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Financial Aid

Continuing Students

Need/Merit-Based Scholarships

Need/Merit-Based Scholarship recipients do not have to complete any additional paper work to receive their awards for 2012-2013. Your original award letter from the Med School included a detailed breakdown of your award for all four years of study at Penn. Please refer to this award letter to determine the amount of need or merit based funding you are receiving for 2012-2013.

direct Loan Program

The Direct Loan is the primary loan source for most students.

Description	Federal student loan available to graduate/professional students ELIMINATION OF SUBSIDY ON DIRECT LOAN The Budget Control Act eliminates subsidized interest on Direct loans to graduate and professional students, after July 1, 2012.
Eligibility Requirements	US citizen or permanent resident Enrolled at least half-time in degree program Not in default on prior education loan
Annual Loan Limits	MS1 $44,942 MS2 $47,167 MS3 $47,167 MS4 $40,500
Aggregate Loan Limits	$224,000
Interest Rate	6.8% fixed rate Interest begins to accrue after first disbursement for unsubsidized loans, and may be paid quarterly while in school  or capitalized
Fees	origination fee of 1.0%
Source	U.S. Department of Education
Disbursement	Twice per loan period (once in the fall and once in the spring). All funds will be applied directly to your student account to cover any University charges.  If the amount of your loan disbursement exceeds your charges, you will be issued a refund (via Direct Deposit or Total Pay Card) for the difference which you can then use to cover your living expenses.
Repayment	Unsubsidized Loans 6 months after graduation or withdrawal from the University with the option to capitalize accrued in-school interest (add it to the total amount borrowed) or to begin interest payments while in school Standard Repayment Payment amounts will generally be equal throughout the term of the loan which is 10-years. The Standard plan requires higher monthly payments, but results in lower interest costs. Standard Repayment is the plan that allows borrowers to pay education debt in the most aggressive least costly manner. If you fail to notify your servicer otherwise, the Standard Repayment plan is the default plan for loan repayment. Best Option For: Borrowers whose primary goal is to minimize the repayment time period and the total interest cost of their student loan debt. Extended Repayment The Extended Repayment plan allows you to stretch your current repayment term to up to 25 years (lowering the required monthly payment amount). The qualifications for Extended Repayment include: • You must have an outstanding balance of principal and interest totaling more than $30,000 in either Federal Family Education Loans or Direct Loans • All loans must have been issued on or after October 7, 1998 Before opting to extend your repayment term, consider the degree to which this option will negatively impact the overall interest cost of your debt. Best Option For: Borrowers seeking to lower their monthly payment (without consolidating). Graduated Repayment The Graduated Repayment plan allows you to begin with smaller monthly payments that will be scheduled to increase one or more times during your repayment term. Often, the amount of the required payment in this plan is equal to the amount of interest accruing each month, making it potentially an interest-only payment. Though Graduated Repayment offers monthly payments that are initially lower than Standard Repayment, it may lead to higher interest costs over the life of the loan because the principal of the loan is not paid off as quickly. Best Option For: Borrowers seeking temporary relief from high loan payments but expecting an increase in their income in the next few years. Income-Contingent Repayment (ICR) When you select Income-Sensitive (FFEL option) or Income-Contingent (DL option) as a repayment plan, you must provide documentation of your expected income – the monthly payment amount will be based on a percentage of the expected total gross monthly income received from all sources. This plan must be reapplied for each year and income documentation will be required. If this plan does not meet your needs, Income-Based Repayment may offer additional flexibility with lower payment amounts. Best Option For: Borrowers that have a lower income, or are experiencing a financial hardship, and need assistance making their monthly payment. Income-Based Repayment (IBR) This is the plan that many medical residents consider during residency because it offers several appealing features: 1. This plan often offers the lowest required monthly payment (comparatively) 2. There is a partial subsidy available on the subsidized loans 3. This plan is acceptable under Public Service Loan Forgiveness The Income-Based Repayment (IBR) plan was designed specifically to help those experiencing “a partial financial hardship” (PFH), by capping the monthly payment at 15%of discretionary income (see the example below). Once you no longer demonstrate a PFH, the maximum required monthly payment amount under IBR may not exceed what the standard 10-year repayment amount is based on the loan balance at repayment or at the start of making www.aamc.org/FIRST 20 IBR payments. In other words, under IBR even when your income goes up, your required payment amount cannot be more than the Standard Repayment amount. Under IBR, the monthly payment will be adjusted each year according to changes in your income and family size. IBR also offers a partial interest subsidy during the first 3 years. During this period, any accruing interest on your subsidized loans that is not covered by your scheduled monthly payment will be paid by the federal government. You may choose to remain in IBR for the maximum 25 years, at the end of which, any remaining federal loan balance will be discharged/forgiven – though, after 25-years in IBR, it is most likely that a physician will have already repaid their student loans in full. For more information, visit www.IBRinfo.org. Best Option For: Borrowers who need a lower monthly payment. This option works well for residents, those pursuing careers in public service or anyone that has a lower income and needs assistance in making their monthly payments.
Recommended Deadline	June 15 or as soon after notification from the SFS Loan Office in order to receive credit on the fall bill.

Direct Loan Process for continuing students

Step 1: Submit a Renewal FAFSA (FAFSA submission is required in order to receive Direct, Direct Plus, and/or Perkins loans).

A Renewal Free Application for Federal Student Aid (FAFSA) is designed for students who applied for aid the previous year.

To access your Renewal FAFSA data, you will also need your Federal Student Aid PIN. If you have previously received a PIN but have lost or forgotten it, Request a Duplicate PIN. You will receive an e-mail notification with a link to your duplicate PIN within 4 hours.

If you do not have a PIN, select this link to fill out an original FAFSA on the Web application.

Step 2: Complete a Master Promissory Note (MPN), unless you filed one last year.

A link will be provided once you log into the Penn Loan System

It is important to note that the loan office will automatically process your loan for the maximum eligible amount.  To reduce the loan amount please log onto the Penn Loan System (PLS) or contact our office if you need assistance.  If you are the recipient of scholarship or loan funds from the school, make certain that your loan eligibility reflects the receipt of these funds.

Please Note: Your Direct Loan will not disburse until all disbursement requirements are met. 

Direct Grad Plus Loan

For individuals that need to borrow in addition to Direct Loan, consider a Direct GradPLUS loan. 

Eligibility	U.S. citizen or permanent resident Enrolled at least half-time in a graduate degree program Not be default on a prior educational loan Credit review required
Annual Limit	Borrow up to the cost of attendance less other aid (including maximum Direct)
Aggregate Limits	No aggregate limit
Interest Rate	7.9% fixed rate
Fees	origination fee of 4.0%
Repayment	Begins 60 days after last disbursement of loan; students with enrollment status of at least half-time will be eligible for a continuing education deferment of repayment. Same as Direct Loan
Disbursement	Twice per loan period (once in the fall and once in the spring). All funds will be applied directly to your student account to cover any University charges.  If the amount of your loan disbursement exceeds your charges, you will be issued a refund (via Direct Deposit or Total Pay Card) for the difference which you can then use to cover your living expenses.
Recommended Deadline	June 15 or as soon after notification from the SFS Loan Office in order to receive credit on the fall bill.

Direct grad plus Loan Process for continuing students

1. File a 2012-2013 FAFSA if you haven’t done so already
2. Login to studentloans.gov - your FAFSA pin is required
3. Complete an Entrance Interview if you are a first time borrower and are NOT borrowing a Direct Loan
4. Request a GradPLUS loan
5. Complete a GradPLUS Mater Promissory Note

The Financial Aid Office in the School of Medicine is your best resource for all financial aid questions and issues.  You can find us in Suite 100 Stemmler Hall.  

Rebekka Howell   rebekkaa@mail.med.upenn.edu  215-573-3423
Jean Fox    jmfox@mail.med.upenn.edu    215-898-9118

 

MD/MS PROGRAMS FINANCIAL AID INFORMATION

A growing number of MD students are enrolling in our MD/Master's programs. We encourage all students who consider applying to or enrolling in these programs to come talk with the Financial Aid office for counseling and planning.

Financial planning is required because the federal government has legislated different annual and aggregate borrowing limits for the Direct/Stafford loan program based on a student’s academic program. These annual and aggregate loan limits cannot be changed and will affect your borrowing capability. The Direct Plus loan is available to support additional funding for the academic program if you have received your limit.

You can determine your Direct/Stafford loan eligibility by reviewing the chart below:

PROGRAM	ANNUAL LIMIT	SEMESTER LIMIT	AGGREGATE LIMIT*
MBE	$20,500	$10,250	$138,500
MTR	$20,500	$10,250	$138,500
MSCE	$20,500	$10,250	$138,500
MBA  (Health Care Administrators only)	$33,000	$16,500	$224,000
MPH	$33,000	$16,500	$224,000
MD	$40,500	$20,250	$224,000

*Aggregate limits are cumulative and include any undergraduate, graduate and medical school loans borrowed in the Direct/Stafford loan program.

For any semester when a student is paying tuition and is enrolled in a Master’s program, the program limits above apply.   Students paying MD tuition are eligible for MD loan limits and SOM financial aid packages.

Please contact our office with any questions, concerns, or if you need financial planning.

 

Leave of absence/time-out study/md masters

1. SOM awards (scholarship and loans) are only applied to MD tuition paying semesters.
2. Students on a time-out study do not pay tuition and therefore are not eligible for SOM scholarships/loans.
   • During this time you remain a registered full-time student and you have a reduced budget consisting of fees, health insurance and living expenses. Direct loans are available to assist.
   • Loans are still eligible for deferment.
3. Students considering combined MD/MS degrees should review the program website for curriculum detail and then stop by to discuss financial planning.
4. If pursuing a degree at another institution you are on a leave of absence from Penn. Therefore your financial aid will be processed by the school in which you are enrolled.
5. During a leave of absence a student is not enrolled and is ineligible for financial aid.
   • Loans will enter grace period.

 

 

Page Updated: 17-Apr-2012

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