Medical School Loan – Insider Information to Save You Money

Medical School Loan – How to Save Money


medical school loan
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A medical school loan is likely going to be a part of your medical education. Medical school is expensive, with the lower-cost state schools (like Texas medical schools) costing around $15,000 per year and the more expensive private schools costing in the $40-50,000 range.

Your medical

school financial aid office will help you with the details of applying for aid. They will also help you find the “cost of attendance,” which is what financial aid is based on.

Medical school financial need not like undergraduate financial need. Your parents’ financial
information is required by most schools, even if you are married or otherwise independent from your parents.

Here is a breakdown of how medical school loans work:


    • Before you apply for a federal loan, you will have to fill out the
    • You are probably familiar with this form, but you will need to have your income information (preferably from a completed tax form) as well as your parents’ information if you are not an “independent student.” Independent means that your parents do not claim you as a dependent on their taxes.
    • You can access the FAFSA here.
  • Federal Stafford Loans

  • These are the bread and butter loans for medical school. There are two different types, subsidized and unsubsidized. Subsidized means that interest does not accrue on your while you are in medical school. You must demonstrate financial need to qualify for subsidized loans. Unsubsidized loans accrue interest during school.
  • You should use as much of these loans as possible during medical school. You do not have to repay these loans during school and you have the option to defer payment during residency.
  • Your school determines the amount of loan you can take out from these programs, based on the school’s calculation of “cost of attendance.” Be aware: If you are married or have children, the cost of living is generally not adjusted for that. It is based on the cost of living for a single student.
  • There are limits to the amount you can borrow while in school. The maximum for all four years of medical school is $138,500, with no more than $65,000 in subsidized loans
  • The interest rate on these loans is fixed at 6.8%
  • For more information about Stafford loans, click here.
    • Direct Plus Loans

      • This loan is also a federal loan that is meant to cover the remaining cost of attendance if you max out your Stafford loans.
      • Fixed interest rate of 7.9% and can defer payment during medical school and residency
      • You can apply for these loans on your own, or your parents can apply for this loan. For the parent PLUS loan, click here.
      • This is a good next step after Stafford loans before you move on to private loans. For more information on these loans for you, the student, click here.
    • Private Medical School Loans

      • There are many companies willing to lend medical students money. It’s a good investment for the loan companies.
        It is also a good and necessary option for many medical students, given the limits on the amount of federal loan
        available. There are some things to be aware of on this type of medical school loan.
      • The interest rate is variable. This means that while you may get a good introductory rate, the rate can change as quickly as every three months to a higher rate. This could mean paying significantly more in
        interest over time.
      • For a great site about available private loans with comparisons, click here.
    • Other Options and Paying Loans Back

      • Although you will likely have to take out some type of medical school loan, there are other options on financing your medical education. There include:
        • Medical School Scholarships
        • Armed Forces Programs
        • Loan Forgiveness/Repayment Programs

        For more information about these programs, click here.

      • You may also want to consolidate your medical school loans so that you are making one payment to one lender each month.

    Click here for more info about medical school loan consolidation

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