UMass Chan Learning Contract

Since 1978 the T.H. Chan School of Medicine has offered matriculated students, whether or not they applied for other types of financial aid, a Learning Contract, which defers payment of $5568 of tuition. The General Court of the Commonwealth of Massachusetts established the Learning Contract and legislated repayment terms of various versions.

All medical students can annually opt to defer $5,568 of their tuition in the form of a “Learning Contract” with the University of Massachusetts Chan Medical School. Students can do this with or without applying for other financial aid. Here are some facts about the terms of the contract. 

• Interest begins accruing at an 8% interest rate upon disbursement.
• The Learning Contract functions like an 8% interest loan that can be paid with either money or 4 years of certain legislated service in Massachusetts after Residency/Fellowship.
• Borrowers may forbear payment throughout residency/medical fellowship.
• To qualify for Service payback, graduates must be practicing medicine in one of the following areas in Massachusetts: Primary Care, Public Service, Community Service, or Underserved.  Full-time for four 4 years or the part-time equivalent.
• Currently, Hospitalists are not considered Primary Care.
• Graduates working less than full-time must work at least half-time, i.e., 20 hours/week to qualify for service payback.
• Graduates must complete all 4 years of service or must pay all deferred tuition and accrued interest with money (there is no proration for partial service).
• A borrower can switch from monetary payback to service payback when changing from nonqualified to qualified employment.
• Any funds collected during monetary payback will not be refunded if the borrower switches to service payback.
• Service must be fully completed (4 years full-time or part-time equivalent) for the Learning Contract to be forgiven, regardless of how many years the borrower accepted the annual obligation.
• When a leave of absence, not exceeding 3 months, is taken for maternity/paternity or sick leave, a comparable length of time will be added to the initial ending date of service payback. 
• If not providing Service, payment is due six months after leaving UMass Chan or six months following completion of medical residency or fellowship, whichever is later.
• The Learning Contract is not a Federal Loan, and therefore is not eligible for a Federal Consolidation and cannot be used in determining eligibility for an Economic Hardship Deferment.