Direct Stafford Loans
TAMHSC participates in the Direct Loan Program for all Federal Title IV Stafford (subsidized and unsubsidized), Parent Loan for Undergraduate Students (PLUS) and Graduate PLUS (GradPLUS) loans. The U.S. Department of Education directly administers all federally guaranteed student loans in the Direct Loan Program.
- Subsidized Stafford Loan: Student eligibility is determined by the Dept. of Education from information reported on the Free Application for Federal Student Aid (FAFSA). Subsidized loans are awarded according to “need-based” eligibility and do not accrue interest while the student is enrolled at least half-time.
- Unsubsidized Stafford Loan: Student eligibility is determined by the FAFSA. Unsubsidized loans are not awarded based on “need” (non-need-based) and do accrue interest while the student is enrolled.
Direct Parent Loan for Undergraduate Students (PLUS)
Federal Title IV Direct PLUS Loans are only available to parents of dependent, undergraduate students. Beginning in 2011 a FAFSA must be completed before a PLUS loan application is processed. PLUS loan repayment is the sole responsibility of the borrower, not the student for which the loan is taken.
The amounts of the PLUS loan are limited to the student’s eligibility as calculated by the program’s cost of attendance (COA) less any other financial aid (scholarships, grants, loans) the student is receiving for the year.
COA – Financial Aid = Maximum Amount of PLUS
PLUS Loan Facts:
Origination fee = 2.5% (4.0% less up-front rebate of 1.5%)
Fixed interest rate = 7.9% (begins accruing after disbursement)
Payment may be deferred while student is enrolled at least half-time
Standard repayment term of ten (10) years
Student must be enrolled at least half-time (6 credit hours for undergraduate students)
Student must be meeting all Satisfactory Academic Progress requirements
Borrower must pass Department of Education credit check
Graduate Student PLUS Loans (GradPLUS)
The Federal Title IV Direct GradPLUS Loan is available to graduate and professional students. Completion of the FAFSA is required. GradPLUS loans should be used after the student has reached the annual (or lifetime) limit of Stafford loans.
The terms, conditions, eligibility and loan amounts of the PLUS Loan (see above) apply to the GradPLUS, with the exception of enrolled hours. Half-time status for graduate students is five (5) credit hours during the fall and spring sessions and three (3) credit hours during the summer sessions.
Health Professions Student Loan (HPSL)
The Title VII Health Professions Student Loan (HPSL) is a long-term, low interest loan available to students with financial need and enrolled in the Baylor College of Dentistry Doctor of Dental Surgery (DDS) program. Regardless of dependency status, applicants are required to include their parental information on the FAFSA to be considered for the limited funding available each year. TAMHSC administers awarding and repayment processing of HPSL funds from the U.S. Department of Health and Human Services, Health Resources and Services Administration (HRSA).
Fixed interest rate = 5.0% (begins accruing after grace period)
Annual award amount = variable based upon available funding determined each year
Repayment is deferred while student is enrolled at least half-time
Grace period before repayment = Twelve (12) months
Standard repayment term of ten (10) years
Repayment is made to Texas A&M Health Science Center
Full-time enrollment in BCD DDS program
Meeting all Satisfactory Academic Progress requirements
Determined to have financial need with parental information on Free Application for Federal Student Aid (FAFSA)
Students offered and accepting an HPSL will be notified each year of any actions, such as loan counseling, promissory note and self-certification, which are required prior to disbursement of the funds. Student borrowers will also be provided loan and repayment information for each year in which an HPSL is processed.
Alternative or Private Education Loans
Private student loans or alternative loans are available to students who are not eligible for federal loans or who need assistance beyond the financial aid available from the FAFSA. These loans are made through banks, state agencies and other financial institutions. The borrower is subject to the terms unique to the loan. It is recommended that a student seek alternative education loans after first applying for Federal and State aid using the FAFSA.
The TAMHSC Office of Student Financial Aid does not have an Alternative Loan preferred lender list or recommend one lender(s) over others. It is the borrower’s responsibility to research and compare loans before choosing to apply. In most cases, applications come directly from the lending institution. Borrowers of alternative loans must also complete a self-certification form furnished by the lender. Please contact the financial aid office if you have questions or need assistance.
Repayment: Borrowers of private and non-federally guaranteed educational loans should contact the respective lenders and/or refer to promissory notes for information regarding repayment and rights and responsibilities.
Minnie Stevens Piper Foundation Student Loan Program
The Minnie Stevens Piper Foundation is a nonprofit charitable corporation which provides private educational loans to Texas Resident students with a Junior, Senior and Graduate/Professional classification.
Minnie Stevens Piper Loan Facts:
Fixed interest rate = 4.0% (begins accruing after grace period)
Repayment due in full one year after student ceases to be enrolled full-time
Note: Monthly payment plan may be requested. If approved, rates and repayment terms are set by Minnie Stevens Piper Foundation.
Annual undergraduate award amount not to exceed $3,000
Annual graduate/professional award amount not to exceed $6,000 per year
Maximum total/aggregate loans not to exceed $10,000 for a student
Texas Resident and U.S. Citizen or Permanent Resident
Classified as Junior, Senior, Graduate or Professional student
Application information is available at the Minnie Stevens Piper Foundation website or by contacting the TAMHSC Office of Student Financial Aid.
Texas Medical Association Loan (TMA Loan)
The TMA offers an alternative education loan primarily funded by the May Owen Irrevocable Trust to full-time students participating in the College of Medicine Doctor of Medicine program.
TMA Loan Facts:
- Interest Rate: 4.40% Fixed
- Maximum loan amount: $4,000
- Repayment of principle begins four years after graduation from medical school.
- Must make annual interest payment while in school and for four years after graduation.
- If the borrower discontinues the study of medicine, must be repaid immediately.
- Full-time enrollment in COM M.D. program
- Complete FAFSA
- Satisfactory Academic Progress
Application information is available through the TAMHSC Office of Student Financial Aid.