Federal Loan Program
William D. Ford Direct Loan Program
Direct Loans are low-interest loans for students to help pay for the cost of their education. The lended is the U.S. Department of Education rather than a bank or other financial institution. To apply for a Direct Loan, a medical student is required to file a FAFSA, complete a master promissory note (MPN) and Entrance Counseling. The current interest rate is 6.079 percent.
Central Michigan University College of Medicine students may borrow loans to cover their total Cost of Attendance minus any other financial assistance they receive. For first-year medical students, the maximum amount of Director Loan they can receive is $40,500. The aggregated loan limits (maximum outstanding total subsidized and unsubsidized Direct Loan debt) for medical students is $224,000. This amount includes loans from undergraduate and graduate study. Repayment of Federal Stafford Loans begins six months after you graduate or cease to be enrolled at least half time.
Federal Grad PLUS Loan
Federal Grad PLUS Loans are available to graduate students who file the FAFSA and pass a credit check. The loan limit for each year is the annual cost of attendance (COA) minus other financial assistance. Central Michigan University College of Medicine will determine your William D. Ford Direct Loan eligibility before you may borrow under the Grad PLUS program. The interest rate is 7.079 percent. As with William D. Ford Direct Loans and private loans, interest begins to accumulate at the time the first disbursements are made. You may choose to pay the interest while in school in order to avoid "paying interest on interest" (capitalizing interest).
Entrance and Exit Session
All students who borrow a William D. Ford Direct Loan must complete loan entrance counseling prior to the release of loan funds.