These student loan programs are intended to encourage greater participation of disadvantaged populations in the health professions and to increase the number of primary health care providers, respectively. LDS and PCL are long-term, low interest rate loans available to full-time, financially needy students through the U.S. Department of Health and Human Services, Health Resources and Services Administration — not the Department of Education.
Because of this, health professions loans differ from other federal loans in repayment. They aren’t eligible for income-driven repayment or Public Service Loan Forgiveness. However, LDS can be consolidated with other Direct Loans to qualify for these programs. The significant benefit of these loans is the 5 percent interest rate that does not accrue during school and approved deferment, which includes residency!
The College of Medicine – Phoenix Financial Aid Office confirms applicant’s eligibility and determines the amount of funds students can borrow based on demonstrated student need and funds available. LDS and PCL funds are used to replace portions of the student's existing loan package.