The Top Ten Things Health Professions Advisors Should Know About Financial Aid

  1. The financial aid office remains the number one point of contact for all questions regarding student financial aid, especially regarding recent and possible changes in financial aid programs.

  2. Students should always look for grants and scholarships first before taking out student loans.

  3. Borrowers who already have subsidized Stafford Loans (which are no longer available) do not lose the interest subsidy on those loans. Graduate and professional students can still borrow the same annual amounts but the entire amount will be unsubsidized.

  4. All Federal Stafford and Direct PLUS Loans are made directly from the government through what is called the Direct Loan Program. Private lenders can still make student loans, but they cannot make federal student loans.

  5. Health professions students in graduate and professional degree programs can borrow up to their entire cost of attendance each year (regardless of cost) with federal loans through a combination of Stafford and Direct PLUS, without ever taking out private student loans.

  6. Private student loans are becoming more competitive and some believe they are making a comeback, as some lenders now offer fixed rate private loans that offer interest rates lower than the interest rates on federal student loans. However, federal loans offer more flexibility in terms of repayment, including the possibility of help through forgiveness programs not available for private student loans. See ExploreHEALTHCareers.org for important information on private student loans and their potential adverse impact on repayment strategies for health sciences graduates.

  7. Multiple repayment options remain for federal student loans such as Stafford and Direct PLUS, including income-driven repayment plans that allow borrowers to repay based on a percentage of their discretionary income if they need to do so. Income-driven repayment plans are designed for borrowers with high federal debt when compared with income. Details are available at StudentLoans.gov  under Managing Repayment.

  8. Students interested in receiving help with their student loans through the Public Service Loan Forgiveness (PSLF) program can find information at StudentLoans.gov  under Managing Repayment. 

  9. Students can expect much of their loan counseling to be offered online.

  10. Students who need help locating all their federal loans and who want a record of their federal loan borrowing in one place can visit the National Student Loan Data System
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