Federal Direct Unsubsidized loan
Medical students can borrow up to $47,167 annually (depending on year in school). The Federal Direct UnsubsidizedLoan is available regardless of need. Interest begins accruing at time of disbursement. Students may either pay the interest while in school or they can defer payments until after graduation.
The interest rate for a loan, once established, will apply for the life of the loan – that is, the loan will be a fixed-rate loan. As a result, it is likely that many borrowers will have a set of fixed-rate loans, each with a different interest rate.
- Loans first disbursed 7/1/2020 - 6/30/2021 will have a fixed interest rate of 4.30%.
- The loan fee for loans first disbursed on or after 10/1/2019 and before 10/1/2020 is 1.059%.
- The loan fee for loans first disbursed on or after 10/1/2020 and before 10/1/2021 is 1.057%.
First-time Federal Direct loan borrowers must complete the following requirements:
Entrance loan counseling and the master promissory note are located online at studentaid.gov. Select "Wayne State University" as your school and not Wayne State University School of Medicine.
The annual Federal Direct Unsubsidized Loan maximum is based on the length of the academic year.
|Year in program||# Months enrolled||Maximum amount|
The aggregate loan limit, including all undergraduate and graduate loans, is $224,000. Of that amount, $65,500 can be Subsidized Loans borrowed through either the Federal Direct Loan Program (FDLP) or the Federal Family Education Loan Program (FFELP).
Federal Direct Grad PLUS loan
The WSU Office of Student Financial Aid includes federal Unsubsidized Loans in financial aid award offers but does not automatically include Grad PLUS Loans. Students who want a Grad PLUS Loan must apply on the Federal Student Aid website: studentaid.gov.
Interest rate and loan fee
- Loans first disbursed 7/1/2020 - 6/30/2021 will have a fixed interest rate of 5.30%.
- The loan fee for loans first disbursed on or after 10/1/2019 and before 10/1/2020 is 4.236%.
- The loan fee for loans first disbursed on or after 10/1/2020 and before 10/1/2021 is 4.228%.
How to apply for a Grad PLUS loan
- Apply on the Federal Student Aid website: studentaid.gov
- Log in with your Federal Student Aid (FSA) ID(the same that you use to sign the FAFSA)
- Select "Complete PLUS Request Process"
- A credit check will be run as part of the loan approval process. If you are denied credit, you will be given options that include resolving adverse credit information or obtaining an endorser (loan co-signer). See the Credit Denial section below.
First-time Federal Direct loan borrowers must complete the following requirements:
Entrance loan counseling and the master promissory note are located online at studentaid.gov. Select "Wayne State University" as your school.
PLUS denial options
PLUS applicants will receive a credit decision when the application is completed. The credit decision will include information for applicants who receive a credit denial with instructions to appeal or apply with an endorser.
Federal Direct Grad PLUS Loan eligibility
Credit history: A credit check will be performed by the U.S. Department of Education is part of your application process. You must not have an adverse credit history as the result of: 1) being 90 or more days delinquent on any debt or 2) within 5 years of the date of the credit report, being the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Federal Student Aid debt such as a federal student loan.
Endorser option: If an adverse credit history exists, an endorser (co-borrower) who does not have an adverse credit history will be required to co-sign your loan. An endorser is someone who agrees to repay the loan if you do not repay it. If you borrow with an endorser, you will be required to complete a new Master Promissory Note each year.
Enrollment: You must maintain at least half-time enrollment in a graduate or professional program and meet all other eligibility requirements for federal student aid. School of Medicine enrollment: Full-time = 24 to 50 credits, halftime = 12 to 23 credits.
Changes to enrollment: If your enrollment status is changed for any reason, contact the Office of Student Financial Aid to determine whether a financial aid adjustment will be required.
You may borrow up to your full Cost of Attendance, minus all other financial aid (including Federal Direct Unsubsidized Loans, Federal Work-Study awards, and grants and scholarships.) If additional financial aid is awarded after your loan amounts are calculated, your loan amounts will be reviewed, and if necessary, they will be decreased.
In-school and post-school deferment
The Federal Direct Grad PLUS Loan qualifies for deferment while you remain enrolled at least halftime and for an additional six-month post-enrollment period. Your loan servicer will notify you before your deferment ends.
The Federal Direct Graduate PLUS Loan qualifies for forbearance during eligible periods of medical residency, and deferment during eligible periods of graduate fellowship. There are multiple repayment plans including Standard, Graduated, Extended, Income Based, Income Contingent and Income Sensitive. Interest begins to accrue at the time Federal Direct Graduate PLUS Loans are disbursed.
You may consolidate your Federal Direct Grad PLUS Loan with your other eligible student loans into a single consolidation loan after you leave school. If consolidating loans that have a grace period with loans that do not, consider waiting until all grace periods have ended.
View your federal loan borrowing history at studentaid.gov. Federal student loans include Federal Subsidized, Federal Unsubsidized, Federal Consolidation, Federal Parent PLUS and Grad PLUS, and Federal Perkins Loans. Your loan history, as well information about your federal grants, is reported by each school that you attend. Your loan history is available to lenders, guarantee agencies, and institutions that the U.S. Department of Education authorizes as users of the system.
- To increase or decrease an existing Direct Unsubsidized Loan award: Federal Direct Subsidized/Unsubsidized Loan Revision Request Form
- To decrease an existing Direct Grad PLUS Loan: Federal Direct Grad PLUS Loan Revision Form
- To increase a Grad PLUS Loan, complete a new application on studentaid.gov.
Primary Care Loan (PCL)
The U.S. Department of Health and Human Services provides Primary Care Loans to full-time, financially needy students who pursue a career in Primary Care. The interest rate is fixed at 5%. Interest accrual and repayment begin after a 12-month grace period and residency training.
Fourth year students who match into a Primary Care residency may contact the SOM Office of Financial Aid for application. Primary Care Loans may be used to repay outstanding balances on other higher-interest loans borrowed during medical school. The Department of Health and Human Services defines primary care as family medicine, general internal medicine, general pediatrics and preventive medicine.
Medical students who obtain a Primary Care Loan must agree to (1) enter and complete residency training in primary care within four years after graduation and (2) practice in primary care for 10 years or through the date on which the loan is repaid in full, whichever occurs first. For borrowers who receive a PCL but fail to comply with the service requirements of the program, the interest rate will be increased from 5% to 7%.
Loans for Disadvantaged Students Program (LDS)
The federal government offers a long-term, low interest loan to students who are enrolled full-time in the MD program and come from a disadvantaged background as defined by the U.S. Department of Health and Human Services.
The U.S. Department of Health and Human Services' defines a disadvantaged background as coming from a family with an annual income below a level of income threshold according to family size published by the U.S. Bureau of Census, adjusted annually for changes in the Consumer Price Index, and adjusted by the Secretary, HHS, for use in health professions programs.
The Office of Student Financial Aid (OSFA) will consider all students who meet the eligibility criteria and who have provided parental information on the FAFSA. Amount and number of awards are based on availability of funds. The loan interest rate is five percent (5%). Loan interest begins to accrue at the time repayment begins. Loan repayment begins one year after the borrower is no longer enrolled full-time in the MD program. Repayment may be deferred until completion of residency training.
Alternative (Private) loan
Alternative (private) loans generally are more expensive, have variable interest rates, and have fewer repayment benefits than federal loans. Generally, the annual loan limit is the cost of attendance minus other financial aid.
Before considering an alternative (private) loan, borrow the maximum in Federal Direct Unsubsidized Loans and Federal Direct Grad PLUS Loans, both of which require U.S. citizenship and submission of the Free Application for Federal Student Aid (FAFSA).
Non-U.S. citizens may borrow alternative (private) loans but must obtain a co-borrower who is a U.S. citizen or eligible non-citizen.
Students may initiate an application with any participating lender. They should compare loan programs before choosing the one that best suits their needs. Comparison should be based on such factors as interest rates; frequency of capitalization; fees; and deferment, forbearance and repayment options. Once the loan is approved, the lender will contact the WSU Office of Student Financial Aid to certify the loan.
You are advised to compare loan programs before choosing the one that best suits your needs. A comparison should be based on such factors as loan maximums, interest rates; frequency of capitalization; fees; and deferment, forbearance and repayment options. Applications and program details are available from individual lenders.
Alternative loan comparison– ELM Select Loan Comparison Tool
- You have the right to borrow from any lender. You should compare alternative loan lenders to determine which lender best meets your needs. Wayne State University has no financial interest in a student's choice of lender. You may use the ELM Select Loan Comparison Tool to compare lender terms, rates, and repayment options.
- The ELM Select Loan Comparison Tool includes lenders who provided 10 or more loans to Wayne State University students for the 2016 calendar year. This list does not imply endorsement, is reviewed periodically and can be changed at any time.
Federal Consolidation Loan
Federal consolidation loans allow you to combine existing federal student loans into one new loan with a weighted-average interest rate of the interest rates on the loans included in the consolidation, rounded up to the next higher one-eighth of one percent. Loan consolidation reduces the number of monthly payments to individual lenders/servicers and may also lower monthly payment amounts. More information about online: Federal Direct Loan Consolidation.
Residency/Relocation Loans are private loans that are intended to cover expenses associated with residency interviewing and/or relocation above the standard allowance in the M4 Cost of Attendance. They may have a fixed interest rate or a variable interest rate and require credit approval. The interest rate will be based on your credit history and other factors including your cosigner's (if any) credit history. Students must meet U.S. citizenship requirements and be in their final year of medical school. The borrower initiates the application process with the lender; the lender disburses funds directly to the borrower.
Canadian Student Loan Programs
Canadian students do not qualify for U.S. Department of Education federal student assistance programs, but can apply for federal and provincial loans through the Government of Canada. Those with a U.S. co-borrower may also apply for private/alternative loans with participating U.S. lenders.