Health Professions Student Loan
The Health Professions Student Loan (HPSL) Program is
designed to provide low-interest loans to students enrolled
in school for medicine, osteopathy, dentistry, pharmacy,
podiatry, optometry or veterinary medicine. The Department
of Health & Human Services (HHS) governs the loan.
For regulatory information, visit the HHS website http://bhpr.hrsa.gov/dsa/sfag.
What's on this page?
Repayment of the Loan
The total loan amount, plus the interest accrued on
the amount, is repayable in monthly installments known
as the repayment period. The initial repayment period
for the HPSL Loan is (10) ten years with an additions
(15) fifteen year option at the University's discretion.
Once the loan is received whether billed or not the loan
must be repaid. However any HPSL borrower may prepay
all or any part of the principal and accrued interest
on the loan at any time before it becomes due.
The grace period is the period of time between when
the HPSL borrower leaves school or drops below full-time
student status and the time they begin repayment. The
grace period has precedent over any other activity performed
during that same time period. During this period, the
HPSL borrower are not required to make payment sand interest
does not accrue. The grace period of the HPSL Loan is
(12) twelve months.
Interest is the cost paid to borrow the money. It can
be fixed or variable, simple or compound. The annual
interest rate of the HPSL Loan is (5%) five percent.
It is a fixed, simple interest rate. Interest begins
after the grace period. No interest accurse while the
HPSL borrower is in school.
Under the terms of the promissory note, a school may
assess a penalty or late charge should any HPSL borrower
fail to make payment on time, or fail to file the necessary
deferment or cancellation form prior to the scheduled
due date. The HPSL Loan charges (6%) six percent of the
past due payment amount for the late charge.
The minimum payment of the HPSL Loan is $40.00 per
Per Federal Regulations, default is when any HPSL
borrower fails to make a scheduled payment or to
file a cancellation or deferment form on time. Defaulters
may be subject to the following:
- The entire unpaid principal balance plus
accrued interest and any applicable penalties
charges may become immediately due and payable;
- The loan may be referred to a collection
agency or attorney for legal proceedings;
- The University may withhold institutional
services (transcripts, degrees, etc): or
- The University may consult with IRS concerning
In case of death, the HPSL loan may be cancelled
on the basis of a death certificate or other evidence
that is conclusive under state law.
Permanent and Total Disability Cancellation
Per Federal regulations, permanent and total disability
is being unable to engage in gainful employment of
any kind because of a medically determinable impairment
which is expected to continue for a long and indefinite
period of time or to result in death. If the HPSL borrower
becomes permanently and totally disabled after receiving
the HPSL loan, the loan may be cancelled based on medical
documentation supplied by the HPSL borrower's physician.
The final review and determination will be made by
the Secretary of HHS based upon the recommendation
of the school and the medical support documentation
(For HPSL Loans made on or after November 13, 1998)
Repayment of both principal and interest on the HPSL
borrower's loan may be postponed by submitting
a properly completed deferment form by the specified
due date. Deferments are not automatic. The deferment
form must be submitted on an annual or semester
basis depending on the program. The University
has a right to deny a request for deferment if
it does not comply with the information requirements
or if the deferment is submitted late. A HPSL
borrower must notify the University or our billing
ACS, when they have completed or terminated from
a deferrable activity.
If any HPSL borrower ceases to be a full-time student
pursuing an eligible course of study, but re-enters
the same or another health professions school within
the grace period the HPSL borrower is eligible for
a deferment only if the school offers the HPSL program.
When a HPSL borrower receives this type of deferment
they will be eligible for another grace period.
Leave of Absence Deferment
Any HPSL borrower taking a leave of absence to pursue
a course of study related to the health profession
for which the loan was received and has the intent
of returning to the original school as a full-time
student is eligible for a leave of absence deferment.
The maximum deferment period is (2) two years.
Advanced Professional Training Deferment
Any HPSL borrower who pursues advanced professional
training to include internships and residencies is
eligible for advance professional training to include
internships and residencies is eligible for advanced
professional training deferment. Advanced Professional
Training includes only the following:
- Training intended to further the HPSL borrower's
knowledge and skills in the health profession discipline
for which the loan was received;
- A prerequisite for professional practice; and
- An internship or residency program or other full-time
training beyond the first professional degree.
- Unlimited deferment for advanced professional
Graduates of health profession schools pursuing
fellowship training or other educational activity
(directly related to the health profession for which
the loan was obtained) are eligible for fellowship
deferment only if pursued no later than (12) twelve
months after the completion of an advanced professional
training. The maximum deferment period is (3) three
Any HPSL borrower who serves on active duty as a
member of the uniform service or as a Peace Corps
volunteer is eligible for military deferment. The
maximum deferment period is (3) three years.
Once a loan is disbursed, it is reported to the
(3) three major credit bureaus, Equifax, Experian
and TransUnion at the end-of-the-month. Thereafter,
the loan should be considered a part of a student's
Consolidation is a program that allows a financial
agency to purchase different types and amounts of
federal loans in order to simplify repayment. The
Health Professions Student Loan is eligible for consolidation
under the Federal Consolidation Guidelines.