FEDERAL ALTERNATIVES

LOAN AND SCHOLARSHIP INFORMATION
FEDERAL SCHOLARSHIP PROGRAMS

Some students have sought support from federal scholarship programs. They have committed themselves to service after school in return for support while they are in school. The federal government has funded very few new scholarships in recent years.

National Health Service Corps – Students who are U.S. citizens are eligible to apply. Priority in selection will be given to:

Former recipients of NHSC scholarships.
Students who are interested in primary care.
Students from rural backgrounds who wish to serve in underserved rural areas.
Students from under-represented minorities who will serve in underserved minority communities.

The benefits of the NHSC program include payment of tuition and required fees directly to the institution, a single lump-sum payment for books, supplies, equipment, and other reasonable educational expenses, plus twelve monthly stipends ($1,098 in 2004-2005). For each year of support a student is obliged to practice for one year in a federally designated, high-priority Health Manpower Shortage Area of the United States; there is a two-year minimum service obligation.

Applications are normally available at OSFS in late February, or you may contact the National Health Service Corps Scholarship Program, at 1-800-638-0824. The deadline for applications is usually in March.

Indian Educational Fellowships for Indian Students – The purpose of these awards is to enable Indian students to pursue courses of study in dentistry. A fellowship is awarded in an amount up to but not more than the difference between the student’s resources including other sources of financial aid and the student’s expenses. Funds may be provided for tuition and required fees, a portion of living expenses, books and supplies, and required research and travel expenses. An allowance is provided for each dependent (spouse not included). Application forms and program information may be obtained by writing to Office of Indian Education, U.S. Department of Education, 400 Maryland Avenue, SW, FOB-6/Room 3W111, Washington, D.C. 20202-6335.

FEDERAL LOAN PROGRAMS

Federal Direct Student Loan Program – The Direct Loan Program provides students with loans directly from the Department of Education (DOE) rather than through a private lender and guarantee agency as with the Federal Stafford Loan Program. The student applies for a Direct Loan (DL) 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 executes a Master Promissory Note (MPN) and completes Entrance Counseling if a first-time borrower, 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 DL program. The subsidized limit, based on financial need, is $8,500 annually (aggregate $65,500). The unsubsidized limit is $10,000 annually ($189,125 aggregate). Students not eligible for a full subsidized loan may make up the difference with additional Unsubsidized DL money.

Eligible students (U.S. citizens and permanent alien residents without restrictions) in any of their first three years of Dental School studies or in their first year of the Advanced Standing program have been able to borrow an additional Unsubsidized DL up to $26,666 annually to help meet educational costs. Other students have been able to borrow up to $20,000 annually. Availability of such funds has been determined annually.

DLs have a variable interest rate that will not exceed 8.25%. The rate changes annually on July 1st. The borrower pays no interest on the subsidized portion during periods of enrollment, grace, or deferment. For the unsubsidized portion, the student is responsible for the interest from the time disbursement is made. Interest that accrues may be paid quarterly or capitalized at the end of the grace period and again at the start of repayment. A loan origination fee of 3% (with a 1.5% rebate) of the principal is deducted from the loan proceeds.

Borrowers may defer repayment when in school at least half-time; attending graduate or post-graduate fellowship programs; up to three years for unemployment; and up to three years for economic hardship based on income and relative debt. Borrowers who received a Stafford or DL disbursement prior to July 1, 1993, may defer 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; or up to two years while serving in a residency program affiliated with a teaching hospital or when unemployed but seeking employment.