The terms of the Unsubsidized loans are the same as the terms for Subsidized Federal Stafford Loans, except as described below. The federal government does not pay the interest on Unsubsidized Federal Stafford Loans, as it does with Subsidized Federal Stafford Loans. Students have the option to pay all of the interest that accrues on unsubsidized loans during the time they are enrolled in school, during the grace period, and during any periods of deferment or repayment. If a student does not make an interest payment as scheduled while in school, in a grace period, or during a period of authorized deferment, the lender may automatically capitalize the interest every three months. This origination fee will be deducted from each disbursement by the loan servicer and paid to the federal government.
Eligibility is determined by subtracting all financial aid from the student budget.
There is no origination or application fee. This amount is currently 4 percent. The percentage may be adjusted upward or downward but will not exceed 6 percent. The ALP interest rate is variable and is adjusted quarterly to the bond equivalent of the 91-day U.S. Treasury Bill rate plus 2.50 percent prior to graduation or withdrawal. After graduation or withdrawal from medical school, the interest rate is variable and adjusted quarterly to the bond equivalent of the 91-day U.S. Treasury Bill rate plus 2.85 percent.