Loans
Several loan programs are available to assist students with educational expenses. Most of these loans are federally guaranteed loans with attractive interest rates and repayment options although distinct differences in the loan programs make some more desirable than others. Repayment of most loans (and, if applicable) interest can be deferred until you complete your program of study.

All loans are made on an annual basis and reapplication is necessary for each new academic year. A completed needs analysis form is required for most loans.

The Office of Student Financial Aid Services will inform you of the loan programs for which you are eligible based on the most favorable terms available given the following factors:

1) the date your application was received;
2) your financial need compared to other applicants;
3) the amount of funds available from various loan sources.

Most loans must be repaid over a ten year period excluding enrollment and/or deferment periods. Payments are generally in monthly (or quarterly) installments as determined by the lender in compliance with program regulations. Specific terms of a loan are disclosed to the borrower prior to disbursement.

Debt management counseling is available to all aid applicants prior to and during the course of enrollment. First-time student borrowers are required to have entrance interviews prior to the first loan disbursement, and all student borrowers are required to participate in an Exit Interview prior to separation from the Medical University.

Loan consolidation options are available to students with debt levels above specified minimums. Loan consolidation may or may not be an attractive alternative to repayment based on the terms of the loans you have borrowed. You are encouraged to discuss your options with your Financial Aid Counselor.

Loan Terms
The following information is provided to enable you to make informed choices concerning loan alternatives. Before acquainting yourself with the loan programs summarized on the next few pages, it is important that you are comfortable with several “key” terms regarding educational loans:

Subsidized Loans are loans for which the federal government will pay all interest charges due the lender on your behalf while you are in school or during an approved “deferment” period. The student is responsible for interest charges only after completion of a program or study or withdrawing from school -- whichever should happen first.

Unsubsidized Loans are loans for which the student (or parent, if applicable) is responsible for paying the interest charges from the date the loan check is disbursed. Payment of interest on most (but not all) unsubsidized loans can be postponed until after completion of a program of study. The interest may or may not be capitalized at the lender’s discretion while the student is enrolled in a program of study on at least half time basis.

New Borrower is any student who does not have any outstanding debt (principal or interest) on any Federal Stafford (GSL) Loan, Federal Supplemental Loan (SLS) or Federal PLUS Loan.

Simple Interest is interest that is calculated only on the original principal (loan amount) you borrowed rather than a total of principal plus unpaid interest.

Variable Interest refers to an interest rate that changes during the period you have a loan. Generally, any unpaid balance on the principal of a specified loan will be assessed at the most recent variable rate set for that particular loan program.

Capitalization of interest is the adding of unpaid interest to the original principal. Future interest charges are then computed on the total of the original principal plus accumulated interest. Depending on the loan program and lender, interest on student loans may be capitalized: 1) while you are in school; 2) upon graduation; or 3) when your loan goes into repayment.

Credit Based/Non-Credit Based are terms applied to loans which indicate whether or not the lender will require a review of the borrower’s past credit history as a prerequisite for determining whether or not the loan will be approved.

Subsidized Loans
Federal Stafford Loan Program (HP, DM, GS, M, N, P) funds are guaranteed by the Federal government and regulated by the Department of Education. The lender may be a bank, savings and loan or credit union. A student must demonstrate need to qualify for a subsidized Federal Stafford Loan.

Annual Loan Limits: 3rd/4th/5th year undergraduates: $5,500

Graduate students: $8,500

Note: Annual loan limits will be prorated for undergraduates for instructional periods which are less than an academic year.

Interest Rate: For Stafford loans disbursed on or after July 1, 2009 is at a fixed rate of 6.8%. (Subject to change based on the Reauthorization of the Higher Education Act.)

Grace Period: 6 months.

Credit Policy: Non-credit based loan.

Health Professions Loan Program (DM, P) offers federal loans regulated by the Department of Health and Human Services. This loan program offers low interest loans to students needing financial assistance to become a dentist or pharmacist. A signed Promissory Note is required prior to disbursement of funds.

Annual Loan Limits: Based on collections from former MUSC graduates repaying HPL Loans.

Interest Rate: 5%.

Grace Period: 12 months grace period.

Credit Policy: Non-credit based loan.

Special Requirements: Parental data required.

Federal Perkins Loan Program (HP, DM, M, N, P) offers “campus based” low interest federal loans regulated by the Department of Education. A signed Promissory Note is required prior to disbursement of funds.

Annual Loan Limits: Established annually based on available funding. The average MUSC award, however, based on actual available funds is approximately $1,000 to $4,000 per qualifying student.

Interest Rate: 5%.

Grace Period: 9 months grace period.

Credit Policy: Non-credit based loan.

Loans for Disadvantaged Students (DM, M) offers federal low interest loans regulated by the Department of Health and Human Services. Students must meet “disadvantaged background” criteria and have financial need. A signed Promissory Note is required prior to disbursement of funds.

Annual Loan Limits: Maximum amount cannot exceed the Cost-of-Attendance (including tuition, other reasonable educational expenses, and reasonable living expenses).

Interest Rate: 5%.

Grace Period: 12 months grace period.

Credit Policy: Non-credit based loan.

Special Requirements: Parental data required.

Nursing Student Loan Program (N) is a federal loan program offered through the Department of Health and Human Services which is available to at least half-time nursing students with demonstrated financial need. A signed Promissory Note is required prior to disbursement of funds.

Annual Loan Limits: Contingent on available funding not to exceed $4,000 per (9 months) year. The cumulative loan maximum is $13,000.
Interest Rate: 5%.

Grace Period: 9 months grace period.

Credit Policy: Non-credit based loan.

Primary Care Loan Program (M) offers federal loans regulated by the Department of Health and Human Services. This loan program provides low interest loans for medical students who are planning on practicing in the primary health care field. Recipients must enter and complete a residency training program in primary health care not later than four years after the date on which the borrower graduates; and practice primary health care through the date on which the loan is repaid in full. A signed Promissory Note is required prior to disbursement of funds.

Annual Loan Limits: Maximum amount cannot exceed the Cost-of-Attendance (including tuition, other reasonable educational expenses, and reasonable living expenses).
However, amounts beyond the annual maximum limit are available to third and fourth year students to be used to pay off outstanding balances on loans with higher interest rates that have been taken out while attending MUSC. Funds may not be used to repay HPSL, LDS or prior PCL awards. Awards beyond the Cost-of-Attendance depend on the availability of funds.

Interest Rate: 5%.

Grace Period: 12 months.

Credit Policy: Non-credit based loan.

Special Requirements: Parental data required.

Unsubsidized Loans
Federal Unsubsidized Stafford Loan Program (CHP, DM, GS, M, N, P) funds are guaranteed by the Federal government and regulated by the Department of Education. The lender may be a bank, savings and loan or credit union.

Annual Loan Limits: 3rd/4th/5th Year (INDEPENDENT) undergraduates: $10,500 (minus any subsidized Federal Stafford) or total unmet Cost-of-Attendance - whichever is less.

Graduate Students: $20,500 (including any Federal Stafford) or total unmet Cost-of-Attendance - whichever is less.

NOTE: For students enrolled in Dental Medicine, Health Administration graduate programs, Medicine or Pharmacy, the annual limit is the Cost-of-Attendance minus all financial aid resources.

Dependent students needing to borrow in excess of the Federal Stafford Loan limits should refer to the section on Federal PLUS Loans.

Interest Rate: Same as the Federal Subsidized Stafford Loan Program.

Grace Period: 6 months

Credit Policy: None

Federal Plus Loan Program (HP, N) funds are guaranteed by the Federal Government and regulated by the Department of Education. Only the parents of dependent students may apply for PLUS loans to help pay for their son or daughter's education. The lender may be a bank, savings and loan or credit union.

Annual Loan Limits: Cost of attendance minus other financial aid resources.
Interest Rate: Varies annually; capped at 9%. (Subject to change based on reauthorization of the Higher Education Act.)

Grace Period: None.

Credit Policy: Credit based loan.

Graduate PLUS Loan Program (DM, GS, HP, M, N, P) funds are  guaranteed by the Federal government and regulated by the Department of Education. The Lender may be a bank, savings and loan or credit union.

Annual Loan Limits: Cost of attendance minus other financial aid resources

Interest Rate: 8.5% fixed

Grace Period: None
         
Credit Policy: None

Alternative Loan Programs (DM, GS, HP, M, N, P)