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Loans

Federal Direct Loans

Students enrolled in MU-COM are eligible for two types of federal direct loans.

Direct Unsubsidized Stafford

Direct Unsubsidized Stafford loans are available to undergraduate and graduate students, and are not based on financial need. You are responsible for paying the interest during all periods. If you choose not to pay the interest while in school, during grace, deferment, or forbearance periods, the interest will accrue (accumulate) and be capitalized (added to the principal amount of your loan). Repayment begins six months after enrollment falls below half-time, or your last date of attendance. The interest rate is fixed at 6.8 percent.

Annual Unsubsidized Stafford Loan limits:
Medical students - $42,722 (10 month enrollment)
Medical students - $47,167 (12 month enrollment)

The lifetime total outstanding debt that you can receive from all Federal Stafford loans (undergraduate and graduate):
medical students - $224,000

Direct Graduate PLUS

Direct Graduate PLUS loans are available to graduate/professional students, and are not based on financial need. You must not have an adverse credit history. If you are determined to have an adverse credit history, you may still receive a Direct PLUS loan if you obtain an endorser who does not have an adverse credit history. You may borrow up to the cost of attendance minus any other financial aid received. You are responsible for paying the interest during all periods. If you choose not to pay the interest while in school, during deferment, or forbearance periods, the interest will accrue and be capitalized. Repayment begins six months after enrollment falls below half time, or your last date of attendance. The interest rate is fixed at 7.9 percent.

Private Loans

Private loans are often used to help students pay for educational expenses up to their cost of attendance. Private loans are offered by private lenders, and there are no federal forms to complete. Eligibility for private student loans often depends on your credit score. Some students turn to private education loans when federal loans don't provide enough funding. The Office of Financial Aid recommends that students use as much of their federal loan eligibility before pursuing private loans.

Graduate PLUS vs. Private Loans 

 

Federal Graduate PLUS Loan

Private Loan

Borrower

Student

Student

FAFSA Required

Yes

No

Credit Requirement

Based on adverse credit history. No debt-to-income ratio or credit score used.

Typically depends on debt-to-income ratio and credit score.

Repayment Terms

Repayment begins within six months at less than half-time enrollment or graduation. Maximum repayment term is 10-25 years.

Repayment terms vary per lender.

Loan Limits

Cost of attendance less financial aid.

Generally, cost of attendance less financial aid. Limit also depends on maximums set by private lender.

Aggregate Maximum

None

Varies per lender.

Loan Fees

four percent origination fee

Fees vary by lender; while many private loans have both origination and repayment fees, others may have no fees at all.

Consolidation

Eligible for federal direct consolidation

Not eligible for federal direct consolidation

Interest Rate

7.9 percent fixed rate

Variable interest rates; depends on borrower (and/or co-borrower’s) credit score

Grace Period

six month deferment is applied

Varies per lender; Many private student loans have grace periods, typically between six and nine months.

Borrower Benefit

PLUS loans have the same deferment,
forbearance, and death and disability provisions as Federal Stafford Loans.

Private loans have forbearance options at the discretion of the lender.

© 2012 Marian University
Notice of Nondiscrimination
Marian University does not discriminate on the basis of race, ethnicity, color, sex, gender, sexual orientation, religion, creed, national origin, age or disabilities in the recruiting and selection of students for admission.