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Loans for Disadvantaged Students

Student Loans

Applying for a Loan for Disadvantaged Students

The Loans for Disadvantaged Students program provides long-term, low interest rate loans to full-time students who need financial assistance to pursue a career in medicine.

This loan has a 0% interest rate while you are in school and during your internship and residency years. This loan can be consolidated with Stafford and other federal loans if you are concerned about being eligible for the Public Service Loan Forgiveness Program. Once you have completed your residency training, interest starts to accrue on the loan at a rate of 5%.

The Ohio University Heritage College of Osteopathic Medicine traditionally has received funding from the Division of Student Assistance at Health and Human Services, and also maintains a rotary fund with repayments from graduated LDS loan recipients. The amount of funds varies from year to year and dictates how many students we fund annually in this program.

Preference is given to eligible year 3 and 4 students. Maximum award amounts are calculated using the cost of attendance minus the student's (and in some cases the parents') expected financial contribution as reported on the FAFSA, as well as the student's other scholarship and aid awards.

All interested students should contact the Heritage College financial aid office by email at or by phone at 740-593-2160. Annual application is required even if the student received an award in a previous year.

Loans for Disadvantaged Students FAQ:

What is a "disadvantaged" background?

"Disadvantaged" background means that the student comes from a family with an annual income below a level based on low-income thresholds according to family size. The financial aid office runs a report annually to identify students who may fall into this category. Students identified on this report as possibly eligible will be contacted by the financial aid office.

What is the interest rate?

The interest rate is five percent (5%).

How do I repay the loan?

Repayment of the principal and interest begins one year after completion of medical school or may be deferred until a student has completed residency training. Interest begins to accrue at the time the loan becomes repayable.

May repayment of a loan be deferred?

  • If you are serving full-time as a member of the United States Uniformed Service (Army, Navy, Air Force, Marine Corps., Coast Guard, National Oceanic and Atmospheric Administration Corps. or in the Public Health Services), or a volunteer under the Peace Corps Act, repayment of principal may be deferred up to three years.
  • If you are completing an internship or residency program or other full-time training beyond the first professional degree, then deferment is available for up to two years.
  • If you are pursuing a full-time course of study at a school that is eligible for participation in the Loans for Disadvantaged Students program, repayment of principal may be deferred.

May repayment of a loan be canceled?

Loans may be canceled in the event of death or permanent total disability.