Tuition, room and board, and books aren’t the only costs that medical students who are approaching their last year of school have to worry about. They also have to contend with the costs of transitioning from medical student to doctor which often includes relocation, board examination fees, and other related costs.
Aiming to alleviate some of that hardship for at least a period of time, Sallie Mae highlighted its Medical Residency and Relocation Loan on March 17 in a press release. In addition to being St. Patrick’s Day, it also happened to be “Match Day.” “Match Day” falls on the third Friday in March every year. It is the day that 155 medical schools in the U.S. announce where students in the National Resident Matching Program will be fulfilling their residency.
Sallie Mae’s Medical Residency and Relocation Loan is open to medical, dental, podiatry, or veterinary school students in their final year. Proceeds from the loan can go towards travel costs, board examination fees, and other costs associated with making the switch from student to doctor. The loan comes with zero origination or disbursement fees, nor are there any prepayment penalties. The loan has a variable interest rate with starting rates ranging from a low of 3.82 percent to a high of 10.19 percent APR according to Sallie Mae in its press release.
Other perks of this loan include immediate access to the funds since the money is provided directly to the student as soon as he or she gets approval, the opportunity to reduce the interest rate on the loan by 0.25 percentage points by making auto-debit payments, and flexible repayment options. Borrowers also get free access to their FICO Credit Score each quarter.
Providing further details, Sallie Mae said that loan recipients can defer principal and interest payments in two ways: while they are still enrolled in school and during the grace period of either three years upon graduation or nine months upon dropping out. When the student loan borrower is in repayment, he or she can request an interest-only payment plan for the first two or four years of the loan.
“The Sallie Mae Medical Residency and Relocation Loan offers competitive rates and responsible financing for students to help alleviate the pressure of a move as they make the pivotal transition from student to doctor,” said Kelly Christiano, senior vice president of Sallie Mae in the press release.
Author: Donna Fuscaldo
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