsidized Federal Direct Loan begins to accrue immediately after the loan is disbursed. The borrower is responsible for all interest that accrues and can choose to either pay the interest while in school or add any deferred interest to the principal balance of the loan (capitalization). The maximum cumulative borrowing for the Federal Direct Loan is $224,000.
Applying for Federal Direct Loans
If you have been awarded a Federal Direct Loan, and you are a first time borrower at Frank H. Netter MD School of Medicine, you may complete the Master Promissory Note and Entrance Counseling online. Please follow the instructions provided on the Direct Loans Web page. To electronically sign your Master Promissory Note, you will need your Federal Student Aid (FSA) Personal Identification Number (PIN) used to electronically sign your FAFSA. If you do not remember your FSA PIN, you may go to www.pin.ed.gov to help you access your FSA PIN online. You will also be asked to provide two references (and corresponding name, address and telephone number). One reference should be your nearest relative.