Residency and Relocation Loan
Residency and relocation loans help graduate students, usually in health care fields such as medical and dentistry, pay for relocation and living expenses including travel, moving and room and board. The check is made to the student so the payments are made at the discretion of the student making being a working student easier. These loans are predominantly offered through federal programs, but can also be obtained from select private lenders and credit unions.
Loan Terms and Interest Rates
Annual percentage rates for residency and relocation loans vary from 3% – 12% on loans up to $18,000. Some lenders offer incentives, such as percentages off the interest rate to set up automatic debit payments, which can lower your monthly payment. Residency and Relocation Loans are offered with no origination or repayment fee, which is also a plus when counting your pennies. To further save you money, don’t forget to check our tax benefits page as this loan may qualify for a tax deduction or credit. In most cases the loan principle payments do not begin until three or more years after you graduate and can extend out to 25 year terms allowing you to begin your career and get caught up on bills. However, interest is charged during this time so some payments will have to be made.
If you borrow the residency loan from Sallie Mae or a private lender they most likely will not require a prepayment penalty if you choose to payoff your loan before your due date. The terms and repayment schedule have many options and can be catered to you lifestyle and profession.
Eligibility Requirements for the Residency and Relocation Loan
- Must be a U.S. Citizen or permanent resident
- Must not be currently delinquent or default on any other student loans
- Must meet the credit and eligibility requirements
- Must be given the D.D.S, M.D., D.O., or D.V.M. degree the same year you apply for the loan
- A co-signer may be required. If not, it could increase your chances of approval or a lower interest rate.
Source: Sallie Mae – https://www.salliemae.com/student-loans/