Student Financial Services

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.

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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.

Grace Period

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 Rate

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.

Late Charge

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.

Minimum Payment

The minimum payment of the HPSL Loan is $40.00 per month.

Default

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:

    1. The entire unpaid principal balance plus accrued interest and any applicable penalties or late charges may become immediately due and payable;
    2. The loan may be referred to a collection agency or attorney for legal proceedings;
    3. The University may withhold institutional services (transcripts, degrees, etc): or
    4. The University may consult with IRS concerning address updates.

Cancellation

Death Cancellation

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 provided.

Deferment

(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 agent, ACS, when they have completed or terminated from a deferrable activity.

Student Deferment

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 training.

Fellowship Deferment

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 years.

Military Deferment

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.

Credit Bureau

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 debt-to-income ration.

Consolidation

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.