When you decide to go to pharmacy school, understanding the expenses involved is an important first step. The second step? Figuring out how to pay for those costs. Student loans for pharmacy school are a solution to help you finance your education.
Many students who want to pursue a career in pharmacy need to borrow money to pay for their undergraduate and graduate education. In fact, according to the American Association of Colleges of Pharmacy (AACP), the average pharmacy school graduate walked the stage in 2021 with $173,561 in student loan debt. If footing that bill on your own seems impossible, there are several lenders who offer loans for pharmacy students.
When it comes to loans for higher education, it’s usually best to utilize any available federal loans before considering private student loans. Federal loans have several benefits that private lenders don’t usually offer, and may be available to student borrowers with a limited credit history or income.
In this guide:
- Federal student loans for pharmacy school
- Best private student loans for pharmacy school
- How to get loans for pharmacy school
- Frequently asked questions about student loans for pharmacy school
Federal student loans for pharmacy school
Federal student loans, which are offered by the U.S. Department of Education (ED), usually have lower interest rates than private loans. They also come with many built-in features, such as income-driven repayment plans and loan forgiveness.
To find out if you’re eligible for federal student aid, and if so, how much you can get, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA).
The government offers two types of loans that you can use to pay for pharmacy school. Keep in mind that there are federal loan limits, so you may not be able to cover all of your education costs with federal loans.
Direct Unsubsidized Loans
Most students are eligible for Direct Unsubsidized Loans, one of the many federal loans available to undergraduate and graduate students. These loans often have the lowest interest rates of any student loans, so it makes sense to max these out before turning to other sources of funding.
Pharmacy students can borrow up to $20,500 per year in Direct Unsubsidized Loans, with an aggregate maximum of $138,500. Some students in specific health profession programs may qualify for higher limits.
Here’s a look at what these loans offer:
- Interest rates: 6.54%
- Origination fee: 1.057%
- Interest type: Fixed
- Eligibility: Based on school & program; not dependent on credit score
- Repayment terms: 10 – 25 years
Direct Grad PLUS Loans
Many pharmacy students can also receive Grad PLUS loans, which charge a higher rate than Direct Unsubsidized Loans. Despite the higher rate, these federal loans are usually still better than private loans because they’re eligible for the same repayment plans as other federal loans, such as income-driven repayment.
With Grad PLUS loans, students can borrow up to 100% of their school’s certified cost of attendance. Borrowers cannot have an adverse credit history and must be enrolled at least half-time in an eligible program.
Here’s what Grad PLUS loans offer:
- Interest rates: 6.28%
- Origination fee: 4.228%
- Interest type: Fixed
- Eligibility: Based on school & program + credit check to look for adverse credit history such as bankruptcies
- Loan amounts: Based on your school’s cost of attendance
- Repayment terms: 10 – 25 years
HRSA Health Professions Student Loans
The Health Resources & Services Administration (HRSA) offers two types of loans for people pursuing a career in medicine. One is available to all students pursuing education in medicine, while the other is targeted specifically at disadvantaged students.
The HRSA works with schools to provide these loans to students, so you can inquire directly with your school’s financial aid office to find out which options are available.
HRSA Health Professions Student Loans are available to students pursuing education in health-related fields like veterinary studies, dentistry, and pharmacy.
- Interest type: Fixed
- Eligibility: Based on school and program
- Loan amounts: 100% of the school-certified cost of attendance
- Repayment terms: 10 – 25 years
- Grace period: 12 months
HRSA Loans for Disadvantaged Students
HRSA Loans for Disadvantaged Students are designed specifically for students who demonstrate a significant need for financial assistance in order to attend a program in a health-related field such as pharmacy.
Eligible individuals include those from disadvantaged backgrounds and those who are below low-income thresholds.
- Interest type: Fixed
- Eligibility: Based on school, program, and financial need
- Loan amounts: 100% of the school-certified cost of attendance
- Repayment terms: 10 – 25 years
- Grace period: 12 months
Best private student loans for pharmacy school
Maxing out your federal student loan options including any available HRSA loans should be a priority. If those loans are not available or aren’t enough to cover your educational expenses, though, you may need to turn to private loans.
Private student loans are offered by various lenders, such as banks, credit unions, and online lenders. These loans are not offered by the government and may have higher interest rates and eligibility requirements; however, they can also provide you with much-needed funding to bridge the gap.
When applying for private loans, your credit score is important to determine whether you qualify for the loan as well as how much interest you’ll pay. A cosigner can help you qualify and save on your interest rates.
Many lenders also offer loans specifically designed for different schools and academic programs. These are worth exploring if your school and course of study are eligible.
College Ave
Editorial Selection: Best Overall
- Choose between 20 repayment schedules
- Deferment is available during residency
- Apply in just 3 minutes
College Ave is a lender that focuses specifically on student loans. Its Graduate Health Professions student loan can be used for pharmacy school and comes with both fixed and variable interest rates, and flexible repayment options.
- Fixed rates (APR): 3.99% – 11.46%
- Variable rates (APR): 1.99% – 10.45%
- Loan amount: $1,000 – 100% of the school-certified cost of attendance
- Repayment terms: 5, 8, 10, 15, or 20 years
- Rate reduction: 0.25% for enrolling in automatic payment
- Fees: Late payment fee of 5% of the unpaid amount or $25, whichever is less
- In-school repayment: Full principal & interest, interest-only, flat $25, or deferred payment
- Grace period: Nine months
What stands out about College Ave’s pharmacy school loan
College Ave’s Health Professions student loan offers repayment terms of 5, 8, 10, 15, or 20 years, and can cover up to 100% of your educational costs. While in residency, you can even request an additional 48 months of payment deferment.
The American Association of Colleges of Pharmacies (AACP) has partnered with College Ave to make student loans more obtainable for pharmacy students.
Who’s eligible for College Ave’s pharmacy school loan
To qualify for a College Ave pharmacy school loan, students need to be a U.S. citizen or permanent resident, or have a cosigner who meets that standard. The students must be enrolled in and attending classes at an eligible school, either full-time, half-time, or less than half-time, and must demonstrate satisfactory academic progress. Students and/or their cosigners must also meet certain credit requirements.
Earnest
Editorial Selection: Best for Skipping a Payment
- Skip one payment per year, if needed
- No fees
- Check your rate without impacting your credit
Earnest offers graduate student loans for medical students. The company has competitive rates, offers a grace period of nine months after you leave school, and gives you the flexibility to skip up to one payment each year if necessary. Check your eligibility in two minutes, with no commitment or effect on your credit.
- Fixed rates (APR): 3.24% – 12.78%
- Variable rates (APR): 1.34% – 11.44%
- Loan amounts: $1,000 – 100% of the school-certified cost of attendance
- Repayment terms: 5, 7, 10, 12, or 15 years
- Rate reduction: 0.25% automatic payment discount
- Fees: None
- In-school repayment: Principal & interest, interest-only, fixed $25, or deferred payment
- Grace period: Nine months
What stands out about Earnest’s pharmacy school loan
Although Earnest doesn’t offer a pharmacy school-specific loan, their graduate student loans can cover educational expenses for pharmacy school students. They allow students to borrow anywhere from $1,000 to 100% of school-related costs and have a longer grace period than other loan programs.
Who’s eligible for Earnest’s pharmacy school loan
Students must be U.S. citizens or permanent residents, or have a cosigner who meets that standard. Borrowers or their cosigners must also have an annual income of $35,000 or more, and a FICO credit score of at least 650. Students must also be enrolled at least half-time in their pharmacy school program.
Sallie Mae
Editorial Selection: Best for Cosigners
- 48-month deferment during internships or fellowship
- Cosigners can be released after 12 on-time payments
- In-school repayment plans can result in a lower interest rate
One of the most well-known names in student loan funding, Sallie Mae offers several types of student loans. While this lender doesn’t have a pharmacy school-specific loan option, they do offer graduate school loans for health professions, including pharmacists.
- Fixed rates (APR): 4.25% – 12.92%
- Variable rates (APR): 2.50% – 12.22%
- Loan amounts: $1,000 – 100% of the school-certified cost of attendance
- Repayment terms: 15 years
- Rate reduction: 0.50% rate reduction for making interest-only payments while still in school, 0.25% automatic payment discount
- Fees: None
- In-school repayment: Principal & interest, interest-only, fixed $25, or deferred payment
- Grace period: Six months
What stands out about Sallie Mae’s pharmacy school loan
Sallie Mae pharmacy school loans can help pay for up to 100% of your eligible, school-certified expenses with a repayment term of 15 years. Loans have a six-month grace period as well as 48 months of deferment during internships and fellowships. Cosigners can be released after just 12 on-time, consecutive payments.
Who’s eligible for Sallie Mae’s pharmacy school loan
Students or their cosigners must be U.S. citizens or permanent residents, and meet certain credit criteria. Students must be enrolled at least half-time if they want to borrow for miscellaneous expenses (such as a laptop for classes).
Ascent
Editorial Selection: Best for Eligibility
- Receive 1% cash back upon graduation
- No application, origination, or disbursement fees
- Check your rate without impacting your credit
Ascent is a student loan lender offering undergraduate and graduate loans to student borrowers in a variety of degree programs including pharmacy school. Here’s what to expect from these loans:
- Fixed rates (APR): 3.27% – 14.75%
- Variable rates (APR): 0.98% – 11.80%
- Loan amounts: $2,001 – $400,000
- Repayment terms: 7, 10, 12, or 15 years
- Rate reduction: 0.25% automatic payment deduction; this increases to 1.00% for outcomes-based loans
- Fees: None
- In-school repayment: Principal & interest, interest-only, fixed $25, or deferred
- Grace period: Nine months
What stands out about Ascent’s pharmacy school loan
Ascent graduate school loans can provide between $2,001 and up to 100% of your educational expenses (to a maximum of $400,000) with repayment terms of 5, 10, 12, or 15 years. Students can apply with or without a cosigner and loans are even available as outcomes-based (meaning that credit isn’t the only qualifying consideration). Cosigners can be released after 12 consecutive on-time payments, and students can qualify for a 1% cash back reward at graduation.
Who’s eligible for Ascent’s pharmacy school loan
Students and/or their borrowers will need to be U.S. citizens, permanent residents, or DACA students to qualify. They will also need to meet credit requirements, and students must be enrolled at least half-time in an eligible institution.
>> Read More: Types of student loans
How to get loans for pharmacy school
If you know that you’ll need to turn to loans in order to pay for pharmacy school, here are the steps to take:
- Fill out a FAFSA. The Free Application for Federal Student Aid is an annual form that helps the Department of Education determine your financial need. This may unlock your access to certain loan products, grants, and more according to your level of need, and is required if you plan to take out federal student loans.
- Utilize federal loans. Federal student loans often have lower interest rates (making them cheaper than private loans) in addition to lower credit requirements and better loan features. Maxing out your available federal loans is often a wise choice.
- Shop around for private loans. If your federal loans and other funding options (such as college savings, grants, or scholarships) don’t cover all of your expenses, you may then need to turn to private student loans for pharmacy school. If this happens, shop around first; this can help you find the best possible terms and rates for your individual situation.
- Apply for your loan. Once you’ve found (and even been preapproved) for a private loan, it’s time to apply and get final approval. Your lender may ask you to upload certain documentation, and may also reach out to your school for confirmation.
Your lender will disburse your new loan directly to your school, where it will be applied to any tuition balance or fees that may be on your account. Any remaining funds will typically be refunded to you in the form of cash, check, or ACH.
Frequently asked questions about student loans for pharmacy school
Which pharmacy school loan is the best?
The best pharmacy school loan for you is the one that offers the best possible terms and rates. In general, students should take out federal student loans first, as they have many protections and features that private student loans don’t have. After all scholarships, grants, and federal loans have been applied, students should aim to find the private loans that have the lowest interest rates and best repayment terms.
Do I need a cosigner for pharmacy school loans?
For borrowers with a limited credit history, limited income, or who are international students, a cosigner is often required. This cosigner will need to meet certain criteria, but they can often be released from their obligation to the debt after a certain number of on-time payments are made.
Do pharmacy school loans cover living expenses?
Housing is an eligible expense that can be covered with pharmacy student loans. Depending on the type of loans you take out and how much those lenders allow, you may need to consider additional private loans to pay for living expenses if your tuition and other school costs exceed your initial loan’s limits.
How much can I borrow with pharmacy student loans?
Federal student loan programs limit how much you can borrow; in most cases, this is maxed out at $20,500 per year. Private student loans may cover up to 100% of your school-certified expenses, often with no maximum limit.
When does repayment on pharmacy school loans start?
If you withdraw from pharmacy school or, in some cases, drop enrollment below half-time, you may enter your loan’s grace period. In many cases, this is between six and nine months, after which time your repayment will start. However, if you are in an internship, residency, or fellowship, most lenders will allow you to defer your repayment until that is complete.
Are there any other programs that help pay for pharmacy school?
There are many different grants and scholarships that can help pay for pharmacy school, which can be utilized before you even turn to student loans. There are also many state-specific programs that offer to forgive a portion of your pharmacy school student loan debt in exchange for your promise of employment in a lower-income/high-need area or facility.