Loans

Students whose estimated costs are greater than eligibility from scholarships, grants, Federal Direct Loans, Nursing Student Loans, Health Professions Loans, Lew Wentz Loans, or any other form of aid are eligible to apply for additional loan resources to meet their financial needs.

There are several options and each has its own advantages and disadvantages that will appeal to borrowers.

• Graduate or professional students may apply for a Federal Direct Grad Plus Loan or an Alternative/Private Loan
• Independent undergraduate students are eligible to apply for an Alternative/Private Loan
• Dependent undergraduate students are eligible to apply for an Alternative/Private Loan or a parent may apply for a Federal Direct Parent Plus Loan on the student's behalf

To compare the loans and their potential terms and benefits, please see our side-by-side comparison charts. 

Borrowers are encouraged to research their options prior to applying.  Each loan will require that the applicant authorize a credit check prior to approval, so it is in the borrower's best interest to make an informed decision prior to application.  Once a borrower has decided upon the type of loan to apply for, please see application instructions detailed below in each loan description.

Undergraduate students must be enrolled at least half-time to receive a semester's disbursement and must show financial need. For loans first disbursed on or after July 1, 2012 and before July 1, 2014, interest accrual begins immediately upon graduation or when your enrollment falls below half-time.  For loans first disbursed prior to July 1, 2012 and on or after July 1, 2014, interest accrual begins 6 months following graduation or when your enrollment falls below half-time.  For all Subsidized loans, principal repayment begins 6 months following graduation or when your enrollment falls below half-time.

Loans with a first disbursement on or after October 1, 2020  and before October 1, 2024 are charged an origination fee of 1.057%, resulting in a net of 1.057% in fees deducted from the loan funds sent to the school. 

For loans first disbursed on or after July 1, 2014, the rate is based upon the index rate of the 10-Year Treasury Note, plus a statutorily defined "add-on" of 2.05%.  The interest rate on the loan will then be fixed for the life of the loan. Subsidized loans with a first disbursement between July 1, 2024 and June 30, 2025 have an interest rate of 6.53%. 

First time borrowers will need to complete Entrance Counseling and complete a Master Promissory Note. Both can be completed here.

Students must be enrolled at least half-time to receive each semester's disbursement. Interest starts accruing immediately, and it can either be paid while in school or it can be allowed to accrue. Repayment begins 6 months after graduation or when your enrollment falls below half-time.

Loans with a first disbursement on or after October 1, 2020 and before October 1, 2024 are charged an origination fee of 1.057%, resulting in a net of 1.057% in fees deducted from the loan funds sent to the school. 

For loans first disbursed on or after July 1, 2014, the rate is based upon the index rate of the 10-Year Treasury Note, plus a statutorily defined "add-on" of 2.05% for undergraduate loans and 3.60% for graduate and professional students.  The interest rate on the loan will then be fixed for the life of the loan. Undergraduate Unsubsidized loans with a first disbursement between July 1, 2024 and June 30, 2025 have an interest rate of 6.53%, while graduate and professional Unsubsidized loans have an interest rate of 8.08%. 

First time borrowers will need to complete Entrance Counseling and complete a Master Promissory Note. Both can be completed here.

Federal Direct Grad Plus loan applicants must have completed a Free Application for Federal Student Aid (FAFSA). Approval for Grad Plus loans requires a credit check to verify a lack of adverse credit.

In the case of adverse credit, a creditworthy cosigner will be required. Click here if you wish to apply for this loan, as you must initiate the application process. Borrowing Federal Direct Loan funds requires that you sign a Master Promissory Note (MPN) with the US Department of Education.

The Grad Plus loan is a federal loan and can be consolidated with other federal debt upon graduation. Interest begins to accrue immediately. Repayment begins immediately, but in-school deferment will occur when your enrollment status is reported as at least half-time. Contact your loan servicer(s) for information regarding the possibility of deferring payments during the 6 months following graduation or when your enrollment drops below half-time. You must be enrolled at least half-time to receive each semester's disbursement.

For loans first disbursed on or after July 1, 2013, the rate is based upon the index rate of the 10-Year Treasury Note, plus a statutorily defined "add-on" of 4.60%.  The interest rate on the loan will then be fixed for the life of the loan. Grad Plus loans with a first disbursement between July 1, 2024 and June 30, 2025 have an interest rate of 9.08%. 

Loans with a first disbursement on or after October 1, 2020 and before October 1, 2024 are charged an origination fee of 4.228%, resulting in a net of 4.228% in fees deducted from the loan funds sent to the school. 

First time Grad Plus loan borrowers must complete Grad Plus entrance counseling.

Parents of dependent undergraduate students can borrow Federal Direct Parent Plus loan funds on behalf of their student(s). The parent is the borrower of these funds, not the student. Parents of independent children or who have children in graduate or professional program are not eligible for Parent Plus loans.  Approval for the Parent Plus loan requires a credit check to verify a lack of adverse credit.

In the case of adverse credit, a creditworthy cosigner will be required. Click here if you wish to apply for this loan, as you must initiate the application process. Borrowing Direct Loan funds require that you sign a Master Promissory Note(MPN) with the US Department of Education.

The Parent Plus loan is a federal loan. Interest begins to accrue immediately. Repayment begins immediately, but during the application process, the applicant can indicate the desire to defer payments while the student is enrolled at least half-time.  For existing loans, borrowers can contact the loans' servicers regarding in-school deferment options while your students is enrolled at least half-time. Your student must be enrolled at least half-time to receive each semester's disbursement.

For loans first disbursed on or after July 1, 2013, the rate is based upon the index rate of the 10-Year Treasury Note, plus a statutorily defined "add-on" of 4.60%.  The interest rate on the loan will then be fixed for the life of the loan. Parent Plus loans with a first disbursement between July 1, 2024 and June 30, 2025 have an interest rate of 9.08%. 

Loans with a first disbursement on or after October 1, 2020 and before October 1, 2024 are charged an origination fee of 4.228%, resulting in a net of 4.228% in fees deducted from the loan funds sent to the school. 

Undergraduate nursing students are eligible to apply but must show financial need by completing a valid FAFSA and must be enrolled in at least 6 hours. The interest rate is fixed at 5% and interest begins to accrue only when the repayment period begins 9 months following graduation. Awards range up to $5,200 aid year.

Funds are offered on a first-come, first-served basis. If you are not offered the Nursing Student Loan in your initial award package, but are interested, contact us about putting your name on our waiting list.

For additional information regarding the terms, conditions, and communications regarding this loan, please click here.

The Health Professions Student Loan is available to DDS or PharmD students who are enrolled full-time. Applicants must provide parents’ financial information on the FAFSA in order to be considered in the offering of funds at the beginning of the award year. Parental information is required for all borrowers, regardless of the borrower’s age, marital status, or parental support, or lack thereof. Students are required to submit a copy of parents’ tax return for the most recently completed tax year. The interest rate is fixed at 5% and interest begins to accrue only when the repayment period begins 12 months following graduation. Interest and principal payments are deferred during internship/residency. Awards range up to $12,000 per year.

Funds are offered on a first-come, first-served basis. If you are not offered the Health Professions Loan in your initial award package, but are interested, contact us about putting your name on our waiting list.

For additional information regarding the terms, conditions, and communications regarding this loan, please click here.

Only medical students who are going to pursue a residency and practice in primary health care fields are eligible to apply. The Primary Care Loan can be taken out during the student's 4th year and used to pay off other educational loans borrowed while attending OUHSC. Borrowers of the PCL are expected to enter a residency program in, for example, family medicine, general internal medicine, general pediatrics, or preventative medicine. Once the residency is complete, the borrower is expected to remain in a primary health care field until the loan is repaid in full.

If a PCL borrower fails to remain in a qualified primary care field, the loan balance will be recomputed, from the date of issuance, at an interest rate of 7%. 

For additional information regarding the terms, conditions, and communications regarding this loan, please click here.

All students are eligible to apply and must demonstrate financial need by completing a valid FAFSA, must be enrolled full time, and must be eligible for financial aid. The Lew Wentz Loan requires a cosigner, who is not a student or spouse, and earns at least $35,000. The interest rate is 5%. Interest must be paid every July. For any semester a student receives a 4.0, interest for that semester will be waived. Students whose program assess grades in a pass/fail manner are not eligible for the waiver of the interest accrual.

Borrowers are entitled to a 6 month grace period before beginning repayment upon graduation or when enrollment drops below half-time. Awards range up to $5,000 per year.

Funds are offered on a first-come, first-served basis. If you are not offered the Lew Wentz Loan funds in your initial award package, but are interested, contact us about putting your name on our waiting list.

While it is strongly recommended that students explore all federal aid opportunities before borrowing Alternative loan funds, Alternative loans are often necessary to cover required educational expenses.

Alternative loans, also called private loans, are non-federal loans that require a sufficient credit history and score from the borrower and, in most cases, a creditworthy cosigner as well. Conditions for approval, interest rates, and fees will be determined upon credit approval and will vary from lender to lender. It is highly recommended that borrowers research lenders carefully before apply for a loan.

Alternative loans cannot be consolidated with Federal loans. Loan servicers may offer combined billing if a borrower has both Federal and private debt with that loan servicer. Please check with your loan servicer regarding that option. If a borrower has loans with more than one private lender, repayment will require separate payments until each loan is paid in full.

Please visit our list of suggested lenders for tips on selecting the right lender for your needs, the products that are offered, and the lender’s loan disclosures. Application opportunities are not limited to the lenders on this list. To begin the application process, you must choose a lender and initiate the credit application with that lender. Upon credit approval, the lender will contact our office for the certification process to continue.

Click for a step-by-step guide on how the private loan process works.  

OUHSC does not endorse or recommend the use of any comparison tool or lender, but provides the above as potentially helpful resources to potential borrowers.

Loans deemed "residency and relocation loans" are private, credit based loans made to students enrolled in their final year of study in particular health professions fields. Lenders may provide assistance to students who incur specific costs related to interviews, exams, and/or relocating after graduation. Because these loans are non-federal loans, each lender determines the approval, lending, and repayment criteria for each loan. These terms will vary by lender and are in no way guaranteed by the Student Financial Aid Office.

Please visit our list of recommended lenders for details on residency and relocation loan products.