Primary Care Loan Summary

Primary Care Loan (PCL)

The PCL program provides low-interest loans to UCI College of Medicine students with financial need who agree to enter and practice primary health care. The PCL is a campus-based loan funded by the U.S. Department of Health and Human Services. UCI is the lender.

SERVICE OBLIGATION--Agreement to enter and practice primary health care:

PCL borrowers agree to:

enter and complete a residency training program in primary health care (a 3-year residency program in allopathic or osteopathic family medicine, internal medicine, pediatrics, combined medicine/pediatrics, or preventive medicine approved by the Accreditation Council on Graduate Medical Education, ACGME, or the American Osteopathic Association, AOA, or a general practice residency program approved by the AOA) not later than 4 years after graduation from UCI;
practice in primary health care (family medicine, general internal medicine, general pediatrics, preventive medicine, or osteopathic general practice) though the date the loan is paid in full; and
certify practice in primary health care, on an annual basis until the loan is paid.

Non-Compliance (with the service obligation) results in:

the balance due on the loan will be recomputed from the date of issuance (using the original principal) at an interest rate of 12 percent per year, compounded annually; and

the recomputed balance must be paid in the 3-year period beginning on the date on which the student fails to comply with the agreement.

Loan limits: Variable

Total origination or insurance fee: None

Interest rate: 5 percent per year

Non-compliance with service obligation: 12% per year recomputed from the date of loan issuance (using the original principal), compounded annually

Prepayment: No penalty for early repayment

Initial grace period: 1 year

Repayment period begins: 1 year after leaving UCI

Repayment period: Up to ten years

Non-compliance with service obligation: 3 years beginning on the date of non-compliance

Minimum payment: $45 per quarter, or
if the borrower is more than 60 days past due, the minimum payment is $15 monthly

Credit reporting: Reported to three national credit bureaus: Equifax, Experian, and TransUnion

Late charges: $6 per quarter

Late charges are assessed for failure to make timely payment of all or any part of a scheduled installment or to submit appropriate deferment requests on time.

Deferments: Upon approval of properly documented written requests, borrowers may defer making scheduled installments, and interest will not accrue**, during the following periods:

Advanced Professional Training
Pursuing advanced professional training, including internships and residencies.

Student Deferment
Pursuing a full-time course of study at a health professions school eligible for participation in the Health Profession Student Loan Program.

For a period, not to exceed 2 years, when a borrower leaves UCI with the intent to return as a full-time student, while engaging in a full-time educational activity directly related to the health profession for which the borrower is preparing.

Military Service
For a period, not to exceed 3 years, while on full-time active duty as a member of the Armed Forces of the United States.

Peace Corps Service
For a period, not to exceed 3 years, while serving as a volunteer under the Peace Corps Act.

Fellowship Training
For a period, not to exceed 2 years, while participating in a training program or a full-time educational activity which is directly related to the health profession for which the borrower prepared at UCI, and which is engaged in within 12 months after the completion of advanced professional training (internship and residency).

**Non-compliance with service obligation: If the borrower fails to enter and complete a primary care residency program and to practice primary care in accordance with the service obligation agreement, interest shall accrue during all periods of deferment.

Death cancellation: The total amount owed on the loan is canceled in the event of the death of the borrower.

Permanent and total disability: The total amount owed on the loan is canceled if the borrower becomes permanently and totally disabled after receiving the loan.

Default: Failure to make an installment payment when it is due or to comply with the other terms of the promissory note may result in the following:

Loss of deferment benefits
Imposition of late charges
Negative reports to national credit bureaus
Suspension of campus services including registration, transcripts, and diplomas
Withholding California State Tax refunds and applying them to past-due loans
Loan acceleration
Assessment of collection costs, attorney fees, and litigation costs
Referral of the loan to an outside collection agency
Referral of the loan to the Secretary for collection assistance, including offset of Federal salaries
Ineligibility for further student financial assistance

Waiver or Suspension of Service Obligation:

If the borrower does not graduate from a school of medicine or osteopathic medicine, the service agreement and noncompliance provisions are waived.

If the borrower terminates studies before graduation from a school of medicine or osteopathic medicine, but later resumes studies and graduates from a school of medicine or osteopathic medicine, the service agreement and noncompliance provisions are suspended for the period of non-attendance.

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