MedCAP® Alternative Loan for Health Professionals
Rates and Eligibility
| Education Loan |
Variable Annual Percentage Rate (APR)
The APR — variable for the life of the loan — is based on the Prime Rate1 and the credit rating of the applicant(s). You will know the APR you qualify for once you and your cosigner (if needed) have met the initial eligibility requirements.
Repayment examples based on the following information:
- Loan amount: $10,000
- In-school period: 4 years
- Grace period: 3 years (designed for residency completion)
- Repayment term: 20 years
- Prime Rate: 5.00%
| Margin Added to Prime Rate1 | APR While in School and During Grace | APR in Repayment | Monthly Payment2 |
|---|---|---|---|
| 0.00% | 4.38% | 5.00% | $89.11 |
| 1.25% | 5.32% | 6.25% | $105.10 |
| 1.50% | 5.51% | 6.50% | $122.89 |
| 2.50% | 6.22% | 7.50% | $108.51 |
Allopathic and osteopathic medical students have a 36-month grace period. Non-allopathic or osteopathic medical students have a 6-month grace period.
Allopathic, osteopathic, veterinary medicine, dentistry, optometry, and podiatry students have a 20-year repayment term. Students in all other disciplines have a 15-year repayment term.
Allopathic, osteopathic, veterinary medicine, dentistry, optometry, and podiatry students have a 20-year repayment term. Students in all other disciplines have a 15-year repayment term.
Options to Lower Your Interest Rate3
For loans first disbursed on or after July 1, 2008:
- 0.50% interest rate reductin at repayment upon verification of graduation with the Wells Fargo Student Graduation BenefitSM Program
- 0.25% interest rate reduction when we automatically withdraw payments from a personal checking or savings account4
Eligibility Requirements
- Be enrolled in an approved allopathic or osteopathic school or one of the following programs:
- Accelerated medical
- Cardiac perfusion
- Chiropractic
- Cytotechnology
- Dentistry
- Medical technology
- Nursing
- Nutrition
- Occupational therapy
- Optometry
- Pharmacy
- Physical therapy
- Physician's assistant
- Podiatry
- Veterinary medicine program
- Or other health-related programs offered by an approved medical school
- Have an established, positive credit history
- Be a U.S. citizen, U.S. national, permanent resident alien without conditions, or international student who is a temporary resident alien with a current U.S. address and proper evidence of eligibility
- Have a U.S. citizen cosigner if you are a permanent or temporary resident alien, first-year undergraduates, or associate or nutrition student
We will let you know at the end of the application process if you need a cosigner.
- The cosigner must have an established, positive credit history, an acceptable debt-to-income ratio, and a minimum annual income of $12,000.
- You can release your cosigner from liability after making your first 24 consecutive on-time monthly principal and interest payments, if you meet the minimum credit guidelines at the time of the request. (This cosigner release is not available for temporary resident aliens.)
| Education Loan |
1 The Variable Rate is the annual rate equal to the Prime Rate plus a specific Margin. The Variable Rate will change monthly on the first day of each month (“Change Date”) if the Prime Rate changes. The Prime Rate in effect for each monthly period (from the first day of one month through and including the last day of the month) will be the highest Prime Rate published in The Wall Street Journal “Money Rates” table on the last business day of the preceding month. If the Prime Rate is discontinued or substantially altered, Wells Fargo may choose a comparable substitute for the Prime Rate, which will then be used in its place.
2 All payments are subject to a $50 monthly minimum.
3 Wells Fargo retains the right to discontinue or modify our rewards for future disbursements at any time without notice.
4 Reduced interest rate requires continued automatic payment from a personal checking or savings account. If the automatic payment is cancelled at any time after repayment begins, the discount will be lost until automatic payment is reinstated.
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