Medical School Loans

With tuition at public medical schools is approaching $30,000 a year on average and private schools approching $45,000 a year, paying for medical school without a loan is completely out of the question for just about everybody. Fortunately, there are plenty of medical school loans available.

Federal Student Loans

The first place you should start is with federal student loans. The government understands and encourages people to attend medical school and has made available hundreds of millions dollars for loans.

The Stafford loan program makes available up to $18,500 per year in low interest, long term loans. The government will even subsidize the interest payments while you’re still in school. Do not worry if you’ve already taken out some Stafford loans for your undergraduate degree. You can borrow up to $138,500 total under the Stafford program, undergraduate and graduate combined. With the low interest rates and long payback terms, Stafford’s are an excellent source of medical school loans. If this isn’t enough, there are several sources of to help you bridge the gap.

American Medical Association

The American Medical Accociation off a loan called Alternative Loan Program, or ALP. With ALP, a student may borrow up to $220,000 over the course of their medical education. The annual limit is the cost of school attendance, minus any other financial aid received. ALP loans are also low interest with long repayment periods.

US Department of Health and Human Services

The US Department of Health and Human Services offers a medical school loan as well. The loan program is called the Primary Care Loan and is available to students who agree to serve as primary care physicians for a period of time after graduation or until the loan is paid off. It is an excellent choice if you’re not planning on practicing specialized medicine.

Loan Forgiveness

In addition to all these loan programs, the federal government, many state governments, and several medical schools offer loan forgiveness programs. If you’re willing to practice in a critical needs area of the country that’s presently underserved by health professionals, it is quite possible the will forgive your medical school loan. Check with the financial aid office of your school about this program.