Paying for medical school is not simple. For most doctors, medical school loans are a big part of their lives. Best Medical School Student Loans
Going to medical school costs a lot of money. There’s no way to get around that. However, doctors (in general) also make a lot of money after they graduate, which could make the exorbitant fees worth it.
Doctors who are about to graduate have an average of $202,000 in student loan debt. And then you have to spend years in residency, when you only make approximately $60,000 a year, before you can truly start making a lot of money.
Because of this, you should learn about the best ways to pay for medical school and your medical degree. Taking out $200,000 in school debts and waiting years to pay them back may seem scary, but you could be able to make more money in the future.
But you will be a doctor! You’ll be saving lives! Let’s talk about managing your money and getting the best loans for med school. Best Medical School Student Loans
How To Pay For Medical School (Order Of Operations)
There is a smart order of operations to pay for medical school. We’ll go into more detail below, but you should generally follow this order. Best Medical School Student Loans
Honestly, this order of operations applies for paying for college in general as well.
- Your Own Savings
- Scholarships And Grants
- Direct Student Loans
- Grad PLUS Student Loans
- Private Student Loans
Of course, there are always variations on a theme, but in general, this is the order you should follow when paying for medical school and getting student loans for your medical degree.
Your Own Savings
The first place to start is your own savings. I know this won’t get you far, but if you’ve worked in high school or during undergrad, you might have a nice bit of money saved up that can help offset the costs of medical school. Best Medical School Student Loans
It’s important to note that you shouldn’t be depleting your savings to pay for school. It’s important that you keep an emergency fund to cover your expenses should something happen. I’ve seen too many issues where a car accident or some other unexpected event puts you out of commission for months. That’s why having an emergency fund is so important – even for students.
Scholarships And Grants
Sadly, there are not a lot of scholarships and grants to pay for medical school. But there are some.
After your own savings, you should see if you can qualify for any scholarships and grants. There are a number of scholarships that are directed towards medical students, but don’t ignore other scholarship and grant opportunities as well.
Using grants to pay for college is a great (and underutilised) opportunity to save money on the cost of going to school.
And there are other scholarships that you might qualify for. We have our Side Hustlin’ Student Scholarship that is geared towards entrepreneurial college students. Best Medical School Student Loans
The bottom line is that you should look outside the box when applying for scholarships.
Direct Student Loans
After you’ve exhausted your own money (between savings, working, and scholarships), it’s time to consider student loans.
When looking at student loans, you should always start with Federal loans. The best Federal student loans are Direct Loans. You can get these student loans by filling out the FAFSA. Best Medical School Student Loans
Direct Unsubsidized Loans are available to graduate and professional students and are distributed to individuals regardless of financial need. Direct Loans have a strict borrowing limit for graduate students of just $20,500 per academic year, and $50,000 for professional students per year.
Starting in 2026, there are lifetime caps being set at $100,000 for graduate students, and $200,000 for professional students.
That’s likely going to be only about half of what you need each year. But these are the best loans because they offer income-driven repayment plans, hardship and deferment options, and are potentially eligible for student loan forgiveness for doctors. Best Medical School Student Loans
Grad PLUS Student Loans
Note: Grad PLUS Loans are being phased out starting in July 2026. Medical school students will only be able to use Direct Graduate student loans moving forward. There is a grandfather clause of three academic years if you already have at least one Grad PLUS loan.
After you’ve taken advantage of the Direct Loans up to their maximum, it’s time to look at Grad PLUS Student Loans. Best Medical School Student Loans
These loans can be take out to cover the maximum cost of attendance (according to your school’s financial aid office), minus any other financial aid received. For most medical students taking out student loans, Direct PLUS Loans can make up the difference of what’s needed to pay for college.
A Direct PLUS Loan does require a credit check, so if you have a poor credit history, you may need a cosigner to help you with the student loan.
Direct PLUS Loans have some of the highest interest rates for Federal loans, so it’s important to consider that when borrowing. If you have excellent credit, you might want to consider other options now or later.
But these loans are great partners to Direct Loans. They also offer income-driven repayment plans and hardship options and are potentially eligible for loan forgiveness programs like Public Service Loan Forgiveness. Best Medical School Student Loans
HRSA Primary Care Loan
We didn’t include this loan in our chart for how to pay for medical school, but it’s important to note it’s existence for the right borrowers. The Health Resources and Services Administration (HRSA) provides low cost loans to medical students who meet certain criteria. Best Medical School Student Loans
This programme provides long-term, low-interest rate loans to full-time, needy students to pursue a degree in allopathic or osteopathic medicine.
Students who receive loans must agree to enter and complete residency training in primary care within four years after graduation, and practice primary care for ten years or until the loan is paid in full, whichever occurs first.
As such, it might not be the right choice for everyone, but it’s definitely an option for some. You can learn more about the HRSA Loan Program here. Best Medical School Student Loans
Private Medical School Student Loans
Some medical students cannot solely rely on Federal loans to pay for medical school.
Either they exhaust Federal loan limits due to their school’s cost, they need more funds to cover living expenses while attending school, or they need more time to complete their education (which increases cost).
Others may find more value in taking on private loans given their excellent credit and ability to repay. In this case, private student loans may be a cheaper alternative due to low interest rates and excellent borrower programmes.
There are two great private medical student loan providers we recommend: Best Medical School Student Loans
Sallie Mae
Sallie Mae is probably one of the most well-known lenders on this list. They are the nation’s largest private student loan lender by loan volume. As a result, they also offer some of the most competitive private student loans out there.
You can take out Sallie Mae student loans starting at just $1,000 (which is one of the lowest) and can borrow up to the total cost of education². Sallie Mae has a variety of repayment plans to select from, they offer residency or internship deferments in 12-month increments, limited to a total of 48 months of deferment⁴, and 12-months of interest-only payments after your grace period ⁵. Best Medical School Student Loans
Ascent Student Loans
Ascent Student Loans is a solid choice as a private lender – as they great graduate student loans for medical school. They also offer a solid loan amount range from $2,001 to $400,000*, competitive rates, and easy repayment terms.
They offer loans starting at a minimum of $2,001* and provide a 48-month loan deferment while in school, along with a grace period that allows postponing full principal and interest payments for up to 36 months after graduation, up to 9 months after leaving the program, or if enrolment drops to less than half-time.
Medical School Loans For International Students
International students cannot get US Federal Student Loans. As a result, international medical students who need assistance have to look at private medical school loans. But again, this can be a real challenge, as most traditional lenders require borrowers to be US citizens. Best Medical School Student Loans
However, there are two options for international student loans. Prodigy allows international medical students to borrow up to $220,000. They also don’t require a US cosigner and have various repayment options. Check out Prodigy here >>
Another option is MPower. They have a lower lifetime limit of $100,000, but also may be a good choice for international students.
Shop And Compare
There used to be more medical school-specific lenders, but the student loan marketplace is changing. Beyond these lenders, you might have luck comparing your options on platforms like Credible or Splash. Best Medical School Student Loans
Between Credible and Splash, you can compare many lenders in the market.
Medical Residency Loans
After you finish medical school, you must do your residency in order to become a doctor. However, traditional student loans don’t cover residency, and your small salary may not be enough for you depending on what your needs are (and those of your family). You might also have to relocate for your residency, and have other fees as well. Best Medical School Student Loans
That’s where medical residency and relocation loans come in. They can help you cover the costs of moving and relocating for residency, as well as help pay for any exam fees and more.
For example, the Sallie Mae Medical Residency and Relocation Loan will provide up to $30,000 to cover board examination fees, travel, and moving expenses for your medical residency. Check out this Salle Mae option here >>
We have a full guide on this here: Where to Find Medical Residency and Relocation Loans >>
Medical School Student Loans After Graduation
If you’re finding this article after you’ve already taken out loans for medical school, you might consider student loan refinancing.
But first, you might want to speak with a financial planner that understands medicine. Best Medical School Student Loans
If you have private loans or high-interest Federal Loans (like the Direct PLUS Loans mentioned above), refinancing might allow you to lower your payment or save on interest on your medical school loans. Through refinancing, you take out a new student loan from a private lender and use it pay off your other loans. With the new student loan, you may qualify for a lower interest rate, better repayment term, or lower monthly payment. Best Medical School Student Loans
If you have Federal student loans, refinancing will cost you the ability to apply for an income-driven repayment plan or forbearance. That’s why, for many borrowers, we don’t think you should refinance your Federal student loan for a private student loan. Best Medical School Student Loans
However, doctors are the exception to the rule. Doctors will make a significant amount of money once they start in practice. For many, this means they would benefit more from getting a student loan with a low interest rate versus keeping a Federal student loan.
For example, Direct PLUS Graduate loans currently have an interest rate of 8.048%. But you can refinance with Credible and potentially get a lower interest rate!
See if Credible makes sense to refinance. You can shop loans in 2 minutes. As a bonus to College Investor readers, you’ll get up to a $1,000 gift card bonus when you refinance with Credible. See terms. Check out Credible today.
Final Thoughts
While the thought of borrowing so much money to pay for school can be exhausting, remember the prize at the end of the tunnel. You’ll be earning a significant amount of money after graduation, and you’ll be able to afford your student loan payments. Best Medical School Student Loans
The math on student loans for medical students is relative. While a teacher may borrow $40,000, they will only expect to earn $40,000 per year after graduation. A doctor, on the other hand, will earn anywhere from $138,000 to $200,000 in their first year after residency. That makes the student loan amount relative.
A good tip I always like to share with doctors as well – live like a resident for your first few years of practice. You’ve delayed gratification for years, just add a couple more. You can use those first few years of high income to eliminate your student loan debt, and you’ll set yourself up for a bright financial future. Best Medical School Student Loans
Frequently Asked Questions About Paying For Medical School
How do people usually pay for medical school?
Most people pay for medical school using student loans. 71% of doctors graduate with student loans.
How does anyone afford medical school?
Medical school is affordable using student loans since you can borrow up to $200,000 with federal student loans. Furthermore, since medicine is a high-paying career, many private lenders are also willing to lend for medical school. Best Medical School Student Loans
Can you survive financially in medical school?
It can be challenging, but student loans previously let you borrow up to the total cost of attendance – which includes room and board. However, today they have some caps. That doesn’t sound pleasant to have to borrow money to survive, but since the earnings of a doctor are very high after graduation, and there are a lot of options for student loan forgiveness, it can allow you to survive financially while doing med school.
What is the best student loan for medical school?
All medical school students should borrow Federal student loans first. Start with Direct Graduate Loans. Only then should you consider private loans. Best Medical School Student Loans