Frequently Asked Questions


Deferring Your Medical Student Loan from Repayment

1. 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.

2. Who is eligible to defer their loan from repayment?

A medical student graduate who is obtaining full-time additional medical training (i.e., internship, residency, or fellowship programs).

3. How long can the loan be deferred from repayment?

Repayment can be annually deferred up to five years upon written request because of additional medical training (i.e., internship, residency, or fellowship programs).

4. How can a deferment from repayment be obtained?

There are two ways in which a deferment from repayment can be requested; however, both ways require that the request be in writing.

Option 1: Each spring an Update Form is sent to all nonpaying, active borrowers. This form allows the borrower to keep the Foundation informed of any additional training and all changes of address. This form also gives the borrower the opportunity to request a deferment from repayment. (NOTE: Foundation loans need to be deferred from repayment on an annual basis - using the form is an excellent way to do so.)

Option 2: A borrower may elect to send us a letter requesting a deferment from repayment. This letter must include:

  • The reason for deferment from repayment;
  • The name and address of the institution the internship, residency, or fellowship program is taking place;
  • The beginning and ending dates of the additional medical training;
  • Any other changes in the borrower's information such as name, address, telephone number, contact address, etc.;
  • And the borrower must also include a letter from the institution verifying the residency information.

5. How will I know if the deferment from repayment was granted?

A letter is sent to you informing you of the decision made and the deferment period end date.

6. Does interest accrue while the loan is deferred from repayment?

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.


To obtain more information on loans or scholarships, contact me!

Deborah K. Monko
Director, Student Financial Services
Email: dmonko@pamedsoc.org
Phone: (717) 558-7809
Office Hours: Monday-Friday, 7:30 a.m. to 4 p.m