The cost of medical school is often a daunting topic for many pre-med and medical students as they plan their educational journey. With medical school requiring a significant time commitment, students are typically unable to work part-time jobs, leaving them to rely entirely on financial resources to cover tuition and living expenses over the course of four years. Since many students rely on loans to fund their medical education, it’s essential to understand the various types of medical school loans available. Knowing your options will help you choose the solution that best suits you and your family’s needs.
Types of Medical School Loans
Federal Student Loans
Federal loans for medical school, known as unsubsidized loans, are often the top choice for most medical students. They offer fixed interest rates and flexible repayment options, including the ability to postpone payments during residency or fellowship training. Additionally, these loans may qualify for specific student loan forgiveness programs, making them an even more appealing option for those pursuing a career in medicine.
Unsubsidized Direct Loans are available with a fixed rate of ~7.94% for graduate/professional students (academic year 2025–26). Interest accrues while students are in medical school and until the loan is paid off. The yearly max loan amount for unsubsidized loans is currently $20,500.
Until recently, medical students also had the option to take out Grad Plus Loans. Students could take out the full cost of their schooling (minus all other aid) without running into borrowing limits.
Changes to Federal Medical Student Loans After July 2026
The One Big Beautiful Bill, passed in July 2025, introduces significant changes to federal student loan programs starting July 2026. Key updates include the elimination of the Grad PLUS program and the implementation of stricter borrowing limits on other federal loans.
Medical students borrowing federal loans now have an annual borrowing cap of $50,000/yr and a $200,000 aggregate cap. However, all students now have a total student loan lifetime cap of $257,500. This includes federal student loans you take out for all your higher education needs, including undergrad. Once that cap is hit, you cannot take out any more federal loans.
Private Loans
If scholarships, federal loans, and other funding sources aren’t enough to cover the full cost of medical school, private loans can help bridge the gap. Private loans are offered by banks, credit unions, online lenders, and even some medical schools too. They may come with either fixed or variable interest rates, often significantly high, making them a costlier alternative to federal loans. Private loan borrowers also do not have access to federal income-driven repayment plans or loan forgiveness programs. Understandably, many students are apprehensive about taking out private loans.
However, there are some advantages to taking out private loans. They can provide funding beyond the federal student loan cap. This is especially helpful for students attending more expensive medical schools or those who need additional funds for living expenses.
So, while not ideal, private medical school loans are another option to help finance your education. Always make sure to carefully consider the terms and conditions before taking out any loan (whether federal or private) to ensure it will fit into your budget.
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Medical School Loan Repayment Plans
A key question to ask when deciding on the amount of federal or private loans you’ll be taking out is, “When and how quickly will I need to pay this amount of money back?”
Federal loans provide student borrowers with greater flexibility and extended timelines for repayment, as payments typically don’t begin until after graduating from medical school, or, in some cases, even after completing residency.
In contrast, private loans come with repayment schedules that may not align with the realities of a medical student’s financial situation. Most medical students cannot work or earn a significant income during medical school. Even during residency, their earnings may not be sufficient to aggressively tackle high levels of medical school debt.
Federal Loan Repayment Plans
All federal student loan repayment programs will start to be consolidated into two programs by July 2026. Student borrowers are able to choose between three types of traditional repayment plans and many forms of income-driven repayment plans.
Borrowers must choose between:
- Standard Plan: Fixed payments over a set time. Payments are determined by the loan amount and will span 10-25 years.
- Repayment Assistance Plan (RAP): A new IDR-style plan with a $10 minimum monthly payment and 30-year forgiveness. No deferments are allowed for economic hardship or unemployment. Loan rehabilitation is available twice.
Public Service Loan Forgiveness
Public Service Loan Forgiveness (PSLF) is a federal program that forgives the remaining balance on eligible federal loans after you’ve made 120 qualifying monthly payments (typically 10 years) while working full-time for a qualifying public service employer, such as a government entity or a 501(c)(3) nonprofit organization.
Doctors can qualify for PSLF if they work full-time for a qualifying employer, such as a non-profit hospital, university, VA facility, or public health organization, and make the qualifying number of monthly payments.
Final Thoughts
Navigating medical school, including financing options, can be tricky. However, it’s important to do your research and explore all available options for funding your education. If you are considering taking out loans for medical school, carefully review and understand the terms and conditions. It’s important to have a plan for how you will repay these loans after graduation.
Don’t forget that schools also offer grants and scholarships to admitted students that could reduce the amount you need to borrow. Put yourself in the best position to get accepted AND receive funding for your medical education with a competitive MCAT score! Blueprint MCAT students increase their MCAT scores by 15 points on average. Whether you need the flexibility of a Self-Paced Course, the instruction of a live 515+ Course, or the 1:1 attention of a private MCAT tutor, Blueprint MCAT has the MCAT prep option that works for your learning style!
Remember, becoming a doctor is a noble and fulfilling profession, but it also comes with significant financial responsibilities. By staying informed and exploring all available resources, you can make the best decisions for your future.
