Financial Literacy & Wellness

• Budgeting

  For a sound financial future, loan recipients should develop budgeting habits that keep student loan borrowing to a minimum and manage finances prudently during the loan repayment years. Careful budgeting requires planning, exercising control and periodic reviewing of your budget for needed adjustments.

  Recommended budgeting habits:

  • Plan now for the financial future you want
  • Invest in your future by ensuring the benefits of a loan exceed the costs
  • Eliminate credit card debt or limit to emergency situations
  • Simplify by going down to one credit card
  • Develop a habit of saving, even if you can only save $5 per month
  • Budget your money just as carefully as you budget your time
  • Stick to your monthly budget
  • Keep in mind that your salary as a new graduate may be modest and plan accordingly by estimating now what your discretionary (after-tax) income will be after school
  • Not all loans are alike - know the differences and borrow wisely
  • Don’t start living a lifestyle until you can afford it

• Debt Review

  Students are required to input their debt annually via the free Medloans Organizer and Calculator (MLOC)

• Debt Management

  Debt Prior to Matriculation

  Most pre-HMS educational loans can be deferred while studying full time at HMS. In order to defer eligible loans, students must request a deferment form from his/her loan servicer and bring it to the HMS Registrar’s Office for completion of the School Certification section. All students must continue to make any required loan payments until the certified deferment form is received by their loan servicer and the student is notified that the deferment has been approved. A deferment form must be filed at least once per year with each loan servicer; some loan servicers may require more frequent filing.

  Students are responsible for any consumer debts incurred prior to matriculation at HMS. Credit card debt, car loans, and other outstanding bills are all the responsibility of the student; additional financial aid cannot be awarded to pay these debts.

  A negative credit rating may cause ineligibility for some student aid programs. If a student cannot obtain a loan because of a negative credit rating, HMS funds are not available to replace that loan. It is important for students to be diligent about correcting and protecting their credit rating.

  Loan Reduction Strategies

  • Apply for outside scholarships.
  • Be mindful of your expenses. If you keep your living expenses below the standard budget [anchor to budgeting] upon which your financial need was calculated, you can subtract your savings from loans awarded to you. Ask for help. Your parents or relatives may be able to provide you with additional support in the form of a gift or an interest-free loan.
  • As a borrowing strategy, use money from your savings first. If you have to take out additional loans, do so as close to graduation as possible to minimize the effect of interest accrual over extended timeframes.
  • Consider whether or not to accept or request additional loan funds.
    1. Will this loan be from a different and consequently new source than loans already incurred? If so, how will this affect the repayment?
    2. Will the size of the required repayments affect previous commitments or future life choices?

  Managing Debt after Graduation

  By graduation day, many students have accumulated substantial student loan debt. New graduates need to plan carefully for loan repayment. The relationship between monthly income and the amount of the monthly loan payment will require the graduate to make thoughtful choices about budgeting and spending.

  Keeping careful records can assist in this. It is the borrower’s responsibility to be aware of the terms and conditions of loans, to make loan payments on time, and to honor the commitment to pay loans. All MD students borrowing educational loans at HMS are required to use the MedLoans Organizer and Calculator, an online loan tracking system available through the Association of American Medical Colleges.

• Loan Repayment Modules

  Watch educational videos to help you understand your debt.

• Prepayment

  You may prepay all or any part of a loan principal at any time without penalty. Since interest accrues daily on the outstanding principal during the repayment period, prepayment will reduce the total interest you will pay over the life of the loan. Submit prepayments according to the instructions of your loan servicer(s). You will have to note that the payment should be applied to the loan principal.

  Should you wish to pay a loan in full, contact your loan servicer(s) for a payoff figure, which will include the principal balance plus interest projected through the payoff date. About two months after your loans are paid in full, your original signed promissory notes will be returned to you.

HMS Programs

• HMS Public Service Initiative

  The Harvard Medical School Financial Aid Office is pleased to continue a debt-relief scholarship program targeted to graduating HMS students who have an intention of pursuing careers in public service. The program, called the HMS Public Service Initiative, has been created as part of the graduate/professional Presidential Scholars financial aid initiative established by former President Lawrence H. Summers to make a Harvard education more accessible and affordable for talented students who wish to pursue careers in public service. The HMS Public Service Initiative is designed to relieve the loan obligation of selected graduating students of Harvard Medical School who meet the criteria listed below.

  Eligibility for this program will include the following:

  • Demonstrated career path in public service/policy
  • Practice and/or research that promotes public health or health policy
  • Commitment to underserved communities (local or international)
  • International medicine (in resource poor settings)
  • Demonstrated commitment to medical education that promotes public service

  Note: All students meeting the criteria of public service are encouraged to apply. However, priority will be given to students who have accumulated educational debt in excess of $100,000.

  Priority for funding will be provided to students who meet the following criteria:

  • Entrance into a primary care field/concentration: family medicine, pediatrics, internal medicine
  • Demonstrated commitment to community service
  • Demonstrated commitment to medical education that promotes community/public service
  • Substantial commitment to clinical care in future career goals

  Applicants should explain their definition of public service in the Statement of Purpose, detailing how their past activities and future plans meet this definition of public service.

  Application Process

  HMS students will apply to this program in their graduating year. The application process includes a Statement of Purpose, providing citations of the student’s prior commitment to public service, an explanation regarding how the student’s intended residency program further enhances this pursuit, and a detailed description of the student’s intended career path in public service. Three letters of recommendation, one being the academic Dean’s letter and two being from people knowledgeable about the student’s public service work, are required. An official HMS transcript and the student’s Curriculum Vitae are also required.

  Interested candidates may apply by completing the Public Service Initiative Application. Completed applications should be submitted directly to the HMS Financial Aid Office, Vanderbilt Hall, Suite 111 or via email at financial_aid@hms.harvard.edu. The application deadline is April 7, 2025.

  Selection Process

  Selection of recipients will be based upon a combination of factors, including the students’ letters of recommendation and demonstrated commitment to public service. Financial need is a significant factor in the selection process. Recipients are determined once confirmation is received regarding a student’s match in a residency program.

  Award amounts will be based upon a percentage of a recipient’s total HMS educational debt. Amounts will depend upon number of recipients selected.

  A condition of this award will include an update to the HMS Financial Aid Office upon completion of one’s residency program detailing the intended career path of the recipient and describing how the Presidential Scholars Public Service Initiative impacted the recipient’s pursuit of that career path.

• HMS Primary Care Loan Forgiveness Program

  The Harvard Medical School Financial Aid Office is pleased to announce a new debt-relief scholarship program targeted to graduating HMS students. This program is designed to reduce educational loan debt through loan forgiveness for students who will be joining a residency program in primary care. The program was established by Edward M. Scolnick, AB ’61, MD ’65 to relieve the loan obligation of selected graduating students of Harvard Medical School who meet the criteria listed below.

  Eligibility for this program will include the following:

  • Graduating student matching in a residency program in primary care
  • Demonstrated academic excellence and commitment to the field of primary care

  Note: All students meeting the criteria with educational debt in excess of $50,000 are encouraged to apply. Priority will be given to students who have accumulated educational debt in excess of $100,000.

  *Applicants should explain their definition of primary care in the Statement of Purpose, detailing how their past activities and future plans meet this definition of primary care.

  Application Process

  HMS students will apply to this program in their graduating year. The application process includes a Statement of Purpose, providing citations of the student’s prior commitment to primary care, an explanation regarding how the student’s intended residency program further enhances this pursuit, and a detailed description of the student’s intended career path in primary care. Three letters of recommendation, one being the academic Dean’s letter and two being from people knowledgeable about the student’s primary care work, are required. An official HMS transcript and the student’s Curriculum Vitae are also required.

  Interested candidates may apply by completing the Primary Care Loan Forgiveness Application. Completed applications should be submitted directly to the HMS Financial Aid Office, Vanderbilt Hall, Suite 111 or via email at financial_aid@hms.harvard.edu. The application deadline is April 7, 2025.

  Selection Process

  Selection of recipients will be based upon a combination of factors, including the students’ letters of recommendation and demonstrated commitment to primary care. Financial need is a significant factor in the selection process. Recipients are determined once confirmation is received regarding a student’s match in a residency program.

  One student will receive an award of $50,000 in the form of loan forgiveness. The remaining award amounts will vary depending on the recipient’s total HMS educational debt. Amounts will depend upon number of recipients selected.

  A condition of this award will include an update to the HMS Financial Aid Office upon completion of one’s residency program detailing the intended career path of the recipient and describing how the Primary Care Loan Forgiveness Program impacted the recipient’s pursuit of that career path.

Federal and State Programs

• Public Service Loan Forgiveness

  The Public Service Loan Forgiveness (PSLF) program through the federal government offers loan forgiveness for qualifying professionals with qualifying federal loans, who are working in public service careers. The balance that is forgiven is not taxable.

  PSLF Basics

  Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

  The future availability of PSLF is uncertain. The program was created by Congress and Congress could change or end the PSLF program.

  PSLF Qualifying Payments

  • After October 1, 2007
  • Under a qualifying repayment plan
  • For the full amount due as shown on your bill
  • No later than 15 days after your due date
  • While you are employed full-time by a qualifying employer

  PSLF Qualifying Loans

  Any nondefaulted Direct Loan is eligible for loan forgiveness.

  The Direct Loan Program includes the following loans:

  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct Graduate PLUS Loan
  • Direct Consolidation Loans

  The following loans may be consolidated into a Direct Consolidation loan to qualify for PSLF.

  • Federal Family Education Loans (FFEL)
  • Perkins Loans
  • Health Professions Loans

  PSLF Qualifying Repayment Plans

  • 10-Year Standard Repayment Plan
  • Income Contingent Repayment (ICR)
  • Income Based Repayment (IBR)
  • Pay As You Earn (PAYE)
  • Revised Pay As You Earn (REPAYE)
  • Any other Direct Loan repayment plan as long as the monthly payment is equal or greater than the payment amount that wold have been required under the 10-year standard repayment

  Income-driven repayment plans are most likely to yield a balance for forgiveness.

  Qualifying Employer

  Must be employed full-time or work multiple qualifying jobs that equal full-time in one of the following qualifying organizations. Full-time is the greater of your employers definition of full-time or at least 30 hours a week.

  • Government organizations at any level (federal, state, local, or tribal)
  • Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
  • Other not-for-profit organizations providing specific qualifying services

  Tracking PSLF Eligibility

  You may track your progress towards making your 120 qualifying payments for PSLF by completing an Employment Certification For Public Service Loan Forgiveness Form. This form can be obtained through Federal Student Aid.

• National Health Service Corps

  Primary care clinicians can get up to $50,000 to repay their student loans in exchange for a two-year commitment to work in an approved HPSA (Health Professional Shortage Areas) and with underserved communities. More information can be found on the National Health Service Corps website.

  To learn more about the financial benefits of the NHSC program, please see the AAMC News & Insights Article.

• National Institutes of Health

  This program offers a set of eight loan repayment assistant programs established by Congress and designed to recruit qualified health professionals into biomedical or biobehavioral research careers. NIH will repay up to $35,000 annually of researchers’ qualified educational debt in return for a commitment to engage in NIH mission-relevant research. More information can be found on the NIH Loan Repayment Programs site.

• The Specialty Education Loan Repayment Program

  The Specialty Education Loan Repayment Program (SELRP) provides financial assistance to physicians in the form of a loan repayment to recent graduates of an accredited medical or osteopathic school, and are currently enrolled or matched to a residency identified as a shortage by the U.S. Department of Veterans Affairs (VA). The loan repayment is $40,000 a year with a maximum of $160,000. In return the recipient would agree to serve in a clinical practice at a VA facility for a period of 12 months for each $40,000 of loan repayment with a minimum of 24 months of obligated service.

  Eligible Specialties

  • Psychiatry
  • Family Practice
  • Internal Medicine
  • Emergency Medicine
  • Gastroenterology
  • Urology
  • Geriatric Medicine

  For more information, visit https://va-ams-info.intelliworxit.com/selrp.

• Other Programs

  There are also loan forgiveness opportunities through some state and federal loan programs. To learn more about these opportunities take a look at the AAMC’s list of state and federal loan repayment and forgiveness programs.