Medical Residency/Relocation Loan
The Graduate Leverage Medical Residency/Relocation Loan is available to those pursuing a career as a health professional
in an allopathic or osteopathic residency program. Medical students and new residents often face costs not traditionally
covered by financial aid award packages. The Residency/Relocation loan will cover expenses related to medical board exam
preparation, participating in residency interviews, relocating for residency or other related expenses (e.g. transportation,
housing, groceries).
Benefits:
- Borrow up to $20,000
- 1.0% interest rate reduction at repayment*
- 0.25% interest rate reduction for using ACH**
- Up to 15 year repayment term with no prepayment penalties
- Defer payments up to 7 years during residency program
- Cosigner release option available after 48 payments, if applicable
- All loans serviced by Graduate Leverage Servicing
- 24/7 account access
Eligibility Requirements:
- Available to those pursuing a career as a health professional in their final year of medical school and for six months following graduation.
- If the borrower is not a U.S. citizen or permanent resident, a cosigner who is a U.S. citizen or permanent resident will be required.
- If the borrower is the sole applicant, they must be at least 18 years old in all states with the exception of 19 in Alabama & Nebraska and 21 in Puerto Rico. If they do not meet age of majority requirements in their state, a cosigner will be required.
Additional qualifications apply.
Residency/Relocation Loan details for the 2009-2010 academic year:
| Loan Type |
Interest Rate |
Fees |
APR |
| Medical Residency/Relocation |
LIBOR + 5.0% to 8.0%
(variable rate***) |
0% to 6.0%
Origination Fee*** |
4.27% to 7.66%*** |
Notes and Assumptions
* A 1.0% reduction of the variable rate margin will take effect when the repayment period starts if the borrower continues
to satisfy the credit requirements that he or she met when the loan was approved. However, the variable rate margin reduction
will not apply to periods of deferment or forbearance. The variable rate margin reduction will be permanently forfeited and the
loan will return to the original variable rate margin if the account becomes 30 days past due.
** A .25% interest rate reduction is available to borrowers who elect to have monthly principal and interest payments
transferred electronically from a savings or checking account. The interest rate reduction will begin when the automatic
principal and interest payments start, and will remain in effect as long as automatic payments continue without interruptions.
This reduced interest rate will return to contractual interest rate if automatic payments are cancelled, rejected or
returned for any reason.
*** APR ranges from 4.27% to 7.66% and is based on the following example: $12,000 disbursement amount, 39.5 months of deferment
(3.5 months of in school deferment followed by 3 years of residency deferment), a 10 year repayment term following the deferment,
a 1% repayment benefit, a constant 1 month LIBOR of .43% as listed on 1/5/09. The 1 month LIBOR is a variable index, as a result
the actual APR of this loan can increase if the LIBOR index increases. Loan program details are subject to change. Availability,
rates and fees may vary based on borrower's and/or cosigner's (if applicable) credit history and school.