Medical School Loans
Benefits of Medical School Loans
Being accepted at a medical school is a significant accomplishment, but unfortunately, there is often another hurdle that most students have to clear before enrolling: the cost. Attending medical school is an extraordinary expense, and can be financially challenging for many students. Fortunately, there are financial resources and various aid options for medical school students, including both graduate federal student loans and medical school loans from private lenders.
Types of Medical School Loans
Medical school is quite expensive, but there are several different medical school loans and a variety of medical school aid that can help cover the cost of attending medical school. In order to make responsible financial decisions regarding how you pay for medical school, you should know about the different types of medical school loans that are available and the different terms and conditions they each have.
Primary Care Loan (PCL)
If you are a medical school student and you plan to become a primary care practitioner, then you will be eligible for a primary care loan. A primary care loan can be repaid after postgraduate training is completed and it is only available for students who demonstrate substantial financial need. Interest does not accrue on the loan during the full-time study period, and during the repayment period, the interest rate is fixed at 5%.
Residency / Relocation Medical School Loans for Senior Students
If you are a senior medical student, then you are already aware of the high expenses related to searching and relocating for residency programs. Fortunately, there are specific Residency/Relocation loans to help cover these exact costs. Repayment on these loans starts 3-4 years after graduation and can last up to 20 years. The fee structure and interest rate for these medical school loans vary from one lender to another, so be sure to research your loan options and compare them very carefully before applying.
Unsubsidized Federal Stafford Loan
Unsubsidized federal Stafford Loans are a very dependable source of funding for both undergraduate and graduate students. The unsubsidized version of this loan is not awarded based on financial need, so any student can apply for it. Currently the interest rate on this loan is fixed at 7.9%, and it has flexible borrowing and repayment terms. Interest accrues as soon as the loan is disbursed, but you can defer the interest and principal payment until your education is complete or your status drops below full time. You may also defer repayments by another 2-3 years while you are in your residency period.
Subsidized Federal Stafford Loan
Subsidized federal Stafford Loans are a great source of funding for medical school students. Awarded based on financial need, the federal government pays the interest that accrues on these loans while you are in school, and these loans have low, fixed interest rates. The repayment terms are the same as they are for unsubsidized Stafford Loans, making them a great option as a Medical School Loan.
GradPLUS Loans
GradPLUS loans are yet another option in the sea of medical school loans. They are tailored for independent graduate students, have an interest rate currently fixed at 7.9% and students may borrow up to the cost of tuition.