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Policy Memoranda Archive: 1982-2005

Loans for Disadvantaged Students (LDS)

Loans for Disadvantaged Students is a program that makes funds available to eligible accredited U.S. health professions schools, which match at least one ninth of the funding, and use the funds to establish revolving funds that support long-term, low-interest loans for eligible students with financial need.

Schools are responsible for selecting loan recipients, making reasonable determinations of need, and providing loans that do not exceed the cost of attendance including tuition and reasonable educational and living expenses.

Eligible Schools

Accredited schools located in the U.S. and its territories that train students in any of the following health professions disciplines are eligible to participate in the Loans for Disadvantaged Students program:

  • Allopathic medicine
  • Osteopathic medicine
  • Dentistry
  • Optometry
  • Pharmacy
  • Podiatric medicine
  • Veterinary medicine

Participating schools enter into a written agreement with the Secretary, U.S. Department of Health and Human Services, which requires them to adhere to a number of requirements, including

  • Carry out a program to recruit and retain students from disadvantaged backgrounds, including racial and ethnic minorities;
  • Carry out a program to recruit and retain racial and ethnic minority faculty;
  • Collaborate with one or more health clinics that provide services to a significant number of individuals from disadvantaged backgrounds, including racial and ethnic minorities, to give students experience in providing clinical services to that population; and
  • Collaborate with other academic institutions to prepare and recruit disadvantaged students into health professions training.

Schools can make loans only to students who are U.S. citizens, nationals or lawful permanent residents (those with student or visitor visas are not eligible), are enrolled or accepted for enrollment as full time students in the school and are in need of financial assistance.

Schools can make loans only to students who are U.S. citizens, nationals or lawful permanent residents (those with student or visitor visas are not eligible), are enrolled or accepted for enrollment as full time students in the school, are in need of financial assistance and come from a disadvantaged background, defined by the Loans for Disadvantaged Students program as students who

  • Comes from an environment that has inhibited the individual from obtaining the knowledge, skill, and abilities required to enroll in and graduate from a health professions or nursing school or
  • Comes from a family with an annual income below a level based on low-income thresholds according to family size published by the U.S. Bureau of Census, adjusted annually for changes in the Consumer Price Index, and adjusted by the Secretary, U.S. Department of Health and Human Services, for use in health professions and nursing programs.

Health professions schools interested in participating should contact 301-443-1173.