Federal Subsidized Loan

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Federal Subsidized Loan

This loan will no longer be available to medical students after July 1, 2012.

Information for past borrowers of the subsidized loan:

Borrowers must demonstrate need to be eligible for a subsidized loan.

Maximum Loan: $8,500 per academic year; $65,500 cumulative undergraduate/graduate borrowings.

Loan Fees: With the Direct Lending program, 0.5% of the approved loan amount will be deducted from the loan proceeds at the time of disbursement.  An additional 0.5% fee will be charged during repayment if the borrower is late on his or her payments at any point during the first 12 scheduled monthly payments.

Interest: No interest is charged on the federal subsidized loan during the in-school, grace and approved deferment periods.

Interest Rate:  6.8% Fixed Rate for all subsidized loans disbursed after July 1, 2006. 

Grace Period: Borrowers will automatically receive six months of grace immediately following graduation or withdrawal from school. No interest acrrues and no payments are expected during the grace period.

Residency Forbearance: Borrowers may request residency forbearance for any years of residency training. No payment of principal or interest is required during the forbearance period. However, unlike periods of deferment on federal subsidized loans, interest is charged during forbearance and, unless paid by the borrower, will be capitalized at the end of each forbearance period. 

Deferment Options: Borrowers are entitled to a deferment if they meet any one of the requirements below. The borrower must request a deferment on a form provided by the lender and provide documentation to the lender in support of the deferment request. For more detailed information regarding deferment requirements, see your financial aid counselor.

  • Periods of unemployment (cumulative 24-month limit)
  • Full- or half-time study at an eligible school (no limit)
  • Residency training (only those borrowers who have an unpaid balance on a stafford Loan disbursed PRIOR to 7/1/93; 2-year maximum deferment)
  • Graduate Fellowship (lender must approve eligible program - no limit)
  • Rehabilitation training (no limit)
  • Economic Hardship (only those borrowers who received their first Stafford Loan after July 1, 1993; borrower must meet the federal definition of hardship; 36-month limit)
  • Unable to find full-time employment (36-month limit)


Repayment: Standard repayment allows 10 years excluding periods of grace, deferment and/or forbearance.   Longer repayment periods may be allowed, depending on the borrower's total debt.