Loan Programs

Subsidized Federal Stafford Loan
The Subsidized Federal Stafford Loan Program is a federal student loan program that allows medical students to borrow up to $8,500 per academic year. As of July 1, 2006 these loans have a fixed interest rate of 6.8%. The federal government pays the interest while the student is enrolled at least half time and during the six month grace period.
 
Unsubsidized Federal Stafford Loan
Unsubsidized Federal Stafford loans are subject to the same terms and conditions as Subsidized Federal Stafford Loans with the following exceptions: Interest will accrue during periods of enrollment, grace and deferment. First year medical students are eligible to borrow up to $42,722 per academic year (based on a 10 month budget), minus the amount of any subsidized loan awarded for the same academic period.

NOTE: The total outstanding debt a medical student can have from all Federal Stafford Loans is $224,000 and no more than $65,5000 of this amount can be in subsidized loans. Outstanding Stafford Loans received for undergraduate or graduate education are included in these aggregate totals.

Federal Graduate PLUS Loans
Federal Graduate PLUS Loans have a fixed interest rate of 8.5%. The maximum amount a student may borrow per academic year is the cost of attendance minus any other financial aid received for that same academic period. A credit check is required for Graduate PLUS Loans. If you have adverse credit, you will be denied by the lender. If you are denied, you may reapply with a credit worthy cosigner. Interest accrues from the time the funds are disbursed. Repayment begins at graduation, but may be deferred.

Pat Peace, Director of Financial Services
LMU-DCOM Financial Services Office
6965 Cumberland Gap Parkway
Harrogate, TN 37752
Email: pat.peace@lmunet.edu
Office: 423.869.7107; 800.325.0900, ext. 7107
Fax: 423.869.7172