UM - Miller School of Medicine University of Miami - Miller School of Medicine

Loans

Introduction

There are federal and institutional educational loans available to medical students. A description of available educational loans is given below. We encourage you to contact the Student Financial Assistance office as you progress through the loan application process if you require any assistance or have any questions.

Free Application For Federal Student Aid (FAFSA)

To be considered for financial assistance, you must complete the Free Application for Federal Student Aid (FAFSA), which is available on the US Department of Education website: http://www.fafsa.ed.gov In or.der for UMMSM to receive your information, you will need to indicate our institutional school code, E00533. Complete the parental information section of the FAFSA if you wish to be considered for a Federal Perkins Loan or Institutional Donor Loan. If you require any assistance in completing the FAFSA, feel free to contact us and we will be happy to assist.

Federal Direct Unsubsidized Loan

The Federal Direct Unsubsidized Loan (sometimes called Stafford) is the primary source of loan funding for medical students. Important information to know includes:

  • Minimum $40,500 per year.
  • 1.062% origination fee.
  • Fixed interest rate changes on new loans each July 1, current 2018-2019 rate is 6.6%.
  • 6 month grace period.
  • Interest accrues during school and grace.
  • Multiple repayment and forgiveness provisions.
  • Lender is the federal government, as loan comes ‘directly’ from federal government.

Federal Direct PLUS (Grad PLUS)

Grad PLUS is typically used to help meet additional expenses not covered by other financial aid including the Direct Unsubsidized Loan. Important information to know includes:

  • No annual limit, may borrow up to COA (cost of attendance each year minus other aid, including Direct Unsubsidized).
  • 4.248% origination fee.
  • Fixed interest rate changes on new loans each July 1, always 1% higher than Direct Unsubsidized, current 2018-2019 rate is 7.6%.
  • 6 month post-enrollment deferment (similar to grace period).
  • Interest accrues during school and deferment period after graduation.
  • Multiple repayment and forgiveness provisions.
  • Lender is the federal government, as loan comes ‘directly’ from federal government.

Master Promissory Note

Both federal loan programs require that the student complete a Master Promissory Note (MPN). The MPN is the ‘Promise to Pay’ document between you and the US Department of Education. To complete an MPN please visit studentloans.gov. If you have borrowed from the Federal Direct Loan Program in the past 10 years, you are not required to complete a new Master Promissory Note.

Entrance Loan Counseling

Students who borrow under the Federal Direct Loan Program for the first time are required to complete counseling before their loan proceeds can be released. You may complete your counseling requirements by logging into studentloans.gov. You will need your FSA ID to complete process. If you have any questions as you complete the counseling requirements, you may contact the Office of Student Financial Assistance.

Disbursement of Funds

Federal loans are disbursed directly to the University of Miami (Office of Student Account Services). After all financial obligations are met, the remaining balance (called an “overage”) is refunded to the borrower in the form of a paper check or a direct deposit.

Direct Deposit Program (Office of Student Account Services)

Students are encouraged to participate in the Direct Deposit program to have their refunds automatically deposited into the bank or credit union account of their choice. To take advantage of the Direct Deposit program, login to CaneLink, go to Student Center, select the Self-Service tab and click on Campus Finances.

Lending Principles

The University of Miami recognizes that ensuring the integrity of the student financial aid process is critical to providing fair and affordable access to higher education. The Student Loan Code of Conduct is designed to avoid any potential for a conflict of interest between the University and its students or their parents, with respect to its interaction with student loan providers, servicers and guarantee agencies.

Loan Code of Conduct

 

FAFSA Required

Need Based

Range of Awards

Interest Rate

Repayment Begins

Aggregate Limits

Notes

Unsubsidized Federal Direct Loan

YES

NO

Annual Minimum $40,500

Changes each July 1 on new loans, then fixed for life of loan. Current 2018-19 rate 6.6%.

6 months after graduation

$224,000 combined total for subsidized and unsubsidized

1.062% Origination Fee

Federal Direct Grad PLUS Loan

YES

NO

Cost of attendance less other financial assistance

Changes each July 1, same as Direct Unsub, fixed for life of loan. Current 2018-19 rate 7.6% (always 1% higher than Direct Unsub).

6 months after graduation

No aggregate limit

4.248% Origination Fee

Institutional Donor Loans

YES

YES

Varies

Variable

6 months after graduation

N/A

Must complete parents’ section of FAFSA