Borrowing to fund your medical education

The majority of medical students borrow from a variety of loan programs to fund their medical education. However, you should consider your indebtedness from other academic programs when determining how much to borrow for medical school. Information about average indebtedness for medical students is available from the USC Financial Aid Office.

Sources of Funding for Medical Students

USC awards $38.4 million in need-based grants, merit scholarships, loans and Federal Work-Study through a combination of state, federal, university and private funds. Roughly 90 percent of Keck School medical students receive some type of financial assistance from the USC Financial Aid Office. Assistance is available from the following sources:

Medloans(R) Organizer and Calculator

The only calculator of its kind and developed by the AAMC's Financial Information, Resources, Services, Tools (FIRST) team, the MedLoans Organizer and Calculator is specifically designed for medical students and completely free to use.  This new tool provides students with a safe, secure environment to organize and manage loan information and explore loan repayment options. It calculates detailed repayment scenarios while accurately accounting for the residency/fellowship training period. 

Please visit www.aamc.org/first to use the calculator.  You can login with your AAMC username and password.

University of Southern California

  • Emergency loans. Students may borrow up to $1,000, interest free, for up to 90 days.

Federal, Institutional and Private Loans administered by the USC Financial Aid Office

Federal Direct Stafford Loan
  • This loan is available to citizens and eligible non-citizens and has a fixed interest rate of 6.8 percent. For more information, click here.

Federal Direct Graduate PLUS Loan

  • If you have borrowed the maximum Stafford Loan amount and need additional financing, USC suggests the Federal Direct Graduate PLUS Loan. It is credit-based rather than need-based and may require you to apply with a qualified co-signer. For more information, click here.
Loans for Disadvantaged Students
  • Available funding is extremely limited. You must exhibit financial need and meet additional criteria. To be considered, new and continuing students must complete the application steps for financial aid by April 10, 2015 deadline. Students will also be required to provide Federal Tax Returns to verify eligibility. Tax Returns may be required from both the student and the parents. Students will be notified of the eligibility criteria in August and eligibility will be assessed annually. If you are awarded the loan, it will automatically appear on your financial aid eligibility, and you will need to sign a Master Promissory Note (MPN).
  • The loan is repayable over a 10-year period. The 5 percent interest rate is subsidized until repayment begins, nine (9) months to one year after your USC enrollment ends. (Repayment may be deferred during advanced professional training, such as an internship or residency.)
Primary Care Loan
  • Available funding is extremely limited. You must meet financial need criteria and pursue a career in Primary Care. To be considered, students must complete the application steps for financial aid by April 10, 2015 deadline. Students will also be required to provide Federal Tax Returns to verify eligibility. Tax Returns may be required from both the student and the parents. Students will be notified of the eligibility criteria in August and eligibility will be assessed annually. If you are awarded the loan, it will appear automatically on your financial aid award summary. You will need to sign a Master Promissory Note (MPN).
  • The loan is repayable over a 10-year period. The 5 percent interest rate is subsidized until repayment begins, one year after your USC enrollment ends. (Repayment may be deferred during advanced professional training, such as an internship or residency.)
  • Borrowers agree to:

    • Enter and complete a residency training program in primary health care no later than four years after graduation from USC. It must be a three year residency program in family medicine, general internal medicine, general pediatrics, combined medicine/pediatrics, or preventive medicine approved by the Accreditation Council on Graduate Medical Education;
    • Practice in primary health care (family medicine, general internal medicine, general pediatrics, combined medicine/pediatrics or preventive medicine) until the date the loan is paid in full; and
    • Certify practice in primary health care on an annual basis until the loan is paid.
  • Consequences of Non-Compliance (with the service obligation):
    • The balance due on the loan will be recomputed from the date of issuance (using the original principal) at an interest rate of 18 percent per year, compounded annually; and
    • The recomputed balance must be paid within three years of the date on which the student failed to comply with the agreement.

Private Financing

  • Before considering a private student loan program, students should exhaust all Federal Title IV assistance available, including the Federal Direct Stafford Loan and the Federal Direct Graduate PLUS Loan. For more information, click here.

 

 

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