Medical School Loans – 2 Best Companies and Lenders for Med Students

Medical School Loans – 2 Best Companies and Lenders for Med Students

Each year, thousands of students invest in themselves and enroll in medical school. It’s not surprising. For many students, pursuing a medical degree is a wise and also lucrative choice. But that doesn’t offset the fact that medical school is still an expensive investment. That’s where medical school loans come in.

Few students, or their families, have the financial resources to fund a medical degree out of pocket. Thus, many students rely on medical school loans to finance their education and help them achieve their dreams.

Although medical school is an expensive proposition, the return on that investment in lifetime earnings, and career potential are quite staggering. Even with some medical degrees costing $300,000 or $500,000, the time for that investment to pay for itself can be as short as a few years after graduation and completing residency. In that case, you shouldn’t let the price of medical school discourage you from attending.

Federal Loans for Medical School

By pursuing a medical degree, you will be treated by the U.S. Department of Education as a graduate student. That means your loan options will also be the same as students pursuing Masters or Doctoral degrees in their respective fields.

However, those enrolled in qualifying medical programs will also have the opportunity to qualify for higher loan amounts and a larger aggregate loan limit.

The two federal loan programs available to all medical students are:

  1. Federal Direct Unsubsidized Loans
  2. Federal PLUS Loans

In addition, those with a high level of financial need may qualify for two additional loan programs:

  1. Federal Perkins Loan
  2. HRSA Primary Care Loans

These programs also have their own requirements, standards, and limits, which are outlined in the table below.

Private Loans for Medical School

Many students also choose to use private lenders to help finance medical school.

In some cases, the rates and terms of these loans may be less attractive than those offered through federal loan programs–but that is not always the case. Many private lenders offer competitive, market-based interest rates along with other perks and protections.

Private lenders will require a credit check and may also require a cosigner, but they rarely have borrowing limits or other requirements that may apply to federal loan options.

See the table below for a comparison of private lenders versus the various federal loan options available to medical school students.

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