Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans Best Medical School Loans Updated Aug 02, 2024 13-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Anna Baluch Written by Anna Baluch Expertise: Mortgages, Personal loans, Debt management, Insurance, Student loans Anna Baluch is a personal finance writer with more than 10 years of experience. Her focus areas include mortgages, personal loans, debt management, insurance, and student loans. She spent three years working in SEO and marketing for a national home improvement company. Learn more about Anna Baluch Reviewed by Kyle Ryan, CFP® Reviewed by Kyle Ryan, CFP® Expertise: Comprehensive financial planning, tax planning, investment planning, retirement planning, estate planning Kyle Ryan, CFP®, ChFC®, is a co-owner and financial planner at Menninger & Associates Financial Planning. He provides his clients with financial products and services, always with his client's individual needs foremost in his mind. Learn more about Kyle Ryan, CFP® Medical school students can take out student loans from the federal government or private lenders. Compared to other graduate school loans, medical school loans tend to have higher borrowing amounts and more flexible repayment terms. We’ve researched the best medical school loans to help you find your needed funding. LenderBest forOur ratingDept. of EducationFederal student loansNot ratedCollege AvePrivate student loans5/5Sallie MaeCosigners4.8/5EarnestLarge loans4.7/5SoFiMember benefits4.7/5ELFIPersonalized support4.5/5 Federal loans for medical school The two types of federal student loans you can use for medical school are Direct Unsubsidized Loans and Direct Grad PLUS Loans. You can apply for federal medical school loans by completing the Free Application for Federal Student Aid (FAFSA) each year. We recommend maximizing federal student aid first because federal loans are available at low fixed interest rates and offer repayment flexibility. Federal student loans also offer additional perks like forbearance, deferment, and loan forgiveness. Once you’ve maxed out Direct Unsubsidized Loans, you can explore private student loans to fill in the gaps. Note that Direct Grad PLUS Loans come with higher interest rates and can be difficult to get if you have a shaky credit history. Direct Unsubsidized Loans vs. Direct PLUS Loans Direct UnsubsidizedDirect PLUSInterest rate8.08%9.08%Fixed or variable?FixedFixedAnnual loan limit$20,500Cost of attendance (minus other financial assistance)Loan fee1.057%4.228%Rates and limits as of 2024 The annual limit for Direct Unsubsidized Loans is $20,500 a year, and the current interest rate is 8.08% for Direct Unsubsidized Loans. If you need to borrow more than $20,500, you may take out Direct PLUS Loans to cover the remaining amount. However, you may forgo Direct PLUS Loans if you get a private student loan with a better interest rate or terms or can’t qualify based on your credit situation. Best private medical school loans 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 LendEDU Rating View Rates 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 terms5, 8, 10, or 15 years In-school repayment plansFull principal and interest, interest-only, flat, and deferredStatesAll 50 states Sallie Mae Best for cosigners 4.8 /5 LendEDU Rating View Rates 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 terms15 years In-school repayment plansDeferred, interest-only, and fixedStatesAll 50 states Earnest Best for large loans 4.7 /5 LendEDU Rating View Rates 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 terms5, 7, 10, 12, or 15 yearsIn-school repayment plansDeferred, interest and principal, interest-only, and $25 auto paymentsStatesAll 50 states SoFi Best for member benefits 4.7 /5 LendEDU Rating View Rates 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 Rates (APR)4.74% – 15.86%Loan amounts$1,000 – cost of attendance Repayment terms5, 7, 10, or 15 yearsIn-school repayment plansDeferred, interest only, partial, and immediateStatesAll 50 states ELFI Best for personalized support 4.5 /5 LendEDU Rating View Rates 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 terms5, 7, 10, or 15 yearsIn-school repayment plansImmediate, interest-only, fixed, and deferredStatesAll 50 states Read More 5 Best Graduate Student Loans: Federal & Private Grad PLUS loans vs. private loans for medical school Your unique situation will determine whether you should choose Grad PLUS or private loans to fund your medical school education. Grad PLUS loans often make more sense because they offer more repayment options, including income-driven repayment plans and federal protections, such as student loan forgiveness. However, if you have good credit and a stable income, you may be able to land a lower interest rate with a private student loan. Private loans might also be worth exploring if you’ve exhausted federal loan options and need to borrow additional funds. Ask the expert: Federal vs. private medical student loans Kyle Ryan CFP® Choosing between federal student loans and private loans with lower rates depends on the field you’re pursuing and who you believe your employer will be. If you intend to work for an employer that is a non-profit or government entity, you can qualify for Public Student Loan Forgiveness after 10 years. In that instance, lower interest rates and a longer deferment period with private loans mean next to nothing, so long as you can follow the PSLF path to forgiveness. How do medical school loans differ from standard graduate school loans? Compared to standard graduate school loans, medical school loans usually offer several in-school repayment options. Typically, you can defer your repayments, only pay interest, cover the interest and principal, or pay a small monthly amount, such as $25 or $100. Some lenders even allow you to defer your loan while completing a residency or fellowship. You can also expect longer loan terms and minimal-to-no fees. In addition, most lenders allow you to borrow up to the cost of attendance minus any financial aid you receive. Depending on the lender, you may have access to a personal loan advisor or financial planner. How to choose private student loans for medical school Choosing the right private student loans for medical school involves carefully considering and comparing various factors. Prequalifying with multiple lenders is essential to understand your options and ensure you get the best possible terms. Here’s a step-by-step guide to help you make an informed decision: Prequalify with at least three different lenders to determine the right private student loans for medical school. Compare your options by considering interest rates, fees, repayment options, terms, and special perks that may benefit you during medical school, residency, or fellowship. Read reviews from current and former borrowers to understand each lender’s reputation. If possible, calculate the overall cost of borrowing. Even if you don’t have a job lined up after medical school, consider your income potential and determine whether it’s feasible for you to make your repayments. Calculate how long it will take to repay your loan to understand what to expect once you graduate and begin your career as a doctor. Who is eligible for private medical school loans? Eligibility requirements for private medical school loans vary by lender, but typically you must: Be enrolled in an eligible medical school at least half time Be the age of majority in your state of residence Have a valid Social Security Number (SSN) or Tax Identification Number (TIN) Have good credit Apply with cosigner if you have no credit or poor credit Be considered in good standing by your school Have no previous student loan defaults How to get loans for medical school Here are the steps to get the loans you need for medical school. Check your credit: First, determine where you stand credit-wise. You can check your credit score for free through your credit card company or a free online monitoring service. Another option is to pull free copies of your credit reports from AnnualCreditReport.com. If you don’t have the best credit, you may need to find a cosigner to increase your chances of approval. Fill out the FAFSA: This will make you eligible for federal student loans. Be sure to complete the FAFSA by the deadline, or you won’t qualify for federal loans. Unlike your undergraduate application, you don’t need your parents’ information when applying for financial aid for medical school. Get your award letter: Your school’s award letter will show how much federal student loan funding you qualify for. Unless an adverse event appears on your credit report and you can’t add an endorser, you should qualify for Direct Unsubsidized Loans and Grad PLUS loans. Shop around: If you didn’t qualify for federal loans or need more than you were awarded, you’ll need to take out private medical school loans. Use the list of lenders above to compare medical school loan interest rates and repayment terms. Submit your application: Now it’s time to apply with a private lender. Be prepared to provide basic information about yourself, your finances, and your medical school. You might also need to submit documents like your government-issued ID and tax returns. Receive your loan: Once the lender contacts you and/or your medical school to confirm your information and the cost of attendance, they’ll likely send the funds to your school so they can apply them towards your tuition. It’s up to you to review your loan agreement and start making repayments when they’re due. Ask the expert: How much medical debt is too much? Kyle Ryan CFP® How much medical school loan debt you can take on depends on the income you anticipate earning. Naturally, pursuing a fellowship after residency is several years in school and will rack up student loans. Project your expected income vs. how much your student loan payments will be once you’re out of fellowship or residency. Understand what your monthly payment on those loans will be, then determine if your future income makes that worthwhile and affordable. Far too often, I see doctors who make decent money, but their student loans are higher than their salaries. This can be a difficult hole to climb out of—especially if you never qualify for forgiveness. Read More Student loans for medical school in the Caribbean and Physician Assistant student loans Medical school loans FAQ Do I need a cosigner for medical school loans? Federal student loans generally don’t require a cosigner. However, if you take out a Direct PLUS loan, your credit history is checked for adverse actions, such as bankruptcy or default. If you have one of these events, you may need to add an endorser, similar to a cosigner. Eligibility for private medical school loans depends on your credit score. If you haven’t had a chance to build a good credit score, you will likely need a cosigner. Do medical school loans cover living expenses? You can use most student loans, including federal and private, to pay for living expenses. Some private lenders also offer relocation loans when transitioning from medical school to residency. Try to limit your living expenses so you can minimize the amount you need to borrow. When does repayment on medical school loans start? Most student loan providers don’t require repayment until six months after you graduate or leave school, referred to as the grace period. Some lenders offer longer grace periods on medical school loans, such as College Ave (36 months) and Earnest (9 months). How much can I borrow with medical student loans? The amount you can borrow in medical school loans may depend on the type of loan. Borrowers who qualify for federal Direct PLUS loans can borrow up to the annual cost of attendance, and most private lenders also let students borrow up to the annual cost of attendance. 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 LenderLendEDU ratingCollege Ave5/5Sallie Mae4.8/5Earnest4.7/5SoFi4.7/5ELFI4.5/5