Loan Terms

MEDICAL STUDENT LOAN PROGRAM

General Requirements

• Interest is due one year after the loan is disbursed and then annually until monthly repayment begins.
• Repayment of the principal portion of the loan begins four years after graduation.
• Equal monthly payments will be made for four years.
• Loans may be repaid in full at any time prior to maximal tenure without penalty.
• The note will become due if the student should discontinue the study of medicine.
• An interview will be required with a Trustee of the Texas Medical Association.

How to Apply

• Funds are limited to specific medical schools annually.*
• Students apply online by completing/e-signing the application, promissory note, self-certification form, and W9-S.
• Upload paperwork from the Financial Aid Office recommending you for this loan or a verification of enrollment from the Registrar (must be on school letterhead and contains expected graduation date).
• Upload a copy of your current drivers license or picture ID.
• After review of all submitted application materials, TMA will email applicants with instructions regarding the required virtual or telephone meeting with a TMA Interviewing Trustee. During this meeting, the terms of loans and the importance of becoming involved in organized medicine is discussed.
• Upon approval, the loan will be provided directly to the student via direct deposit within approximately 3-4 weeks.

* Baylor College of Medicine, TTUHSC Paul L Foster School of Medicine, University of the Incarnate Word School of Osteopathic Medicine, UTHSC San Antonio-Long Medical School, and UTMB Galveston require medical students to contact their Financial Aid Officers prior to applying online with TMA. 

RESIDENT PHYSICIAN LOAN PROGRAM

General Requirements

• Loans are available to physicians in any year of postgraduate training.
• A resident physician may borrow up to a maximum of $6,000 SET Fund or $3,000 PALMER Fund.
• The residency must be in an accredited program within the state of Texas.
• Electronic signature on the application and promissory note constitutes permission to obtain your credit report. This loan is credit based.

Note: If an individual received a TMA loan from the Dr. S.E. Thompson Scholarship Fund while in medical school, that amount will be included in the maximum allowed.

Loan Repayment

• Interest is due each year on the anniversary date of the loan until principal repayment begins
• Loans may be repaid in full at any time without a prepayment penalty 
• Loan recipients must begin to repay the principal of the loan two years after loan disbursement
• Equal monthly payments will be made for 12 months on a $1,000 loan, 24 months on a $2,000 loan, 36 months on a $3,000 loan, or 48 months for loans of $4,000, $5,000, and $6,000.

How to Apply

Resident physicians may apply for a loan through the Texas Medical Association and can obtain an application by clicking on the FORMS tab at the top of the page. 

The following items must be completed and received by TMA:

• Completed and e-signed loan application returned to TMA.
• Promissory note e-signed and returned to TMA.
• Verification of residency status signed by supervisor and returned to TMA.
• Electronic signature constitutes permission to pull your credit report - defaulted accounts and/or insufficient credit history will affect eligibility.
• A virtual or telephone meeting with a TMA Interviewing Trustee must be completed.
• Written/emailed acceptance of the loan after receipt of the approval disclosure.
• Upon approval, the loan will be disbursed as direct deposit within approximately two (2) weeks.