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The student applies for educational loans with our technical assistance. The interest rate of these loans is usually less than private loans. As of July 1st, the interest rate is set by the federal government annually. The most frequently processed loans are:
- Federal Loan Changes
The Budget Control Act of 2011 was passed on August 2, 2011. Some of the provisions in the act impact federal student loan programs offered at Ponce Health Sciences University. These changes WILL NOT affect the amount of loan funding available. However, loan funding will become more expensive. Here are the key provisions affecting future federal graduate and undergraduate student loans:
- Graduate and Professional Students Only:
Beginning July 1, 2012, all graduate and professional students will lose the interest subsidy on the Subsidized Stafford loan. The graduate Stafford loan program will become entirely unsubsidized, which means the loan will accrue interest while a student is in university. These changes will not affect the annual and aggregate borrowing limits. The maximum amount a student can borrow will remain at $20,500 per academic year.
- Loss of “origination fee rebate” affecting Stafford, Grad PLUS:
Beginning July 1, 2012, the full fee will be charged.
- Loss of interest rate reduction:
The last change is the loss of the .25% interest rate reduction if you pay your loans electronically while in repayment.
We recommend that students monitor their Federal Loan borrowing history online at: http://www.nslds.ed.gov/nslds_SA/
- Unsubsidized Direct Loans
The fixed interest rate is established annually by the Federal Government and the Federal Government does not pay the interest while the student is in the university. However, as an Institution participating in the previous HEAL program, the student of our MD, PsyD, MPH, PhD and DrPH programs may be eligible for an additional loan award.
- Aggregate Amount of Loans
The Doctoral Student (including MD, DrPH, PhD Psy, PsyD, PhD Biomed) may obtain an aggregated $224,000.00 in Stafford Loans of which $65,500.00 can be Subsidized and $158,500.00 Unsubsidized. PHSU Graduate Programs at the master level have an aggregated limit of $138,500.00, of which $65,500.00 are Subsidized Stafford Loans. The Bachelor in Science in Nursing Program (Undergraduate) has an aggregated limit of 50,000, of which 25,000 are Subsidized Direct Loans. The aggregated debt limit includes ALL LOANS, both undergraduate and graduate levels.
- Graduate Plus Loan
There are no fixed annual or aggregate loan limits. A graduate or professional student may be awarded a PLUS loan for up to the student’s cost of education minus other financial assistance.
Credit will be verified; interest begins to accrue upon disbursement. Interest rate and Origination fee are annual set by the Federal Government that is shared with the applicant during the application process on the website: studentaids.gov. Repayment begins immediately, but you may obtain a deferment while in university. PLUS, loans have no grace period, so repayment begins upon graduation or withdrawal from the university.
- Alternative Loans
Students who are not eligible for Title IV funds may use other alternative loans. There are several alternative loans programs for health professional students. These are credit-based loans that may be used to supplement other types of financial assistance. The loan amounts vary from $10,000 to $20,000 or higher. The interest rate is variable, accrued while in university and usually based on the current “Prime Rate” plus a lender’s predetermined interest rate. Repayment may be up to 20 years. Alternative Loans sometimes provide funds to complete the remaining need after the student is awarded other financial aid. Due to the high interest rate that these loans represent, the student should seek these loans as a last resource to their financial need. The school does not have any preferred lender, therefore, openly processes those requests presented by any of our students.
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