New York Medical College

Admissions & Financial Aid

Loan Programs

The following loan programs are offered at New York Medical College. If you did not attend NYMC, your educational loan portfolio may vary. For more specific details, either refer to your promissory notes or contact your student loan servicer or financial aid office. The description of each loan type is intended to give you a brief summary of the terms and conditions of each loan to help you better understand your loan portfolio.

Loans

 

The following loan programs may not include  loans you borrowed at other institutions.  Please contact your individual institution for the loan program details. 

FEDERAL LOANS - All federal loans are forgiven if total and permanent disability or death occur. 

Federal Stafford Subsidized Loan (previously GSL)

  • 6 month grace period
  • Borrowers whose first Stafford/GSL was issued prior to 7/1/93 are eligible to receive a 24 month residency deferment. First time borrowers whose first Stafford/GSL was issued on or after 7/1/93 are not eligible for the 24 month residency deferment, but may request mandatory forbearance or apply for an economic hardship deferment. Mandatory forbearance is available throughout the residency period, renewable annually. Economic hardship is available for a three year limit, renewable annually.
  • 10 year repayment period
  • No interest accumulates during full-time student status, grace and deferment. Loans first disbursed on or after July 1, 2006, the interest rate will be a fixed rate of 6.8%.. Some residents may have Stafford loans with an interest rate of 8% during the first four years of repayment, moving to 10% in the remaining six years of repayment. Others may have a fixed interest rate of 7%, 8% or 9%.

 

Federal Stafford Unsubsidized Loan (previously SLS)

  • 6 month grace period
  • Borrowers whose Unsubsidized/SLS was issued prior to 7/1/93 are eligible for a 24 month residency deferment. First time borrowers whose Unsub/SLS was on or after 7/1/93 are not eligible for the 24 month residency deferment, but may request mandatory forbearance or apply for an economic hardship deferment. Mandatory forbearance is available throughout residency period, renewable annually. Economic hardship is available for a three year limit, renewable annually.
  • 10 year repayment period
  • Interest accumulates from the time the money is disbursed, throughout student status, grace and deferment periods.
  • For Unsubsidized Loans, first disbursed on or after July 1, 2006, the interest rate will be a fixed rate of 6.8%.Some residents may have Stafford loans with an interest rate of 8% during the first four years of repayment, moving to 10% in the remaining six years of repayment. Others may have a fixed interest rate of 7%, 8% or 9%.
  • For SLS, the interest rate has an 11% or 12% cap with a higher variable rate based on the T-Bill.

 

Federal Perkins Loan (previously NDSL)

For Perkins Loan:

  • Prior to 7/1/93: 9 month grace period, 24 month residency deferment, 6 month post-deferment grace period
  • After 7/1/93: 9 month grace period, can apply for economic hardship deferment, 6 month post-deferment grace period
  • 5% interest rate
  • 10 year repayment period
  • This is a need-based, subsidized loan. The loans is awarded by the school on behalf of the Federal Government, and is referred to as a campus based loan. Deferments are loan specific (terms are disclosed in the borrower’s promissory note). Federal Perkins Loans awarded after 7/1/93 are not eligible for the 24 month residency deferment, but are eligible to request mandatory forbearance or apply for an economic hardship deferment.

 

PCL (Primary Care Loan)

  • 12 month grace period
  • 10 year repayment period
  • 5% interest rate
  • Maximum four year primary care residency deferment. PCL borrowers must agree to complete a primary care specialty within four years of graduation (three year residency plus one year fellowship) and practice primary care until their PCL is repaid.

 

FEDERAL LOANS NO LONGER OFFERED: (listed for previous borrowers)

HEAL (Health Education Assistance Loan)

  • 9 month grace period following a 3-4 year residency deferment.
  • If borrower is approved for a deferment as soon as residency begins, they will get a full 9 month grace period following the end of the deferment.
  • 10-25 year repayment, but must be repaid within 33 years of the time the first HEAL loan was actually borrowed.
  • Variable interest rates which are tied to the 91-Day T-Bill; no interest rate cap
  • This is an unsubsidized loan borrowed to supplement other more desirable loans and is forgiven if total and permanent disability or death occur.

 

HPSL (Health Professions Student Loan)

  • 12 month grace period
  • 10 year repayment period
  • 5% interest rate
  • Three year primary care residency deferment post grace period. This subsidized loan program was replaced by the PCL in academic year 93-94. This loan may be deferred, interest free, throughout the duration of residency.

 

INSTITUTIONAL LOANS

New York Medical College School Loan (Prior to the 2003/2004 Academic Year)

  • 12 month grace period
  • 5 year repayment period
  • 8% annual interest rate

 

New York Medical College School Loan (Starting with  the 2003/2004 Academic Year)

  • 36 month grace period
  • 5 year repayment period
  • The interest rate is that of the Stafford loan rate in effect as of the January 1st preceding the loan advance

 

Homan Loan

  • 37 month grace period
  • 10 year repayment period; equal installments
  • 4% annual interest rate

 

INSTITUTIONAL LOAN NO LONGER OFFERED: (listed for previous borrowers)

NYMC Trustee Scholarship

  • 24 month grace period
  • 20 year repayment period of equal installments
  • 8% annual interest rate
  • The money obtained from this program is half loan, half scholarship. The loan portion is forgiven if the borrower remains in a primary care field. If there is a breach in contract, the above provisions apply.

 

PRIVATE LOANS- These types of loans are not forgiven if total and permanent disability or death occur during repayment. It is suggested that this type of debt be covered by an insurance policy

For exact terms, please refer to your promissory note.

*Please note: All terms in bold/italic appear on our Glossary page.