Medical School Loans
If you need loans to meet your financial needs while attending the Â鶹´«Ã½ School of Medicine, it is important to thoroughly research your options to find the best package to fit your needs.
Your financial aid award letter details your Federal Direct Unsubsidized Loan eligibility only if you filed the . If you need to borrow funds beyond those available through the Federal Direct Loan program, the Federal Direct Graduate PLUS Loan and private or alternative loans are available.
Federal Direct loans offer a secure borrowing option. We recommend that you consider the Federal Direct Unsubsidized Stafford Loan, followed by the Federal Direct Graduate PLUS Loan or a private or alternative Loan.
To complete the master promissory note for your Federal Direct Unsubsidized and Graduate Plus loans, go to .
The master note is good for 10 years. If you have previously borrowed from the Federal Direct Loan Program, you will not need to complete a new master promissory note. Apply for your Graduate PLUS loan no sooner than 90 days before your start date. The U.S. Department of Education will complete a credit check, which is valid for 180 days.
We are here to assist you. Should you have any questions, contact us at 314-977-9840 or sfp@slu.edu.
Below is a listing of several loan funding sources and eligibility requirements for each. Click the link below for a quick overview of the types of loan funding sources.
To explore private or alternative loans, the Office of Student Financial Services has created a list of preferred lenders of reputable companies. Private lenders offer these loans to assist with educational expenses that may not be covered by other federal, state or institutional or private financial aid resources. Borrowers have the right to choose any lender that is not on our preferred lender list.
Private and Alternative Loans
Banks and other private lending institutions fund private and alternative loans. Students who need additional funds to pay educational costs, and who have exhausted their Federal Direct Loan eligibility and other funding resources, may consider borrowing a private or alternative loan.
Eligibility
To apply for a private or alternative loan, you must be a U.S. citizen or eligible non-citizen with a creditworthy cosigner who is a U.S. citizen or permanent resident. The lender will perform a credit check at the time of application to determine eligibility.
Amount of Aid
You may borrow up to the cost of attendance minus other aid through a private or alternative loan.
Interest Rate and Fees
Most lenders offer both fixed and variable interest rates based on the borrower’s and cosigner’s creditworthiness. They may also consider other factors, such as income and repayment terms. Fees vary by lender, but most offer 0%.
Post-Enrollment Period (Grace Period)
This is a period after the borrower graduates or ceases to be enrolled at least half-time. The time period varies by lender and can range from 6 to 36 months.
Deferment and Repayment
These loans are deferred while the student is enrolled in school but can vary by lender. Additional deferment options are available, i.e., residency, internship, fellowships, etc. These vary by lender.
Repayment of principal and interest typically begins after the post-enrollment period (grace period). The length of repayment varies by lender and can range from 5 to 20 years.
Choosing a Lender
Many factors vary among lenders, so it’s in your best interest to research private loan products and choose one that best fits your needs and circumstances both in the short and long term.
Things to compare among lenders:
- Interest rates (variable vs. fixed).
- Whether accruing interest is added to the principal amount of the loan while you are enrolled in school.
- Are there any fees associated with the loan? Ask about both upfront and backend fees.
- Are payments required while you are in school? Some lenders require payments while you are in school and some do not. In the long term, it’s in your best interest to make payments while you are in school, but this may not fit in your budget
- Does the lender offer a cosigner release? If so, what are the conditions you must meet to qualify?
- Can the loan be deferred during residency/internships?
Application
You may borrow from any lender you choose and are not required to use a lender on Â鶹´«Ã½â€™s preferred lender list. SLU will process loans from any lender without delay. The University recommends reviewing your options, including federal, state, and institutional grants and loans, before applying for private loans.
Contact student financial services or view your award options in your MySLU account.
Â鶹´«Ã½ uses ELMSelect, a loan-comparison tool offered by ELM Resources, which allows students to compare alternative loans from our preferred lender list side-by-side.
You will be directed away from Â鶹´«Ã½ Student Financial Services website by clicking on the following link. We encourage you to bookmark this page for future reference. Enter now to view private loan products that are a part of our preferred lender list.
University Loans
At this time, we are not processing any new university loans.
When available, university loans, also known as institutional loans, are awarded based on financial need. Generous alumni and friends have donated loan funds have been donated to the School of Medicine for this purpose.
Loan Amount and Interest
The amount of the university loan varies according to available funding and financial need. The interest rate on institutional loans is 9%. However, interest does not accrue while in school or during residency.
University loan funds will only be applied toward tuition and will not be refunded. Refer to the Loan Application and Solicitation Form (PDF) for additional information.
University Loan Repayment
Once you graduate, transfer or cease to be enrolled full-time, your university loan will enter into a six-month grace period. Â鶹´«Ã½ is the lender and you will pay our billing agent, . You are not required to make payments during the grace period, and any payments made during the grace period before your first interest accrual will be applied toward the principal.
The status of all loan accounts is reported to a national credit bureau monthly.
Deferment and Grace
A deferment is an authorized period in which payments may be delayed, and interest does not accrue. Any payments made during this period may be applied to the principal. To be eligible for deferment, you must perform a specific activity, such as completing medical school or a medical residency/fellowship, and your account must be current. University loans also offer a six-month grace period in which no payment is required after one ceases to be enrolled.
Complete the Deferment Form (PDF)
Deferment forms can be faxed to 314-977-1605 or mailed to:
Â鶹´«Ã½ Office of Student Loans
Attn: Haley Held
221 N. Grand Blvd. Room 121
St. Louis, MO 63103
We suggest you submit the deferment form no more than 30 days before the end of your grace period or previous deferment. Failure to submit the deferment form by the due date may result in late charges and negative credit bureau reporting.
If you cease to perform the activity for which your account was deferred, you must notify the Office of Student Loans immediately by phone at 314-977-2407 or by email at Haley.held@slu.edu. Your loan payments will only qualify for deferment for the period you performed the qualifying activity.
The table below lists the deferments applicable to the University Loan:
| Deferments | |||
|---|---|---|---|
| Type | Limit | Re-apply | Required Documentation |
| Advanced Professional Training (Residency): | Unlimited | Annually | Submit a completed deferment request form. Note that for residency, the form is self-certifying. |
| Graduate Fellowship: | Two years | Annually | Submit a completed deferment request form that has been certified by the department head. |
| Active Military Duty: | Three years | Annually | Submit a completed deferment request form certified by your commanding officer. |
| Peace Corps: | Three years | Annually | Submit a completed deferment request form certified by your commanding officer. |
If you have questions about these or other available deferments, contact Student Financial Services at 314-977-9840 or the Office of Student Loans at 314-977-2407.
Cancellations
Your University Loan will be canceled in the event of your death or total and permanent disability with the proper certification.
Consolidation
Your University Loan is not eligible for federal consolidation.
Additional Loan Options
To assist you in financing your education, we offer Federal Direct Loans to students who are or will be enrolled at least half-time. Federal Direct Loans offer you the ability to borrow funds at a fixed interest rate with a variety of repayment plans and extended repayment terms. To apply for the Federal Direct Loans you must submit the with the Â鶹´«Ã½ federal school code of 002506.
Once we receive your FAFSA information from the processing center, we will determine your eligibility for the Federal Direct Loans. If you are borrowing for the first time, you must complete the Federal Direct Loan Master Promissory Note (MPN) and entrance counseling.
Eligibility
Students must be U.S. citizens or eligible noncitizens. Students with a F1 or F2 student visa, J1 or J2 exchange visitor visa or a G series visa are not eligible for federal aid.
Amount of Aid
The maximum annual loan amount is up to $40,500 for all students during the fall/spring terms. First, second and third year medical students may be eligible for an additional amount up to $6,667 for summer months. These amounts are based on a 9 to 12 month academic year.
There is a cumulative aggregate limit of $224,000 for Federal Direct Subsidized and Unsubsidized loans. This includes any undergraduate or graduate borrowing from the Federal Direct loan program.
Application
You must file the to determine your loan eligibility. The Federal Direct Unsubsidized Loan is a non-need-based loan funded by the Department of Education. Eligibility is not based on credit history.
Interest Rate and Fees
For Federal Direct Unsubsidized loan funds, the Direct Loan interest rate for graduate/professional students is 8.083% for loans processed on or after July 1, 2024.
Interest rates are established each year for the Direct Unsubsidized Loan for which the first disbursement is on or after July 1 through the following June 30. The rate is the sum of a uniform index rate plus an add-on that varies depending on the type of loan and the borrower's level as a graduate/professional.
For all Direct Unsubsidized loans disbursed on or after Oct. 1, 2023 - Sept. 30, 2024, there is a 1.057% loan fee. The loan fee is proportionately deducted from each of the two loan disbursements by the lender.
Grace Period, Deferment and Repayment
Borrowers have a six-month grace period from when they graduate or drop below half-time enrollment. Direct Unsubsidized Loans are deferred while you are in school. There are additional deferment and forbearance options available. For more information, visit
Repayment begins six months after leaving school or dropping below half-time status. The minimum monthly payment could be as low as $50. (Minimum repayment amounts are determined by the total amount borrowed.)
The standard repayment period is 10 years. Students who borrow more than $30,000 can extend the standard repayment term from 10 years to 25 years without loan consolidation.
Borrowers have six repayment plans that can adjust monthly payments and extend the length of the repayment period. There is no penalty for prepayment.
The Federal Direct Graduate Plus loan is a federal loan that can help pay for tuition and other educational expenses not covered by the Federal Direct Unsubsidized Loan or other financial aid. Loans are disbursed in two installments, not to exceed half of the loan amount. Funds may not be disbursed before enrollment for the academic year.
Eligibility
You must be a graduate or professional student to apply for this loan. You must also be a U.S. citizen or eligible noncitizen. Students with a F1 or F2 student visa, J1 or J2 exchange visitor visa or a G series visa are not eligible for federal aid.
You must also be accepted and enrolled at least half-time at an eligible school, and be in good academic standing. The Department of Education will perform a credit check at the time of application to determine creditworthiness.
Amount of Aid
You can borrow up to the cost of attendance minus other aid through a Federal Direct Graduate Plus Loan.
Application
To apply, file the . A credit application and Federal Direct Graduate Plus Master Promissory Note (MPN), as well as Loan Entrance Counseling, may be completed online.
If your loan is denied due to adverse credit, you will have the option to obtain an endorser or appeal the credit decision.
Interest Rate and Fees
The Graduate Plus Loan interest rate for graduate/professional students is 9.083% for loans processed on or after July 1, 2022.
Interest rates are established each year for the Direct Graduate Plus for which the first disbursement is on or after July 1 through the following June 30. The rate is the sum of a uniform "index rate" plus an "add-on" that varies depending on the type of loan and the borrower's level as a graduate/professional.
For all Direct Graduate Plus loans disbursed on or after Oct. 1, 2023 - Sept. 30, 2024, there is a 4.228% loan fee. The loan fee is proportionately deducted from each of the two loan disbursements by the lender.
Post-Enrollment Period
Graduate Plus loans borrowed after July 1, 2008, are eligible for a six-month post-enrollment period from the day the student graduates or drops below half-time enrollment.
Deferment and Repayment
Graduate Plus loans are deferred while the student is in school. There are additional deferment options available.
Repayment begins within 60 days after the final disbursement of the loan. However, while you are enrolled, Graduate Plus loans are placed on an in-school deferment status and will maintain a post-enrollment status for six months after graduation or until you cease to be enrolled at least half time.
The Primary Care Loan (PCL) program is a low-cost federal loan program for medical students committed to primary health care practice. The interest rate is 5% and begins to accrue following a one-year grace period after you cease to be a full-time student. Compared to other federal student and private loans, the PCL provides significant savings. The loan also offers deferment of principal and interest not found in other loan programs.
Eligibility
You must be enrolled full time and pursuing a degree in allopathic or osteopathic medicine. You must also be a U.S. citizen or permanent resident.
Students receiving a Primary Care Loan must sign a written contract agreeing to enter and complete residency training in primary care within four years of graduation, and practice in primary care for 10 years or until the loan is paid in full, whichever occurs first. Penalties will apply for non-compliance.
Application
Complete the PCL Application (PDF)
To receive priority consideration application must be returned by April 1.
If you are seriously considering practicing in primary care and would like to find out if you might qualify for a Primary Care Loan, contact us at 314-977-9840 or sfp@slu.edu.
Get More Information Â鶹´«Ã½ Primary Care and Family Medicine Loans
The Dr. and Mrs. Richard and Muriel Saunders Loan Fund was created by the generous donation of the Saunders estate to assist students entering the field of family medicine. Students who have matched into an ACGME-accredited family medicine program are encouraged to apply.
The amount of the loan varies according to available funding and financial need. The interest rate on the SML is 5%. Interest does not accrue during residency.
Loan recipients must complete their family medicine residency training within four years of graduating. The loan must be repaid over five years. Entering employment outside of family medicine will increase the interest rate to 9%, beginning on the date such employment began.
Eligibility
You must be a graduating fourth-year medical student entering an approved ACGME family medicine residency program. You must also be a U.S. citizen or permanent resident.
Application
Complete the Saunders Medical Loan Application (PDF)
To receive priority consideration, the application must be returned by April 1.
The Loans for Disadvantaged Students (LDS) program provides low-interest rate loans to eligible individuals from disadvantaged backgrounds who are enrolled full-time at an eligible health professions school.
Eligibility
An individual from a disadvantaged background is defined as someone who comes from an environment that has inhibited them from obtaining the knowledge, skill and abilities required to enroll in and graduate from a health professions school, or who comes from a family with an annual income below a level based on low-income thresholds according to family size published by the U.S. Bureau of the Census, adjusted annually for changes in the Consumer Price Index, and by the Secretary of Health and Human Services.
Eligible students must also be citizens, national or lawful permanent residents of the United States or the District of Columbia, the Commonwealths of Puerto Rico or the Marianas Islands, the Virgin Islands, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Republic of Palau, the Republic of the Marshall Islands or the Federated States of Micronesia.
Application
Complete the LDS Application (PDF)
The priority date for submission is October 3. Award notifications will be sent after October 30. For consideration, the parental data must be included on the FAFSA regardless of independency status. You must also submit copies of both your and your parents’ federal tax returns.
Loan Amount
Loans for Disadvantaged Students can be up to $15,000, depending on the availability of funds.
Interest Rate
The interest rate is fixed at 5% and does not accrue during grace or deferment periods. Interest is capitalized upon repayment.
Repayment
The standard repayment time is 10 years, however repayment can be extended up to 25 years at the school's discretion. The minimum monthly payment is $40. There is no penalty for prepayment or for making larger monthly payments than required to pay off the loan early. LDS loans are eligible to participate in consolidations.
Repayment begins after the one-year grace period. The grace period must expire before you are eligible for deferments. Deferment length is unlimited while you are in residency.