Financial Aid - Loan Programs - School of Dental Medicine

Federal Direct Loan Program

LECOM participates in the William D. Ford Federal Direct Loan (Direct Loan) Program. Students may be eligible to borrow from the Federal Direct Unsubsidized Loan Program.  The terms and conditions of the loan may be found in the Federal Direct Loan Master Promissory Note (MPN).  The student is responsible for paying the interest on the unsubsidized loan from the day the loan is disbursed. Interest payment on the unsubsidized loan may be deferred during in-school, grace, and deferment periods, however, the accrued interest may be capitalized, or added to the principal.

Reminder – For Federal Direct loans made for loan (enrollment) periods beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive the Federal Direct Subsidized Loan.  Instead, all Direct Loans borrowed will be unsubsidized.  The federal government will not pay the interest on any portion of the Direct Loans during in-school, grace and deferment periods. 

Federal Direct Loans are subject to origination fees which are deducted by Direct Lending before each disbursement. The Direct Loan interest rate is a fixed rate of 6.8%.

Eligible medical and dental students may borrow up to $40,500 per nine-month academic year from the Federal Direct Unsubsidized Loan program.  Eligible pharmacy students may borrow up to $33,000 per nine-month academic year from the Federal Direct Unsubsidized Loan program.  The loan amounts may be prorated for 10, 11 and 12 month academic years, per federal guidelines.   

Eligible graduate students may borrow up to $20,500 per academic year from the Federal Direct Unsubsidized Loan program.

The total aggregate Federal Direct Subsidized and Unsubsidized loan debt amount allowed for eligible medical, dental and pharmacy students is $224,000. The total aggregate Federal Direct Subsidized and Unsubsidized loan debt amount allowed for graduate students is $138,500. These aggregate loan amounts include any Federal Stafford Loans, Guaranteed Student Loans, Federal Direct Loans and Federal Consolidation Loans received as an undergraduate and/or graduate student.

Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan has a fixed interest rate of 7.9% and origination and/or default fees which are deducted by Direct Lending before each disbursement. The annual loan limit of the Graduate PLUS Loan is the cost of education minus any other financial aid received. The credit approval of the Graduate PLUS Loan is based on federal standards. An endorser option is available if the borrower does not meet the credit requirements.

To apply for the Federal Direct Unsubsidized and Graduate PLUS loans, go to https://StudentLoans.gov .

Private Educational Loans

Private educational loans are available through private lenders. The terms and conditions of the different private loans vary depending on the particular loan program. The annual loan limits of private educational loans are cost of education minus any other financial aid received. The approval of a private loan is contingent upon the borrower having a positive credit history.