20 Best Medical Schools for Avoiding Six-Figure Student Loan Debt

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Although being a doctor can be a rewarding profession, the cost of medical school can be a huge barrier for aspiring students. That’s why many future physicians turn to student loans to cover the cost of their education.

Unfortunately, this can also lead to massive student debt – around $164,800 on average, according to a 2017 Student Loan Hero study.

While six-figure debt might be the norm for medical students, if you apply to affordable medical schools, it can make a big difference in limiting your student loan debt. And that gives you a huge head start in repaying medical school debt.

To help medical school applicants find the least expensive medical schools, we surveyed 110 medical schools to find out where students are likely to incur the least amount of student debt.

Here are our top 20.

How affordable medical schools limit your student loan debt

To identify the best medical schools for limiting student debt, Student Loan Hero looked at three factors: annual tuition costs, average indebtedness at graduation, and the percentage of borrowers receiving gift aid such as scholarships and grants.These are central considerations for any student figuring out how to pay for medical school.

Overall, medical students can expect the following when it comes to paying for their doctorate:

  • Annual tuition (in-state): $39,116
  • Average medical school debt: $164,776
  • Students receiving gift aid: 52%

However, students attending one of the top 20 affordable medical schools fare better:

  • Annual tuition (in-state): $24,483
  • Average medical school debt: $122,545
  • Students receiving gift aid: 71%

They pay approximately $14,600 less in medical school tuition each year and are much more likely to receive college-sponsored grants or scholarships. They also owe about 25% less ($42,231) at graduation than an average med student.

On the other end of the spectrum, students at the 20 least affordable medical schools fare much worse:

  • Annual tuition: $48,843
  • Average medical school debt: $224,566
  • Students receiving gift aid: 30%

Students here receive scholarships and grants less than half as often students attending the 20 best medical schools.

Plus, average student loan debt tips the scales at $224,566. That’s about $59,800 more in medical school debt than the total average — not to mention, about $102,000 more than the average among the 20 best medical schools.

When your choice in medical school can equate to an extra $100,000 in medical school debt, the weight of your decision is clear. Medical school costs and student debt are central factors in the equation of whether medical school is even worth it.

To point you in the right direction, we’ve highlighted 20 medical schools where it’s easiest to minimize student debt.

Top 20 affordable medical schools in the U.S.

1. East Carolina University Brody School of Medicine

  • Annual tuition: $18,159 (in-state)
  • Average medical school debt: $112,692
  • Students receiving gift aid: 80%

The Brody School of Medicine at East Carolina University in Greenville, North Carolina, is one of just 10 medical schools surveyed where annual tuition falls under $20,000. Four in five students receive a scholarship or grant, and on average, graduate with about $52,100 less in medical school debt.

2. University of New Mexico School of Medicine

  • Annual tuition: $15,798 (in-state)
  • Average medical school debt: $126,783
  • Students receiving gift aid: 87%

The University of New Mexico’s School of Medicine in Albuquerque, New Mexico, has low tuition, with an even higher rate of institutional aid. With these factors keeping costs low, it’s no surprise these graduates can limit student debt to about $38,000 less than the average.

3. Baylor College of Medicine

  • Annual tuition: $19,650 (in-state)
  • Average medical school debt: $99,882
  • Students receiving gift aid: 60%

Baylor College of Medicine in Houston, Texas, has the third-lowest average student loan balances among the top 20. And it’s one of just three medical schools where the average graduate leaves with under $100,000 in student debt.

4. Texas A&M College of Medicine

  • Annual tuition: $13,790 (in-state)
  • Average medical school debt: $128,797
  • Students receiving gift aid: 78%

Texas A&M College of Medicine has the second-lowest tuition of any medical school on this list.

These low costs, along high rates of institutional aid, means it’s relatively easy for graduates to minimize their medical school debt here.

5. Mayo Clinic School of Medicine

  • Annual tuition: $49,900
  • Average medical school debt: $69,695
  • Students receiving gift aid: 9%

The Mayo Clinic School of Medicine is a renowned medical school that matches its reputation with low student debt. Despite having the highest tuition rates of any of the top 20 medical schools, Mayo Clinic’s scholarships and grants significantly offset these costs.

In fact, Mayo Clinic graduates have the lowest levels of any medical school debt in this survey, owing about $95,100 less than the study’s average.

6. Texas Tech University Health Sciences Center School of Medicine

  • Annual tuition: $15,016 (in-state)
  • Average medical school debt: $129,454
  • Students receiving gift aid: 72%

Texas Tech University Health Sciences Center School of Medicine has the fourth-lowest tuition of any medical school surveyed. This adds up to about $35,300 less medical school debt at graduation, on average.

7. University of Central Florida College of Medicine

  • Annual tuition: $25,491 (in-state)
  • Average medical school debt: $138,728
  • Students receiving gift aid: 100%

The University of Central Florida College of Medicine in Orlando, Florida, takes the top spot for institutional aid, with 100% of students receiving a scholarship or grant. Add this to already-low tuition, and students can easily avoid getting too deep into medical school debt.

8. David Geffen School of Medicine at University of California – ​Los Angeles (UCLA)

  • Annual tuition: $32,757 (in-state)
  • Average medical school debt: $117,590
  • Students receiving gift aid: 91%

The David Geffen School of Medicine at UCLA has the third-highest rate of institutional aid among these top 20 medical schools (tied with the Mayo Clinic).

These scholarships and grants help alumni of this school avoid around $47,200 in medical school debt, on average.

9. University of Texas Southwestern Medical Center

  • Annual tuition: $18,493 (in-state)
  • Average medical school debt: $109,350
  • Students receiving gift aid: 52%

Only about half of students at the University of Texas Southwestern Medical Center in Dallas, Texas, receive a scholarship or grant. But with medical tuition starting low, graduates still borrow close to $55,500 less than the average medical school debt found in our study.

10. University of Texas Health Science Center at ​San Antonio

  • Annual tuition: $14,500 (in-state)
  • Average medical school debt: $120,529
  • Students receiving gift aid: 55%

This medical school has the third-lowest tuition in this study, saving students around $24,600 a year. These low costs and above-average institutional aid put the University of Texas Health Science Center in San Antonio, Texas, among the most affordable medical schools.

11. University of North Texas Health Science Center

  • Annual tuition: $13,078 (in-state)
  • Average medical school debt: $150,258
  • Students receiving gift aid: 75%

Students at the University of North Texas Health Science Center in Fort Worth, Texas have higher student loan balances among the top 20 most affordable medical schools. They save just around $14,500 on average compared to overall borrowing patterns.

However, this is the most affordable medical school in terms of tuition. Combine low tuition with higher rates of institutional aid, and you have a smart choice when it comes to minimizing student loan debt.

12. University of California – ​San Diego (UCSD) School of Medicine

  • Annual tuition: $32,346 (in-state)
  • Average medical school debt: $98,750
  • Students receiving gift aid: 61%

Graduates of the UCSD School of Medicine enter residency with the second-lowest levels of medical school debt, less than $100,000 on average. This is despite having one of the highest tuition costs of the top 20 affordable medical schools.

13. University of Nevada, Reno School of Medicine

  • Annual tuition: $26,114 (in-state)
  • Average medical school debt: $135,788
  • Students receiving gift aid: 84%

University of Nevada, Reno School of Medicine graduates have one of the higher average student loan balances among the top 20.

However, they still fall just about $29,000 below the average amount of debt. This school also offers low tuition and plenty of financial aid opportunities.

14. University of North Carolina at Chapel Hill School of Medicine

  • Annual tuition: $24,837 (in-state)
  • Average medical school debt: $147,899
  • Students receiving gift aid: 87%

Thanks to high rates of institutional aid and tuition that’s about $14,300 less a year than our study’s average, students at UNC School of Medicine have fewer costs to account for than the average medical student.

That means they ultimately have less to pay for and can take out a smaller amount of student loans, minimizing their overall debt.

15. The University of Texas Health Science Center at Houston

  • Annual tuition: $15,525 (in-state)
  • Average medical school debt: $117,381
  • Students receiving gift aid: 30%

The University of Texas Health Science Center in Houston, Texas, has the lowest rate of institutional aid of any school in the top 20. In fact, it’s more on par with the averages for the bottom 20.

Despite this, having the fifth-lowest tuition costs helps make up the difference at UTHealth. Medical school debt here is also about $47,400 below the overall average found in our study.

16. University of Alabama at ​Birmingham (UAB) School of Medicine

  • Annual tuition: $26,778 (in-state)
  • Average medical school debt: $108,690
  • Students receiving gift aid: 44%

The UAB School of Medicine has low tuition and graduates leave with low medical school debt – approximately $56,100 less than the average debt found in our study.

Keep in mind that a first-year medical resident’s typical salary stipend is $54,100, according to a 2016 AAMC survey of resident and fellow stipends. So even if this medical school offers aid to fewer students than most, going to UAB medical school can help graduates save on debt that’s almost the equivalent of a year’s worth of salary.

17. University of Oklahoma College of Medicine

  • Annual tuition: $24,030 (in-state)
  • Average medical school debt: $121,668
  • Students receiving gift aid: 49%

The University of Oklahoma College of Medicine has below-average tuition, saving students around $15,000 a year. Graduates of this school also save about $43,100 on total medical school debt.

18. University of California—​San Francisco (UCSF) School of Medicine

  • Annual tuition: $33,420
  • Average medical school debt: $139,457
  • Students receiving gift aid: 82%

About four in five medical students at the UCSF School of Medicine get institutional aid to help cover costs. This probably helps them borrow about $25,300 less than an average medical student, despite paying tuition that’s closer to average.

19. University of California – ​Davis School of Medicine

  • Annual tuition: $35,933
  • Average medical school debt: $153,419
  • Students receiving gift aid: 95%

Almost every UC Davis School of Medicine student receives a scholarship or grant. This helps cover most students’ medical school costs and keep tuition affordable. Although tuition may seem higher compared to the other 20 most affordable medical schools, it’s still below our study’s average.

These factors also help UC Davis graduates keep their medical student loans $11,400 below the average.

20. University of Michigan Medical School

  • Annual tuition: $34,050
  • Average medical school debt: $124,091
  • Students receiving gift aid: 56%p

Rounding out our top 20 is the University of Michigan Medical School. This school gets closer to average on both its tuition and rates of institutional aid.

However, a typical University of Michigan student graduates with medical school debt that’s 25%lower than the $164,800 average.

Top 50 most affordable medical schools

Curious to see how other affordable medical schools stack up?

Here’s a list of the top 50 institutions we found to be the best options for minimizing six-figure medical school debt, based on our methodology listed below. See how your school compares in terms of average indebtedness each med school graduate walks away with.

Medical school Average indebtedness
1. East Carolina University (Brody) $112,692
2. University of New Mexico $126,783
3. Baylor College of Medicine $99,882
4. Texas A&M Health Science Center $128,797
5. Mayo Clinic School of Medicine $69,695
6. Texas Tech University Health Sciences Center $129,454
7. University of Central Florida $138,728
8. University of California—​Los Angeles (Geffen) $117,590
9. University of Texas Southwestern Medical Center $109,350
10. University of Texas Health Science Center—​San Antonio $120,529
11. University of North Texas Health Science Center $150,258
12. University of California—​San Diego $98,750
13. University of Nevada Reno $135,788
14. University of North Carolina—​Chapel Hill $147,899
15. University of Texas Health Science Center—​Houston $117,381
16. University of Alabama—​Birmingham $108,690
17. University of Oklahoma $121,668
18. University of California—​San Francisco $139,457
19. University of California—​Davis $153,418
20. University of Michigan—​Ann Arbor $124,091
21. University of Chicago (Pritzker) $119,830
22. Washington University in St. Louis $84,758
23. University of Kansas Medical Center $155,241
24. University of South Dakota (Sanford) $160,439
25. University of Arkansas for Medical Sciences $163,049
26. University of Florida $150,126
27. University of Missouri $153,398
28. University of Virginia $125,094
29. Ohio State University $168,656
30. Harvard University $101,478
31. University of Washington $153,494
32. University of Iowa (Carver) $146,207
33. University of Maryland $157,155
34. Wayne State University $160,859
35. Vanderbilt University $127,184
36. University of Hawaii—​Manoa (Burns) $160,000
37. University of Connecticut $148,575
38. Johns Hopkins University $113,684
39. Duke University $118,579
40. West Virginia University $154,798
41. Stanford University $122,611
42. University of South Florida $148,306
43. Florida State University $150,008
44. University of Wisconsin—​Madison $144,334
45. Columbia University $113,367
46. Marshall University (Edwards) $190,345
47. University of California—​Irvine $159,161
48. University of Massachusetts—​Worcester $138,479
49. University of Nebraska Medical Center $162,638
50. University of Utah $166,985

 

Methodology: Student Loan Hero ranked 110 medical schools in the U.S. for this study. Rankings were determined by three factors:

1) Level of indebtedness for medical school graduates

2) Annual in-state tuition to attend the medical school full-time

3) Percentage of students receiving institutional aid in the form of scholarships or grants.

All data was sourced from the U.S. News & World Report rankings of the Best Medical Schools.

Need a student loan?

Here are our top student loan lenders of 2018!
LenderVariable APREligibility 
1 Important Disclosures for CollegeAve.

CollegeAve Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

  1. All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
  2. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7% variable Annual Percentage Rate (“APR”): 96 monthly payments of $179.28 while in the repayment period, for a total amount of payments of $17,211.20. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
  3. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Information advertised as valid as of 07/1/2018. Variable interest rates may increase after consummation.

2 Important Disclosures for Discover.

Discover Disclosures

  1. At least a 3.0 GPA or equivalent qualifies for a one-time cash-reward of 1% of the loan amount of each new Discover student loan. Reward redemption period is limited. Please visit DiscoverStudentLoans.com/Reward for any applicable reward terms and conditions.
  2. View Terms and Conditions at DiscoverStudentLoans.com/AutoDebitReward.

3 Important Disclosures for Ascent.

Ascent Disclosures

Before taking out private student loans, you should explore and compare all financial aid alternatives, including grants, scholarships, and federal student loans and consider your future monthly payments and income. Applying with a cosigner may improve your chance of getting approved and could help you qualify for a lower interest rate. Ascent Student Loans may be funded by Richland State Bank (RSB) or Turnstile Capital Management, LLC (TCM), which are not affiliated entities. Certain restrictions and limitations may apply. Ascent Student Loan products are subject to credit qualification, completion of a loan application, verification of application information and certification of loan amount by a participating school. All loan products may not be available in certain jurisdictions. Other terms and conditions apply. Ascent is a federally registered trademark of TCM and may be used by RSB under limited license. Richland State Bank is a federally registered service mark of Richland State Bank.

  1. Competitive rates calculated monthly at the time of loan approval. (Rates are effective as of 8/01/2018 and include a 0.25% discount applied when a borrower in repayment elects automatic debit payments via their personal checking account.)
    Ascent Tuition: Variable rate loans are based on a margin between 2.00% and 11.00% plus the 1-Month London Interbank Offered Rate (LIBOR), rounded to the nearest 1/100th of a percent. The current LIBOR is 2.069%, which may adjust monthly. Your interest rate may increase or decrease, based on LIBOR monthly changes, resulting in an APR range between 3.82% – 12.82%. Fixed rate loans have an APR range between 5.54% and 14.59%.
    Ascent Independent: Variable rate loans are based on a margin between 4.00% and 12.50% plus the 1-Month London Interbank Offered Rate (LIBOR), rounded to the nearest 1/100th of a percent. The current LIBOR is 2.069%, which may adjust monthly. Your interest rate may increase or decrease, based on LIBOR monthly changes, resulting in an APR range between 5.49% and 12.77%. Fixed rate loans have an APR range between 7.06% and 13.72%.
  2. Payments may be deferred. Subject to lender discretion, forbearance and/or deferment options may be available for borrowers who are encountering financial distress.
  3. Making interest only or partial interest payments while in school will not reduce the principal balance of the loan. There are three (3) flexible in-school repayment options that include fully deferred, interest only and $25 minimum repayment. Click here for a Tuition repayment example.
  4. Flexible repayment plans may be offered with up to a fifteen (15) year repayment term for a variable rate loan and ten (10) year repayment term for a fixed rate loan. Students must be enrolled at least half-time at an eligible school. Minimum loan amount of $2,000. Ascent borrowers who choose a fixed rate option may ONLY select a loan term of five (5) or twelve (12) years (60 or 144 months, respectively). For certain loans with low balances the minimum monthly payment amount may cause the loan amortization schedule to be less than the selected term. Click here for Ascent Tuition cosigned loan current rates and repayment examples.
  5. Interest rate reduction of 0.25% for enrollment in automatic debit applies only when the borrower and/or cosigner signs up for automatic payments and the regularly scheduled, current amount due (including full, flat, or interest only payments, as applicable) is successfully deducted from the designated bank account each month. Interest rate reduction(s) will not apply during periods when no payment is due, including periods of In-School, Deferment, Grace or Forbearance. If you have two (2) returned payments for Nonsufficient Funds, we may cancel your automatic debit enrollment and you will lose the 0.25% interest rate reduction. You will then need to re-qualify and re-enroll in automatic debit payments in order to receive the 0.25% interest rate reduction.
  6. All applicants (individual and cosigner) are required to complete a brief online financial literacy course as part of the application process to be eligible for funding.
  7. Eligibility, loan amount and other loan terms are dependent on a number of factors, including: loan product, other financial aid, creditworthiness, school, program, graduation date, major, cost of attendance and other factors. Aggregate loan limits may apply. The cost of attendance is determined and certified by the educational institution.
  8. The legal age for entering into contracts is eighteen (18) years of age in every state except Alabama where it is nineteen (19) years old, Nebraska where it is nineteen (19) years old (only for wards of the state), and Mississippi and Puerto Rico where it is twenty-one (21) years old.
  9. 1% Cash Back Graduation Reward subject to terms and conditions, click here for details.
  10. Students can apply to release their cosigner and continue with the loan in only their name after making the first 24 consecutive regularly scheduled full principal and interest payments on-time and meeting the other eligibility criteria to qualify for the loan without a cosigner.

* Application times vary depending on the applicants ability to supply the necessary information for submission.


* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.
4 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

5 Important Disclosures for PNC.

PNC Disclosures

  1. Interest will continue to accrue during periods of deferment. You will receive quarterly interest statements during this deferment period. Paying the interest as it accrues each quarter will save you money over the repayment term of the loan because any accrued interest that you do not pay will be added to the principal balance at the end of the deferment period.
  2. If automatic payment is discontinued, you will no longer receive an automatic payment discount. A federal regulation limits the number of transfers that may be made from a savings or money market account. Please contact your financial institution for more information on transfer limitations on savings accounts.
  3. A request to release a co-signer requires that you have made forty-eight (48) consecutive timely payments with no periods of forbearance or deferment within the forty-eight (48) month timeframe. “Timely payment” means each payment is made no later than the 15th day after the scheduled due date of the payment. “Consecutive payment” means the minimum monthly payment must be made for forty-eight (48) months straight without any interruption. To qualify for a co-signer release, the borrower must submit a request, meet the consecutive, timely payment requirements, provide proof of income and pass a credit check.

PNC Bank is one of the nation’s largest education loan providers. For over 40 years, PNC has been committed to helping students and their families make possible the adventure of college.


6 Important Disclosures for SunTrust.

SunTrust Disclosures

Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. To view and compare the available features of SunTrust private student loans, visit https://www.suntrust.com/loans/student-loans/private.

Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue this loan program without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions.

SunTrust Bank, Member FDIC. ©2018 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved.

  1. Interest rates and APRs (Annual Percentage Rates) depend upon (a) the student’s and cosigner’s (if applicable) credit histories, (b) the repayment option and repayment term selected, (c) the requested loan amount and (4) other information provided on the online loan application. If approved, applicants will be notified of the rate applicable to your loan. Rates and terms effective for applications received on or after 8/01/2018. The current variable APRs for the program range from 3.876% APR to 12.875% APR and the current fixed APRs for the program range from 5.351% APR to 14.051% APR (the low APRs within these ranges assume a 7-year $10,000 loan, with two disbursements and no deferment; the high APRs within these ranges assume a 15-year $10,000 loan with two disbursements). The variable interest rate for each calendar month is calculated by adding the current One-month LIBOR index to your margin. LIBOR stands for London Interbank Offered Rate. The One-month LIBOR is published in the Money Rates section of The Wall Street Journal (Eastern Edition). The One-month LIBOR index is captured on the 25th day of the immediately preceding calendar month (or if the 25th is not a business day, the next business day thereafter), and is rounded up to the nearest 1/8th of one percent. The current One-month LIBOR index is 2.125% on 8/01/2018. The variable interest rate will increase or decrease if the One-month LIBOR index changes. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the auto pay discount.
  2. Any applicant who applies for a loan the month of, the month prior to, or the month after the student’s graduation date, as stated on the application or certified by the school, will only be offered the Immediate Repayment option. The student must be enrolled at least half-time to be eligible for the partial interest, fully deferred and interest only repayment options unless the loan is being used for a past due balance and the student is out of school. With the Full Deferment option, payments may be deferred while the student is enrolled at least half-time at an approved school and during the six month grace period after graduation or dropping below half-time status, but the total initial deferment period, including the grace period, may not exceed 66 months from the first disbursement date. The Partial Interest Repayment option (paying $25 per month during in-school deferment) is only available on loans of $5,000 or more. For payment examples, see footnote 7. With the Immediate Repayment option, the first payment of principal and interest will be due approximately 30-60 calendar days after the final disbursement date and the minimum monthly payment is $50.00. There are no prepayment penalties.
  3. The 15-year term and Partial Interest Repayment option (paying $25 per month during in-school deferment) are only available for loan amounts of $5,000 or more. Making interest only or partial interest payments while in school deferment (including the grace period) will not reduce the principal balance of the loan. Payment examples within this footnote assume a 45-month deferment period, a six-month grace period before entering repayment and the Partial Interest Repayment option. 7 year term: $10,000 loan disbursed over two transactions with a 7 year repayment term (84 months) and a 8.468% APR would result in a monthly principal and interest payment of $199.90. 10 year term: $10,000 loan disbursed over two transactions with a 10-year repayment term (120 months) and an 8.938% APR would result in a monthly principal and interest payment of $162.92. 15 year term: $10,000 loan disbursed over two transactions with a 15-year repayment term (180 months) and a 9.423% APR would result in a monthly principal and interest payment of $136.90.
  4. The 2% principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that are reduced, cancelled, or returned. To receive this principal reduction, it must be requested from the servicer, the student borrower must have earned a bachelor’s degree or higher and proof of such graduation (e.g. copy of diploma, final transcript or letter on school letterhead) must be provided to the servicer. This reward is available once during the life of the loan, regardless of whether the student receives more than one degree.
  5. Earn an interest rate reduction for making automatic payments of principal and interest from a bank account (“auto pay discount”). Earn a 0.25% interest rate reduction when you auto pay from any bank account and an extra 0.25% interest rate reduction when you auto pay from a SunTrust Bank checking, savings, or money market account. The auto pay discount will continue until (1) automatic deduction of payments is stopped (including during any deferment or forbearance) or (2) three automatic deductions are returned for insufficient funds during the life of the loan. The extra 0.25% interest rate reduction when you auto pay from a SunTrust Bank account will be applied after the first automatic payment is successfully deducted and will be removed for the reasons stated above. In the event the auto pay discount is removed, the loan will accrue interest at the rate stated in your Credit Agreement. The auto pay discount is not available when payments are deferred or when the loan is in forbearance, even if payments are being made.
  6. A cosigner may be released from the loan upon request to the servicer provided that the student borrower is a U.S. citizen or permanent resident alien, has met credit criteria and met either one of the following payment conditions: (a) the first 36 consecutive monthly principal and interest payments have been made on-time (received by the servicer within 10 calendar days after their due date) or (b) the loan has not had any late payments and has been prepaid prior to the end of the first 36 months of scheduled principal and interest payments in an amount equal to the first 36 months of scheduled principal and interest payments (based on the monthly payment amount in effect when you make the most recent payment). As an example, if you have made 30 months of consecutive on-time payments, and then, based on the monthly payment amount in effect on the due date of your 31st consecutive monthly payment, you pay a lump sum equal to 6 months of payments, you will have satisfied the payment condition. Cosigner release may not be available if a loan is in forbearance.
  7. If the student dies after any part of the loan has been disbursed, and the loan has not been charged off due to non-payment or bankruptcy, then the outstanding balance will be forgiven if the servicer is informed of the student’s death and receives acceptable proof of death. If the student becomes totally and permanently disabled after any part of the loan has been disbursed and the loan has not been charged off due to non-payment or bankruptcy, the loan will be forgiven upon the servicer’s receipt and approval of a completed discharge application. If the student borrower dies or becomes totally and permanently disabled prior to the full disbursement of the loan, and the loan is forgiven, all future disbursements will be cancelled. Loan forgiveness for student death or disability is available at any point throughout the life of the loan.

7 Important Disclosures for LendKey.

LendKey Disclosures

Additional terms and conditions apply. For more details see LendKey


8 Important Disclosures for CommonBond.

CommonBond Disclosures

A government loan is made according to rules set by the U.S. Department of Education. Government loans have fixed interest rates, meaning that the interest rate on a government loan will never go up or down.

Government loans also permit borrowers in financial trouble to use certain options, such as income-based repayment, which may help some borrowers. Depending on the type of loan that you have, the government may discharge your loan if you die or become permanently disabled.

Depending on what type of government loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active-duty service member and you obtained your government loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan.
If you are unable to pay your government loan, the government can refer your loan to a collection agency or sue you for the unpaid amount. In addition, the government has special powers to collect the loan, such as taking your tax refund and applying it to your loan balance.

A private student loan is not a government loan and is not regulated by the Department of Education. A private student loan is instead regulated like other consumer loans under both state and federal law and by the terms of the promissory note with your lender.
If you refinance your government loan, your new lender will use the proceeds of your new loan to pay off your government loan. Private student loan lenders do not have to honor any of the benefits that apply to government loans. Because your government loan will be gone after refinancing, you will lose any benefits that apply to that loan. If you are an active-duty service member, your new loan will not be eligible for service member benefits. Most importantly, once you refinance your government loan, you will not able to reinstate your government loan if you become dissatisfied with the terms of your private student loan.

If your private student loan has a fixed interest rate, then that rate will never go up or down. If your private student loan has a variable interest rate, then that rate will vary depending on an index rate disclosed in your application. If the interest rate on the new private student loan is less than the interest rate on your government loans, your payments will be less if you refinance.
If you are a borrower with a secure job, emergency savings, strong credit and are unlikely to need any of the options available to distressed borrowers of government loans, a refinance of your government loans into a private student loan may be attractive to you. You should consider the costs and benefits of refinancing carefully before you refinance.

If you don’t pay a private student loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.

Remember also that like government loans, most private loans cannot be discharged if you file bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers.


9 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Student Loan Rate DisclosureVariable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2018, the one-month LIBOR rate is 2.07%. Variable interest rates range from 4.04%-12.01% (4.04%-11.91% APR) and will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 5.25%-12.19% (5.25% – 12.09% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown requires application with a cosigner, are for eligible applicants, require a 5-year repayment term, borrower making scheduled payments while in school and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of the loan.
  2. Multi-year approval funds available for future use are subject to a soft credit inquiry at time of your next request to verify continued eligibility. After we make the initial Loan to you, we may refuse to allow you to take out additional loans under the multi-year approval feature, terms and conditions will be outlined in your promissory note. Please Note: International students are not eligible to receive an offer for multi-year approval. Please Note: International Students are not eligible for the multi-year approval feature.
  3. Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  4. Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
  5. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply.
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