Loans for Disadvantaged Students (LDS)
The purpose of the LDS program is to provide low-interest rate loans to eligible individuals from disadvantaged backgrounds that are enrolled full-time at an eligible health professions school.
An individual from a disadvantaged background is defined as someone who:
1. Comes from an environment that has inhibited the individual from obtaining the knowledge, skill and abilities required to enroll in and graduate from a health profession school;
2. 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 adjusted by the Secretary of Health and Human Services for adaptation to this program.
Eligible students must also be:
A citizen, national or a lawful permanent resident of the United States or the District of Columbia, the Commonwealths of Puerto Rico or the Marianas Islands, the Virgin Islands, Guam, the American Samoa, the Trust Territory of the Pacific Islands, the Republic of Palau, the Republic of the Marshall islands and the Federated State of Micronesia.
To apply for the LDS loan the student needs to first complete the LDS Application form as well as the Free Application for Federal Student Aid. The priority date for submission is September 1. Award notifications will be sent after September 15. For consideration, the parental data must be included on the FAFSA regardless of independency status. Students must also submit copies of both their and their parents Federal Tax returns.
LDS can be made in amounts up to $10,000, depending on the availability of funds.
5% fixed interest. Interest does not accrue during periods of grace or deferment. Interest is capitalized upon repayment.
Standard Repayment is 10 years; repayment can be extended up to 25 years at the school's discretion.
Repayment begins after the one year grace period. Grace period must expire before student is eligible for deferments. Deferment length is unlimited while the student is in residency. The minimum monthly payment is $40. There is no penalty for prepayment or for making larger monthly payments than required in order to pay the loan off early. LDS loans are eligible to participate in consolidations.
To compare this loan to the other types of available loans click here.