salaried federal employees of the National
Health Service Corps, or as self-employed
private practitioners.
Loans
Health Education Assistance Loan Program
(HEAL)
This program provides insured loans of up to
$20,000 a year (with a maximum of
$80,000 for four years). Interest is not to
exceed 12% during the life of the loan, and the
principal is repayable over a 10- to 25-year
period starting nine months after completion
of postgraduate training. It is also possible
(if funds are available) to repay the loan in
part or in whole by arranging a service contract
through the Department of Health and
Human Services.
Federal Stafford Loan
These loans are provided in two forms:
subsidized and unsubsidized. For the former, the
government pays the interest while the student
is in school. The latter requires that the
student pay interest throughout the life of the
loan. These loans have a variable interest
rate with 2.5% cap and provide a maximum of
$8,500 (subsidized) and $10,000 (unsub-
sidized) annually. Repayment begins six to nine
months after completing studies.
Repayment can be extended up to ten
years.
Health Professions Student Loan Program
(HPSL)
This program is administered by the medical
schools and gives a student who has
exceptional need the opportunity to borrow the
cost of tuition and up to $2,500 for other
expenses per year. The interest rate is 5% and
is applied after completion of residency
training. The loan is repayable over a ten-year
period.
Perkins Loans
Formerly known as the National Direct Student
Loan Program (NDSL), it is adminis-
tered by the U.S. Office of Education. This
program enables a student to borrow up to
$440,000 (including loans received as an
undergraduate). The interest rate is 5% and
repayment can extend over a ten-year period.
Repayment begins six months after com-
pleting school.
Guaranteed Student Loan Program
(GSL)
This program is also administered by the U.S.
Office of Education. It permits a student
to borrow up to $5,000 per year, the maximum
not to exceed $25,000 (including under-
graduate loans). The sources of these
guaranteed funds are banks, savings and loan asso-
ciations, or other participating lending
institutions. Interest is at 9% and repayment
begins 6 to 12 months after completing one's
studies.
National Health Service Corps: Federal Loan
Repayment Program
This program provides payment toward both
government and commercial education
loans. This can amount to $25,000 per year for
the first two years and up to $35,000 for
every year thereafter with a minimum two-year
commitment.
Other loan sources
Medical schools have loan funds provided by
philanthropic foundations, industry, or
alumni. Interest rates and repayment policies
are determined by the individual
schools.
Funds in the form of scholarships and loans in
varying amounts are available from
many other sources. There are, however,
restrictions as to eligibility based on residence,
ethnic group, or other requirements. Sources of
some of these programs are:
1. National Medical Fellowships, Inc., 250 West
57th Street, New York, NY 10019
2. Armed Forces Health Professions Scholarship
Program. Commander, US Army
Health Professions Support Agency SGPS-PD, 5109
Lessburg Pike, Falls
Church, VA 22041; Commander, Navy Recruiting
Command, 801 North
User Comments Add a comment…