Applying for a Medical Student Loan Eligibility
1. Am I eligible for a Foundation medical student loan?
You qualify for a Foundation medical student loan if you meet the following criteria:
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Are a United States citizen
- Are a bona fide resident of Pennsylvania for at least 12 months before registering as a medical student (not including time spent attending an undergraduate/graduate school in Pennsylvania)
- Are enrolled full time in an accredited Pennsylvania medical school
- Are in good standing with other creditors
- Are a student member of the Pennsylvania Medical Society (Free for students); if needed, the Foundation will provide application upon funding
- Have completed a Free Application for Federal Student Aid (FAFSA) form
2. When is the medical student loan application deadline?
Students should mail the medical student application to their Pennsylvania medical school's financial aid office by June 30, 2023.
3. How can I obtain a Foundation medical student loan application?
Students may download this medical student loan application, send an email to studentservices-foundation@pamedsoc.org, or telephone (717) 558-7809 to request an application be mailed.
4. What amount might I receive if granted a Foundation medical student loan?
Individual loan awards are up to $15,000 with a minimum loan of $6,000. Loan allocations are based upon financial need and cannot exceed your school's cost of attendance.
5. Is the Foundation medical student loan automatically renewed for the remaining medical school years?
No, loans are for a single academic year and applications must be submitted prior to the upcoming school year.
6. Does interest accrue on my Foundation medical student loan while I am in school?
Yes. You are charged interest at a percentage rate not to exceed 6 percent from January 1 following disbursement through June 30 of the year you graduate from medical school or upon earlier termination of your enrollment. The rate is calculated using the 91-day T-Bill note, published on June 1, plus a margin based upon the first academic year that loan funds were obtained from the Foundation. NOTE: school interest does not compound until repayment terms are made.
7. When does the Foundation medical student loan become due?
The promissory note that was signed when the loan was allocated matures July 1 of the year you graduate from medical school or upon the date of separation from medical school.
8. May I defer my Foundation loan from repayment while I complete additional medical training (i.e., internship, residency, and/or fellowship programs) upon graduation from medical school?
Yes. Your loan repayments can be deferred annually for up to five years upon written request.
9. Will interest accrue while my Foundation loan is deferred from repayment for additional training?
Yes. The interest rate for each deferment period will be calculated on June 1 using the 91-day T-bill rate on June 1 plus the margin established with your first loan disbursement. The rate determined on June 1 will be the rate in effect for the following July 1 through June 30 of the next year. The annual calculated deferment rate will not exceed 6 percent. An invoice for the total accrued interest amount will be mailed at the end of each deferment year. You may or may not elect to pay this interest when billed. Any portion that is not paid by June 30 of each deferment year will be added to the principal balance of your loan.
10. Am I required to make interest payments while in school and while completing internship, residency, and/or fellowship training?
No, payments are not required during school or during additional medical training (i.e., internship, residency, and/or fellowship). However, if you choose to make payments there are no penalty fees. Any monies received by the Foundation while you are in school or additional medical training will first be applied to accrued interest and any remaining amount will be applied to principal.
11. Can I repay my Foundation student loan by making installment payments over time?
Yes. To do this, an Amortizing Note must be signed. This note allows for a repayment period of up to 10 years with a minimum principal payment of $500 per year. The repayment interest rate will not be less than 4.5% and will not exceed 8.0%. The rate in effect at the time you enter repayment is the rate that will remain throughout the repayment period of your loan.