U.S. Department of Health and Human Services Loans
College of Osteopathic Medicine
The LDS and HPSL programs provide long-term, low-interest rate loans (5%) to full-time, financially needy students from disadvantaged backgrounds, to pursue a degree in allopathic medicine, osteopathic medicine, dentistry, optometry, podiatric medicine, pharmacy, or veterinary medicine.
Citizenship Status
A student applicant must be a citizen or national of the United States, or a lawful permanent resident of the United States, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, or the Trust Territory of the Pacific. A student who remains in this country on a student or visitor's visa is not eligible.
Loan Amounts
Loans made on or after November 13, 1998, may be made in amounts that do not exceed the cost attendance (including tuition, other reasonable educational expenses, and reasonable living expenses).
Parents' Financial Information
Graduate students are independent; however, U.S. Department of Health and Human Services regulations require schools to consider parents' information for the purpose of awarding HPSL or LDS funds. This requirement cannot be waived unless the parents are deceased; a student who does not provide parental income information will not be considered for HPSL or LDS funds.
Interest Rates
An interest rate of five percent per year applies to all loans made on or after November 4, 1988. Interest is computed on the unpaid principal balance and begins to accrue upon expiration of the grace period, unless a borrower is eligible for deferment status.
Grace Period
The grace period for LDS and HPSL is one year long during which repayment of principal is not required and interest does not accrue. The grace period immediately follows completion or termination of full-time-student status and cannot be postponed to follow any deferments for which the borrower may be eligible.
Deferment Provisions
A deferment period on LDS and HPSL means that interest does not accrue and the borrower does not have to make payments on the loan. Borrowers may obtain deferments if they participate in certain activities, please see chart below:
| Type of Activity | Maximum Number of Years for Deferment |
|---|---|
| Active duty in the uniformed services | Up to three years |
| Peace Corps volunteer | Up to three years |
| Advanced professional training | Unlimited |
| Leave of absence to pursue related educational activity | Up to two years |
| Training fellowships, training programs, and related educational activities for graduates of health professions schools | Up to two years |
Forbearance
Due to a borrower's extraordinary circumstances, and at the discretion of the institution, the borrower may be placed in forbearance. This has the effect of temporarily suspending payment of principal; however, interest continues to accrue. During periods of forbearance, interest continues to accrue on the unpaid principal balance of the loan. Further, a minimum payment must be made on all accrued interest during the period in which the borrower is in forbearance.
Cancellation
LDS and HPSL may be canceled because of the death of the borrower, or because the borrower has become permanently and totally disabled.
Permanent and Total Disability
A borrower is entitled to cancellation of an HPSL in the event of permanent and total disability. Permanent and total disability is defined as being unable to engage in gainful employment of any kind because of a medically determinable impairment which is expected to continue for a long and indefinite period of time or to result in death. The review and final determination shall be made by the Secretary on the recommendation of the school, supported by required medical certification relating to the borrower's disability.
- The Primary Care Loan (PCL) program interest rate is 5 percent which begins to accrue following a one year grace period after you cease to be a full-time student.
- New recipients of the Primary Care Loan must enter into a residency training program in family medicine, internal medicine, pediatrics, combined medicine/pediatrics, preventive medicine, or osteopathic general practice; must complete the residency program within 4 years of graduation; and must practice primary care for either 10 years (including the years spent in residency training) or through the date on which the loan is repaid in full, whichever occurs first.
- Should you fail to fulfill the service obligation; the outstanding loan balance will be computed annually at an interest rate of 2 percent greater than the rate you would pay, if compliant.
- Repayment begins following a 12-month grace period after you cease to be a full-time student. Loans are repayable over a period of not less than 10 years or more than 25 years, at the discretion of the institution.
- Repayment of the Primary Care Loan may be deferred for
- up to 4 years in an eligible primary health care residency program;
- up to 3 years as a volunteer under the Peace Corps Act practicing in an eligible primary health care activity;
- up to 3 years as a member of a uniformed service. To be eligible for deferment, you must be on sustained full-time active duty practicing in an eligible primary health care activity in the Army, Navy, Air Force, Marine Corps, Coast Guard, National Oceanic and Atmospheric Administration Corps, or the U.S. Public Health Service Commissioned Corps.
Please see the lists below of Acceptable and Unacceptable Training and Practice Activities per the U.S Department of Health and Human Services.
Acceptable Residency Training for Osteopathic Medicine Approved 3-Year Residencies
- Family Medicine
- Pediatrics
- Preventive Medicine
- Internal Medicine
- Combined Medicine/Pediatrics
- General Practice
Acceptable Practice Activities for Osteopathic Medicine Primary Clinical Practice
- Clinical Preventive Medicine
- Public Health
- Adolescent Medicine
- Sports Medicine
- Training for Public Policy Career
- Public Policy Fellowship
- Primary Care Fellowship
- Occupational Medicine
- Geriatrics
- Adolescent Pediatrics
- Training for Primary Care Faculty
- Masters in Public Health
- Faculty Development Training
- Hospitalist
Urgent Care [Campus Based Policy Memorandum 2003 - 1]
Senior/Chief Resident in primary care residency program
Faculty, Administrators, or Policy Makers certified in one of the primary health care disciplines
Unacceptable Residency/Practice Activities for Osteopathic Medicine
- Gastroenterology
- Surgery
- Radiology
- Physical Medicine
- Other Subspecialty Training or Certification
- Obstetrics/Gynecology
- Dermatology
- Rehabilitation Medicine
- Emergency Medicine
- Cardiology
College of Pharmacy
Citizenship Status
A student applicant must be a citizen or national of the United States, or a lawful permanent resident of the United States, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, or the Trust Territory of the Pacific. A student who remains in this country on a student or visitor's visa is not eligible.
Loan Amounts
Loans made on or after November 13, 1998, may be made in amounts that do not exceed the cost attendance (including tuition, other reasonable educational expenses, and reasonable living expenses).
Parents' Financial Information
Graduate students are independent; however, U.S. Department of Health and Human Services regulations require schools to consider parents' information for the purpose of awarding HPSL or LDS funds. This requirement cannot be waived unless the parents are deceased; a student who does not provide parental income information will not be considered for HPSL or LDS funds.
Interest Rates
An interest rate of five percent per year applies to all loans made on or after November 4, 1988. Interest is computed on the unpaid principal balance and begins to accrue upon expiration of the grace period, unless a borrower is eligible for deferment status.
Grace Period
The grace period for LDS and HPSL is one year long during which repayment of principal is not required and interest does not accrue. The grace period immediately follows completion or termination of full-time-student status and cannot be postponed to follow any deferments for which the borrower may be eligible.
Deferment Provisions
A deferment period on LDS and HPSL means that interest does not accrue and the borrower does not have to make payments on the loan. Borrowers may obtain deferments if they participate in certain activities, please see chart below:
| Type of Activity | Maximum Number of Years for Deferment |
|---|---|
| Active duty in the uniformed services | Up to three years |
| Peace Corps volunteer | Up to three years |
| Advanced professional training | Unlimited |
| Leave of absence to pursue related educational activity | Up to two years |
| Training fellowships, training programs, and related educational activities for graduates of health professions schools | Up to two years |
Forbearance
Due to a borrower's extraordinary circumstances, and at the discretion of the institution, the borrower may be placed in forbearance. This has the effect of temporarily suspending payment of principal; however, interest continues to accrue. During periods of forbearance, interest continues to accrue on the unpaid principal balance of the loan. Further, a minimum payment must be made on all accrued interest during the period in which the borrower is in forbearance.
Cancellation
LDS and HPSL may be canceled because of the death of the borrower, or because the borrower has become permanently and totally disabled.
Permanent and Total Disability
A borrower is entitled to cancellation of an HPSL in the event of permanent and total disability. Permanent and total disability is defined as being unable to engage in gainful employment of any kind because of a medically determinable impairment which is expected to continue for a long and indefinite period of time or to result in death. The review and final determination shall be made by the Secretary on the recommendation of the school, supported by required medical certification relating to the borrower's disability.
College of Optometry
Citizenship Status
A student applicant must be a citizen or national of the United States, or a lawful permanent resident of the United States, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, or the Trust Territory of the Pacific. A student who remains in this country on a student or visitor's visa is not eligible.
Loan Amounts
Loans made on or after November 13, 1998, may be made in amounts that do not exceed the cost attendance (including tuition, other reasonable educational expenses, and reasonable living expenses).
Parents' Financial Information
Graduate students are independent; however, U.S. Department of Health and Human Services regulations require schools to consider parents' information for the purpose of awarding HPSL or LDS funds. This requirement cannot be waived unless the parents are deceased; a student who does not provide parental income information will not be considered for HPSL or LDS funds.
Interest Rates
An interest rate of five percent per year applies to all loans made on or after November 4, 1988. Interest is computed on the unpaid principal balance and begins to accrue upon expiration of the grace period, unless a borrower is eligible for deferment status.
Grace Period
The grace period for LDS and HPSL is one year long during which repayment of principal is not required and interest does not accrue. The grace period immediately follows completion or termination of full-time-student status and cannot be postponed to follow any deferments for which the borrower may be eligible.
Deferment Provisions
A deferment period on LDS and HPSL means that interest does not accrue and the borrower does not have to make payments on the loan. Borrowers may obtain deferments if they participate in certain activities, please see chart below:
| Type of Activity | Maximum Number of Years for Deferment |
|---|---|
| Active duty in the uniformed services | Up to three years |
| Peace Corps volunteer | Up to three years |
| Advanced professional training | Unlimited |
| Leave of absence to pursue related educational activity | Up to two years |
| Training fellowships, training programs, and related educational activities for graduates of health professions schools | Up to two years |
Forbearance
Due to a borrower's extraordinary circumstances, and at the discretion of the institution, the borrower may be placed in forbearance. This has the effect of temporarily suspending payment of principal; however, interest continues to accrue. During periods of forbearance, interest continues to accrue on the unpaid principal balance of the loan. Further, a minimum payment must be made on all accrued interest during the period in which the borrower is in forbearance.
Cancellation
LDS and HPSL may be canceled because of the death of the borrower, or because the borrower has become permanently and totally disabled.
Permanent and Total Disability
A borrower is entitled to cancellation of an HPSL in the event of permanent and total disability. Permanent and total disability is defined as being unable to engage in gainful employment of any kind because of a medically determinable impairment which is expected to continue for a long and indefinite period of time or to result in death. The review and final determination shall be made by the Secretary on the recommendation of the school, supported by required medical certification relating to the borrower's disability.
College of Dental Medicine
Citizenship Status
A student applicant must be a citizen or national of the United States, or a lawful permanent resident of the United States, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, or the Trust Territory of the Pacific. A student who remains in this country on a student or visitor's visa is not eligible.
Loan Amounts
Loans made on or after November 13, 1998, may be made in amounts that do not exceed the cost attendance (including tuition, other reasonable educational expenses, and reasonable living expenses).
Parents' Financial Information
Graduate students are independent; however, U.S. Department of Health and Human Services regulations require schools to consider parents' information for the purpose of awarding HPSL or LDS funds. This requirement cannot be waived unless the parents are deceased; a student who does not provide parental income information will not be considered for HPSL or LDS funds.
Interest Rates
An interest rate of five percent per year applies to all loans made on or after November 4, 1988. Interest is computed on the unpaid principal balance and begins to accrue upon expiration of the grace period, unless a borrower is eligible for deferment status.
Grace Period
The grace period for LDS and HPSL is one year long during which repayment of principal is not required and interest does not accrue. The grace period immediately follows completion or termination of full-time-student status and cannot be postponed to follow any deferments for which the borrower may be eligible.
Deferment Provisions
A deferment period on LDS and HPSL means that interest does not accrue and the borrower does not have to make payments on the loan. Borrowers may obtain deferments if they participate in certain activities, please see chart below:
| Type of Activity | Maximum Number of Years for Deferment |
|---|---|
| Active duty in the uniformed services | Up to three years |
| Peace Corps volunteer | Up to three years |
| Advanced professional training | Unlimited |
| Leave of absence to pursue related educational activity | Up to two years |
| Training fellowships, training programs, and related educational activities for graduates of health professions schools | Up to two years |
Forbearance
Due to a borrower's extraordinary circumstances, and at the discretion of the institution, the borrower may be placed in forbearance. This has the effect of temporarily suspending payment of principal; however, interest continues to accrue. During periods of forbearance, interest continues to accrue on the unpaid principal balance of the loan. Further, a minimum payment must be made on all accrued interest during the period in which the borrower is in forbearance.
Cancellation
LDS and HPSL may be canceled because of the death of the borrower, or because the borrower has become permanently and totally disabled.
Permanent and Total Disability
A borrower is entitled to cancellation of an HPSL in the event of permanent and total disability. Permanent and total disability is defined as being unable to engage in gainful employment of any kind because of a medically determinable impairment which is expected to continue for a long and indefinite period of time or to result in death. The review and final determination shall be made by the Secretary on the recommendation of the school, supported by required medical certification relating to the borrower's disability.