How is an Application Made? Medical students may obtain application materials and additional information from the medical school Dean's office. Interns and residents should contact the Hospital Administrator. To apply it is necessary to: a) Secure and complete two copies of the application. (AMA-ERF 102) b) Secure and complete a copy of the interim note. (AMAERF 103) c) Obtain certification of the application from the Dean, Program Director or Chief of Service, as applicable. d) Mail all completed materials to the Continental Illinois National Bank at the address shown in the instructions on page 1 of the application. PHYSICIANS have given generously to support this program as has the WOMAN'S AUXILIARY OF THE AMERICAN MEDICAL ASSOCIATION and the STUDENT AMERICAN MEDICAL ASSOCIATION. Special recognition is extended to MERCK SHARP & DOHME as the first representative from private industry to provide major financial support for the guarantee fund, and for its pioneering efforts in the application of loan funds to medical education. The CONTINENTAL ILLINOIS NATIONAL BANK AND TRUST COMPANY OF CHICAGO has made an unusual effort to provide funds for loans at a minimum cost to the borrower. The philosophy and counsel of UNITED STUDENT AID FUNDS, INC. has aided materially in the development of this program. To all who have contributed financial support, their ideas and in other ways, and to those who will in the future add their support, we extend our appreciation. Sponsored by American Medical Association 535 N. Dearborn, Chicago 10, Ill. THE FIRST TEN MONTHS: Nearly one of every 10 medical students in the country now has borrowed under AMAERF's Loan Guarantee Program. Through Dec. 31, 1962, a total of 4,694 individuals (2,890 medical students, 672 interns and 1,132 residents) received 5,299 loans worth $6,111,400 in principal amount. Ten per cent of the borrowers applied for and received more than one loan. The borrowers are in training in 83 medical schools and 462 hospitals in 46 states and possessions. The vast majority of them--97 per cent--are men. Seventy-two per cent are married, 25 per cent are single, and 3 per cent are divorced, separated or widowed. Established in March 1962 to provide medical students and physicians in training with a ready resource to meet essential living and education costs, the program allows a maximum of $1,500 a year, and $10,000 over seven years, to be borrowed by an approved applicant, with no payment of either principal or interest required until five months after completion of training. Applicants must be U.S. citizens in training and in good standing in an AMA-approved medical school or hospital. First year medical students must have completed their first quarter or semester to qualify. Each applicant must demonstrate, through a listing of present assets, debts, and estimated expenses and income, a clear need for loan funds. Of the 5,823 loan applications received through the end of the year only 6.8 per cent had been rejected by the Continental Ill. Nat'l Bank & Trust Co. of Chicago, the institution currently making the loans under this program. All approved loans are guaranteed by AMA-ERF. The bank has required the posting of $1 in a Guarantee Fund for every $12.50 it extends in credit. CONTRIBUTIONS TO LOAN GUARANTEE FUND Contributions and pledges from physicians, foundations and private industry brought the total size of the Guarantee Fund to $975,165 as of December 31 1962. As shown above, loans already made, together with estimated interim and payout interest, have committed more than 80 per cent of the Guarantee Fund. (During the interim period, before repayment begins, simple interest accrues at the rate of 5.5 per cent. During the pay back period, which extends up to a maximum of 10 years, 6.5 per cent simple interest is charged, computed monthly on the amount still outstanding.) The Fund's uncommitted balance of $176,543 is sufficient to guarantee approximately 1,200 additional loans. If the present rate of borrowing continues, however, some 7,200 loans will be made in 1963. To make these loans possible, it will therefore be necessary to increase the Guarantee Fund by at least $1,000,000 this year. |