UNIVERSITY OF MICHIGAN MEDICAL SCHOOL

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William D. Ford Federal Direct Subsidized Stafford Loan: Federal program with an annual maximum of $8500 per year, with the interest subsidized by the government until repayment begins. 2.5% origination fee (fee subject to change) is deducted before the award is disbursed. Currently there is a repayment incentive of an up-front interest rate rebate worth 1.25% of the original principal loan amount for all loans made through the William D. Ford Federal Direct Student Loan Program. Borrowers must make their first 12 loan payments on time to keep the benefit. If any of the first 12 payments are late -- more than six days after the scheduled payment date -- the rebate is added to the outstanding balance at the end of the first repayment year. Four repayment options are available ranging from 10 years to a maximum of 25 years. Consolidation programs are also available. Loans disbursed after July 1, 2006 carry a fixed interest rate of 6.8%.

William D. Ford Federal Direct Unsubsidized Stafford Loan: Federal program with an annual maximum of $47,167 per year, based on length of academic year, minus the amount received from the Federal Direct Subsidized Stafford. Four repayment options are available ranging from 10 years to a maximum of 25 years. Consolidation programs are also available. Loans disbursed after July 1, 2006 carry a fixed interest rate of 6.8%. Interest accrues continuously from the date of disbursement and is payable quarterly. A 2.5% origination fee deducted before award is disbursed (fee subject to change). Currently there is a repayment incentive of an up-front interest rate rebate worth 1.25 percent of the original principal loan amount for all loans made through the William D. Ford Federal Direct Student Loan Program. Borrowers must make their first 12 loan payments on time to keep the benefit. If any of the first 12 payments are late -- more than six days after the scheduled payment date -- the rebate is added to the outstanding balance at the end of the first repayment year.

William D. Ford Federal Direct Graduate Student PLUS Loan: Legislation effective July 1, 2006 allows graduate students to borrow through the Federal Direct PLUS program. Students may borrow up to cost of attendance less any other financial aid received. Graduate PLUS borrowers must pass a basic credit check each time a PLUS loan application is made. Repayment begins 60 days after the date the loan is fully disbursed: however, the borrower may receive a deferment of payment while s/he is enrolled at an eligible school on an at least half-time basis. The interest rate for the William D. Ford Federal Direct Graduate PLUS Loan is fixed at 7.9%. Interest accrues continuously from the date the loan is disbursed. A 4% origination fee deducted before award is disbursed (fee subject to change). Currently there is a repayment incentive of an up-front interest rate rebate worth 1.5 percent of the original principal loan amount for all loans made through the William D. Ford Federal Direct Student Loan Program. Borrowers must make their first 12 loan payments on time to keep the benefit. If any of the first 12 payments are late -- more than six days after the scheduled payment date -- the rebate is added to the outstanding balance at the end of the first repayment year.