Using Federal Loans to Finance Your Chiropractic Degree
The majority of students at Life West are financing a portion or all of their chiropractic education. For U.S. students, that process is typically anchored by one of the federal loan programs.
There are two core types of loans offered by the U.S. government. The first is Federal Direct Subsidized and Unsubsidized Stafford loans with low interest rates and varying repayment deferment and interest accruement depending on the specific loan you use.
The second is the Federal Graduate PLUS Loan. Since Stafford loans have a maximum borrowing amount per student, not per degree, the Federal Graduate Plus Loan offers options for students whose undergraduate and Life West education costs combined exceed that limit.
We’ll take a closer look at these two loan options below.
Federal Direct Subsidized and Unsubsidized Stafford Loans
These are long-term, low-interest loans designed to provide additional funds for post-secondary education.
For the Direct Subsidized Loan the government pays the interest while you are in school at least part-time and during the grace period.
For the Direct Unsubsidized Loan the interest is the responsibility of the student while in school, during the grace period, and during repayment. The interest may be postponed while in school at least part-time. If the interest is postponed it will be capitalized (added to the principal) only once, at repayment.
The Budget Control Act of 2011 is passed by Congress with provisions related to student financial aid.
The subsidy component in the Federal Subsidized Stafford loan is eliminated for graduate students for loan periods starting on or after 7/1/12. Federal Subsidized Stafford Loans with loan periods starting prior to July 1, 2012, will retain their interest subsidy. This Act applies only to new graduate loans issued after July 1, 2012. The total amount graduate students may borrow under the Federal Stafford Loan program remains at $33,000/9 months or $44,000/12 months (all monies will be unsubsidized).
Federal Graduate PLUS Loan
The Federal Graduate PLUS loan is a credit based loan available to graduate and professional students.
Credit Requirements: This loan is based on being credit-ready – your income, debt, credit score and assets are not factors for approval; however, negative credits items are grounds for denial (tax lien, charge off, delinquent accounts, etc.). An option is available to obtain a co-signer if the loan is denied.