Medical School Loans

If you need loans to meet your financial needs while attending the Saint Louis University 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 Free Application for Federal Student Aid (FAFSA). If you need to borrow funds beyond those available through the Federal Direct Loan program, the Federal Direct Graduate PLUS Loan is available.

Federal loan programs offer a secure borrowing option. We recommend that you consider the Unsubsidized Stafford Loan, followed by the Federal Graduate PLUS Loan.

To complete the Master Promissory Note for both your Federal Direct Unsubsidized and Graduate Plus loans studentloans.gov. (You will be re-directed to the U.S. Department of Education to complete your Master Promissory Note.)

The master note is good for ten 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, and the credit check 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.

University Loans

At this time, we are not processing any new university loans.

University loans (also known as institutional loans) are awarded based on financial need. Loan funds have been donated to the School of Medicine for this purpose from generous alumni and friends.

Loan Overview (PDF)

Students who file the Free Application for Federal Student Aid (FAFSA) and demonstrate financial need can be considered for a university loan when applications are open.

A completed and signed Validation for Scholarship Consideration form is required. If you are unable to use the IRS Data Retrieval Tool, you must also submit copies of your Tax Return Transcripts.

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 percent, 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 for additional information.

University Loan Repayment

Once you graduate, transfer or cease to be enrolled on a full-time basis, your university loan will enter into a six-month grace period. Saint Louis University is the lender and your payments will be made to our billing agent, University Accounting Service. 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 towards principal.

The status of all loan accounts are reported to a national credit bureau monthly.

Deferment

A deferment is an authorized period of time in which payments may be delayed and interest does not accrue. Any payments made during this period may be applied to principal. To be eligible for deferment you must be performing a specific activity, such as your medical residency, and your account must be current.

Complete the Deferment Form

Deferment forms can faxed to 314-977-1605 or mailed to:

Saint Louis University Office of Student Loans
Attn: Meg Kupferer
221 N. Grand Blvd. Room 121
St. Louis, MO 63103

We suggest that you submit the deferment form no more than 30 days before the end of your grace period or previous deferment. Note that 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  kupferme@slu.edu. Your loan payments will only qualify for deferment for the time period that you were doing 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 that has been certified by your commanding officer.
Peace Corps: Three years Annually Submit a completed deferment request form that has been certified by your commanding officer.
 

If you have questions about these or other types of 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

Federal Direct Loan Programs

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 Free Application for Federal Student Aid (FAFSA) with the Saint Louis University 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.

Loan Overview (PDF)

Eligibility

Students must be a U.S. citizen or eligible non-citizen. 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 $42,722 for first and second-year medical students, $47,167 for third-year medical students and $44,944 for fourth-year medical students. These amounts are based on a ten-month academic year for first and second-year students, a 12-month academic year for third-year students and an 11-month academic year for fourth-year students.

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 Free Application for Federal Student Aid (FAFSA) 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

In 2013, the Direct Loan interest rate for graduate/professional students was reduced from 6.8 percent to 6.21 percent for loans processed on or after July 1, 2014.  

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 before Sept. 30, 2014, the loan fee is 1.072 percent. For all Direct Unsubsidized loans disbursed on or after Oct. 1, 2014, there is a 1.073 percent 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 studentaid.ed.gov.

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 ten years. Students who borrow more than $30,000 can extend the standard repayment term from ten years up to 25 years without loan consolidation. 

Borrowers have six different repayment plans which can adjust monthly payments and extend the length of the repayment period. There is no penalty for prepayment.

Graduate Plus Loan

The Federal Direct Graduate Plus loan is a federal loan program 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 prior to enrollment for the academic year.

Loan Overview (PDF)

Eligibility

In order to apply for this loan, you must be a graduate or professional student. You must also be a U.S. citizen or eligible non-citizen. 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. A credit check will be performed by the Department of Education at the time of application to determine credit worthiness.

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 Free Application for Federal Student Aid (FAFSA). 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

As of Aug. 9, 2013, the Graduate Plus loan interest rate for graduate/professional students was reduced from 7.9 percent to 7.211 percent for loans processed on or after July 1, 2014.  

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 before Sept. 30, 2014, the loan fee is 4.288 percent. For all Direct Graduate Plus loans disbursed on or after Oct.1, 2014, there is a 4.292 percent 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 final disbursement of the loan. However, while your are enrolled, Graduate Plus loans are placed in 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.

Primary Care and Family Medicine Loans

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 percent and begins to accrue following a one-year grace period after you cease to be a full-time student. When compared to other federal student loans and private loans, the PCL provides significant savings. The loan also offers deferment of principal and interest not found in other loan programs.

Loan Overview (PDF)

Eligibility

You must be enrolled full time and must be 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 ten years or until the loan is paid in full, whichever occurs first. Penalties will apply for non-compliance.

Application

Complete the PCL Application Form

Complete the Free Application for Federal Student Aid (FAFSA)

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 About Primary Care and Family Medicine Loans

Saunders Family Medicine Loan  

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.

Loan Overview (PDF)

The amount of the loan varies according to available funding and financial need. The interest rate on the SML is 5 percent; however, 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 a five-year period. Entering employment outside of family medicine will increase the interest rate to 9 percent, beginning on the date such employment began.

Eligibility

You must be a graduating fourth-year medical student entering into an approved ACGME family medicine residency program. You must also be a U.S. citizen or permanent resident.

Application

To receive priority consideration application must be returned by April 1.

Loans for Disadvantaged Students (LDS)  

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.

Loan Overview (PDF)

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 profession 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 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.

Application

Complete the LDS Application form

Complete the Free Application for Federal Student Aid (FAFSA)

The priority date for submission is Sept. 1. Award notifications will be sent after Sept. 15.  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 made in amounts up to $10,000, depending on the availability of funds.

Interest Rate

Interest rate is fixed at 5 percent and does not accrue during periods of grace or deferment. Interest is capitalized upon repayment.

Repayment

The standard repayment time is ten 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 the loan off 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.