Boston University Medical Campus
Student Financial Services

Need-Based Loans

BUSM Student Revolving Loans – The School of Medicine has over sixty loan funds that it administers. When you apply for financial assistance and demonstrate calculated need, you may be offered loans from one or more funds. Loans accrue no interest until the end of the one year grace period, then the interest rate is 7% while in repayment. There is a minimum monthly payment of $50 plus interest. Repayment can extend from one to ten years; you will be billed monthly during repayment. Once you have signed a note, the funds will be credited to your account. Funds are assigned by SFS to help meet your need for a specific semester.

BUSDM Student Revolving Loans – Loans included in this pool are the Spencer Frankl and Greater New York Alumni Club Student Revolving Loans. The terms of these loans are the same as BUSM loans.

BUSPH Alumni Loan – The terms of this loan are the same as BUSM loans.

Robert Wood Johnson Loan [MED/SDM] – This is a non-interest bearing loan while the students are in school. During repayment the interest rate is 3%. Dental students begin repayment one year after graduation unless they enter a residency program, in which case, repayment begins at the end of the residency program. Medical students begin repayment three years after graduation. Repayment extends from one to ten years and is made on a monthly basis.

Perkins Loan [MED/SDM/SPH] – This low 5% interest 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 Loan. For students whose first Perkins Loan was disbursed before October 1, 1992, billing is quarterly with minimum payments of $30 per month. For students whose first Perkins Loan was disbursed on or after October 1, 1992, billing is quarterly with minimum payments of $40 per month. Loans made prior to July 1, 1993, are eligible for a two-year residency deferment. Loans made after July 1, 1993, may be eligible for economic hardship deferment, provided the borrower meets the conditions for economic hardship; this determination is made by the lender.

Health Professions Student Loan (HPSL) [SDM] – This loan is made from a revolving fund originally produced by appropriations from the federal government and matched by Boston University. Legislation dictates that a HPSL loan may be awarded only to a student showing exceptional financial need, i.e., having an Expected Family Contribution (EFC) of $5,000 or less. The loans accrue 5% interest during repayment and are repayable over a 10-year period in monthly installments. There is a one-year grace period immediately following graduation, and it is possible for the borrower to secure a deferment for time spent in advanced professional training (including residency training), Peace Corps, VISTA, the Armed Forces or the U.S Public Health Service. No interest accrues during periods of grace or deferment. The loan will be credited to your BU student account after you sign a promissory note during the Entrance Counseling Session.

Loans for Disadvantaged Students (LDS) [MED/SDM] – Also funded by the government and BUSDM, these loans are made based on eligibility requirements that are the same as for Scholarships for Disadvantaged Students (SDS). The terms of the loan are similar to those of the HPSL.

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