Loan amounts are based on financial need and availability of funds. Third and fourth-year students will be offered PCL as funding source as part of the awarding process. No interest is charged while the student is in school or during periods of authorized deferment, including residency. If the borrower fails to enter and complete a primary care residency and to practice in a primary care field, the loan balance will be recomputed from the date of issuance at an interest rate of 12 percent per year, compounded annually, instead of 5 percent simple interest. There is a one-year grace period after graduation or separation from school.
Deferments are available to medical students for the full term of residency.
The loan must be repaid within ten years, exclusive of periods of allowable deferments. PCLs can be consolidated. After graduating in June 1994, the borrower enters a primary heath care residency program, which is completed in June 1997. During the residency, repayment of the PCL was deferred. The borrower begins practicing primary health care and repaying the PCL in July 1997.