Medical Residency Student Loans
Medical Residency/Relocation Loans are available to those pursuing a career as a health professional in an allopathic or osteopathic residency program. Medical students and new residents often face costs not traditionally covered by financial aid award packages. The Residency/Relocation loan will cover expenses related to medical board exam preparation, participating in residency interviews, relocating for residency or other related expenses (e.g. transportation, housing, groceries).
- Borrow up to $20,000
- Up to 15 year repayment term with no prepayment penalties
- Most lenders allow deferred payments up to 7 years during residency program
- Cosigner release option may be available after 48 consecutive, on-time payments
- Easy to apply - ESignature available
The Medical Residency and Relocation loan is available to those pursuing a career as a health professional in their final year of medical school and for six months following graduation. If the borrower is not a U.S. citizen or permanent resident, a cosigner who is a U.S. citizen or permanent resident will be required.
If the borrower is the sole applicant, they must be at least 18 years old in all states with the exception of 19 in Alabama & Nebraska and 21 in Puerto Rico. If they do not meet age of majority requirements in their state, a cosigner will be required.
Do I need to be accepted to a school before I can get a loan?
You must be enrolled at an eligible institution to be approved for and receive a loan. Enrollment is verified after you submit an application, as part of the loan approval process.
Whose credit history is checked for loan approval, the co-signer's or the borrower's?
For borrower's applying for a graduate private loan, the co-signer may be optional, so only the borrower's credit will be checked. If the borrower elects to add a co-signer, or the cosigner is required, both credit histories are checked.
What is my interest rate going to be?
The Interest rate is a combination of the Prime or LIBOR index plus a margin based on borrower credit. The rate will fluctuate as the Prime or LIBOR rate changes every three months.
The Prime rate is a “reference or base rate” that banks use to set the price or interest rate on many of their commercial loans and some of their consumer loan products. The prime rate tracks fairly closely with other short-term interest rates, such as the overnight federal funds rate.
How long does it take to get the loan check after I am approved?
This depends a great deal on how quickly the borrower and cosigner sign and complete their loan documents and also on how quickly the school certifies the loan. The actual timing of disbursement coincides with the start date for the enrollment/loan period, and usually is dictated by the school's financial aid officer.