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Types of Loans Available

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. 

How to Apply    Loan Limits & Interest Rates    Loan Counseling    Repayment   
Borrower Rights & Responsibilities    U.S. Dept. of Education Direct Loan Program

 

Direct Parent Loan for Undergraduate Students (PLUS)

Federal Title IV Direct PLUS Loans are only available to parents of dependent, undergraduate students. 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 = 4.288% before 10/1/14 and 4.292% after
  • Fixed interest rate = 7.21% (begins accruing after disbursement)
  • Payment may be deferred while student is enrolled at least half-time
  • Standard repayment term of ten (10) years

Eligibility

  • 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

How to Apply

 

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.

How to Apply

 

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).

 HPSL Facts

  • 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

Eligibility

  • 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.

How to Apply    HRSA Regulatory Information

 

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.

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.

Points to consider when choosing a lender

  • Interest Rate – It may be capitalized: therefore, increasing the amount of money you ultimately owe. Consider using a cosigner. You may qualify for slightly lower rates.
  • Fees – The interest rates and fees that you pay are based on your credit score and the credit score of your cosigner if you choose to use a cosigner.
  • Borrower Benefits – These vary by lender.
  • Repayment Terms – Some lenders require you to pay while you are in school. Others will defer payments until after graduation.
  • Eligibility Requirements - Check the requirements for the loan.

Alternative Loan Lender List

In order to correctly enter your loan term dates when applying for an alternative loan, please use the academic year dates that correspond to your program on our 2014-2015 disbursement chart.

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

Eligibility

  • 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.

Eligibility

  • 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.


Tuition Assistance, Stipends and Other Types of Financial Aid

All tuition assistance, stipends and other financial opportunities for research or other employment are administered by the respective component. The Office of Student Financial Aid does not participate in selection or amounts of funding. Contact your academic advisor or College for more information.

Last edited by: chea 07/31/2014


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