To be eligible for a health professions student loan, you must show financial need and attend a participating institution.
A health professions student loan is a government loan for students who show financial need and attend participating institutions. There are four different types of healthcare loans:
- Health Professions Student Loans (HPSL).
- Loans for Disadvantaged Students (LDS).
- Primary Care Loans (PCL).
- Nursing School Loans (NSL).
Before taking out any loans, be sure you’ve exhausted all other options, such as grants and fellowships. Because of their low-interest rates, extensive grace periods, and considerable interest subsidies, health professions loans should be taken up before other student loans for medical school if your institution provides them and you are qualified.
Who is qualified for a student loan for health professions?
You must be a U.S. citizen or permanent resident to be eligible for the loans. You must also show financial need, which will be determined by your institution based on the cost of attendance and your financial means.
Each loan has its own set of criteria, such as which academic programs are eligible.
Health Professions Student Loans (HPSL)
Full-time students pursuing a Ph.D. in one of the following fields are eligible to apply for HPSL:
- Dentistry
- Bachelor’s degree in pharmacy is required
- Podiatric medicine is the field of medicine that deals with the feet.
- Optometry
- Medicine for animals.
Loans for Disadvantaged Students (LDS)
Full-time students pursuing a Ph.D. in one of the following fields are eligible to apply for LDS:
- Allopathic medicine is a kind of medicine that uses only natural ingredients.
- Osteopathic medicine is a branch of medicine that focuses on treating the whole.
- Dentistry.
- Bachelor’s degree in pharmacy is required.
- Podiatric medicine is the field of medicine that deals with the feet.
- Optometry.
- Medicine for animals.
To be considered an LDS, you must also come from a low-income family. This usually refers to students whose families meet the federal poverty requirements. However, eligibility is ultimately determined by the school’s financial assistance office.
Nursing School Loans (NSL)
NSL is available to part-time and full-time nursing students enrolled in a diploma, baccalaureate degree, associate degree, or graduate degree program.
Primary Care Loans (PCL)
Full-time students pursuing an allopathic or osteopathic doctorate may apply for PCL.
You must agree to the following terms if you take out a PCL:
- Within four years after graduation, begin and complete your residency.
- Primary care for ten years or until the debt is paid off, whichever comes first.
What distinguishes student loans for health professions?
The Health Resources and Services Administration, not the Department of Education, is the source of funds for health professions student loans.
Other federal student loans for medical degrees are not the same as health professions loans, such as direct loans at PaydayNow that aren’t subsidized and grad PLUS loans.
- Interest rates are low. Fixed interest rates of 5% apply to student loans for health professionals. Graduate unsubsidized loans have a 5.28 percent interest rate, whereas PLUS loans have a 6.28 percent interest rate.
- Grace periods that are longer The loans include a 12-month grace period, which is twice as long as other federal student loan alternatives.
- Interest is subsidized. Health-care loans are funded, so you won’t have to pay interest until the grace period is through. On unsubsidized loans, you are always liable for the claim that accrues.
- Some schools do not take part. Educational institutions manage the loans. To obtain financing, schools must apply to the federal government and satisfy particular conditions, such as having no more than a 5% default rate on previous loans.
- There are no minimum or maximum loan amounts. Your school determines how much you’ll get, and loan money is restricted. You may usually only borrow up to the cost of attendance at your school.
- Repayment schemes are being reduced. Income-driven repayment and Public Service Loan Forgiveness aren’t available for these loans. Except for Primary Care Loans, all loans may be merged into direct loans to be eligible for these programs.
What is the process for obtaining a student loan for health professions?
The Free Application for Federal Student Aid, or FAFSA, is the most common way to apply for a loan. However, a school may utilize its application for these loans; check with the financial aid office to learn more about the procedure.
Unless your parents have died, you must disclose your financial details to acquire a health professions student loan, even if you are considered an independent student. Schools can’t waive this requirement.
If your school provides these loans and you qualify, the loan will appear on your financial aid award letter with any other financial help you’ve received. Before taking out any student loans, embrace any free service.
