The Best Private Medical School Loans in 2025: How They Work and How to Choose the Best Option

While federal loans can help pay for medical school, their high interest rates and fees mean they aren’t always the most affordable option. If you have strong credit or a willing cosigner, private loans may offer lower rates and better overall costs. In this guide, we’ll break down our top picks for private medical school loans work, how they work, and when they could be a smarter fit for your education financing.

Table of Contents

1. The 5 best private loans for medical school
   1. College Ave
   2. Sallie Mae
   3. Earnest
   4. SoFi 
   5. ELFI
2. How do medical school loans work?
3. Can you get medical school loans without a cosigner?
4. Private vs. federal loans for medical school
5. Who is eligible for private medical school student loans?
6. Alternatives to medical school student loans
7. How to get loans for medical school
8. FAQ

The 5 best private loans for medical school

We researched and reviewed the best graduate school loans to help you find the best fit for medical school. Here are our picks.

College Ave

Best Overall

5.0 _/5

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Why it’s one of the best

College Ave is a private student lender offering various student loan products. The company offers specific loans for medical school students. College Ave medical school loans can go as high as the cost of attendance minus any federal student aid you receive.

You can prequalify and check your rate without hurting your credit score.
College Ave offers a cosigner release program, a wide range of repayment terms, and in-school monthly payment plans. Its interest rates are also in line with those of its competitors. You can also defer your loans for the entire time you’re in residency and fellowship (up to 36 months), so you don’t need to worry about making student loan payments while your income is at its lowest point. 

College Ave also offers a medical residency and relocation loan to help cover costs between graduation and your first residency. Repayment terms range between five and 20 years, and a cosigner release is available after half your repayment period.

• Full deferment is available during residency and fellowship
• Choose between 20 repayment schedules
• 36-month grace period

Loan details

Rates (APR)	4.22% – 14.49%
Loan amounts	$1,000 – cost of attendance
Repayment terms	5, 8, 10, or 15 years
In-school repayment plans	Full principal and interest, interest-only, flat, and deferred
States	All 50 states

Sallie Mae

Best for Cosigners

4.8 _/5

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Why it’s one of the best

Sallie Mae offers medical school loans for those studying allopathic, general, osteopathic, podiatric, radiology, sports, and veterinary medicine, even if they’re enrolled for less than half time. The loans come with several unique benefits. Sallie Mae allows borrowers to release cosigners after just 12 months of payments, the lowest requirement among all lenders on this list.

It also allows a 36-month grace period and a 12-month period where borrowers can make interest-only payments, benefits that provide flexibility. You can defer payments for 48 months during your residency or fellowship.

For additional financial assistance, Sallie Mae also offers a medical residency and relocation loan of up to $30,000 to help you finance your move after med school graduation. Sallie Mae’s 0.25% rate discount when you enroll in autopay can keep your monthly payments lower during the early years of your medical career. A medical residency and relocation loan is available as well. 

• Release your cosigner after making 12 consecutive on-time payments
• 36-month grace period and 48-month deferment during your residency or fellowship

Loan details

Rates (APR)	4.15% – 14.97%
Loan amounts	$1,000 – cost of attendance
Repayment terms	15 years
In-school repayment plans	Deferred, interest-only, and fixed
States	All 50 states

Earnest

Best for Large Loans

4.7 _/5

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Why it’s one of the best

Earnest is an online lender that offers medical school loans with a wide range of repayment terms and four, flexible in-school monthly repayment options. One of the most unique benefits is that you can skip one payment each year for free to put the extra funds toward a short-term savings goal, such as a vacation.

Unlike other lenders on this list, Earnest does not offer cosigner release. If you have a medical school loan with a cosigner, you must refinance into a new loan to remove the cosigner. However, you can defer payments during your residency or internship. Its nine-month grace period is longer than many other lenders. 

Earnest also offers benefits during the repayment period, which can be helpful for recent med school grads. Enrolling in autopay can save you 0.25% on your interest rate. Earnest charges no fees, including for late payments. 

• Skip one payment per year if needed
• No fees
• Check your rate without hurting your credit

Loan details

Rates (APR)	4.17% – 16.85%
Loan amounts	$1,000 – cost of attendance
Repayment terms	5, 7, 10, 12, or 15 years
In-school repayment plans	Deferred, interest and principal, interest-only, and $25 auto payments
States	All 50 states

SoFi 

Best for Member Benefits

4.7 _/5

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Why it’s one of the best

SoFi offers a specific loan for students pursuing a medical degree. This loan has a nine-month grace period, giving medical students the flexibility to find a job and settle into their careers.

Other benefits include financial planning services, rate discounts on additional loans, and networking events. Students can check their rates online in minutes without affecting their credit scores.

• Financial planning services for members
• Rate discounts if you need additional loans
• Check your rate without affecting your credit

Loan details

Fixed Rates (APR)	3.54% – 14.83% with all discounts included
Variable Rates (APR)	4.64% – 15.86% with all discounts included
Loan amounts	$1,000 – cost of attendance
Repayment terms	5, 7, 10, or 15 years
In-school repayment plans	Deferred, interest only, and immediate
States	All 50 states

ELFI

Best for Personalized Support

4.5 _/5

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Why it’s one of the best

ELFI offers healthcare and medical resident student loans. They’re available to aspiring doctors, dentists, registered nurses, and other healthcare students. 

As long as you’re enrolled at least half time, you can enjoy competitive rates by enrolling in digital payments and choose from four in-school repayment options. 

ELFI allows you to prequalify online without any impact on your credit, and you don’t have to worry about any origination, application, or prepayment fees. A Personal Loan Advisor can answer any questions you have and guide you through the process. 

• Check your rate without any negative impact on your credit
• No fees
• Access to a Personal Loan Advisor

Loan details

Rates (APR)	4.50% – 14.22%
Loan amounts	$1,000 – cost of attendance
Repayment terms	5, 7, 10, or 15 years
In-school repayment plans	Immediate, interest-only, fixed, and deferred
States	All 50 states

How do medical school loans work?

Private medical school loans work by offering financing based on your creditworthiness (or a cosigner’s), rather than need-based eligibility. Lenders approve you for a specific amount, often up to the full cost of attendance, with a fixed or variable interest rate based on your credit profile.

Most private lenders allow you to defer full payments while you’re in school and during residency, although interest will still accrue. Some offer flexible repayment options like partial payments or extended terms once you enter full repayment.

Unlike federal loans, private loans aren’t tied to forgiveness programs or income-driven plans, so managing interest during school and choosing the right repayment strategy is key to keeping costs down.

Can you get medical school loans without a cosigner?

Yes, it’s possible to get private medical school loans without a cosigner—but it can be more difficult. Many medical students have limited credit histories or low income while they’re still in school, making it harder to qualify for a loan or secure the lowest rates on their own.

Some private lenders offer no-cosigner loans, especially if you have excellent credit, a steady income, or strong future earning potential. However, adding a cosigner—like a parent or close family member—can boost your chances of approval and help you lock in better rates and terms. Some lenders also offer cosigner release after you make a certain number of on-time payments, allowing you to remove the cosigner later.

Before deciding whether to apply with or without a cosigner, it’s worth considering how your choice could affect your loan terms—and how private loans compare to federal loans for medical school.

Private vs. federal loans for medical school

Federal loans are a smart starting point for most medical students. They offer built-in protections like income-driven repayment plans and Public Service Loan Forgiveness (PSLF), which can be especially valuable if you expect a lower income during residency or plan to work for a nonprofit hospital.

If you think you’ll need flexible repayment options, qualify for forgiveness, or simply want more safety nets, it’s wise to prioritize federal loans first—even if the interest rates are higher.

Private loans can make more sense if you or a cosigner have excellent credit and a stable financial outlook. If you’re confident you won’t need PSLF or income-driven plans, a private loan with a lower interest rate and no fees could save you significant money over time. Many students use private loans to cover costs once they’ve maxed out lower-cost federal options—or skip Grad PLUS loans altogether if private loan offers are clearly better.

TL;DR

Choose federal loans if you want repayment flexibility or might qualify for forgiveness. Choose private loans if you can get a much lower rate and have a clear repayment plan.

When deciding between federal versus private student loans, consider our anticipated career path, expected income, and financial goals. If you are uncertain about working in a setting eligible for loan forgiveness programs, I generally recommend starting with federal loans to maintain flexibility. If your financial situation warrants it in the future, you can consider refinancing or consolidating into private student loans when it becomes a more beneficial option.

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Who is eligible for private medical school student loans?

Private student loan eligibility requirements for medical students are standard as far as private loans go. They’ll vary by lender, but in general, expect the following requirements:

• Locations: Many lenders may operate in specific states. Earnest, for example, doesn’t lend in Nevada.
• Age and citizenship: Med school lenders typically require U.S. citizenship or permanent resident status. You’ll also need to be the legal age of majority in your state.
• Program: Lenders usually require enrollment in specific medical programs. College Ave, for instance, awards loans to students pursuing their MD, DO, DVM, VMD, or PM degree. Some lenders may require at least half-time enrollment; others, including Sallie Mae, will let you borrow even if you’re in school less than half-time.
• Minimum borrowing amount: While private lenders typically lend up to your cost of attendance, they may also have a minimum borrowing requirement. SoFi’s med school loans start at $1,000.
• Creditworthiness: This is the biggie. Qualifying for a private medical school loan requires good credit. For instance, Earnest requires a minimum credit score of 650. If you don’t meet credit score requirements, you may need to add a cosigner with good credit. Many lenders have cosigner release options for down the road.

And, of course, before applying for a private medical school loan, you’ll first need to fill out the FAFSA, factor in family contributions (including 529 savings), and apply for grants and scholarships.

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Alternatives to medical school student loans

If private student loans don’t make sense for your situation, there are other ways to fund medical school. Here are options to consider:

Scholarships and grants

Federal financial aid may include some grants and scholarships, but that might not be enough to cover your costs. If you need additional funding, look for scholarships from medical associations, nonprofit organizations, hospitals, and private foundations. 

Many medical schools also offer their own scholarships based on merit or need, so check with your school’s financial aid office.

Choose a more affordable medical school

Medical school costs vary, and some programs are much cheaper than others. If you’re flexible, consider attending a public medical school in your home state, which often has lower tuition for residents. 

Some schools even offer tuition-free programs or reduced costs if you commit to working in an underserved area after graduation. NYU Grossman School of Medicine, for example, offers full-tuition scholarships to all its students, regardless of financial need or merit.

Service-based programs

Some programs will cover part or all of your medical school costs in exchange for a commitment to work in a specific area after graduation. The National Health Service Corps (NHSC) scholarship, the military’s Health Professions Scholarship Program (HPSP), and certain state loan forgiveness programs are all worth looking into.

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How to get loans for medical school

If you need loans to cover medical school costs, here’s a simple step-by-step guide to securing funding:

1. Fill out the FAFSA

Start by completing the Free Application for Federal Student Aid (FAFSA) to access federal student loans. Even if you don’t think you’ll qualify for need-based aid, this is the key to getting federal loans, which often have better repayment terms than private options.

2. Review your financial aid package

Your school’s financial aid office will determine how much federal aid you qualify for. Since federal loans typically offer lower interest rates and better repayment flexibility, it’s best to use these first.

3. Explore scholarships, grants, and service-based aid

Before taking out private loans, look for scholarships, grants, and service-based programs that can reduce your borrowing. Many medical schools, nonprofit organizations, and government programs offer funding in exchange for commitments like working in underserved areas after graduation.

4. Consider private loans if needed

If federal loans and other aid don’t fully cover your costs, private student loans can help fill the gap. Compare lenders based on interest rates, repayment flexibility, and borrower protections. If you have a creditworthy cosigner, you may qualify for better terms.

5. Borrow only what you need

Medical school is expensive, but overborrowing can make repayment more challenging later. Stick to borrowing only what’s essential for tuition and necessary living expenses.

6. Plan for repayment early

Even though you won’t have to start repaying loans until after school (or after residency, in some cases), it’s helpful to have a strategy. Look into income-driven repayment plans, loan forgiveness programs, and refinancing to keep future payments manageable.

The most common situation I encounter new doctors face when juggling student loans isn’t necessarily a pitfall, but rather a short-term income-to-repayment gap. Early in their career, a student’s income may be lower than anticipated, making it challenging to meet loan repayment obligations. This scenario provides a strong reason to begin with federal student loans, as they offer more flexible repayment options to manage such challenges.

FAQ

Which loan is best for medical school?

Federal loans are worth considering first because they offer safeguards, including income-driven repayment and forgiveness programs. Most med students use Unsubsidized or PLUS Loans, which can cover the cost of attendance despite higher rates. If these don’t meet your needs, explore private student loans—but always compare lenders to ensure you get the best deal.

Do medical school loans cover living expenses?

Yes, student loans for medical school can cover tuition, fees, and living expenses, including rent, food, and transportation. Your school sets a cost of attendance (COA), which determines the maximum amount you can borrow, including money for living costs. Borrow wisely to avoid excessive debt.

How long will it take me to repay my medical school loans?

It depends on your loan balance, repayment plan, and career path. Standard repayment takes about 10 years, while income-driven plans can extend up to 20 or 25 years but may include forgiveness. Working in public service could qualify you for PSLF after 10 years of payments. 

If you have strong credit, refinancing with a private lender might let you pay off loans faster (five to 20 years), but you’ll lose federal protections.

How do medical school loans affect my future borrowing ability as a doctor?

Your student loans influence your debt-to-income ratio (DTI), which lenders use when evaluating mortgage and business loan applications. However, many lenders understand that doctors have high earning potential and offer physician mortgage loans or other specialized financing options with more flexible DTI requirements. If your monthly payments are manageable, your medical school debt shouldn’t stop you from borrowing for a home or practice in the future.

How we chose the best loans for medical school

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best medical school student loans