Student Financial Aid and Debt Management

Loans

Student Loans, unlike grants or scholarships, are borrowed funds that must be repaid. These loans cannot be cancelled, even if you do not like your university experience, do not obtain a job in your field of study, or are facing financial hardship.

The links below describe the loan programs available to UIC students.

Federal Direct Stafford Loans

The Federal Direct Stafford loan program allows students to borrow low-cost educational loans from the federal government. To be eligible for a Direct Stafford loan, COM students must be enrolled at least 6 hours.

When you borrow a Stafford loan for the first time at UIC, you must sign a Master Promissory Note (MPN) at studentloans.gov agreeing to pay back the money borrowed, with interest, according to the terms of the program.  Students borrowing a Direct Loan for the first time at UIC must complete Direct Loans Entrance Counseling at studentloans.gov before any loans can disburse.

Federal Unsubsidized Direct Stafford loans are not need based. Interest begins accruing from the date of first disbursement. You can choose to pay the interest quarterly while in school, or you can allow it to accumulate and be capitalized when repayment begins.  Repayment begins 6 months after you graduate, leave school, or fall below half-time enrollment.

The maximum amount you may borrow in an Unsubsidized loan for the Fall and Spring semester (nine-months) is $40,500.  For students attending summer term (M1, M2, and M3), you will be eligible for an additional $6,667.  In addition, your total loans may not exceed your total cost of attendance in a given award year.  If you are awarded an Unsubsidized Direct Stafford loan, it will appear on your Award Notification as “Direct Loan – Unsubsidized.”

Lifetime Maximums: The combined lifetime aggregate maximum for Stafford loans is $224,000 (total Subsidized and Unsubsidized Loans) for medical students. This limit includes all undergraduate and/or graduate Stafford loans from any college or university attended.

Interest Rates:  Congress has passed and the President has signed the Bipartisan Student Loan Certainty Act of 2013, which ties federal student loan interest rates to financial markets. Under this Act, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Each loan will have a fixed interest rate for the life of the loan.
Origination Fees:  Most federal student loans have loan fees that are deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.

Interest Rate and Origination Fee Chart
For the more information on Direct Loan Interest Rates and Fees, please visit:  http://studentaid.ed.gov/types/loans/interest-rates.

Federal Direct Grad PLUS Loan

Origination Fees:  Most federal student loans have loan fees that are deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.

Interest Rate and Origination Fee Chart

For the more information on Direct Loan Interest Rates and Fees, please visit:  http://studentaid.ed.gov/types/loans/interest-rates.

Primary Care Loan

The Primary Care Loan program is a subsidized loan with an interest rate of 5%.  Students must have need and must be enrolled full time to receive PCL.  The PCL is tied to a service requirement.

Medical students receiving a Primary Care Loan must agree to:

• Enter and complete residency training in primary care within four years after graduation and
• Practice in primary care for the life of the loan

Because of this service requirement, we only award PCL to M4’s after Match Day.

Students interested in PCL must submit parental income information to the COM OSFA to determine if they meet the need-based eligibility criteria.

2019-2020 PCL Information and Guidelines

See the Forms section of this site for an application form.

Private Loans

Many private lenders offer loans to students to cover allowable educational expenses. These loans are often referred to as “alternative loans.” These loans are not part of the federal government’s loan programs and may be more expensive for the borrower than federal loans. Some programs exist that are specifically designed for medical students. Since the lender of each program establishes the interest rates, origination fees, repayment options, and application requirements, the COM OSFA urges all students to borrow cautiously and make sure you understand all the terms of any private loan. All lenders require a credit check for each applicant and in some cases a cosigner. Interest on private loans begins to accrue at the date of disbursement, but repayment of principal and interest often does not begin until after a student has graduated from medical school. Your maximum eligibility for an educational private loan would be the cost of attendance minus any financial aid already received.

UIC does not have a preferred lender list or any type of preferred lender arrangement. Students are free to select any lender of their choice. If you wish to borrow an alternative loan, the COM OSFA highly encourages you to research multiple lenders and pick the loan that best fits your needs. Finaid.org maintains a thorough list of private lenders which you may want to review in doing your research on lenders. UIC is not responsible for the accuracy or updating of the lender information on this particular website.

Veterans

For information on veterans benefits and veterans educational programs, please visit Student Veteran Affairs.