Loan Programs at a Glance

Federal Stafford or Direct Loan Programs

This program includes the Subsidized Stafford or Direct Loan which is need-based and the Unsubsidized Stafford or Direct Loan which is non-need-based. (Requires the FAFSA.)

Amounts:  Up to $8,500 annually from the subsidized loan and $36,000 annually from the unsubsidized loan up to the Cost of Attendance.  The maximum lifetime limit for subsidized is $65,500, and subsidized and unsubsidized combined is $224,000.

Interest Rate:  The interest rate for borrowers on or after July 1, 2006, is fixed at 6.8%.  The federal government pays the interest on the subsidized loans while the student is enrolled at least halftime.  Interest begins to accrue immediately on the unsubsidized loans, but students may authorize their lenders to add the interest to the principal at the time repayment begins. 

Disbursements:  All loans are disbursed in two equal halves; one in the fall and one in the spring.  Students who choose banks as their lenders will receive a paper check from which they must pay tuition and other costs.  Students who choose the Direct Loan will have the amount applied directly to their tuition account.  Any remainder after tuition is paid will be issued to the student by check from the University.   

Costs:  An insurance premium and origination fee of up to 4% per loan may be deducted from each disbursement.  This percentage will vary depending on the lender selected.

Repayment:  The standard repayment plan is ten years commencing after a 6-month grace period.  Additional repayment plans are offered.

Compare Stafford Loan Lenders :  http://www.simpletuition.com/ukydentistry

Stafford Loan Lender Request Form:  Once you have accepted admissions to the University of Kentucky College of Dentistry you will complete this form.  The Financial Aid Office will use this form to process you request for the Subsidized and Unsubsidized Stafford Loans after you have signed your Financial Aid Award Notice accepting these loans.  The Award Notice is sent to you sometime in June.

 

Federal Grad Plus Loan or Direct Grad Plus Loan Programs

For the first time, effective July 1, 2006 graduate students will be eligible for the Graduate Plus Loan.  This loan is similar to the Parent Plus Loan that some undergraduate students had eligibility to borrow if the parent needed to borrow the money.  Because of the increases to the tuition and fees at most colleges and universities across the nation the federal government now allows graduate students to take part in this program. (Requires the FAFSA.)

Amounts:  The maximum amount that a student can receive annually is the cost of attendance less all other aid the student received.

Interest Rate: The interest rate for borrowers is fixed at 8.5%.  To be eligible you must be a U.S. citizen or eligible non-citizen and provide a valid social security number.  Students must be enrolled at least half-time, must complete a FAFSA, Plus Master Promissory Note and must be credit worthy.

Disbursements:  All loans are disbursed in two equal halves; one in the fall and one in the spring.  Students who choose banks as their lenders will receive a paper check from which they must pay tuition and other costs.  Students who choose the Direct Loan will have the amount applied directly to their tuition account.  Any remainder after tuition is paid will be issued to the student by check from the University.

Costs:  An insurance premium and origination fee of up to 3% per loan may be deducted from each disbursement.  This percentage will vary depending on the lender selected.

Repayment:  The standard repayment plan is ten years commencing after a 6-month grace period.  Additional repayment plans are offered.

Compare Grad Plus Loan Lenders :  http://www.simpletuition.com/ukydentistry

Grad Plus Loan Lender Request Form:  Once you have accepted admissions to the University of Kentucky College of Dentistry you will complete this form.  The Financial Aid Office will use this form to process you request for the Grad Plus Loans after you have signed your Financial Aid Award Notice accepting these loans.  The Award Notice is sent to you sometime in June.

 

Private/Alternative Loans

There are a variety of alternative loans available to student dentists, which are not determined by need but may require the submission of a FAFSA.  These loans are only recommended after all other sources have been exhausted.

Amounts:  The maximum amount that a student can receive annually is the cost of attendance less all other aid the student received.

Interest Rate:  Each loan is somewhat different, but all have variable interest rates.  Interest for these loans is usually higher than federal loans and begins to accrue immediately.  Many of the alternative loans do not have interest rate caps and interest is calculated based on student’s credit rating.  So a good credit history is required for private loans to get the lower interest rates the lenders can offer for this type of loan.

Disbursements:  All loans are disbursed in two equal halves; one in the fall and one in the spring.  Students who choose these lenders will receive a paper check.

Costs:  An insurance premium and origination fee may be charged per loan and may be deducted from each disbursement.  This percentage will vary depending on the lender selected.

Repayment:  The standard repayment plan is twenty years, depending on the lender and type of alternative or private loan chosen the loan may also have a grace period.

Residency/Relocation Loan Program (4th Year Dental and 3rd Year Post Doc Students ONLY)

Please see Financial Aid Officer in room D155 of the Chandler Medical Center for more information.

Compare Private/Alternative Loan Lenders :  http://www.simpletuition.com/ukydentistry

 

Health Professions Student Loan

The HPSL is need-based, school-managed funds provided by the federal government. (Parent's information is required on the FAFSA.)  The amount of the award depends on the amount of money provided by the government and the number of eligible students. There is no regulated maximum amount.  No fee is deducted and no interest accrues during continued enrollment in a health professions program. Standard repayment of ten years begins 12 months after graduation or withdrawal at a 5% fixed interest rate.  One half of the loan amount is applied to the student's tuition account each semester.  Promissory notes must be completed before the loan is official.

 

Federal Perkins Loan

The Perkins Loan is need-based, school-managed funds provided by the federal government (Parental information is required on the FAFSA).  An annual award cannot exceed $6,000 with a lifetime undergraduate and professional maximum award of $36,000.  Two equal disbursements are credited directly to the student's tuition account as are all school-managed funds.  No interest accrues during enrollment and no fees are deducted.  The fixed interest rate of 5% begins to accrue 9 months following graduation or withdrawal.  Standard repayment is ten years.

 

Southeastern Kentucky Loan

This loan is a need-based, school-managed program provided by the state of Kentucky for residents of the following counties: Bell, Breathitt, Clay, Harlan, Jackson, Knott, Knox, Laurel, Lee, Leslie, Letcher, Owsley, Perry, Rockcastle, Whitley, and Wolfe.  (Parent Information is required on the FAFSA).  An annual award of $2,000 and a lifetime maximum award of $10,000 cannot be exceeded.  No interest accrues during enrollment and no fees are deducted.   A fixed rate of 8% is charged upon repayment that begins after a 12-month grace period following graduation or withdrawal.  The standard repayment is five years.