Pay for Medical School with Loans for Graduate Students
Federal, Private, and Repayment Programs
Medical school can consist of many years of graduate work, resulting in ever increasing tuition, books, and other living expenses. Becoming a doctor is financially rewarding, but getting there requires serious help from lenders.
Graduate school loans come from a surprising array of lenders, some you may not have known were available to you.
Private Medical School Loans
Of course you already think an unhealthy chunk of your med school education will be funded with private student loans. Private lenders have designed medical school loans independent of general private student loans for their added financial girth. The truth is that as critical as are the federal Stafford Loans you’ll likely meet your aggregate loan limit--$189,500 for med students—before you’ve completely financed school. This is why private loans are popular and a necessity for many med students.
Your credit health will figure prominently if you choose to apply for private student loans. But don’t let this deter you. Manage your bad credit and be prepared to apply with a credit worthy co-signor. Here’s an opportunity to rebuild your credit: during loan repayment be sure to make consistent on-time payments to your lender.
Federal Medical School Loans
Choose federal loans first. Neglect government financial aid and you unnecessarily heap even greater student loan debt on yourself.
Stafford Loans Remain Popular for Grads
Stafford Loans are not just for undergraduates. As a graduate medical school student you are allowed even bigger maximum loan limits than other types of students. So make sure you apply for your maximum annual allowance. If you are fortunate enough to qualify for subsidized Staffords—the government foots the bill for the loan interest payments while you’re in school—you save some money. But you may also qualify for unsubsidized at the same time. Your aggregate Stafford loan limit, or what you can borrow over the whole course of your education is $189,500.
Perkins Loans
If you are deemed to have exceptional financial need from the information you supply on the FAFSA (Free Application for Federal Student Aid) you may qualify for a campus-based Perkins Loan. These low interest guaranteed loans are far less in number than the Staffords, but are a boon to the right students. The key to getting a Perkins if you are eligible is to apply early, both with the FAFSA and with your college application. Why? Perkins Loan funds are limited and doled out on a first come first served basis.
Primary Care Loans—A Med School Specialty
The Primary Care Loans program is federally funded and campus-based. These low-interest medical school loans are given out to med students on the basis of financial need. Loans could be as much as the cost of tuition minus other federal funds. Apply directly through your campus financial aid office. To be eligible you must agree to pursue primary health care in one of these specialties: family medicine, pediatrics, internal medicine, preventive medicine, or osteopathic general medicine.
Paying Back the Money You Borrowed for Med School
Med student loans need to be repaid, most of the time. New graduates can quickly become overwhelmed with student loan debt. Do you wait until you actually default on loans before seeking financial assistance for your out of hand loan repayment? Take our self-assessment quiz. Find out right now if you qualify for a student loan consolidation.
There is a federally sponsored consolidation loan—through the Direct Loan Program and FFELP—into which you may opt to merge your federal loans and if you have private loans getting you down check out the private loan consolidation options offered by almost every student loan provider.
Other Types of Loan Repayment Programs
Your career track may be well suited to a loan repayment program (LRP). These are very popular with health care graduates. This is how an LRP works: you agree to work in a particular field or medical facility for a specified period of time, usually 2-4 year increments. Here are a couple examples of well-known LRPs:
- The National Health Services Corps Loan Repayment Program is a well-known program available to med and dental grads. You must serve in a high need facility for at least 2 years. The first two years of service in the NHSCLRP you may earn $25,000 per year, for each subsequent year you’ll receive $35,000.
- Quite a number of states also offer partner LRP programs to the NHSC’s above.
