Loan Repayments and Remissions

​​Loan Repayments and Loan Remissions

Repayment of loans taken during study at AKU commences one year after graduation from the University for  all programmes except MBBS, in which case it commences after two years. The repayment schedule is as follows:

Progr​amme Study Period (Years) Grace Period (Years) Annual Repayment Schedule as Percentage of Total Financial Assistance Loan
Year1 Year2 Year3 Year4 Year5 Year6 Year7
MBBS  ​5 ​2 ​0 ​0 ​10 ​15 ​20 ​25 ​30
​​MSc in Health Policy and Management ​2 ​1 0 15 25 25​ 35​ -​ -​
MSc in Epidemiology and Biostatistics​ ​2 1​ 0​ 15​ 25​ 25​ 35​ -​ -​
PhD in Health Sciences ​4 ​1 ​0 ​15 ​25 ​25 ​35 ​- ​-
RN​ ​3 ​1 ​0 ​15 ​35 ​50 ​- ​- ​-
BSc in Nursing ​4 ​1 ​0 ​15 ​25 ​25 ​35 ​- ​-
Post RN  BSc in Nursing ​2 ​1 ​0 ​15 ​25 ​25 ​35 ​- ​-
MSc in Nursing ​2 ​1 ​0 ​15 ​35 ​50 ​- ​- ​-
IED - M Ed​ ​2 ​1 ​0 ​10 ​15 ​20 ​25 ​30 -​
IED - PhD​ ​4 ​1 ​0​ ​10 15​ 20​ 25​ 30​ -​

AKU recently announced a new programme that will waive up to 50 per cent of financial assistance loans for those who graduated in 2006 or thereafter and:

  • EITHER work for AKU full-time in a capacity related to their qualifications
  • OR enrol in another education programme at the University

For each year a person works or studies at AKU while the financial assistance loans are being repaid, half of the annual loan repayment amount will be granted remission at the end of the year.

Frequently Asked Questions

What is Loan Remission?
The Student Financial Assistance Loan Remission Programme provides those who receive financial assistance for their AKU education, an opportunity to reduce the burden by offering a 50 per cent waiver on their loan repayment terms.

Who qualifies for this programme?
All AKU graduates from the class of 2006 and after are eligible, provided they are either employed by AKU for a minimum of one full year, or have enrolled in another education programme at the University while financial assistance loans are being repaid. For each year that the graduate is employed or studying at AKU, he/she will be eligible to receive a 50 per cent waiver on  loan payments for the year.

How does the remission mechanism work?
The following chart will help you understand the process for availing the loan remission. The opportunities available for graduates are employment, internship, research, further studies and residency

Process for Remission of Financial Assistance Loan​
Steps​ Contac​t
For information, graduates should approach:​ 
MSc Epidemiology & Biostatistics and MSc Health Policy and Management - Ms Ghazala Humayun, CHS
​PhD in Health Sciences - Dr. Anwar Gilani, BBS ​
PGME Office for internship and Residency programmes ​
SON Admission Office for Post RN BScN and MScN Programmes​​​
Human Resources for employment/internship/residency  by Medical college, IED graduates and SON graduates seeking employment at SON for Medical College:
for SON and IED :
​Human Resources for employment/internship/residency by Medical College, IED and SON graduates seeking employment at SON
Within a month of starting of employment, internship, research, further studies or residency programmes, graduates should register themselves for the Remission in Financial Assistance Loan Programme with the Student Finance Office​
During the year of employment or study, the graduate will continue to repay the Financial Assistance loan according to repayment schedule
At the end of one year of continuous employment/research/ internship/further studies/residency at AKU, the graduate should seek a certificate of completion of one full year of continuous service with AKU from the HR Department, and from the Office of the Student Affairs in case of study at the University​
Once the above certificate is submitted to AKU Student Finance Office, a 50% remission will be granted against the loan installments that have been paid previously during the year, and reimbursed to the graduate by the Student Financial Office two weeks later, by cheque*
The Finance Department will issue an updated loan statement to the student after the adjustment based on the certificate that is received from the student
​​ ​​The graduate may participate in the programme each year until they have completely repaid their loan (or their Repayment Schedule has concluded), as long as they are still employed or pursuing further studies with AKU

* In case a graduate joins employment/research/ internship/further studies/residency at AKU, immediately after graduation (i.e. during the grace period) the graduate will be given 50 per cent remission on the first year’s loan repayment instalment

How will my loan instalment amount be adjusted to reflect the remission?
On completion of 12 full month’s service, 50 per cent of the financial assistance loan repayment instalment due during the same year (as service or study) will be paid by cheque.

Will I be expected to pay my complete loan repayment instalment for the year even though I am registered for the programme?
Yes, you should continue to pay your loan repayment instalments as and when they become due. 

What if I join the programme during the middle of my loan repayment schedule?
The remission for the first full year of employment/study will be calculated on the first annual repayment instalment.  Similarly, for the second year of employment/study the remission will be calculated on the second annual repayment instalment, and so on so forth.

If I join AKU during the grace period  following graduation (when no instalment is due) how will I get remission?
Since no loan repayment instalment would have been due during the grace period, the 50 per cent remission will be adjusted from you first annual loan repayment instalment; for the second year of service the remission will be adjusted in the second annual repayment instalment, and so on.

If I serve at AKU after all my instalments become due, will I get any remission?
In such situations, no remission is granted because the student is expected to complete the repayment of his/her loans.

How will AKU know that I have been employed for the correct amount of time? Do I have to notify them each year?
On the completion of each year’s service you should present to the Student Finance Office a certificate from the Human Resource department or the Office of the Registrar - stating that you have completed one full year of service or study and then your remission will be processed for payment.

What if I am let go or resign during the year?
If you are let go due to disciplinary reasons, you will forfeit your remission if any is due.  On the other hand, if your current department is unable to retain you, you will have the option to continue with another department and continue to work towards a full year of employment. You will have three months from the time you are notified to find another position.

What if I leave during the year for another job or to pursue further studies?
No remission will be granted if one full year of service or study is not complete.​