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:

• Deferments are only available for participation in certain activities prescribed in statute and regulations.
• Deferment periods do not count against your right to repay the loan within 10 years. For example, if you have used 3 years of deferments you still have a total of 10 years to repay your loan and not 7 years as you may think.
• You are allowed to move in and out of deferment and repayment. For example, you may be in repayment, and then participate in an activity for which deferments are available, then go back into repayment, and then begin another deferrable activity.
• Deferments are not automatic. You must file deferment forms annually for each additional year of deferment if applicable. Deferments must be requested at least 30 days before you enter in:
  
  • an activity that makes you eligible for deferment
  • the repayment period
• MWU has a right to deny a request for deferment if it does not comply with the information requirements or if the deferment is submitted late.
• You must notify MWU or our loan billing servicer, ECSI, when you have completed or terminated a deferrable activity.

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

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:

• intended to further your knowledge and skills in the health professions discipline for which you received the loan;
• a prerequisite for professional practice; and
• an internship or residency program or other full-time training beyond the first professional degree.

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:

• full-time activity in research, research training or health care policy; and
• formally established fellowship program which was not created solely for you.

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:

• The activity must be part of a joint-degree program in conjunction with the health professions program for which you received the HPSL; or
• The activity is required for licensure, registration or certification in the health profession for which you received the HPSL; or
• The activity is a full-time educational program in public health, health administration, or a health care discipline directly related to the health profession for which you received the HPSL.

Forbearance

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

• Unemployment
• Poor health
• Personal problems that have short-term impact on your ability to make payments as scheduled.

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