U.S. Financial Aid

Saba University School of Medicine (SUSOM) participates in the William D. Ford Federal Direct Loan Program, administered by the U.S. Department of Education. Federal student aid helps eligible MD program students cover educational expenses, including tuition and fees, housing and food, books and supplies, and transportation. Additional information is available at studentaid.gov.

To apply for a Federal Direct Loan, complete the FAFSA for the applicable award year. SUSOM’s FAFSA school code is G37803. If you do not already have an FSA ID, you will need one to sign your FAFSA and your loan documents. Create an FSA ID. You can review your federal aid at any time by logging in to StudentAid.gov. The information you provide on the FAFSA is used by SUSOM to determine the aid you are eligible to receive.

Eligibility

To be considered for Federal Direct Loan funds, you must:

  • Be a U.S. citizen, U.S. national, or eligible noncitizen who is eligible to receive Federal Direct Loans.
  • Have a valid Social Security number.
  • Be admitted to or enrolled in the eligible SUSOM MD program as a regular student.
  • Be enrolled at least half-time, as defined by SUSOM, to receive Federal Direct Loan funds.
  • Complete the FAFSA for the applicable award year and provide all required consent and approval for the retrieval and use of federal tax information.
  • Not be in default on a federal student loan and not owe an unresolved overpayment on a federal grant or loan.
  • Maintain Satisfactory Academic Progress under SUSOM’s federally compliant SAP policy.

Federal student aid eligibility is subject to all applicable federal requirements and SUSOM policies. Additional information about Satisfactory Academic Progress is available in the Student Consumer Information section of the SUSOM website.

Federal Direct Unsubsidized Loans

The Doctor of Medicine (MD) is a professional degree. There is no requirement to demonstrate financial need for a Direct Unsubsidized Loan and you are responsible for interest at all times. Your federal loan limits depend on whether you are a continuing borrower under the federal interim exception or a new professional-student borrower.

Your borrower category

Two federal borrower categories apply:

  • Borrower eligible for the federal interim exception: As of June 30, 2026, you were enrolled in the applicable SUSOM MD program and had a Federal Direct Loan disbursed for that program before July 1, 2026. You may remain eligible for the prior loan limits and Graduate PLUS Loans during your applicable expected time to credential, subject to all federal eligibility requirements.
  • Borrower subject to the new professional-student loan limits: You do not qualify for the federal interim exception. This includes students who were not enrolled in the applicable SUSOM MD program as of June 30, 202, or who did not receive a Federal Direct Loan disbursement for that program before July 1, 2026. Borrowers in this category are not eligible for Graduate PLUS Loans.

Eligibility for the federal interim exception is not automatic. The Office of Financial Aid must review and confirm each student’s borrower category. For applicable borrowing limits, eligibility requirements and the duration of the exception, please review our OB3 Federal Student Loan Changes page.

Interest rates

For loans first disbursed on or after July 1, 2026 and before July 1, 2027:

  • Direct Unsubsidized Loans for graduate and professional students: 8.07%.
  • Graduate PLUS Loans for eligible interim-exception borrowers: 9.07%.

Interest accrues during all periods, including while you are enrolled at least half-time, in deferment or in forbearance. In certain instances, it is capitalized. You may pay interest as it accrues, even when payments are not required.

Origination fee

For loans first disbursed on or after October 1, 2020, and before October 1, 2027:

  • The origination fee for a Direct Unsubsidized Loan is 1.057%.
  • The origination fee for a Graduate PLUS Loan is 4.228%.

The applicable origination fee is deducted proportionally from each loan disbursement. As a result, the amount credited to your student account will be less than the amount you borrowed.

Grace period and repayment

Direct Unsubsidized Loans typically have a six-month grace period after you graduate, leave school or drop below half-time enrollment. You are not required to make principal payments during the grace period but interest continues to accrue and remains your responsibility.

Graduate PLUS Loans do not have a grace period. However, an eligible graduate or professional student borrower generally receives an automatic deferment while enrolled at least half-time and for six months after graduation, leaving school or dropping below half-time enrollment. Interest continues to accrue during this deferment.

Your eligibility for the repayment plan depends on your loan types and whether you receive a new Federal Direct Loan or obtain a Direct Consolidation Loan on or after July 1, 2026. Borrowers who receive a new Direct Loan or a consolidation loan on or after that date generally must repay their eligible Direct Loans under either the Repayment Assistance Plan or the Tiered Standard Repayment Plan.

Review the available Federal Student Loan Repayment Plans and use the loan simulator to compare estimated monthly payments, repayment terms and total repayment amounts.

Depending on your eligibility, you may also use the following resources:

Your federal loan servicer handles billing, payment processing and questions about your individual loans.

Entrance Counseling, MPN and Exit Counseling

Before receiving the first Direct Loan disbursement, a first-time student Direct Loan borrower must complete Entrance Counseling and have the appropriate valid Master Promissory Note on file.

A student borrowing a Direct Unsubsidized Loan must complete the Direct Subsidized/Unsubsidized Loan Master Promissory Note. A student eligible to borrow a Graduate PLUS Loan must also complete a separate Graduate PLUS Loan Master Promissory Note.

A valid MPN must be on file for the applicable loan type before funds are disbursed. SUSOM will notify you when a new MPN is required. A new MPN is also required if an existing MPN is no longer valid or if otherwise required by the U.S. Department of Education.

When you graduate, withdraw, or drop below half-time enrollment, you must complete Exit Counseling. The Exit Counseling reviews your repayment obligations, available repayment plans, deferment and forbearance options, and other borrower rights and responsibilities.

Private Education Loans Options

Federal Direct Loans should generally be considered before private education loans. Before applying for a private education loan, complete the FAFSA and carefully review any federal aid offered to you. You are not required to accept the full amount offered, and you should borrow only what you need. You may qualify for assistance under Title IV of the Higher Education Act, and the terms and conditions of federal student loans may be more favorable than those of private education loans. To compare what is available, see the types of financial aid.

Federal law limits how much students may borrow through federal loans. If your Cost of Attendance exceeds the federal aid available to you, a private education loan is one way to cover the difference.

Before you borrow privately

Private education loans generally lack the protections available with federal student loans. Federal loans may offer access to income-driven repayment, deferment or forbearance, Public Service Loan Forgiveness and discharge in cases of death or total and permanent disability. A borrower participating in a qualifying medical or dental internship or residency program may qualify for mandatory forbearance, but must meet the applicable requirements and contact the federal loan servicer.

Comparing lenders

The Office of Financial Aid does not recommend, promote or endorse any lender, nor does it select the lenders shown in the tool below. The link opens an independent third-party marketplace, operated separately from SUSOM, where you can compare offers from multiple banks and lenders in one place, including interest rates, fees, repayment terms and cost examples required to be disclosed under the Truth in Lending Act.

You are free to apply for a private education loan from any lender you choose, even if the lender does not appear in the marketplace. SUSOM will not deny, impede, or unnecessarily delay loan certification solely because you selected a lender that does not appear in the marketplace. Certification remains subject to the student’s eligibility, Cost of Attendance, other financial assistance, completion of required documentation and the lender’s certification requirements.

search private loan opportunities

What happens next

If you decide to apply for a private loan, the Office of Financial Aid will provide the Private Education Loan Applicant Self-Certification Form and the information needed to complete it, including your Cost of Attendance for the loan period and your estimated financial aid. Your lender will require this signed form before your loan is finalized.

Upon request, the Office of Financial Aid will review the federal aid available to you before you commit to private loans.

Disbursements and Refunds

After the applicable semester or payment period begins, once SUSOM confirms that all required financial aid documents have been completed, and while the student remains eligible and enrolled at least half-time, eligible Federal Direct Loan funds will be credited to the student’s account. The student will receive an electronic notification when a loan disbursement is posted.

If Title IV funds credited to the student’s account exceed allowable institutional charges, a Title IV credit balance is created. SUSOM will pay the credit balance as soon as possible and within the federally required timeframe.

  • If the credit balance is created on or before the first day of classes, it will be paid no later than 14 calendar days after that date.
  • If the credit balance is created after the first day of classes, it will be paid no later than 14 calendar days after the credit balance is created.

Refunds are issued by check unless the student has enrolled in direct deposit with the Office of Student Accounts. Questions regarding refunds or direct deposit should be directed to the Office of Student Accounts.

One Big Beautiful Bill Act (OB3) Federal Student Loan Changes

Effective July 1, 2026, federal student loan rules changed under the Working Families Tax Cuts Act, formerly known as the One Big Beautiful Bill Act (OBBBA). These changes affect federal borrowing limits and the availability of Graduate PLUS Loans for students in professional degree programs, including the MD program. Whether you borrow under the prior limits or the new professional-student limits depends on your borrower category, as outlined above.

For full details, including the borrower comparison chart, eligibility requirements, transition rules and frequently asked questions, see our OB3 Federal Student Loan Changes page.

Financial Aid Contact Information for the U.S. Students

For questions about federal loan eligibility, Direct Unsubsidized Loans, Graduate PLUS eligibility, the interim-exception review, the FAFSA, private loan certification, or disbursement eligibility, contact the Office of Financial Aid.

Address:
Office of Financial Aid, Saba University School of Medicine, c/o R3 Education, Inc.,
Suite 302, 27 Jackson Road, Devens, MA 01434


Email: finaid@saba.edu
Phone: 978-862-9600, option 4

Last reviewed and updated: July 21, 2026.