 Loans
Available
Financial Aid Code of Conduct
Students are responsible for deciding
which lender to use for student financial aid. Students may select as
their choice any lender from the available choices in the financial aid
field. The EVMS Student Financial Aid Office also has available
information regarding lenders students have used in the past. EVMS does
not recommend lenders to students. The EVMS Office of Financial Aid
adopted the following Student Loan Code of Conduct:
- Revenue Sharing Prohibition:
Eastern Virginia Medical School financial aid employees are
prohibited from receiving anything of value from any lending
institution in exchange for any advantage sought by the lending
institution.
- Gift and Trip Prohibition:
Eastern Virginia Medical School financial aid employees are
prohibited from taking anything of more than nominal value from any
lending institution. This includes a prohibition on trips for
financial aid officers and other college officials paid for by
lenders.
- Advisory Board Compensation
Rules: Eastern Virginia Medical School Financial Aid employees
are prohibited from receiving anything of value for serving on the
advisory board of any lending institution.
- Lender List Guidelines:
Eastern Virginia Medical School lender lists are based solely on the
best interest of students who may use the list without regard to
financial interests of the school.
- Lender Disclosure: Eastern
Virginia Medical School will disclose the criteria
and process used to select lenders on the lender list. Students will
also be told that they have the right to select the lender of their
choice regardless of the lender list.
- Loan Resale Disclosure: No
lender on the Eastern Virginia Medical School lender list has an
agreement to sell its loans to another lender without disclosing
this fact.
- Additions to the Lender List:
No lender may request to be a lender on the list with respect to
a certain type of loan by providing benefits to a school as to
another type of loan. Lenders interested in being reviewed for the
Lender List must complete a form provided by the Office of Financial
Aid and disclose borrower benefits, customer care, technology
information, and be in agreement with this Code of Conduct.
- Call-Center Prohibition:
Eastern Virginia Medical School ensures that employees of lenders
never identify themselves to students as employees of the school. No
employee of a lender is working or providing staffing in the Eastern
Virginia Medical School financial aid office.
- Legal Compliance: EVMS
shall comply with all applicable Federal and State laws and
regulations to administer federal and state student financial aid.
Any questions, feedback or concerns
regarding student financial aid will be answered promptly by the Student
Financial Aid Office or the Associate Dean for Academic Affairs.
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EVMS-Administered Student Loan Funds
Students are awarded school-administered loan funds based
on financial need. The loans are interest-free during enrollment and carry a 5 percent
interest rate at the time repayment begins. Repayment will begin 12 months (grace period)
after graduation or withdrawal from medical school. Both principal and interest payments
may be deferred for internship and residency (for a maximum of three years) upon
completion of the required deferment forms. The deferment may be continued for an
additional year if the borrower can prove financial need. A 10-year repayment period is
allowed. As explained in the scholarship section,
all students MUST provide parental information on the FAFSA and other required forms to be
considered for EVMS-administered student loans (including the Federal Perkins and the
Primary Care Loans).
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Federal Perkins Loan
The Federal Perkins loan funds are
administered by EVMS to students demonstrating need in accordance with federal guidelines.
The maximum award a student may receive is $6,000 per year. Repayment begins nine
months after graduation or after enrollment is terminated. Over the 10- year repayment
period, the interest is 5 percent (the borrower is not charged interest during full-time study
and deferment periods).
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Primary Care Loan
(PCL)
An M.D. student must show
financial need to be eligible for PCL and must plan to do a primary-care residency and to
practice in primary-care. Repayment begins after postgraduate training is completed.
During the 10-year repayment period, interest accrues at the rate of 5 percent (i.e., the
borrower is not charged interest during full-time study and deferment periods). These
funds are limited and by federal regulations must be assigned to the neediest of students.
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Federal
Stafford Loan - Subsidized
The federal government subsidizes the interest while the
borrower is enrolled (i.e., the borrower is not charged interest until repayment begins).
Effective July 1, 2006, Federal Stafford Loans disbursed on or after
July 1, 2006 will be at a fixed rate of 6.8 percent.
Repayment of the Federal Subsidized Stafford Loan begins
six months after graduation or when at least half-time enrollment is terminated. During the
10-year repayment period, the borrower must pay interest on the total outstanding balance.
Medical student borrowers may be eligible for deferment
or forbearance for two to three years for residency training. Each year, the
borrower obtains the required deferment/forbearance form from the servicer.
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Federal Stafford Loan - Unsubsidized
The interest charged begins to accrue at the time of the
disbursement of the loan. Although students are responsible for paying their own interest,
both interest and principal payments on the Federal Unsubsidized Stafford Loan may be
deferred until completion of education or a student's status drops below full time.
Medical student borrowers may defer or request forbearance for two to three years of
residency. During these deferment periods, interest accrues and may capitalize on the
principal amount of the loan. Currently, the interest rates are based upon the 91-Day Treasury
Bill + 1.7 percent, capped at 8.25 percent. The interest rate during repayment is the 91-Day
Treasury Bill + 2.6 percent.
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Federal Graduate PLUS Loan
Effective July 1, 2006 this loan is available to the
graduate/professional student. In some cases a co-signer or endorser may
be required. Credit approval by federal guidelines, not credit score.
Fixed rate interest of 8.5% The interest begins to accrue at the time of
disbursement. To be eligible the student must be enrolled at least
half-time. The loan can be deferred for the graduate/professional
student enrolled in school at least half-time. Repayment begins at the
time the student separates from school or when student drops below
half-time enrollment. The amount borrowed cannot exceed the cost of
attendance minus other financial aid awarded for the period of
enrollment.
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Alternative/Private Loan Programs
There are many lenders who provide alternative loan
programs. These non-need-based loan programs are designed to assist students in financing
the costs of education when the borrowers eligibility for Stafford loans
has been exhausted.
The total amount available per year is the cost of
education (standard student budget) less all other financial aid, i.e., Federal Stafford
Loan, school or outside awarded loans and scholarships. The
amount borrowed may not exceed the approved school budget.
Interest on these loans begins to accrue
immediately and is at a higher rate than the Federal Stafford loan
interest rate. Check with the servicer of the loan for the terms and
conditions of these loans. You are encouraged to use the same lender for
your alternative loans that you are using for your Stafford loans.
Unlike the Federal Stafford loan
program, most of the alternative loans are not insured in the
event of a borrower's death or disability.
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Residency/Relocation Loans
for senior medical students
Several lenders offer loan programs designed especially
for senior medical students. These loan programs are specifically designed to assist
students with the expenses associated with interviewing for residency programs and in
relocating to the area in which their residency training will occur.
The terms of these loans vary (including fees and
interest rates) by lender and repayment generally begins three to four years after
graduation and may extend up to 20 years.
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Loans for International Students
Federal regulations do not allow for federal financial
assistance to be awarded to anyone who is not a U.S. citizen or
permanent resident. As a result, assistance available for international
students is provided by private lenders using private funding.
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Loan Funds Available for Students
Medical Students
- Federal Stafford Loan - Subsidized
- Federal Stafford Loan - Unsubsidized
- Federal Perkins Loan
- Alternative/Private Loans
- EVMS-Administered Loans
- Loans for Disadvantaged Students
- Primary Care Loan
Graduate Program
Students
- Federal Stafford Loan - Subsidized
- Federal Stafford Loan - Unsubsidized
- Federal Perkins Loan
- Alternative/Private Loans
Certificate
Program Students
- Federal Stafford Loan - Subsidized
- Federal Stafford Loan - Unsubsidized
- Alternative/Private Loans
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