MEDLOANS Consolidation Loan

MEDLOANS Consolidation Loan

The MEDLOANS Consolidation Loan is a practical debt management tool designed exclusively for borrowers who have attended schools of allopathic or osteopathic medicine. With a MEDLOANS Consolidation loan you combine all of your eligible federal loans into a new loan with a fixed interest rate and an extended repayment term. A MEDLOANS Consolidation loan can lower your student loan payments by 50% or more.

Flexible repayment options are available.

Eligibility
The MEDLOANS Consolidation Loan, is available exclusively to those borrowers who have attended AAMC member schools of allopathic medicine or AACOM member osteopathic schools of medicine. Loans from both the FFELP and FDLP programs may be consolidated. Eligible loans include Stafford, PLUS, Perkins, SLS, HPSL/LDS, NSL, and Consolidation. If you have student loans that are past due or in default they may not be eligible for a MEDLOANS Consolidation Loan. You may consolidate your eligible loans while you are in school, during your grace period, or while you are in repayment.

Borrower Benefits
By consolidating at least $30,000, you can save even more money by taking advantage of new borrower benefits for MEDLOANS Consolidation loans:

The MEDLOANS Consolidation Cash Back benefit. You can receive a loan credit or cash back based on 1% of your initial MEDLOANS consolidation loan balance-after you make your first three payments on time-that is, by the due dates as initially scheduled (excluding schedule changes due to deferment or medical residency forbearance). To qualify, before your first payment due date, sign up at Sallie Mae's Manage Your Loans Web site to receive your account information by e-mail. Once earned, the MEDLOANS Cash Back Benefit is yours to keep.
One full percentage point reduction in the interest rate, during periods of active repayment, after the initial 24 scheduled payments.
An immediate 0.25 percentage-point reduction in the interest rate for payments made through automatic debit.
Loan Limit

Loan Limit
The loans that you are consolidating must total at least $10,000 to qualify for a MEDLOANS Consolidation Loan.

Repayment
Standard repayment: Fixed payments of principal and interest are due each month. This plan has the lowest total loan cost.
Grad Choice: You get reduced payments that may be as low as interest-only for the initial two, three, four, or five years, followed by standard payments of principal and interest for the remainder of the term. With Grad Choice, you have a higher total loan cost than with standard repayment.
Extended repayment: If you have high student loan debt, you may be eligible for a 30-year repayment term and the choice of standard or graduated payments to keep payments affordable. With extended repayment, you have a higher total loan cost than with Standard Repayment.
Income-sensitive repayment: Payments are a percentage of the your gross income. You must reapply every year for this plan and payments are adjusted annually to reflect changes in income. With income-sensitive repayment, you have a higher total loan cost than with standard repayment.
Interest Rates
Your rate will depend on the interest rates of the loans you are consolidating.

The MEDLOANS Consolidation Loan interest rate is the weighted average of the rates of the loans you are consolidating, as certified by your loan holder, rounded up to the nearest 0.125%. MEDLOANS Consolidation Loan interest rates are based on the loans' primary interest rates and do not include borrower benefit interest rate reductions. The table below shows rates available to student borrowers who received Stafford loans first disbursed between July 1, 1998, and June 30, 2006.

Interest Rates
Your rate will depend on the interest rates of the loans you are consolidating.

The MEDLOANS Consolidation Loan interest rate is the weighted average of the rates of the loans you are consolidating, as certified by your loan holder, rounded up to the nearest 0.125%. MEDLOANS Consolidation Loan interest rates are based on the loans' primary interest rates and do not include borrower benefit interest rate reductions. The table below shows rates available to student borrowers who received Stafford loans first disbursed between July 1, 1998, and June 30, 2006.


MEDLOANS Consolidation Loans, provided by Sallie Mae and developed under the guidance of the Association of American Medical Colleges (AAMC), are available to borrowers who have attended AAMC member schools of allopathic medicine or an osteopathic school of medicine.

MEDLOANS Consolidation Loans can lower your monthly student loan payments by 50% or more by combining all of your eligible federal loans into a new loan with a fixed interest rate and an extended repayment term.