8 best medical school loans of 2024

Attending medical school is expensive. In 2023, 67% of medical students graduated with a median student debt of $200,000 according to the Association of American Medical Colleges.

If you're a prospective medical school student who needs to borrow money to fund your degree, it's important to do your research. Keep reading to compare the best medical school loans available to you.

Compare medical school loans

Start with federal loans for medical school

Medical students may be eligible for certain federal loans offered by the government.

It's almost always best to exhaust federal loans before exploring private student loan options. That's because federal loans offer benefits and protections that private loans don't.

Health Professions Student Loans

Health Professions Student Loans (HPSL) are loans the government provides specifically for full-time health care students with demonstrated financial need. HPSL loans come with some unique features, including:

• They have a 5% interest rate, which is lower than other federal loans for graduates.
• Interest doesn't accrue during periods of deferment.
• You have 10 to 25 years to repay your loans.
• You can consolidate your HPSLs with federal Direct Loans using a Direct Consolidation Loan.

HPSL loans are administered by schools, although not all schools offer them. To qualify for one, you'll need to fill out the Free Application for Federal Student Aid (FAFSA). The financial aid office at your school will then determine how much you're eligible to receive based on the information you provided.

Federal Direct Unsubsidized Loans

Direct Unsubsidized Loans are also a type of federal loan available to medical students. Unlike private student loans, unsubsidized loans come with affordable fixed interest rates that are the same for all borrowers, regardless of credit score. The interest rate is 7.05% for graduate and professional students taking out a loan between July 1, 2023, and July 1, 2024.

There are annual and lifetime borrowing limits on Direct Unsubsidized Loans. However, the loans are not based on financial need, and borrowing limits are higher for those pursuing advanced degrees, including an M.D.

Graduate PLUS loans

Graduate PLUS loans are available to medical students through the Department of Education. Although the interest rate and origination fee on PLUS loans are both higher than on Direct Unsubsidized Loans, the borrowing limits are also higher - you can borrow up to the school-certified cost of attendance.

Your interest rate on grad PLUS loans isn't determined based on your credit score either. Every borrower who takes out a loan at the same time is charged the same fixed rate (8.05% between July 2023 and July 2024). However, if you have adverse credit, you typically cannot qualify for a grad PLUS loan.

Methodology

We evaluated these student loan lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted, and more. Our team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date. Read our full methodology for more details.

How to choose the right medical school loan

Finding the right medical school loan is crucial because there's a good chance you'll have to take on a substantial amount of debt to earn your degree. To find the perfect loan:

• Exhaust federal student loans first: Your financial aid package will tell you how much you can borrow from different federal loan programs. This may include Direct Unsubsidized Loans, grad PLUS loans, and Health Professions Student Loans.
• Consider private student loans next: Private student loans are available from a variety of lenders and can fill the gap if you've exhausted federal loans and still need more funding. You'll want to get quotes from at least three lenders, as rates and terms vary by lender. Compare the annual percentage rate, or APR (total annual cost of borrowing), loan limits, repayment terms, and qualifying requirements.

Remember, only borrow as much as you need, and be sure you understand the details of the loan and how much it will eventually cost you to repay.

Related: Federal vs. private student loans: Which should you choose?

Paying off medical school loans

When you graduate with a lot of medical debt, you'll want to find ways to repay it. Here are some tips to help:

• See if you qualify for Public Service Loan Forgiveness: If you have federal student loans and work for an eligible not-for-profit or government organization, you may be eligible to have your loans forgiven after 120 qualifying on-time payments via the Public Service Loan Forgiveness (PSLF) program.
• Explore other loan repayment and forgiveness programs: There are many options for health care professionals, including the National Health Service Corps Loan Repayment program and the National Institutes of Health Loan Repayment program.
• Choose a repayment plan that's best for you: If you have federal student loans, you can choose between the Standard Repayment plan, which pays off your loan in 10 years, or other plans, including income-driven plans and extended repayment plans. Those plans with shorter terms have higher monthly payments but lower total costs, and plans with longer terms have lower monthly payments but higher costs over time.
• Look for employers offering repayment help: Some employers may offer assistance in repaying loans. Ask your employer if they offer this type of program.
• Make extra payments: If you can afford to and want to pay off your loans early, making extra payments toward the principal can reduce your balance faster.

Best medical school loans FAQ

How do FAFSA loans work for medical school?

Medical school students must complete the Free Application for Federal Student Aid (FAFSA) in order to be eligible for federal student loans. Many other loan and grant programs also use your FAFSA information to determine loan eligibility. In some cases, medical students will need to provide parent information to complete the form, but you won't need a parent's signature.

How much can I borrow for medical school?

You're allowed to borrow a maximum of $224,000 in federal student loans, including undergraduate and graduate Direct Subsidized and Unsubsidized Loans. With grad PLUS loans, you can borrow up to the school-certified cost of attendance.

Most private student loan lenders also allow you to borrow up to the school-certified cost of attendance. While some private lenders do have lifetime borrowing limits, they are generally very high for medical professionals.

Should I borrow federal loans or private loans for medical school?

You should exhaust federal student loans for medical school before taking on private student loans. Federal loans offer many unique benefits unmatched by private student loan lenders, including income-driven plans and loan forgiveness options.

What is the average medical school loan debt?

In 2020, the average medical school graduate left their academic program with $207,000 in student loan debt, according to the Association of American Medical Colleges. Many students who graduate from medical school have both undergraduate and graduate debt, so it's a substantial financial commitment.