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It cost anywhere from $244,000 to $323,000 to attend a four-year medical school in 2017, according to the Association of American Medical Colleges. If you’re looking to realize your dream of becoming a doctor, you’ll likely need help footing that bill. Fortunately, you have your pick of federal and private student loans to choose from.
When choosing the best medical school loans, we looked at lenders that offered competitive interest rates, flexible repayment options and borrower perks — such as rate discounts and multi-year approval.
Before comparing your options, consider your financial situation and what qualities in a lender are most important to you. This will help you find a loan you can not only qualify for, but that best meets your needs.
Sallie Mae is at the top of the list because it’s an established loan provider and offers many perks for med school students. This means a 48-month deferment period during residency and a 36-month grace period after leaving school.
Discover’s Health Professions Loan is ideal for high-achieving medical students — it offers a one-time cash reward to borrowers with a 3.0 GPA or higher. It also has a repayment assistance program if you’re struggling to make repayments due to a financial setback.
While Wells Fargo is a household name when it comes to personal banking, it’s also a great source for private education loans. With high lifetime limits and yearly maximums up to the cost of attendance, it’s committed to helping students cover the rising cost of med school.
Citizens Bank offers multi-year approval on their medical school loans, meaning you can get approved for all of the funds you need for an entire program with one application. Its health professions loans also come with low starting APRs, though the repayment terms are shorter than most competitors. And it doesn’t offer a grace period.
Where Commonbond excels is its low rates — they max out at roughly 4% less than the competition. This online lender also offers deferment while in school and during your residency, as well as a six-month grace period. And you have the opportunity to pause repayments for a total of 12 months throughout the life of your loan.
Annual limit | Lifetime limit | Interest rate | Fees | Terms | |
---|---|---|---|---|---|
Direct Unsubsidized Loans | $20,500 | $138,500 | 4.3% | 1.059% |
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Graduate Direct PLUS Loans | Up to 100% of the school-certified cost of attendance | None | 7.08% | 4.236% |
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If you’re using loans to fund your medical degree, you might want to start by looking into federal loans. Offered by the Department of Education, they typically have lower interest rates and more flexible repayment options than private loans.
For both Direct Unsubsidized and Graduate Direct PLUS Loans, you’ll need to complete the Free Application for Federal Student Aid (FAFSA). And to qualify for PLUS loans, you’ll need to pass a credit check or apply with a creditworthy cosigner.
To learn more, check out our page on federal student loans for graduate school.
It is, though it’s not easy — there’s a reason more than 70% of students take out student loan for medical school. If you’re determined to graduate debt-free, you might want to invest some serious time into researching scholarships, grants and fellowships you qualify for.
You could also consider student loan alternatives like income-share agreements (ISAs) or setting up a crowdfunding campaign to pay for school if you plan on entering a relatively low-paying field.
Trying to avoid taking out student loans? Here are a few alternatives to consider:
The average cost of attending a public four-year medical school was $243,902 in 2017, according to the AMCC. However, attending a private school costs students a whopping $322,767.
That high price tag is likely a major factor for why only 32% of students enter with student loans, but more than 70% leave with debt.
Medical students graduated with a median debt load of $192,000 in 2018, according to a study by the Association of American Medical Colleges (AMCC). More than 20% of all medical students who went to a private school graduated with over $300,000 in debt. That’s more than some student loan refinancing companies like College Ave and Discover are willing to work with.
Since federal loans have caps on how much you can borrow, many medical students graduate with a combination of federal and private student loans.
How long it takes to pay back your med school debt depends on your loan terms. Since medical school is typically more expensive than other types of graduate programs, you’ll likely be able to qualify for the longest available loan terms.
With most private lenders and refinancing companies, this is 10 to 25 years. Federal loans can take as long as 30 years to pay off if you consolidate them with a Direct Consolidation Loan.
Whether medical school is worth the debt depends on your personal, financial and career goals. Base salaries can easily top $350,000 for some specialties. Even lower-paying medical careers can top $100,000 — making repayments on a $300,000 debt load slightly more manageable.
Medical school can be rewarding in other ways. If you plan on making a career in public health or serving your country, repayment assistant programs can help you jump on that path rather than taking a job to pay off your loans first. There are several strategies you can use to pay off your medical school loans.
A slew of private lenders offer loans specifically designed for med school students — with high maximum amounts and extended deferment for residency programs. However, you might want to consider your federal options first, since these tend to come with lower rates and more flexible repayment plans.
You can learn more about how it all works by reading our guide to graduate student loans.
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