Sallie Mae creates new student loans for med school
Extended grace periods and delayed repayment terms aim to alleviate money worries for medical and dental students.
If you’re thinking about a medical career but are anxious about funding all that studying, then one saving, planning and paying-for-college company may just come to your rescue.
Sallie Mae has just created two new graduate student loans with medical and dental students in mind.
The medical school loan
This is available to grad students pursuing a degree in allopathic, general, osteopathic, podiatric, radiology, sports and veterinary medicine at degree-granting institutions.
It offers both fixed (from 5.74% to 8.36% APR) and variable (from 3.62% to 8.36% APR) interest rate loans.
It has a 20-year repayment term, and medical students will receive a 36-month grace period upon graduating.
And while on a residency or fellowship, there is an additional four-year delay on repayments.
Then when students progress into their chosen careers, the Graduated Repayment Period provides a buffer.
Qualifying students can choose to begin paying back their loans by making 12 interest-only payments before moving onto standard payments for both the full principal and interest.
The dental school loan
This is for any grad student planning to take up dentistry, endodontics, oral and maxillofacial surgery, orthodontics, pediatric dentistry, periodontics and prosthodontics at a degree-granting institution.
Like the medical loan, this also offers the same fixed and variable interest rate ranges.
And while the 20-year repayment term is the same for both loans, dental students will be given a 12-month grace period with an additional 48 months of deferment during any residency or fellowship.
Those eligible can also opt in for the Graduated Repayment Period when they begin their careers.
Sadly, there are thousands of adults who still have to factor in paying off student loans.
In fact, the national student loan debt has reached $1.4 trillion, with many in their 40s and 50s still having to pay back loans – decades after finishing college.
If you want to get your head around how student loans actually work and decide which one might be the best option for you, then take a look at our student loans guide. Or see if refinancing would help you save money on your student loan debt.