The Budget Control Act of 2011, passed by the US House of Representatives, eliminates subsidized interest on Stafford loans to graduate and professional students, effective for new loans made on or after July 1, 2012. Subsidized interest means the government pays the interest while the student is in an in-school or other authorized deferment period. It does not affect the interest rates for graduate and professional students.
Graduate and professional students will still be able to borrow up to $47,167 in Stafford loans, but the loans will be entirely unsubsidized starting with new loans made on or after July 1, 2012.
William D. Ford Direct Loan Program
Direct Loans are low-interest loans for students to help pay for the cost of their education. The lender is the U.S. Department of Education rather than a bank or other financial institution. Interest accrues and students may choose to pay it while in school. Federal Stafford Loans first disbursed on or after July 1, 2006 have a fixed interest rate of 6.8%. There is a six-month grace period after graduation before repayment begins.
Scholarship for Disadvantaged Students
The Scholarships for Disadvantaged Students (SDS) program promotes diversity among health profession students. This program is designed to provide scholarships to full-time students with financial need from disadvantaged backgrounds. The Office of Student Affairs is responsible for selecting scholarship recipients, making reasonable determinations of need, and providing scholarships that do not exceed the allowable costs (i.e., tuition, reasonable educational expenses and reasonable living expenses with a cap for the total scholarship award of $15,000). Applicants are required to submit copies of the tax return of their parent/s unless they: (1) are 24 yrs or older and (2) were not claimed as a dependent on the last three tax returns filed by their parent/s.