Federal Direct Unsubsidized Loans
MD students that complete the FAFSA and meet student eligibility requirements are eligible to receive a Federal Direct Unsubsidized Loan. The maximum that an MD student in the first and third years may borrow per academic year is $47,167, the maximum that an MD student in the second year may borrow is $44,945 per academic year, and the maximum that an MD student in the fourth year may borrow per academic year is $42,723. For loans first disbursed on or after July 1, 2022, but before July 1, 2023, the interest rate for Federal Direct Unsubsidized Loans is 6.54%, and is fixed for the life of the loan.For loans first disbursed on or after July 1, 2023, but before July 1, 2024, the interest rate for Federal Direct Unsubsidized Loans is 7.05%, and is fixed for the life of the loan. Interest will accrue during the in-school, grace, and deferment periods. A loan origination fee of 1.057% will be deducted at each disbursem*nt. Repayment begins 6 months after the last date of attendance. The maximum aggregate loan limit is $224,000. The aggregate loan limit includes undergraduate loans.
Students borrowing Federal Direct Unsubsidized Loans at Vanderbilt for the first time must complete Entrance Counseling and the Master Promissory Note. Both of these steps need only be completed one time, and students should use the Federal Student Aid ID and password from the Free Application for Federal Student Aid. Vanderbilt will receive notice when these steps have been completed.
Students are encouraged to borrow as little as possible. Students that want to decrease offered loan amounts should email medfinaid@vanderbilt.edu for assistance.
Federal Direct GRADUATE PLUS Loans
Students utilizing all of their Federal Direct Unsubsidized Loan eligibility may need to borrow additional funds for educational expenses. The Federal Direct Graduate PLUS Loan is available to students who pass a credit check and meet student eligibility requirements. The maximum amount that a student may borrow per academic year is the cost of attendance less any other financial aid. For loans first disbursed on or after July 1, 2022, but before July 1, 2023, the interest rate for Federal Direct Graduate PLUS Loans is 7.54%, and is fixed for the life of the loan. For loans first disbursed on or after July 1, 2023, but before July 1, 2024, the interest rate for Federal Direct Graduate PLUS Loans is 8.05%, and is fixed for the life of the loan. Interest accrues from the time the funds are disbursed. Repayment begins six months after the last date of attendance. A loan origination fee of 4.228% will be deducted at each disbursem*nt. If you have an adverse credit history, the loan may be denied. If you are denied, you may reapply with a credit-worthy co-signer.
Students borrowing Federal Direct Graduate PLUS Loans at Vanderbilt for the first time must complete the Master Promissory Note. Students should use the Federal Student Aid ID and password from the Free Application for Federal Student Aid. Vanderbilt will receive notice when this step has been completed. The credit check process is required every year the student wants a loan.
Students are encouraged to borrow as little as possible. Students that want to decrease offered loan amounts should email medfinaid@vanderbilt.edu for assistance.
Private Alternative Loans
Examine all other options, including the federal student loans, before pursuing private loan options, as these loans may be more expensive than other options. The interest rates listed for private loans are either variable or fixed, and monthly payments are extended over several years. Interest will accrue from the time the funds are disbursed. Private loans are credit-based and may require a cosigner. Vanderbilt University provides a historical list of previous private lenders, FASTChoice, which is a tool for comparing private loan lenders through which our students have borrowed during the past three award years. The lenders are listed in random order, and the information provided is accurate to the best of our knowledge. You may choose to borrow through any lender, including lenders not on this list. If you choose to borrow through a lender that is not on this list, we will process your application and certify your eligibility with that lender. If you are an international student, please review the list; some lenders allow international students to borrow with a U.S. co-signer. Some private loans allow international students in their four years of medical school to apply for a loan without a co-signer.
The AAMC offers unbiased guidance onFederal vs. Private Loansto help you make an informed decision. The maximum amount a student may borrow is the cost of attendance less any other financial aid.
Residency and Relocation Loans
Fourth year students may find it necessary to borrow additional loans for residency relocation and travel expenses. Residency Relocation loans are available to fourth year medical students to borrow 180 days before or up to 180 days after graduation and do not have to be certified by the financial aid office.
There are many different loan programs and options from which to choose. You should, however, pay close attention to the terms of each loan, as some loans have variable interest rates and different repayment terms. Contact medfinaid@vanderbilt.edu for more information.
I've got a good grip on the financial aid landscape, especially concerning student loans, which can be a labyrinth of terms and conditions. Federal Direct Unsubsidized Loans for medical students have particular nuances. These loans, capped at varying amounts across different academic years, accrue interest during all periods, from in-school to grace periods and deferment. The interest rates, fixed for the life of the loan, changed between 2022 and 2023, escalating from 6.54% to 7.05%. Additionally, there's a loan origination fee of 1.057% deducted at each disbursem*nt, and repayment typically commences six months after the last date of attendance. The aggregate loan limit stands at $224,000, including undergraduate loans.
Moving on to the Federal Direct Graduate PLUS Loans, these come into play when students exhaust their eligibility for Unsubsidized Loans. The interest rates for Graduate PLUS Loans are higher, starting at 7.54% in 2022 and moving up to 8.05% by 2023, both fixed for the loan's duration. The loan origination fee is considerably higher here, at 4.228% per disbursem*nt. Students may face a credit check, and if they have an adverse credit history, they might need a credit-worthy co-signer to qualify.
Private Alternative Loans are also an option, but they tend to be more expensive and require a careful examination of the interest rates, repayment terms, and whether they're fixed or variable. They accrue interest from disbursem*nt and might necessitate a co-signer based on creditworthiness. Vanderbilt University provides a list of private lenders through FASTChoice, aiding students in comparing options. International students may find lenders on this list who allow borrowing with a U.S. co-signer.
Lastly, there are Residency Relocation Loans available specifically for fourth-year medical students, aiding in covering relocation and travel expenses before or after graduation without needing certification from the financial aid office. These loans can be an essential financial support at a crucial juncture.
To sum up, while these loan programs provide essential financial aid, it's crucial for students to borrow wisely and consider all options. Contacting medfinaid@vanderbilt.edu can offer more personalized guidance and insights tailored to individual situations.
