How It Works

To be eligible for loan consideration, an applicant must:

1. Be a United States citizen or legal immigrant pursuing United States citizenship
2. Be accepted for enrollment or be enrolled full-time at an approved West Virginia school of medicine with priority consideration given to residents of the state.
3. Meet designated academic standards
4. Demonstrate financial need as determined by the participating educational institution
5. Not be in default on any previous student loan(s)

The institutional Financial Aid Office is responsible for (1) determining eligibility for the loan and (2) notifying individual students of the action taken. Funding availability may limit the number of awards or the value of individual awards.

Students may seek loan assistance for each year until the course of study is completed. An annual application may be required. The educational institution is under no obligation to approve subsequent loan requests even though all eligibility requirements are met.

The maximum annual loan amount cannot exceed $10,000.

The first payment will be due one year following the date that the borrower ceases to be a full-time student at a school of medicine that participates in this program with a maximum of 10 years to repay the loan (principal and interest). Students will not be required to make payments during periods of authorized deferments such as required military service or approved additional medical training, including internships, residencies and fellowships (not to exceed 5 years). The minimum repayment amount shall be no less than $50.00 per month.

A request issued by the borrower to the institutional financial aid officer or designated representative for a temporary cessation of payments, an extension of time for making payments or a temporary acceptance of smaller payments than previously scheduled for a period not to exceed twelve (12) months resulting from a documented disability, unemployment or other economic hardship. Interest shall accrue on the loan during the forbearance period with payment the responsibility of the borrower. Should the borrower fail to pay the accrued interest, it will be capitalized at the end of the forbearance period. Loan payments shall resume sixty (60) days of the forbearance end date.

The rate of interest charged on outstanding loans not in repayment shall be the prevailing rate for graduate subsidized Federal Stafford Loans in effect at the beginning of the repayment period and such rate shall be in force for the duration of the repayment period. Interest shall not accrue during the grace period or authorized periods of deferment as described within the promissory note.

Loan indebtedness (principal and accumulated interest) will be forgiven at the rate of up to $10,000 for each period of twelve (12) consecutive calendar months of full-time practice in West Virginia commencing on or after July 1, 2008, in a qualifying medically underserved area or in a qualified medical specialty in which there is a shortage of physicians. Once the student enters medical practice he/she needs to complete and submit the Postponement of Loan Payment form. At the conclusion of each twelve (12) consecutive calendar months of full-time practice in West Virginia, the Certification of Service for Loan Forgiveness form needs to be completed and submitted to obtain credit for the past year of practice.