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Loan Types, Terms, and Interest Rates

Federal Direct Unsubsidized Loan

Interest: 8.08% fixed rate for 2024-25 loans disbursed on or after July 1, 2024 and before July 1, 2025.

Fees: Origination fee of 1.057%

Disbursements: Disbursements are typically made in 2 equal payments, with one in the Fall term and one in the Spring term. Borrowers should expect to have one-half of their net loan amount disbursed at the start of the Fall term and the second half disbursed at the start of the Spring term. Additional loan funds may be available for Summer using an additional application.

Repayment: Begins after a 6-month grace period from when you cease at least half-time enrollment. An Income Based Repayment Plan can be used during residency or repayment can be postponed during residency using forbearance. Standard Repayment length is 10 years from date first payment is due; can be extended for some borrowers to 25 years.

Eligibility: Available to students matriculated in degree-seeking programs in the T.H. Chan School of Medicine, the Morningside School of Biomedical Sciences, and the Tan Chingfen Graduate School of Nursing.

You must meet all of the basic eligiblity criteria for Federal financial aid, including citizenship requirements. And you must be registered for at least half-time status as defined by your School. Please refer to your School's handbook for the definition of half-time status.

The maximum amount a Medical student can borrow in Federal Direct Unsubsidized Loans is $42,722 for a first year medical student, $42,722 for a second year medical student, $47,167 for a third year medical student and $47,167 for a fourth year medical student.

All graduate students can borrow a total of $20,500 in Federal Direct Unsubsidized Loans.

All HSP students may borrow up to $5,500 in Federal Direct Subsidized Loans and $7,000 in Federal Direct Unsubsidized Loans for a total of $12,500.00 per year. The financial aid office determines eligibility for the Subsidized loan based on your Expected Family Contribution (EFC) from the FAFSA and your annual Cost of Attendance.

Federal Direct Graduate PLUS Loans

Interest: 9.08% fixed rate for 2024-25 loans disbursed after July 1, 2024 and before July 1, 2025.

Fees: Origination Fee 4.228%

Disbursements: Disbursements are typically made in 2 equal payments, with one in the Fall term and one in the Spring term. Borrowers should expect to have one-half of their net loan amount disbursed at the start of the Fall term and the second half disbursed at the start of the Spring term. Additional loan funds may be available for Summer using an additional application.

You must meet all of the basic eligibility criteria for Federal financial aid, including citizenship requirements. And you must be registered for at least half-time status as defined by your School. Please refer to your School's handbook for the definition of half-time status.

There is a credit check associated with the GradPLUS Loan. To qualify, borrowers must not have an adverse credit history which is defined as: 90 or more days delinquent on any debt or if, within the past 5 years of the date of the credit report, you have: a bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, or defaulted Federal Student loan.

The annual loan limit is the difference between the Cost of Attendance minus all other annual financial aid.

Massachusetts Medical Society Loans

Interest: Accrues at a rate of 2% from the date the loan is made and through the first 3 years of residency. Interest accrues at a rate of 3% for the next 2 years and accrues at a rate of 5% for the remainder of the loan. Loans made after June 1, 2023 have a repayment period of 10 or 11 years based on matriculation year.

Fees: None

Eligibility: Available to students matriculated in a degree-seeking program in the T.H. Chan School of Medicine.

Students must be either a third or fourth year medical student and demonstrate financial need. The Financial Aid Office determines financial need based on your Expected Family Contribution (EFC), calculated using information about you, your spouse (if applicable) and your parents.

Repayment: One annual payment due on June 30 of each year. Interest-only repayment is required while the borrower is in matriculation, beginning with the first June after the date a loan is made. Repayment of principal and interest commences upon graduation after a borrower attains their M.D. degree, or ceases to matriculate.

Institutional Loans (LDS, PCL, AMA-ERF and Worcester Medical Student Loan)

Interest: 5% fixed

Fees: None

Eligibility: The Financial Aid Office determines eligibility based on your Expected Family Contribution (EFC), calculated using information about you, your spouse (if applicable) and your parents.

Disbursements: Disbursements are typically made in 2 equal payments, with one in the Fall term and one in the Spring term. Borrowers should expect to have one-half of their net loan amount disbursed at the start of the fall term and the second half disbursed at the start of the spring term.

Repayment: Begins after a 6 month grace period from when you cease at least half-time enrollment. Repayment can be delayed with deferment during residency. Interest does not accrue during deferment. Repayment length is 10 years from the date first payment is due.

Loans for Disadvantaged Students (LDS)

Interest: 5% fixed

Fees: None

Eligibility: Available to students matriculated in a degree-seeking program in the T.H. Chan School of Medicine.

The Financial Aid Office determines eligibility based on your Expected Family Contribution (EFC), calculated using information about you, your spouse (if applicable) and your parents.

Repayment: Begins after 12 month grace period from when you cease full-time enrollment. Repayment start may be deferred during residency and fellowship. Repayment length is 10 years from date first payment is due.

Primary Care Loan (PCL)

Interest: 5% fixed. Interest rate is 7% for students who do not fulfill the Primary Care service requirement.

Fees: None

Eligibility: Available to students matriculated in a degree-seeking program in the T.H. Chan School of Medicine.

The Financial Aid Office determines eligibility based on your Expected Family Contribution (EFC), calculated using information about you, your spouse (if applicable) and your parents. Borrowers must commit to a career in Primary Care for the life of the loan.

Repayment: Begins after a 12-month grace period from when you cease full-time enrollment. Repayment start may be deferred for up to 4 years for residency. Repayment length is 10 years from date first payment is due.

Nurse Faculty Loan Program

Interest: 3% fixed, as long as you obtain a full-time nurse faculty position within 12 months of graduating. If you are not in a full-time faculty position within 12 months of graduating then the interest rate increases to the prevailing market rate which can be very high (even 18%).

Fees: None

Eligibility: Available to students matriculated in a degree-seeking program in the Tan Chingfen Graduate School of Nursing.

GSN manages the application process and notifies the Financial Aid Office of the students who are eligible to receive NFLP funding. Questions about the application process should be directed to GSN. Once your application is approved, the Financial Aid Office will contact you to confirm your exact funding eligibility each semester, as the amount you may borrow is based upon the number of credits you register for.

Repayment: Begins after 9 month grace period from when you cease full-time enrollment. If you work in education for 4 years, 85% of what you borrowed will be forgiven and you then only pay the remaining 15% at a 3% interest rate.