Boston University Medical Campus
Student Financial Services

LOAN AND SCHOLARSHIP PROGRAMS

LOAN AND SCHOLARSHIP INFORMATION

INSTITUTIONAL LOANS (need-based)

Boston University School of Medicine (BUSM) Loans – BUSM administers many loan funds. These loans will be made via promissory notes executed at the Entrance Counseling Session. No interest is charged while the student is in school and through April 30th of the year after graduation. Interest of five percent commences May 1st of the year after graduation. The first payment of principal and interest is due June 1st of the year after graduation. The maximum repayment period is 10 years, and there will be a minimum monthly payment of $50.

If you are eligible for BUSM financial assistance, the Office of Student Financial Services (OSFS) may offer you one or more loans from the following list of Student Revolving Loans (SRL):

Perkins Loans – This loan interest five percent loan is made directly to needy students by the school, which has received federal money for this purpose. Loans accrue no interest until nine months after graduation for borrowers with no outstanding Perkins. Principal payments begin 12 months after graduation and are payable for a maximum of 10 years. Deferment is possible for service with the Peace Corps, VISTA and the Armed Forces. Cancellation may be possible for teaching handicapped children and for combat service for the United States.

Massachusetts Medical Society Charitable and Educational Fund: Junior and Senior students who are registered to vote in the State and are members of the Society may be awarded loans of $5,000 or $10,000. You will be billed 1% interest on your outstanding loan(s) by the Society on June 30th of each year you are in school, 2% for the three years following graduation, and 6% interest during the next four years. Loan principal is payable beginning the third year after a student completes his/her M.D. degree. The initial payment is 10% of the principal due; the percentage of principal due each year increases by an additional 5% each year thereafter. Loans are made upon the recommendation of OSFS.

INSTITUTIONAL SCHOLARSHIPS (need-based)

These scholarships are made available from funds donated to the school. No repayment is required, nor are all scholarships awarded every year. A recipient of a named scholarship is encouraged to ask at this office about the background of the scholarship and get advice on what communication with the donor might be appropriate.

HEALTH PROFESSIONS PROGRAMS (need-based)

Scholarships for Disadvantaged Students (SDS) – Funding is made available by the federal government directly to the School of Medicine, which, in some cases, provides matching funds. Full-time students who are citizens or nationals of the U.S., or lawful permanent residents of the U.S., Puerto Rico, the Virgin Islands, Guam, the Trust Territory of the Pacific Islands, or American Samoa are eligible.

Students must come from a “disadvantaged” background, as established by the Secretary of Health and Human Services. Priority will be given to those students who come from a family with an annual income below a level based on low income thresholds according to family size as published by the U.S. Bureau of Labor Statistics, adjusted annually in the Consumer Price Index and adjusted by the Secretary for use in all health professions programs. Second consideration will be given to students who come from an environment which has inhibited them from obtaining the knowledge, skills, and abilities required to enroll in and graduate from medical school.

The institution is allowed some flexibility in determining disadvantaged status. The School of Medicine has determined that students whose family income is less than $40,000 and Expected Family Contribution is less than $10,000 meet the financial qualifications. Information provided on the BUMC application will help determine eligibility for environmental consideration.

FEDERAL LOAN PROGRAMS (need-based)

Federal Direct Student Loan Program – The Direct Loan Program provides students with loans directly from the Department of Education rather than through a private lender and guarantee agency as with the Federal Stafford Loan Program. The student applies for a Direct Loan by filing the FAFSA, providing additional documentation if needed, and completing a Direct Loan Processing Request Form at OSFS. The University approves the loan, the student signs a promissory note, and funds are transferred to the university to be posted to the student’s account.

A graduate student is eligible for $18,500 annually through the Direct Loan Program. The subsidized limit, based on financial need, is $8,500 annually and the unsubsidized limit is $10,000 annually. The aggregate borrowing limit for Subsidized and Unsubsidized Direct Loans combined is $189,125. Students not eligible for a full subsidized loan may make up the difference by borrowing additional unsubsidized Direct Loan.

Direct Loans have a variable interest rate that does not exceed 8.25%. The rate changes annually on July 1st. The borrower pays no interest on the subsidized portion during periods of enrollment or deferment. For the unsubsidized portion, however, the student is responsible for the interest for periods of enrollment and deferment. Interest that accrues may be paid or capitalized. A loan origination fee of 3% (of which 1.5% is rebated) of the principal is deducted from the loan proceeds.

Borrowers who first received a Stafford or Direct Loan disbursement on or after July 1, 1993, may defer repayment when:

• In school at least half time.
• Attending graduate or post-graduate fellowship programs outside the U.S.
• Up to three years of unemployment.
• Up to three years for economic hardship based on income and relative debt.

Borrowers who received a Stafford or Direct Loan disbursement prior to July 1, 1993, may defer payment for periods of:

• Full time study
• Attendance in an eligible graduate fellowship program
• Up to three years while serving in the Armed Forces, Peace Corps, VISTA, or certain other volunteer programs
• Up to two years while serving in a residency program or when unemployed but seeking employment.