Frequently Asked Questions
What is the Charitable and Educational Fund?
The C&E Fund is a 501(c) (3) tax exempt, charitable organization providing low-interest educational loans to medical students in Massachusetts.
Who is eligible to take a loan from the Charitable and Educational Fund?
Eligible borrowers are 3rd and 4th year medical students at Boston University School of Medicine, Harvard Medical School, and the University of Massachusetts Medical School. Every borrower must be a US Citizen, a resident of Massachusetts at the time a loan is made, and recommended in writing by the financial aid office of their medical school.
How much can I borrow?
Loans granted prior to June 1, 2016 are made in the amounts of either $5,000 or $10,000, with a maximum of $10,000 being lent to any borrower. Loans granted June 1, 2016 and after are made in amounts of $5,000, $10,000, $15, 000 or $20,000, with $20,000 being the maximum amount lent to any individual borrower.
Is Massachusetts Medical Society membership required to receive a loan from the Charitable and Educational Fund?
No. Massachusetts Medical Society membership is always encouraged but not required.
What are the repayment terms?
A repayment schedule consisting of 1 annual payment due and payable on June 30 of each year, applies to all loans from the Charitable and Educational Fund. Loans made prior to June 1, 2016 have a repayment period of 10 or 11 years based on matriculation year when the loan is received. Loans made June 1, 2016 and after have a repayment period of 14 or 15 years based on matriculation year. For all loans, interest only is repaid while the borrower is in matriculation, beginning with the first June after the date a loan is made. Principal repayment commences upon graduation after a borrower attains his/her M.D. degree, or when he/she ceases to matriculate.
What is the interest rate on loans from the Charitable and Educational Fund?
Interest rates are calculated as simple interest, and graduate during the life of the loan – 1% per annum year 1 – 5, 2% per annum year 6 – 7, and 6% per annum for the final years of repayment for loans granted prior to June 1, 2016. For loans made June 1, 2016 and after, interest at rates of 1% per annum year 1 – 5, 2% per annum year 6 – 10, and 4% per annum thereafter applies. These rates are not tied to or determined by fluctuations in the stock market, treasury bills, or any outside forces.
Can I consolidate this loan for repayment with my federal loans?
No. Loans from the Charitable and Educational Fund are private educational loans and are not part of any state or federally funded program. They are not eligible for consolidation.
Can my loan be repaid through a Loan Repayment Program (LRP)?
Yes. The Charitable and Educational Fund will accept payments designated to an individual borrowers account from federal LRP’s, such as that from the NIH, and other employer sponsored repayment programs. Please follow guidelines for the particular LRP you are applying for, or check with your employer to determine eligibility.
How will I be billed for the payments due on my loan?
You can elect to receive either electronic or paper statements, or both. Reminders, alerts and notifications will be sent via email.
Can I pay my bill online?
Yes. You can pay or bill online with a credit card or debit card, or by mailing a check or money order to the Charitable and Educational Fund. Visa, MasterCard and American Express cards are accepted.
Is my information secure?
Our entire site is fully encrypted so your information is protected and secure. As an additional precautionary measure, no credit card information will ever be stored in our servers.
Can I set up recurring payments with my credit card?
No. As a precautionary measure, no credit card information will ever be stored in our servers. You must logon to the site with your username and password and enter your credit card information each time you wish to make a payment.
Will I receive notification my payment has been received or my account profile has been updated?
Yes. You will receive email notifications regarding receipt of payment and updates to your account profile.
Does the Charitable and Educational Fund forgive loans for practicing in an underserved area?
No. The Charitable and Educational Fund typically forgives loans only in the event of a borrowers death and upon receipt of proper documentation. Please contact Bill Wheeler for more information.