What is a Loan for Disadvantaged Students?

It is a program of long-term, low-interest loans to assist students having need for financial assistance to pursue a career in medicine, osteopathic medicine, dentistry, optometry, podiatric medicine, pharmacy, or veterinary medicine.

Who selects the program recipients?

Funds are allocated to accredited schools of medicine, osteopathic medicine, dentistry, optometry, pharmacy, podiatric medicine, and veterinary medicine which are located in the United States and Puerto Rico , and which participate in the Loans for Disadvantaged Students program. The Schools are responsible for selecting the recipients and for determining the amount of assistance.

Am I eligible for this program?

You are eligible to apply if you are a citizen, national or lawful permanent resident of the United States, the Commonwealth of Puerto Rico, the Mariana Islands, the Virgin Islands, Guam, American Samoa or the Trust Territory of the Pacific Islands, the Republic of Palau, the Republic of the Marshall Islands, or the Federated State of Micronesia; are accepted for enrollment or are enrolled in a participation health professions schools as a full-time student; and are determined by your school's Financial Aid office to meet “financial need” and “disadvantaged background” criteria.

Note: Students enrolled in schools of medicine or osteopathic medicine must demonstrate exceptional financial need. Preprofessional students, interns, residents, and students seeking advanced training are not eligible for assistance under this program.

How do I apply for and LDS?

You must complete a NEOUCOM Supplemental Application and provide parent information on the FAFSA in order to be considered for this award.

What is “Disadvantaged Background'?

“Disadvantaged Background” means that a student comes from an environment that has inhibited the individual from obtaining the knowledge, skills, and abilities required to enroll in and graduate from a school of medicine, osteopathic medicine, dentistry, pharmacy, podiatric medicine, optometry, or veterinary medicine or comes from a family with an annual income below a level based on low-income thresholds according to family size. (Family income levels are periodically published in the Federal Register. )

What is “Financial Need”?

Financial need means that a parent's and student's resources are less than the costs necessary for attendance at the school, as determined by the school through use of a need analysis system.

How much may I borrow?

The maximum amount you may borrow is not to exceed the cost of attendance.

In determining the amount of the loan, the school takes into consideration:

•  the income, assets, and resources of the student and his/her family;

•  support available to the student from other sources, such as scholarships, veterans benefits, and repayable loans; and

•  the costs reasonably necessary for full-time attendance at the school.

What is the interest rate?

The interest rate is five percent (5%).

How do I repay the loan?

Loans are repayable to the school over a 10-year period which begins one year after you complete or otherwise cease to pursue a full-time course of study at an eligible school. Interest begins to accrue at the time the loan becomes repayable.

Principal plus accrued interest may be repaid in equal or graduated installments, according to the repayment schedule selected during the exit interview, except that the school may require a minimum repayment of principal and interest at a rate equal to, but not less than, $15 per month. You may make payments more frequently or in larger amounts than required during a repayment year.

May repayment of a loan be deferred?

If you are serving full-time as a member of a uniformed service (Army, Navy, Air Force, Marine Corps, Coast Guard, National Oceanic and Atmospheric Administration Corps, or in the Public Health Service), or a volunteer under the Peace Corps Act, repayment of principle may be deferred up to three years.

If you are pursuing a full-time course of study at a school that is eligible for participation in the Loans for Disadvantaged Students program, repayment of principle may be deferred.

Interest does not accrue during periods of deferment.

May repayment of the loan be canceled?

Loans may be canceled in the event of death or permanent and total disability.