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Loan Repayment: HPSL Loans


HPSL LOANS

Dental, Pharmacy, Podiatry and Optometry

Grace Period

The HPSL Loan has a 12-month grace period which repayment of principal is not required and interest does not accrue. The grace period immediately follows completion or termination of full-time student status and cannot be postponed to follow any deferments for which you may be eligible.

During the grace period ECSI will send you periodic reminders as to when repayment will begin.

Repayment of Principal and Interest

Repayment begins following a 12-month grace period after you cease to be a full-time student. Interest at 5% is computed on the unpaid principal balance and begins to accrue upon expiration of your grace period unless you are eligible to defer payment. HPSL Loans have a 10-year repayment period, which may be extended up to a maximum of 25 years in extenuating circumstances at the discretion of MWU. There is no prepayment penalty if you opt to pay your loan in full at any time.

HPSL Deferment Provisions

During a deferment period on your HPSL Loan interest does not accrue and you do not have to make payments on the loan.

Things you should know:

You may obtain deferment if you participate in certain activities in accordance with Federal law governing your promissory note. Below we are briefly identifying those activities and the corresponding maximum period of time for which you may defer:

  

DEFERMENT TABLE FOR HPSL LOANS

Type of Activity

Maximum Number of Years for Deferment

Performing active duty as a member of a uniformed service (Army, Navy, Marine Corps, Air Force, Coast Guard, the National Oceanic and Atmospheric Corps, or the U.S. Public Health Service Commission Corps). Form 

Up to 3 years

Peace Corps volunteer. Borrowers who volunteer under the Peach Corps Act are eligible for deferment. Form 

Up to 3years

Enrolled in a program of advanced professional training. Form 

Unlimited

A full-time student and taking a leave of absence to pursue full-time educational activities that are directly related to the health profession for which you are preparing for, with the intent of returning to MWU as a full-time student. Form

Up to 2 years

Participating in certain fellowship training programs and related educational activities. The fellowship training and related educational activities must be directly related to the health profession for which you obtained the loan. Form

Up to 2 years

 

Uniform Services

If you perform active duty as a member of a uniformed service (Army, Navy, Marine Corps, Air Force, Coast Guard, the National Oceanic and Atmospheric Administration Corps, or the U.S. Public Health Service Commissioned Corps) you are eligible for deferment for up to three years. Such service performed during the grace period does not count as part of the maximum deferment period for which you are eligible, nor does it entitle you to a grace period after the deferment period ends. This deferment provision is specifically limited by statute to borrowers on active duty who are members of a uniformed service and does not apply to borrowers who are employed by one of the uniformed services in a civilian capacity. For example, if you are working for the Public Health Service (PHS) and you are not a member of the Commissioned Corps you would not qualify for deferment.

If you are fulfilling or planning to fulfill an NHSC scholarship obligation through the "private practice option" or through the "private placement option" rather than as a PHS commissioned officer you would not be eligible for deferment.

Peace Corps

If you volunteer under the Peace Corps Act you will be eligible for deferment for up to three years. Such service performed during the grace period does not count as part of the maximum deferment period for which you are eligible, nor does it entitle you to a grace period after the deferment period ends. Service in VISTA does not qualify for deferment.

Advanced Professional Training Deferment

You can qualify for deferment on the basis of advanced professional training for the duration of that training if it is:

If you complete an advanced professional training at an institution in a foreign country you may be eligible for deferment, provided that you will receive credit towards your board certification. MWU has the final determination in this case.

Fellowship Training Deferment

You are eligible for deferment if you participate in certain fellowship training programs. The fellowship training must be directly related to the health profession for which you obtain the HPSL Loan. In addition, you must enter into the fellowship either prior to the end of your advanced professional training or not later than 12 months after completing participation in that advanced professional training. The fellowship training itself must meet certain criteria in order for you to obtain the deferment. Specifically, the fellowship training must be a:

RELATED EDUCATIONAL ACTIVITIES Deferment

You are eligible for deferment if you participate in certain educational activities. The educational activity must be directly related to the health profession for which you obtain the HPSL Loan. In addition, you must enter into the activity either prior to the end of your advanced professional training or not later than 12 months after completing participation in that advanced professional training. The related educational activity must meet the following criteria in order for you to obtain the deferment:

Forbearance

Only granted under extraordinary circumstances at the discretion of MWU. Extraordinary circumstances include:

Cancellation

Your obligation to repay the loan will be canceled upon receipt of the required documentation in the event of your death or permanent and total disability.

Death

Upon the death of a borrower, the unpaid balance of the loan and accrued interest will be canceled. To grant death cancellation, MWU must receive a death certificate or other official proof of death.

Permanent and Total Disability

You are entitled to cancellation of HPSLs in the event of permanent and total disability.

NOTE: Permanent and total disability is defined as being unable to engage in gainful employment of any kind because of a medically determinable impairment which is expected to continue for a long and indefinite period of time or to result in death.

To claim cancellation for disability, you should submit a formal request to MWU along with the medical report, consent for release, and supporting documentation that includes history of illness, medical examination(s), inpatient and outpatient treatments, and current medications. You must include as well all pertinent past medical records and prognosis and rehabilitation plan. The medical documentation must be accompanied by a signed and dated statement from your physician documenting permanent and total disability according to the definition above.

MWU will not be able to submit your request to the Department if all proper documentation is not received.

Forms:

HPSL Disability Checklist Form
Medical Release Form

 


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