Paying for Medical School with Stafford Loans
Medical school Stafford Loans can be subsidized or unsubsidized. When a loan is subsidized the federal government will pay your interest while you are in school, a grace period, or in deferment. Unsubsidized loans are loans in which you have to pay the interest on the loan, but payment is deferred until after you graduate. To receive a subsidized Stafford Loan a student needs to be able to exhibit financial need.
The amount of money you can borrow through Stafford Loans is dependent on just how far you plan to advance in your education. New borrowing laws will go into affect on July 1, 2007, which will allow for more borrowing than has previously been permitted. The following statistics are based upon this new data for dependent students, students who are legally still under their parents.
Medical School Student Borrowing Limits
- Per Year - $40,500
- Cumulative Limit - $189,125
Federal Family Education Loan Program (FFELP)
FFELP Loans are financed off of money from private lending institutions, including but not limited to-
- Credit Unions
- Savings and Loan Associations
Federal Direct Student Loan Program (FDSLP)
FDSLP Loans are offered through certain colleges or universities known as Direct Lending Schools and are offered by the US Federal Government directly to students and their legal guardians. Direct Lending Schools loan money directly to students, eliminating the middleman in the equation. If you are attending one of these medical schools, you have the option of taking out FDSLP Loans or a combination of FDSLP and FFELP Loans. The downside to FDSLP Loans is that you are stuck with the schools set interest rate. However, by eliminating the middleman your loan will be easier and less stressful to manage.
For more information on student loans, go to these websites:
What government benefits am I eligible for? -
Direct Loan Home Page -
Federal Student Aid, Stafford Loans -
+ Consolidate Your Private Student Loans Now! (Save Thousands!!)
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Save Money with a Private Student Loan Consolidation from Medical School Loans
By Brooke Heath
Even as a young child practicing medicine on your stuffed animals, you knew that you were destined to become a physician. But the road to obtaining your medical degree takes more than just the ability to mend the imaginary wounds of a teddy bear.
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