WHEN DO I HAVE TO START MAKING PAYMENTS?

When you take advantage of a Health Professions Residency Loan, you will have up to 20 years to repay the loan in full. The repayment period begins 9 months after completion of your residency, and you have the ability to defer payments of principal and interest while in residency. Payments are always accepted at any time without penalty.

Estimated Repayment Example and APR Disclosure¹
Amount Requested	$10,000.00
Origination Fee²	(0.0%) $0.00
Principal Amount of Loan at Disbursement	$10,000.00
Deferment Period	21 Months
Principal Amount of Loan at Repayment²	$12,700.00
Monthly Payment³ (after deferral period)	$96.57
Repayment Period	240 Months
APR⁴	6.49% (6.16% with auto payment rate reduction)
Total Finance Charge⁵	$13,175.90 ($11,472.46 with auto payment rate reduction)

Ready to apply?

Use our fast online application or call us at (800) 255-8374.

Email This Page

Printer Friendly Version

¹ This repayment example assumes the variable interest rate for the Health Professions Residency Loan is equal to the highest domestic Prime Rate as published in the "Money Rates" section of The Wall Street Journal, less a margin of 0.50%. The Prime Rate used in this example (7.25%) is based on the applicable Prime Rate as of 01/01/2008. The interest rate for the Health Professions Residency Loan will vary, depending on the credit-worthiness of the borrower and cosigner (if any), from the Prime Rate minus 0.50% to the Prime Rate plus 3.00%. The variable interest rate will be adjusted each month, based on the Prime Rate published on the last business day of the calendar month immediately preceding each monthly adjustment date. The interest rate and the APR will increase during the life of the loan if the Prime Rate increases. The loan terms described are for the 2008-2009 academic year and are subject to change.

² Principal at repayment is the principal amount of the loan at disbursement (the requested loan amount plus the origination fee) plus interest that accrues during the deferment term (assumed to be 48 months in this example). Deferred interest is capitalized (added to principal) at the time your loan enters repayment.

³ Repayment of principal and interest begins nine months after end of residency program. The monthly payment amount shown here will increase if the Prime Rate increases, and will be computed based on the interest rate applicable at the time repayment begins. Monthly payments of principal and interest will be fixed for the first year and then recalculated once each year based on the interest rate applicable at the time of the calculation and reset on the anniversary of your most recent repayment start date so as to pay the loan in full over the remaining repayment period. Minimum monthly payments will be at least $25.

⁴ Annual Percentage Rate (APR) is a measure of what a loan will cost. It takes into account the rate, fees, length of the loan, and the timing of all payments. The APR will increase if the Prime Rate Index increases. The listed APR is effective as of 01/01/2008.

⁵ Finance charge is interest paid over the life of the loan, including any origination fee.

Equal Credit Opportunity Lender