Subsidized Stafford Loan for Medical School

name: subsidized Stafford Loan
interest rate: 6.8%
interest type: subsidized
maximum repayment term: 10 years
grace period: 6 months
maximum loan amount: $8,500 per year ($65,500 total)

Advantages of Subsidized Stafford

The interest rate is a bit higher than the previous two loans. While this loan is not as good as the Perkins Loan, it is still pretty good. Any loan in which the interest rate is subsidized is pretty good in my book. There is also a grace period, but it is only 6 months.

Disadvantages of Subsidized Stafford

The downside is that you can only get a maximum of $8,500 per school year and the loan total cannot exceed $65,500. Similar to Primary Care Loan , this is a needs-based loan. You will most likely qualify as a poor medical student. And the financial status of your parents is not taken into consideration.

Who Should Take Out the Loan?

So is it for you? Absolutely. If you max out on the Perkins Loan and need additional money, this is the next best option. Remember, it is subsidized, so the loan is interest free until after your grace period. And if you pay it off in full before the grace period is up, you did not lose anything and got free use out of the government's money.

Future of the Loan

subsidized stafford loan - war bonds

Going forward, the subsidizing of the Stafford Loan by the US government may be something of the past, just like war bonds for World War II.

For the school year of 2011 - 2012 and onwards, this could be a loan of the past, which means that it will no longer be offered. My school recently sent the following e-mail out:

Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change.

Find out how this will affect the cost of your education going forward at the no more Subsidized Stafford Loans section.

This is going to be a big loss for medical school students. I really hope the government comes out with a replacement for the subsidized Stafford loan.

Return to the beginning of Subsidized Stafford Loan

Return to Medical School Loan

Return to Medical School Success Homepage

I want to hear your thoughts! Make yourself heard.

Have your say about what you just read! Leave me a comment in the box below.

Your donation will help keep Medical School Success running.

Follow Medical School Success

Get Updates By E-mail!

Search the Site