HEALTH PROFESSIONS LOAN

The Health Professions Loan is a subsidized loan.

The “period of grace” is twelve (12) months after you cease to be enrolled as a full-time student.

The repayment period begins immediately after the “period of grace”.

The minimum monthly payment is $40.00 (unless otherwise specified on your promissory note) plus accrued interest.   The repayment period must not exceed ten (10) years.

The interest rate is 5% simple annual interest.

Cancellation may be granted in certain instances such as death or permanent disability.   Cancellation provisions are described in the promissory note.

You may request deferment if you enter the military service, Peace Corps or pursue advanced professional training.

You may prepay the loan at any time.

This loan can be consolidated with your Federal Direct Loan.   However once consolidated it becomes an unsubsidized loan and it is now subject to the repayment terms of your consolidation loan.

INSTITUTIONAL LOANS
(Loans from WVU)

These are subsidized loans.

The “period of grace” is six (6) months after you cease to be enrolled as a half-time student.

The repayment period begins immediately after the “period of grace”.

The minimum monthly payment is $40.00 (unless otherwise specified on your promissory note) plus accrued interest.   The repayment period must not exceed ten (10) years.

The interest rate is 5% simple annual interest.    (Except the Clark Sleeth Loan which is 7%.)

Cancellation may be granted in certain instances such as death or permanent disability.   Cancellation provisions are described in the promissory note.

You may request deferment if you enter military service, Peace Corps, pursue advanced professional training or attend another college or university at least half-time.

You may prepay the loan at any time.

THIS LOAN CANNOT BE CONSOLIDATED.

LOAN FOR DISADVANTAGED STUDENTS

The Disadvantaged Loan is a subsidized loan.

The “period of grace” is twelve (12) months after you cease to be enrolled as a full-time student.

The repayment period begins immediately after the “period of grace”.

The minimum monthly payment is $40.00 (unless otherwise specified on your promissory note) plus accrued interest.   The repayment period must not exceed ten (10) years.

The interest rate is 5% simple annual interest.

Cancellation may be granted in certain instances such as death or permanent disability.   Cancellation provisions are described in the promissory note.

You may request deferment if you enter the military service, Peace Corps,   pursue advanced professional training or pursue a full-time course of study at a health professions school eligible for participation in the Loans for Disadvantaged Students program.

You may prepay the loan at any time.

This loan can be consolidated with your Federal Direct Loan.   However once consolidated it becomes an unsubsidized loan and it is now subject to the repayment terms of your consolidation loan.

NURSING STUDENT LOAN

The Nursing Loan is a subsidized loan.

The “period of grace” is nine (9) months after you cease to be enrolled as a half-time student.

The repayment period begins immediately after the “period of grace”.

The minimum monthly payment is $40.00 (unless otherwise specified on your promissory note) plus accrued interest.   The repayment period must not exceed ten (10) years.

The interest rate is 5% simple annual interest.

Cancellation may be granted in certain instances such as death or permanent disability.   Cancellation provisions are described in the promissory note.

You may request deferment if you enter the military service, Peace Corps or pursue advanced professional training.

You may prepay the loan at any time.

This loan can be consolidated with your Federal Direct Loan.   However once consolidated it becomes an unsubsidized loan and it is now subject to the repayment terms of your consolidation loan.

PRIMARY CARE LOAN

What is the Primary Care Loan Program? The Primary Care Loan (PCL) Program is a low cost federal loan program for medical students committed to primary health care practice.   The interest rate is 5 percent and begins to accrue following a one year grace period after you cease to be a full-time student.   When compared to other federal student loans and private loans, the PCL provides significant savings.   The loan also offers deferment of principal and interest not found in other loan programs.

How much can I borrow?
Your Financial Aid Office will determine how much you can borrow based on your eligibility, the amount of PCL funds available at your institution and other criteria.   The maximum award for first and second year students is cost of attendance (including tuition, educational expenses and reasonable living expenses).   Amounts beyond this may be awarded to third and fourth year students.

How do I qualify for a PCL?

• You must be enrolled as a full-time student in a degree program leading to a doctor of medicine or doctor of osteopathy.
• You must be a United States citizen or eligible non-citizen.
• You must provide financial information about your parents.
• You must demonstrate financial need.
• You must not owe a federal grant refund or be in default on any federal loan.
• You must maintain good academic standing.
• You must register with Selective Service if required by law.

Why must I provide financial information about my parents to obtain a PCL?
To assist schools in allocating limited PCL funds, Health and Human Services requires parental information from all students to determine financial need without regard to age, tax, marital or independent status.

SERVICE OBLIGATION

Is there a service requirement for PCL?        YES

• You must enter a residency training program in family medicine, internal medicine, pediatrics, combined medicine/pediatrics, preventive medicine or osteopathic general practice.
• You must complete your residency program within 4 years of graduation.
• You must practice in primary health care until the loan is paid in full.

What are some examples of primary health care and non-primary care residency and practice activities for the PCL Program?

Are there exceptions to the primary health care service obligation?      YES , however, your loan repayment obligation remains.  

• Your primary health care service obligation may be waived if you terminate studies before graduating and do not later resume studies.
• Your primary health care service obligation may be suspended for the period you are not enrolled because you have terminated studies before graduating; your obligation is resumed when you return to medical school to complete your studies.

What if I do not fulfill the primary care service obligation?
At the point you fail to fulfill your service obligation, the outstanding loan balance will be computed at an interest rate of 18 percent from the date of noncompliance, compounded annually.

What if I accept   PCL and change my mind about primary health care:
If you are not firmly committed to the practice of primary health care, you should not accept a PCL.

What if I want additional certification?
You may obtain additional certification in primary health care while fulfilling you service obligation, as long as you complete your primary health care residency program within 4 years after graduation.   For example, if your primary care residency is completed in 3 years after graduation, you may obtain certification in an area of training to enhance your primary health care practice (i.e., geriatrics) at anytime, and it will be considered an acceptable activity for fulfillment of your service obligation.   However, you may not do additional training or obtain certification in any non-primary health care sub-specialty.

LOAN REPAYMENT

When does repayment begin and end?

• Repayment begins following a 12 month grace period after you cease to be a full-time student.
• Interest at 5 percent is computed on the unpaid principal balance and begins to accrue upon expiration of your grace period unless you are eligible to defer payment.
• Loans are repayable over a period of not less than 10 years nor more than 25 years, at the discretion of the institution.

May payment of my PCL be deferred?     YES

• Up to 4 years in an eligible primary health care residency program.
• Up to 3 years as a volunteer under the Peace Corps Act practicing in an eligible primary health care activity.
• Up to 3 years as a member of a uniformed service.   To be eligible for deferment, you must be on sustained full-time active duty practicing in an eligible primary health care activity in the Army, Navy, Air Force, Marine Corps, Coast Guard, National Oceanic and Atmospheric Administration Corps or the U.S. Public Health Service Commissioned Corps.
• For periods of advanced professional training in primary health care.

Is a PCL eligible for consolidation?  
PCL is not eligible for consolidation because of the service obligation.

What happens to my PCL in the event of death or disability?
Your obligation to repay the loan will be cancelled upon receipt of the required documentation in the event of your death or permanent and total disability.

FINAL THOUGHT

How should I explore whether PCL is right for me?

• Talk to primary health care faculty.
• Talk to your Financial Aid Office about eligibility, terms & conditions.
• Attend primary health care society meetings.

WV MEDICAL STUDENT LOAN

This is a subsidized loan.

The “period of grace” is twelve (12) months after you graduate from a School of Medicine in WV.  

The minimum monthly payment is $50.00 (unless otherwise specified on your promissory note) plus accrued interest.   The repayment period must not exceed ten (10) years.

The interest rate is the prevailing Federal Direct interest rate at the beginning of the repayment period and shall accrue, except for periods of authorized deferment, from the beginning of the repayment period.

In the event of the borrower’s death, unpaid indebtedness remaining on the note (principal and interest) shall be cancelled.  

You may request deferment if you are in a medical residency, internship, fellowship or required military service.

You may prepay the loan at any time.

THIS LOAN CANNOT BE CONSOLIDATED.                                              

LOAN FORGIVENESS -- A borrower may receive cancellation and forgiveness of the outstanding principal and accumulated interest on the loan in return for the actual performance of full-time service in West Virginia as a physician (M.D. or D.O.) in an approved designated medically underserved area or in an approved designated medical specialty in which there is a shortage of physicians.

The Policy Commission, in conjunction with Bureau of Public Health, shall determine qualifying medically underserved geographic areas and medical specialties in which there is a shortage of physicians.   An approved listing of underserved areas and qualifying medical specialties shall be published and distributed to the financial aid officers of each participating state school of medicine.   At the borrower’s request, additional geographic areas may be considered by the Policy Commission and the Bureau for Public Health.   Among the criteria are such factors as:   locations where a physician currently in practice will retire creating a shortage or a population shift which will justify additional physicians.

To be eligible for loan forgiveness, the applicant must apply annually for and receive Policy Commission approval for practice in a specific designated underserved area or designated medical specialty.   Such approval shall include deferral of loan repayment during the period the practitioner is performing in service authorized for loan forgiveness.    The practitioner must notify the lending institution of the date that such practice commences and terminates.

To be eligible for loan forgiveness, the applicant must have Policy Commission approval to practice in a specific designated underserved area or designated medical specialty.   In addition, the applicant must subsequently provide evidence to support the fact that full-time physician services were rendered.   Such evidence shall be presented on a form provided by the Policy Commission for that purpose.   The Policy Commission shall be the authority that grants loan forgiveness.   The Policy Commission shall notify participating institutions of all loan forgiveness which is granted.  

The borrower shall be eligible for loan forgiveness only upon application and upon acceptance of duly certified evidence of full-time medical or osteopathic practice in one of the designated areas or medical specialties.   To apply for forgiveness go to website www.ecsi.net and print the form and then submit to the appropriate official for certification.

The borrower shall receive cancellation and forgiveness of the outstanding principal of $10,000 plus accumulated interest during each period of twelve (12) consecutive months of full-time practice.   No forgiveness shall be granted for less than twelve (12) consecutive months of full-time practice.

It shall be the responsibility of the borrower to secure a current list of approved underserved areas and medical specialties.   A current list may be obtained from the Policy Commission.   You can reach them at 888-825-5707.