Loans

We administer several loan programs, both for students who demonstrate financial need and those who do not.

Primary Care Loan (PCL)

The Primary Care Loan is a need-based federal student loan program available through the University of Minnesota. Availability of funds varies by year.

  • Maximum borrow amount: Cost of attendance or demonstrated financial need (whichever is less). Federal regulations require that parental income and asset information be included on the FAFSA to determine eligibility for this loan.
  • Eligibility: To receive PCL, students must be registered full-time (at least 6 credits per semester) and be a U.S. citizen, U.S. national, or U.S. permanent resident. Students must agree to complete a primary health care residency program within 4 years of graduation and practice primary care through the date the loan is paid in full.
  • Interest rate: 5% (annual). Interest charges do not accrue during the in-school, grace, or residency/fellowship deferment periods, but begin one year after graduation or the end of deferments.
  • Repayment: The repayment period is 10 years. There is no prepayment penalty, and this loan is canceled upon death or total and permanent disability. Defaulting on the primary care component changes the interest rate to 7% and payment begins immediately.
Twin Cities
The Primary Care Loan is available on this campus. 2018-19 Primary Care Loan Interest Form
Duluth
The Primary Care Loan is not offered on this campus.

Federal Perkins Loan

As of the 2017-18 academic year, the Federal Perkins Loan is no longer available to graduate/professional students. No new Federal Perkins Loans can be awarded. The loan program is being eliminated.

The Perkins Loan is a need-based federal student loan program once available through the University of Minnesota.

  • Maximum borrow amount: Full-time students may borrow up to an aggregate maximum of $40,000, including all undergraduate Perkins loans.
  • Eligibility: You must be a U.S. citizen, U.S. national, or U.S. permanent resident to apply.
  • Interest rate: 5%. Interest does not accrue during the in-school and grace periods.
  • Repayment: Begins 9 months after a student graduates, enrolls less than half-time, or leaves school. There is a 10-year repayment period. There is no prepayment penalty, and this loan is canceled upon death or total and permanent disability.
Twin Citiesx
The Federal Perkins Loan is no longer available on this campus to graduate/professional students as of the 2017-18 academic year.
Duluth
The Federal Perkins Loan is not offered on this campus.

University Trust Fund Loan (UTFL)

  • Maximum borrow amount: Medical students may borrow a maximum of $6,000 per academic year with a cumulative maximum of $14,000. Annual award amounts offered will vary based on availability of funds.
  • Interest rate: Ranges from 3-7%. For loans with interest rates under 7%, annual interest must be paid one year after loan disbursement (even while in school), and interest is billed annually thereafter until repayment begins. 7% loans do not accrue in-school interest.
  • Deferment: Available for up to 3 years in residency with documentation and deferment request
  • Repayment: Begins 9 months after graduation or termination from the University and may be spread over 10 years. There is no penalty for prepayment, and this loan is canceled upon death or total and permanent disability.
Twin Cities
The University Trust Fund Loan is available on this campus. 
Duluth
The University Trust Fund Loan is not offered on this campus.

Federal Direct Unsubsidized Loan

The Unsubsidized Federal Direct Loan Program is a non-need-based federal student loan program.

  • Maximum borrow amount: $40,500 every 9 months
  • Eligibility: You must be a U.S. citizen, U.S. national, or U.S. permanent resident
  • Disbursement schedule: Semester installments
  • Origination fee: 1.066%
  • Interest rate: Loans disbursed after July 1, 2013, are fixed-variable annually. The annual interest rate will change yearly for each new loan. Currently, the interest rate is 6.6%. Interest begins to accrue on the date the loan funds are disbursed.
  • Forbearance: Available for the length of residency
  • Repayment: Payment of interest and principal may be spread over 10-25 years. There is no penalty for prepayment, and this loan is canceled upon death or total and permanent disability.

Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan Program is a non-need-based federal program. The loan is an unsubsidized loan (see above) available for graduate/professional students who are not fully funded to cost of attendance.

  • Origination fee: 4.264%
  • Interest rate: Loans disbursed after July 1, 2013, are fixed-variable annually. The annual interest rate will change yearly for each new loan. Currently, the interest rate is 7.6%. Interest begins to accrue on the date the loan funds are disbursed.
  • Creditworthiness: The loan will be approved if you do not have an “adverse credit” history. If you are denied the loan due to “adverse credit,” you will have the opportunity to provide a creditworthy endorser and have the loan application reviewed again.
  • Forbearance: Available for the length of residency
  • Repayment: Payment of interest and principal may be spread over 10-25 years. There is no penalty for prepayment, and this loan is canceled upon death or total and permanent disability.
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