Financial Aid – United States

The basic eligibility requirements are that you must:

• Be a U.S. citizen or an eligible non-citizen,
• Have a valid Social Security Number (with the exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau),
• Show you are qualified to obtain a college education,
• Be enrolled or accepted for enrollment as a regular student in an eligible degree program,
• Provide consent and approval to have your federal tax information transferred directly into your 2024-2025 Free Application for Federal Student Aid (FAFSA) form, if you are applying for aid for July 1, 2024, through June 30, 2025,
• State that you are not in default on a federal student loan, you do not owe money on a federal student grant, and you will only use federal student aid for educational purposes,
• Maintain at least half-time enrollment as defined by the school’s Office of Financial Aid, and
• Maintain Satisfactory Academic Progress (SAP) as defined by the school’s Office of Financial Aid.  Further details on SAP can be found in the Student Consumer Information section of Saba’s website at www.saba.edu/student-consumer-information.

There is no requirement to demonstrate financial need for this loan. You are responsible for paying the interest on a Federal Direct Unsubsidized Stafford Loan during all periods.

• Maximum annual loan amount: $20,500. However, there are limits on the amount of Federal Direct Unsubsidized Stafford Loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits). The actual amount that you are eligible to receive each academic year may be less than the annual loan limit. Remember, you may borrow less than what you are offered by the school and may request more loan funds later as you may need. We recommend only ever borrowing what you need.
• Aggregate loan limit: $138,500, of which no more than $65,500 may be in Federal Subsidized Stafford Loan funds. This aggregate limit includes all federal loans received for undergraduate and graduate study.
• Interest rate: Loans first disbursed after July 1, 2025, and before June 30, 2026, have an interest rate of 7.94%. You are responsible for paying the interest on a Federal Direct Unsubsidized Stafford Loan during all required periods. During periods of time when you are not required to make payments, such as while you are enrolled at least half-time, in a deferment, or in a forbearance, your interest will accrue (accumulate) and it will in certain instances be capitalized (which means that your interest will be added to the principal amount of your loan). Whether your unpaid interest capitalizes or not, you are still responsible for paying the interest that accrues. You have the option to pay the interest that accrues even when you are not required to make a payment, such as while you are enrolled.
• Origination Fee: An origination fee of 1.057% will be deducted at the time of each disbursement.
• Grace period: Following graduation, leaving school, or dropping below a half-time enrollment status, you may have the option to delay making principal payments. To determine the length of such a grace period, check your promissory note(s) or with your loan servicer(s). The interest that accrues during your grace period will be added to the outstanding balance of your loan, but it will not be capitalized.
• Repayment: After you graduate, leave school, or drop below half-time enrollment, you may have a six-month grace period on your loans before you are required to begin repayment. Various repayment plans, including Standard, Graduated, Extended, and Income-Based Repayment, are accessible. For further details on each plan, along with information on loan consolidation and sample repayment charts, please refer to the U.S. Department of Education’s website at studentaid.gov.
• Requirements:
  • Entrance Counseling and Master Promissory Note (MPN): For any initial loans that you borrow, you must complete the Federal Direct Stafford Loan Entrance Counseling before funds are disbursed to your student account. For each new award period, you must complete a new MPN for a Federal Direct Unsubsidized Stafford Loan. These obligations may be fulfilled via the U.S. Department of Education’s website at studentaid.gov.
  • Exit Counseling: Upon graduation, program withdrawal, or transiting to a less than half-time enrollment status, you must complete an exit counseling session. This counseling session reviews your rights and responsibilities as a Federal Direct Unsubsidized Stafford Loan borrower, and covers repayment, deferment, forbearance, and consolidation options. This requirement may be completed online via the U.S. Department of Education’s website at studentaid.gov.

After the semester has started, all required paperwork has been received, and the University has confirmed your enrollment status of at least half-time, the Office of Financial Aid will request the initial loan disbursement for the semester. The Office of Financial Aid will notify each student via email once the University has received and posted the loan disbursement to your student account. Each student will receive this email notification for each loan and every disbursement.

Any Federal Direct Loan funds that the University receives and posts to your student account that are in excess of your allowable semester charges will be refunded to you. All refunds will be sent to you within 14 days from the date of disbursement via a check, unless you have signed up to receive these funds via direct deposit with the Office of Student Accounts. The refund check will be mailed to the address listed on your student account, unless you have requested an alternative address in writing with the Office of Student Accounts. Any questions regarding a refund check or how to elect the option of direct deposit should be addressed to the Office of Student Accounts via email at studentaccounts@saba.edu.

Address:
Office of Financial Aid
Saba University School of Medicine
c/o R3 Education, Inc.
Suite 301
27 Jackson Road
Devens, MA 01434

Email: finaid@saba.edu
Phone: 978-862-9600, option 4
Fax: 978-862-9699

For students subject to the new OBBBA loan rules, federal aid for the MD program generally consists of Federal Direct Unsubsidized Loans.

Graduate PLUS Loans are not available to new borrowers who are subject to the new OBBBA loan rules.

Eligible continuing borrowers may remain eligible for Graduate PLUS Loans during the applicable continuing-borrower exception period.

Beginning July 1, 2026, MD students generally fall into one of two federal loan categories:

1. New and incoming federal loan borrowers are subject to the new professional-student loan limits.
2. Continuing federal loan borrowers who may qualify for the continuing-borrower exception.

Track 1: New and Incoming Federal Loan Borrowers

This section applies to students who first borrow federal student loans for their current MD program on or after July 1, 2026.

What You Need to Know

Your MD program is a professional program. If you meet all federal eligibility requirements, you may be considered for up to $50,000 per academic year in Federal Direct Unsubsidized Loans.

Graduate PLUS Loans are not available to new borrowers and are subject to the new OBBBA loan rules.

Federal loans alone may not cover the full cost of your medical education. You should plan early for the difference between your federal loan eligibility and your total educational costs.

Track 2: Continuing Federal Loan Borrowers

This section applies to students who received a Federal Direct Loan for their current MD program prior to July 1, 2026.

Some continuing students may qualify for the federal continuing-borrower exception. This exception may allow eligible students to continue borrowing under the prior federal loan rules for a limited period.

What You Need to Know

You may qualify for the continuing-borrower exception if you received a Federal Direct Loan for your current MD program before July 1, 2026, and you remain enrolled in the same MD program.

For this purpose, a Federal Direct Loan may include a Direct Unsubsidized Loan or a Graduate PLUS Loan. The key issue is whether a Direct Loan was received for the current MD program before July 1, 2026.

If you qualify, you may continue under the prior loan rules for the lesser of:

1. Three academic years, or
2. The remaining time is expected to complete your program.

During the applicable exception period, eligible continuing borrowers may remain eligible for Graduate PLUS Loans, subject to Cost of Attendance, credit approval, other financial assistance, aggregate and lifetime limits, and all other federal eligibility requirements.

Effective for federal loans borrowed for periods of enrollment beginning on or after July 1, 2026.

Item	MD Professional Student
Annual Direct Unsubsidized Loan limit	$50,000
Graduate/professional aggregate limit	$200,000
Lifetime maximum aggregate federal student loan limit	$257,500
Graduate PLUS Loan for new borrowers	Not available
Federal loan type for new borrowers	Direct Unsubsidized Loan
Graduate PLUS Loan for eligible continuing borrowers	May remain available during the applicable exception period

Is my MD program a professional program?
Yes. The Doctor of Medicine (MD) program is classified as a professional degree program under federal rules.

What is the annual federal loan limit for MD students under the new rules?
For professional students subject to the new OBBBA loan limits, the annual Federal Direct Unsubsidized Loan limit is $50,000 per academic year, subject to Cost of Attendance and all other eligibility requirements.

What is the graduate/professional aggregate limit?
The graduate/professional aggregate limit is $200,000. This limit applies to graduate and professional borrowing.

What is the lifetime maximum aggregate loan limit?
The lifetime maximum aggregate federal student loan limit is $257,500. This limit may affect future federal loan eligibility, depending on the student’s federal borrowing history.

What happened to Graduate PLUS Loans?
Graduate PLUS Loans are not available to new borrowers who are subject to the new OBBBA loan limits beginning July 1, 2026. Eligible continuing borrowers may remain eligible for Graduate PLUS Loans during the applicable continuing-borrower exception period.

What federal aid is available for new MD borrowers?
For new MD borrowers subject to the OBBBA loan rules, federal aid generally consists of Federal Direct Unsubsidized Loans. Graduate PLUS Loans are not available to new borrowers under the new rules.

Am I automatically a continuing borrower because I attended before July 1, 2026?
No. The Office of Financial Aid must review your record to determine whether you qualify for the continuing-borrower exception.

Does the type of Direct Loan I borrowed before July 1, 2026, matter?
For continuing-borrower review, the key issue is whether you received a Federal Direct Loan for your current MD program before July 1, 2026. This may include a Direct Unsubsidized Loan or a Graduate PLUS Loan.

How long does continuing-borrower protection last?
If you qualify, the exception generally lasts for the lesser of three academic years or the remaining time expected to complete your program.

Can I choose the new $50,000 annual limit instead of continuing with borrower treatment?
Students should contact the Office of Financial Aid for individual review. Federal rules generally apply based on the student’s eligibility category and do not allow the school to award based only on student preference.

Will federal loans cover my full Cost of Attendance?
Not necessarily. Federal loan eligibility may be less than the Cost of Attendance due to annual, aggregate, and lifetime limits; prior borrowing; enrollment status; other aid; SAP; and other federal requirements.

Will federal loans cover my full student account balance?
Not necessarily. A student account balance does not determine federal loan eligibility. The Office of Financial Aid must confirm eligibility before aid can be awarded or disbursed.

What happens if I drop below full-time?
Your loan eligibility may be reduced. Students must generally be enrolled at least half-time to receive Direct Loan funds. Contact the Office of Financial Aid before dropping courses or reducing credits.

Can federal aid cover Step study time?
Not automatically. Step study and exam-prep periods must be reviewed to determine whether they fall within an eligible payment period and are supported by enrollment and academic records.

Can federal aid cover a clinical gap or placement delay?
Not automatically. Clinical gaps, placement delays, vacation periods, and breaks must be reviewed using Registrar, Clinical Education, billing, and academic records.

Do I still need to file the FAFSA?
Yes. The FAFSA remains the starting point for Federal Direct Unsubsidized Loan eligibility and may also be used for scholarship review.

Should I apply for private loans before talking to Financial Aid?
Contact the Office of Financial Aid first. Private education loans may help with funding gaps, but terms vary by lender, and not every lender serves international medical schools.

Contact the Office of Financial Aid for questions about:

1. OBBBA or OB3.
2. Federal loan eligibility.
3. Direct Unsubsidized Loans.
4. Graduate PLUS Loan eligibility.
5. Continuing-borrower exception review.
6. FAFSA.
7. Private loan certification.
8. Aid disbursement eligibility.

Contact Student Accounts for questions about:

1. Tuition and fees.
2. Student balances.
3. Payment deadlines.
4. Refunds.
5. Payment arrangements.

Contact the Registrar for questions about:

1. Enrollment status.
2. Academic status.
3. Leaves of absence.
4. Withdrawal.
5. Official academic records.

Contact Clinical Education for questions about:

1. Clinical rotations.
2. Clinical schedules.
3. Placement status.
4. Approved clinical activity.