Student Loans for Those Seeking Health Professions

If you are a full-time student looking to study to be a doctor of science in pharmacy; or a doctor of dentistry, podiatric medicine, optometry, or veterinary medicine, you may be eligible for the need-based Health Professions Student Loan (HPSL), designed to provide financial assistance in the form of long-term loans.

HPSL is a federal loan program administered by the University as the lender.

The aggregate maximum you may borrow in HPSL loans is limited only by the cost of tuition and fees, and by the funds available and the 5 percent annual interest is subsidized by the federal government during the time you are in school and the one-year grace period. You begin repayment at the end of the grace period. Your payments are calculated for full repayment within 10 years (120 months).

For consideration for the HSPL loan, you must report parental data on the FAFSA, even if you have independent student status.

Each and every time you accept an HPSL loan, you will be mailed a paper promissory note and loan disclosure form that you are required to complete and return to SFC before loan funds can be disbursed to you. You will be required to attend an exit interview if you:

* are about to graduate.
* leave the University (even if it is just temporary).
* drop your registration below half-time enrollment.
* transfer to another school.
* leave for a National Student Exchange (NSE) experience.

Are there any restrictions? Funds are allocated to schools by statutory formula for the purpose of capitalizing a student loan fund. Funds on deposit can only be used for loans to eligible students pursuing a full-time course of study; for costs in connection with the collection of any obligation to the fund. The maximum amount a student may borrow is cost of attendance (including tuition, other reasonable educational expenses and reasonable living expenses). Third and fourth year medical and osteopathic medicine students may be eligible for additional funding to repay earlier educational loans.

Students of allopathic medicine and osteopathy must meet financial need criteria and agree to enter and complete a residency training program in primary health care not later then 4 years after the date on which the student graduates from such school and to practice primary health care through the date on which the loan is repaid in full.

To be eligible for Loans for Disadvantaged Students (LDS) students must meet the HPSL criteria and also be from a disadvantaged background as defined by the Secretary. To be eligible for LDS funds a school must be carrying out a program for recruiting and retaining students from disadvantaged backgrounds, including racial and ethnic minorities and carrying out a program for recruiting and retaining minority faculty.

In addition, the school must agree to ensure that adequate instruction regarding minority health issues is provided for in the curricula of the school.

Participating schools are required to renew their agreement periodically as specified by the Secretary to operate a student loan fund with the agency responsible for administering the program. Student applications for financial assistance indicating the basis of approval or disapproval of a loan are maintained on file in the school.

So if you feel medicine is the path for you, there are special student loans available for you, do your homework and you might be surprised.

Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of private student loans and information on student loans and consolidation. For more information, please visit http://www.student-loans.net

Taking out a private loan to help pay for school

Besides loan scholarships offered by the individual colleges, among the many other student loan options available to pay for tuition are Perkins Loans, Stafford Loans, the Federal Direct Loan Program, Parent PLUS Loans, Graduate PLUS Loans, Consolidation Loans, private loans or alternative loans, and work study loans.

If you have qualified for a scholarship or a federally funded grant or loan, you still may need more cash to pay your school bills. Private student loans offered by some banks and other private lenders may find you that money. Lenders offering alternative student loans for college financial aid and private loan consolidation can be found through various websites on the internet. However, before tapping into private student loans, you should almost always maximize your borrowing from federal loans first. The interest rates on federal student loans are limited to a relatively low percentage. Private loans are at higher interest rates. Quite often the interest on private loans may be capitalized which means it will be added to the loan principal. Depending on the number of times this is charged during the length of your loan, this will increase the amount of money ultimately borrowed.

Approval and terms for private loans are based on your credit history. If you have no credit or your credit rating is bad, you might need a co-signer to qualify for this loan. A higher interest rate on your loan usually accompanies a poor or minimal credit record. Additionally, fees and penalties can be higher than with government-backed loans. And your repayment terms may not be as favorable. Because of these conditions, taking out a private loan should be used as a last resort and keeping it only as a small portion of your financial aid portfolio would be smart.

Another option to consider for getting more money for tuition is work study programs. These part-time jobs are assigned by your school. They are for both undergraduate and graduate students and cnabe right on campus oroff campus. The jobs off campus may require relevance to your major or public interest. Wages are determined by the difficulty and required skills involved and start at the miniumum wage rate. The number of hours you may work is determined by your need, how early you apply and total amount of work study funding at your school.

As mentioned earlier, there is information available about private student loans on the internet. The site www.student-loans.net is a helpful place to research student loan companies and compare what is offered and involved with each option. Sometimes the choices can be overwhelming. This site will help you with the process. It also contains helpful tips for students and information about campus life.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of private student loans and information on student loans and consolidation. For more information, please visit http://www.student-loans.net

Direct Student Loans

Direct loans are available to students entering college who need help paying for school. Direct loans are obtained through your school and are funded by the U.S. Department of Education. Contact your school’s financial aid office for more detailed information on how to get a direct student loan. Here we will discuss repayment options for direct student loans obtained through your school.

There are a few options to choose from, but you are allowed to change your plans as your life changes. The standard repayment plan is the most common plan. It allows you to repay your loan over a period of up to ten years. The payments are fixed and easy to budget for. This is the quickest plan for repaying your loan. The payments may be a little higher because of the short time frame. But, you’ll end up paying less interest in the long run and saving money.

If you can’t afford the larger monthly payments and need a little longer to pay back the loan, then you may consider the extended repayment plan. This plan gives you twelve to thirty years to repay the loan. The amount of time depends on the amount of money that you owe. Larger sums of money can be stretched out to longer lengths of time for repayment. Your payments are smaller and you’re taking longer to pay off the full amount, so you will end up paying more interest on the extended repayment plan.

The graduated repayment plan is a plan that assumes you’ll be making more and more money after you graduate. It starts out with a small minimum payment due. Then it will gradually increase the minimum until the loan is paid off. This graduated repayment plan, like the extended repayment plan, can take twelve to thirty years, depending on how much money you borrowed.

Another popular plan is the income contingent repayment plan. This plan gives you a little leeway in your payments. You can recalculate payments every year based on how much money you’re making. The more money you make, the more you will pay back. Your spouse’s income will be included in determining this amount if you are married. This plan gives you a maximum of twenty five years to repay your direct student loans.

Direct student loans are meant for school expenses only. There are other types of loans offered by banks and online lenders. Your school will work with other types of lenders besides the U.S. Department of Education. You will need other forms of income for expenses associated with school, such as clothing, groceries, rent, computers and bills. If you need some assistance, shop around for student loans. Private student loans are also available and can help you through your college years. Educate yourself and find out which options will be best for you. When paying off multiple student loans or private student loans, consider consolidation. Do your research and you should have a successful student loan experience.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.