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2018-2019 Financial Aid Overview


Dear Medical Students:

Refund status

By now, third and fourth year medical students expecting a refund for the 2018 summer should see the refund generated at the IUPUI Office of the Bursar through your Bursar account at  Your account will show a zero if the loan funds released have already credited your bursar account to generate a refund for any excess (after paying tuition and fees).

The refunds will be issued the morning of May 21 and will be made available to the Federal Reserve in the evening for those who have Direct Deposit (set up with the Bursar).  It generally takes 24-48 hours for your bank to draw in the funds from the Federal Reserve into your checking account.  So, if you do not have a refund by Thursday and you were expecting one, then you will want to contact us to see what is causing the delay.

2018-2019 academic year news​

  • ​We will begin working on packaging loans for the 2018-2019 academic year the week of (May 21, 2018).
  • In addition, we are in the early preparations for the IU School of Medicine Scholarship Committee meeting that will take place in late June.  Scholarship notifications will go out in early July.
  • Students participating in IMPRS will receive their first stipend payment on June 1 (represents a third of their total stipend for the summer experience).

Loan interest rates

Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2013 have fixed interest rates that are determined in accordance with formulas specified in sections 455(b)(8)(A) through (C) of the Higher Education Act of 1965, as amended (HEA).

The interest rate is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30, and is equal to the high yield of the 10-year Treasury note auctioned at the final auction held before June 1 of that 12-month period, plus a statutory add-on percentage that varies depending on the loan type (3.6% for Unsubsidized Loans and 4.6% for Grad PLUS Loans). Loans first disbursed during different 12-month periods may have different interest rates, but the rate determined for any loan is a fixed interest rate for the life of the loan.  For the past four years the interest rates are as shown below:

For each loan type, the calculated interest rate may not exceed a maximum rate specified in the HEA. The maximum interest rates are 9.50% for Direct Unsubsidized Loans made to graduate and professional students, and 10.50% for Direct PLUS Loans made to graduate or professional students.

Direct Loan Interest Rates for 2018-2019

On May 9, 2018, the Treasury Department held a 10-year Treasury note auction that resulted in a high yield of 2.995%. The chart below shows the interest rates for Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2018 and before July 1, 2019.

Interest Rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2018 and before July 1, 2019
Loan Type 10-Year Treasury Note High Yield Add-On Fixed Interest Rate
Direct Unsubsidized Loans for Graduate and Professional Students 2.995% 3.60% 6.60%
Direct PLUS Loans for Parents of Dependent Undergraduate Students and for Graduate or Professional Students 2.995% 4.60% 7.60%

As always, if you have any questions, please contact our office and direct your questions to either

The views expressed in this content represent the perspective and opinions of the author and may or may not represent the position of Indiana University School of Medicine.

Jose Espada

Jose Rivera Espada is the director of financial aid at IU School of Medicine, a nine-campus allopathic medical school in Indiana. Jose’s experience includes working as an assistant director of financial aid at Butler University and a financial aid coun...