Direct PLUS Loan For Graduate Students

The Direct Graduate PLUS Loan is a federal loan for graduate and professional students. It can be used to cover up to 100 percent of your total Cost of Attendance, minus other financial aid you've been awarded. The Direct Graduate PLUS Loan offers a fixed rate of interest at 7.9 percent for the life of the loan and can be consolidated with your other federal loans. While you are required to pass a credit check, many students with limited or no credit history can still qualify for this loan.
 

FEDERAL PERKINS LOAN

The Federal Perkins Loan is a federally guaranteed low-interest rate loan program administered by PCOM.  It is available to graduate and medical students with priority given to students who file the FAFSA before the March 31, 2011 deadline and demonstrate exceptional financial need as determined by the Department of Education.

The interest rate on the Perkins Loan is 5% and the interest is deferred while you are in school on at least a
half-time basis.  If you drop below half-time, graduate or withdraw, you are given a nine-month grace period before interest begins to accrue.  At the end of the nine-month grace period, simple interest of 5% accrues on the entire balance and you are expected to begin repayment of the loan.  You have up to 10 years to repay the entire balance with accrued interest.

Loan amounts vary depending on annual funding levels.  The aggregate lifetime limit for the Federal Perkins Loan is $40,000 for graduate and medical students (including undergraduate borrowing).

For the loan to be credited to your account, you must complete an Entrance Interview and sign a Perkins Loan Master Promissory Note and a Perkins Loan Award form.

FEDERAL WORK-STUDY (FWS)

The Federal Work-Study program is a federally funded work program that is administered by PCOM's Office of Student Affairs. This program provides jobs for graduate and medical students with financial need, allowing them to earn money to help pay for educational expenses. 
 

All applicants for work-study positions must meet the same eligibility criteria required for federal assistance programs. Applicants must demonstrate financial need, submit proof of U.S. citizenship at the time of hiring, complete IRS forms and submit all financial aid information required by the PCOM Financial Aid Office. Jobs range from typical library and office work, to assisting in labs and participating in research.  A few students are placed in doctor's offices and in patient billing services.
 
Federal Work-Study wages are $10.00 to $15.00 per hour for 2012-13 academic year.  The total FWS award depends on when you apply, your level of need, the amount of other aid you will receive, the availability of funds and the time requirements of the job.  The amount of your FWS award is calculated as part of your overall financial aid award and therefore may reduce your need for other funds. Work-study students may work up to 15 hours per week when classes are in session or 35 hours per week during vacation periods. A PCOM check is made payable to you on a bi-weekly basis.  Once your application has been completed and your financial aid status evaluated, you must sign a FWS Award Letter acknowledging the award.

All applications, payroll, timekeeping procedures and job assignments are conducted through the Office of Student Affairs, not the specific supervisor or department for which a student works.  The Office of Student Affairs publishes additional information about the Federal Work Study Program, at the end of the Spring Term.

Federally Funded Programs for Medical Students:

PRIMARY CARE LOAN (PCL)
The Primary Care Loan (PCL) is available to medical students who show exceptional  financial need and who plan to enter a residency training program in family medicine, internal medicine, pediatrics, combined medicine/pediatrics, preventative medicine or osteopathic general practice.

    • Consideration is given to third- and fourth-year medical students.
    • To qualify, students must include their parents' financial information on the FAFSA or pre-filled FAFSA, 
       regardless of dependency status.  The only exception is if both parents are deceased.
    • Students must submit a copy of their (and their spouse's) federal tax return, as well as their parents' tax
       return.
    • Students must complete a Primary care loan interview with a financial aid counselor prior to receiving the
       award.

The loan amount varies from year to year depending on funding levels and cannot exceed the cost of tuition plus fees.  The loan does not accrue interest while you are in school or during your residency.  After graduation, you are granted a 12-month grace period. Interest begins to accrue at a simple rate of 5% when repayment begins, in accordance with the
repayment schedule signed at your exit interview.  You have up to 10 years to repay the loan.  To extend the length of repayment, you must make a written request and have it approved by PCOM.

Prior to March 23, 2010 PCL recipients were required to enter and complete a residency training program in primary health care, and practice in primary health care until the PCL loan was repaid in full. Under new legislation, effective March 23, 2010, the PCL Program will have a different service requirement. Borrowers who receive a PCL on or after March 23, 2010 are required to enter and complete residency training in primary health care, and practice in primary health care for 10 years (including the years spent in residency training), or through the date on which the loan is repaid in full, whichever occurs first. In addition, the service default rate has also changed. In the past, PCL borrowers who did not fulfill the service requirements and began practicing in a discipline or specialty other than primary health care were penalized by having their interest rate on the PCL recalculated at 18 percent. Under the new law, borrowers who receive a PCL on or after March 23, 2010, and fail to comply with the service requirements of the program will have their loans begin to accrue at a rate of 2 percent per year greater than the rate at which the student would pay if compliant. For instance, the compliant rate is currently 5 percent per year, so the service default rate would be at 7 percent per year.

If you fail to complete your medical school education, the additional penalty does not apply. the twelve-month grace period begins with your last date of attendance and you have 10 years to repay the balance plus accrued interest at 5%.  Detailed information on the Primary Care Loan Program is available at http:www.hrsa.gov/index.html.

NATIONAL HEALTH SERVICE CORPS SCHOLARSHIP PROGRAM

The National Health Service Corps Scholarship Program is open to medical students who are committed to primary health care practice in underserved, Health Professionals Shortage Areas (HPSA). In exchange for a service commitment, the NHSC will pay full tuition and fees, a monthly stipend, and an allowance for other reasonable educational expenses on a year-to-year basis. The minimum service obligation is two years. Students are required to report the full amount of tuition scholarship and stipend support received through the NHSC as taxable income. Applications for the NHSC Scholarship Program are generally available by mid-January in the Financial Aid Office or can be solicited directly from the Bureau of Primary  Health Care, Division of Scholarships and Loan Repayments, 11300 Rockville Pike, Suite 800, Rockville, MD 20852, (301) 594-4410, (800) 638-0824.  Additional information on this program may be found at http:www.hrsa.gov/index.html.

  
ARMED FORCES SCHOLARSHIPS

The Army, Navy, and Air Force offer competitive scholarships based on academic performance and recommendations.  The scholarship provides a monthly stipend, tuition and fees, books and instruments.  U.S. citizens that physically qualify must enroll or be accepted for enrollment at an approved college.  In return for the scholarship, recipients are obligated to give one year of service for each year of support (minimum two years of service).  Recipients will be required to spend 45 days on active duty each year while in school.  Detailed information may be obtained at the following Web sites:

U.S. Army - www.goarmy.com
U.S. Air Force - www.airforce.com
U.S. Navy - www.navy.com

Medical students may also want to explore the generous financial incentives offered to doctors who enlist in the Army or Air National Guard as a medical officer.  Please search the following Web sites for additional information:

U.S. Army National Guard - www.1800goguard.com
U.S. Air National Guard - www.ang.af.mil