Student loans 15 February 2023

9 Best Loans For Medical Students

Looking for the most suitable medical student loan, here we have put together an in-depth review to help you make an informed decision and decide on what’s best for you.

Loans for Medical Students can be an essential tool to help students pay for and finance their medical studies. In most cases, medical student loans provide more favorable terms than traditional bank loans. These loans can be used to cover a variety of expenses that arise during medical school such as tuition, living expenses, textbooks, and other supplies.

There are several different types of medical student loans available, each with its own set of benefits and drawbacks. It is important to understand the differences between them when considering a medical student loan. Make sure you understand any potential consequences if you are unable to repay the loan on time or in full.

9 Best Loans For Medical Students in 2023

LenderScholaroo ratingFixed rates starting (APR)Variable rates starting (APR)

Sallie Mae

Best for Loan Availability

Visit website
4.9/55.25%5.50%

College Ave

Best Overall

Visit website
4.9/54.24%3.99%

Education Loan Finance

Dedicated Customer Service

Visit website
4.8/53.98%3.98%

Earnest

Best for Fair Credit

Visit website
4.5/53.99%3.99%

M Power

Best for international medical students

Visit website
4.5/513.99%N/A

Ascent

Best Private Student Loan

Visit website
4.1/55.44%5.98%

PNC Bank

Best for Payment Discount on Auto-payment

Visit website
4.1/53.49%3.89%

Citizens Bank

Best for the Easiest Approval Process

Visit website
4.0/55.99%5.49%

Purefy

Best for Refinancing Options

Visit website
4.0/53.16%1.99%
Lender

Sallie Mae

Best for Loan Availability

Scholaroo rating
4.9/5
Fixed rates starting (APR)
5.25%
Variable rates starting (APR)
5.50%
Visit website
Lender

College Ave

Best Overall

Scholaroo rating
4.9/5
Fixed rates starting (APR)
4.24%
Variable rates starting (APR)
3.99%
Visit website
Lender

Education Loan Finance

Dedicated Customer Service

Scholaroo rating
4.8/5
Fixed rates starting (APR)
3.98%
Variable rates starting (APR)
3.98%
Visit website
Lender

Earnest

Best for Fair Credit

Scholaroo rating
4.5/5
Fixed rates starting (APR)
3.99%
Variable rates starting (APR)
3.99%
Visit website
Lender

M Power

Best for international medical students

Scholaroo rating
4.5/5
Fixed rates starting (APR)
13.99%
Variable rates starting (APR)
N/A
Visit website
Lender

Ascent

Best Private Student Loan

Scholaroo rating
4.1/5
Fixed rates starting (APR)
5.44%
Variable rates starting (APR)
5.98%
Visit website
Lender

PNC Bank

Best for Payment Discount on Auto-payment

Scholaroo rating
4.1/5
Fixed rates starting (APR)
3.49%
Variable rates starting (APR)
3.89%
Visit website
Lender

Citizens Bank

Best for the Easiest Approval Process

Scholaroo rating
4.0/5
Fixed rates starting (APR)
5.99%
Variable rates starting (APR)
5.49%
Visit website
Lender

Purefy

Best for Refinancing Options

Scholaroo rating
4.0/5
Fixed rates starting (APR)
3.16%
Variable rates starting (APR)
1.99%
Visit website

#1 Sallie Mae

Best for Loan Availability

Apply now

Sallie Mae

4.9
Scholaroo Rating
Fixed Rates Starting (APR)5.25%
Variable Rates Starting (APR)5.50%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Being one of the most sought-after and reliable lenders, Sallie Mae is one of the largest loan providers that extends its product to medical students. Sallie Mae provides loans to both students and parents for undergraduate and graduate studies. Sallie Mae offers special medical school loans to students planning to attend medical school. The Sallie Mae Medical School loan can cover medical degree expenses in allopathic, general, radiology, osteopathic, and veterinary medicine.

Pros

  • No origination or penalty fees
  • 100% medical school expenses coverage
  • High approval rate for graduates with a cosigner
  • Streamlined application process

Cons

  • Requires a minimum credit score
  • Be enrolled in a Medical School
  • A U.S. citizen or permanent resident
  • Borrowers should apply for a new loan each school year
  • 48 months of deferment during residency and fellowship
  • Cosigner is released after 12 on-time payments
  • 36 months grace period
  • Interest-only payments

#2 College Ave

Best Overall

Apply now

College Ave

4.9
Scholaroo Rating
Fixed Rates Starting (APR)4.24%
Variable Rates Starting (APR)3.99%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

College Ave is a private lender offering a myriad of student loan products and options that can cater to medical students. The private lender offers an aggregate loan limit of $150,000 to borrowers and the loans are designed for students who are attending school. College Ave also provides refinancing options for students who would want to pay off some private student loans.

Pros

  • Has a co-signer release program
  • Quick turnaround (a decision is made within three minutes)
  • Full deferment during residency
  • Easy repayment options

Cons

  • May not cover all expenses
  • Requires a minimum credit score
  • Be enrolled at an approved U.S. medical school
  • Be a U.S. citizen or permanent resident
  • 20 different repayment schedules
  • 36 months grace period
  • Repayment terms of five, eight, 10, 15, or 20 years

#3 Education Loan Finance

Dedicated Customer Service

Apply now

Education Loan Finance

4.8
Scholaroo Rating
Fixed Rates Starting (APR)3.98%
Variable Rates Starting (APR)3.98%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Education Loan Finance popularly known as ELFI is a nationwide private student loan provider that started offering private student loan products in December 2015. In conjunction with the SouthEast Bank based in Tennessee, ELFI offers loan refinancing options for students. It offers healthcare and medical resident student loans with fixed and variable rates.

Pros

  • Easy to get estimates without a hard credit check
  • Access to an assigned student loan advisor
  • Best for borrowers with big funding gaps
  • No fees

Cons

  • Loans can not fund more than one academic year of the school-certified cost
  • Be enrolled at least half-time in a Master’s or Doctoral Program
  • Have U.S. citizenship or be a permanent resident
  • Should have a minimum credit score of 680
  • A repayment period of five, seven, 10, or 15 years
  • Six months grace period
  • Full-in-school deferment plan

#4 Earnest

Best for Fair Credit

Apply now

Earnest

4.5
Scholaroo Rating
Fixed Rates Starting (APR)3.99%
Variable Rates Starting (APR)3.99%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Earnest is one of the best private student loan lenders that has financing options tailored to the specific needs of medical students. Earnest offers loan products such as private student loans, refinance student loans, and parent PLUS refinancing. All these loan products can offer a clear and simple private student loan to students enrolled in medical school.

Pros

  • No fees (late payment, origination, or disbursement fees)
  • Has a longer grace period
  • Offers you a chance to skip a payment once a year without penalizing
  • Flexible terms to get an ideal customized monthly payment

Cons

  • Must have a cosigner
  • Must have a minimum credit score
  • Must be a U.S. citizen or permanent resident
  • Must have a credit-worthy cosigner who is a U.S. citizen or permanent resident
  • Four repayment options
  • Nine-month grace period
  • 0.25% discount on enrollment to autopayments

#5 MPOWER

Best for international medical students

Apply now

MPOWER

4.5
Scholaroo Rating
Fixed Rates Starting (APR)13.99%
Variable Rates Starting (APR)Unconfirmed%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

MPOWER is best for loans for international medical students in the U.S. They provide easy access to medical loans for international students and U.S. citizens both and do not require a cosigner or collateral. They also offer only fixed interest rates that do not increase over time. They also fund the living expenses for schools in the U.S.

Pros

  • No co-signer required
  • No prepayment penalty
  • Provide visa support
  • Career development guidance
  • Discounts on interest rates
  • Dedicated student loan advisor for borrowers

Cons

  • Payments required when in school and grace period
  • Only one repayment term of 10 years
  • An international student, U.S. citizen, refugee, DACA recipient, or asylum-seeker
  • Undergraduate or graduate student within 2 years of graduating or about to begin a 1-year or 2-year program
  • Admitted to one of the approved schools in the U.S. or Canada
  • A repayment period of 10 years
  • 6 months grace period
  • Interest-only payments while in school and grace period

#6 Ascent

Best Private Student Loan

Apply now

Ascent

4.1
Scholaroo Rating
Fixed Rates Starting (APR)5.44%
Variable Rates Starting (APR)5.98%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Ascent is a private student loan lender that provides financial aid to undergraduate students. It provides cosigned, non cosigned, and out-come-based loans. Ascent encourages financial wellness for medical students and their families by offering graduate student loans. The graduate student loans cover most medical school degree programs, Dental school, Nursing, and Pharmacy. Medical students can qualify for any type of loan offered by Ascent.

Pros

  • No origination or application fees
  • 1% cash reward for automatic payment enrollment
  • Covers up to 100% of the cost of attendance
  • Manageable repayment options

Cons

  • High maximum interest rates
  • Be enrolled at least part-time or full-time for outcomes-based loans
  • Be enrolled at an Ascent-approved school
  • Be a U.S. citizen and reside within the 50 states
  • 36 months grace period
  • 48 month residency deferment options
  • Cosigner release after 24 on-time monthly payments

#7 PNC Bank

Best for Payment Discount on Auto-payment

Apply now

PNC Bank

4.1
Scholaroo Rating
Fixed Rates Starting (APR)3.49%
Variable Rates Starting (APR)3.89%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

The PNC Bank’s Health and Medical Professions Student Loan offers loan options to borrowers attending medical school. Their aggregate loan limit is $225,000 and the available loan per year is up to $65,000 per annum. The bank has listed the approved disciplines that are eligible for the PNC Solution Loans for Health Professions e.g. Allied Health Sciences, Dentistry, Medical Imaging, Veterinary Medicine, etc. They also offer loans for Doctor of Pharmacy, Master of Physical Therapy, Master of Physician Assistant, and Nursing for medical accelerated students.

Pros

  • Offers double the interest rate discount compared to other lenders
  • Co-signer can be released
  • Has a long residency deferment period
  • Has a long coverage of medical-related courses

Cons

  • Has a short grace period
  • Be enrolled in approved disciplines in undergraduate, graduate, or certificate program
  • Both student and cosigner must be U.S. citizens or permanent residents
  • At Least attend on a part-time basis
  • Has a residency deferment option
  • 0.5% interest rate discount for only automatic payments
  • Up to 15 years of loan repayment

#8 Citizens Bank

Best for the Easiest Approval Process

Apply now

Citizens Bank

4.0
Scholaroo Rating
Fixed Rates Starting (APR)5.99%
Variable Rates Starting (APR)5.49%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Citizens Bank was founded in 1800 in Rhode Island and is one of the largest commercial banks in the U.S. The financial institution offers loans to undergraduates, MBAs, graduates, and refinancing. The loans are designated for medical school, dental school, and medical residency. The loans offered to students range from $1,000- $350,000 in aggregate.

Pros

  • Has multi-year approval loans that cover each year of college with just one application
  • International students can apply
  • Discounts for having a citizens account
  • Offers discounts of 0.25% for setting up automatic payments

Cons

  • No interest rate estimate with a soft credit check
  • International students must have a U.S citizen co-signer
  • Must be enrolled at least part-time
  • A U.S citizen or permanent resident
  • Six months grace period
  • Repayment in five, 10, or 15 years
  • Cosigner release after 36 on-time payments

#9 Purefy

Best for Refinancing Options

Apply now

Purefy

4.0
Scholaroo Rating
Fixed Rates Starting (APR)3.16%
Variable Rates Starting (APR)1.99%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Purefy offers student loan refinancing options to students who are seeking favorable repayment plans or lower interest rates. Purefy allows borrowers to compare rates and terms of different student loans and refinancing. Through Purefy, medical students can refinance both private and federal loans. Purefy provides student loan refinancing for students with strong credit and those with a verifiable income.

Pros

  • No origination fees
  • 100% of the school’s attendance costs covered
  • Discounts for fixed payment schedules
  • Easy repayment options
  • Needs a co-signer

Cons

  • Conducts a credit check
  • Be a college graduate
  • Should be a United States citizen
  • Should have a credit score of at least 670
  • Have a payoff verification statement for existing loans that are to be refinanced
  • Five to 20 years loan term
  • Co-signer is released after several on-time frequent payments
  • Grace period starts from six months

Federal Loans For Medical Students

Federal Student Loans are provided by the government and administered by the U.S. Department of Education and have a lower fixed rate compared to other loans. The loans from the government are capped and this means that a student can only borrow a limited amount from the government each year.

For students entering medical school, there are two direct loans available for them. Medical students are eligible for the Direct Unsubsidized Loan and the Direct Plus Loan.

  • Direct Unsubsidized Loan: These are offered to graduates and undergraduates at competitive interest rates and do not require proof of financial need. Direct unsubsidized loans for medical school are capped at $40,500 per year. This may not be enough to cover everything for medical students. Most medical students are encouraged to consider the federal direct plus loan option.
  • Direct PLUS Loans: The Direct PLUS Loan offers the Grad PLUS Loan which is best suited for medical students. The Grad PLUS Loan covers any additional cost of attendance that has not been covered by any other lender you might have borrowed from or by the federal Stafford loans. Students with good credit scores can easily qualify for this type of federal direct plus loan. For medical students, the Grad PLUS Loan helps to cover any additional costs of attendance. All costs of attendance must be certified and determined by your institution of study.

How to Apply for Federal Loans?

Following are the general steps to apply for federal loans:

  1. Fill in the FAFSA: The first major step that medical students need to do is fill out the Free Application for Federal Student Aid (FAFSA). Filling in the FAFSA helps you identify the programs and loans that you qualify for. The application is done online every year and students need to fill it out as soon as they can. Since the form asks you to provide information about your finances, income, and taxes, make sure you gather all the necessary information before you proceed.
  2. Analyze your Student Aid Report: After filling in the FAFSA, a student aid report is mailed back to you. The student aid report is mainly a summary of the information you provided while completing the FAFSA. The report will contain your expected family contribution. Analyze your SAR carefully to ensure that it is accurate and complete. If your application is not complete, your SAR will let you know that you have issues to resolve in order to get your EFC. The schools you listed on your FAFSA might ask you to verify some information.
  3. Compare and Contrast your Financial Aid: The information provided on the FAFSA will be used by financial aid officers in the colleges you applied to. This will help them determine how much money will be made available for you. Colleges will then put together an aid package that includes federal aid, paid work, or other types of loans. Ensure to compare and review all the aid you have been offered, the qualifying criteria, and the amount. Additionally, if you apply to more than one school, weigh up your offers as different schools may have different advantages/benefits.
  4. Choose your School and Loan: Choosing your school and the loan to take out are two factors that have a big impact on how all this plays out. Failure to graduate after taking a loan or graduating with a huge amount of debt can affect you adversely in the future. Choose a loan that will help you complete your studies by covering most or all the cost of attendance expenses. After comparing your options, you will decide on the school and consequently, the loan to accept.

Private Student Loans for Medical Students

Private Student Loans for medical students are facilitated and issued by banks, credit unions, or online platforms and require the applicant to have a good credit score or have a credit-worthy cosigner. The private lenders charge a higher interest rate and offer different terms of the agreement.

Private student loans help medical students when federal loans are not enough and are the only loan option for international students since they are not eligible for federal loans. Most lenders offer different loan options for medical students to cover the whole course, in-school tuition expenses, or residency.

How to Get Private Student Loans?

  1. Research on Multiple Lenders: Different loans have varying terms and you should check out all the lenders within your reach. Compare the terms of the loan, interest rates, and the fees involved in the application or the penalty charges involved. As you compare your loan offers, ensure that you aim for lenders that offer pre-qualification as this will help you compare offers without affecting your credit. Additionally, be on the lookout for special features or benefits associated with each lender/loan.
  2. Meet & Maintain Eligibility: Most loans have straightforward eligibility criteria and most students at large do qualify for them. However, medical school loans have extra criteria for eligibility. Most of these loans will require you to attend specific schools and be pursuing one of their listed courses in your school of choice related to health, medicine, or medical technology. Other loans require you to meet satisfactory academic progress to continue receiving financial aid. Strong credit or a regular source of income are some eligibility requirements that may need to be met before receiving a loan.
  3. Get a Co-signer: Private loans are based on the borrower’s creditworthiness and the borrower must pass a credit check most of the time. The majority of lenders require borrowers to have a good credit history and a regular source of income to qualify for a private loan. For college students, this is not practical as they might still be in school full-time or have just recently graduated and have not yet secured a regular job. For this reason, most lenders require students to have a co-signer who will lend them their credit and maybe help them pay off some of their loans.
  4. Apply for the Loan: Most loan applications are done online and can roughly take 30 minutes to fill in the information and submit. Ensure that you have all the information needed about you and your cosigner if one is required. You can also submit supporting documents to prove that the information you have provided is accurate. Depending on the lender, feedback can be immediate or can take up to several working days to get the verdict.
  5. Accept the Loan: After your loan has been approved, the lender will send you the paperwork highlighting all the loan terms and rates. The documents will contain all your financial information and your obligation to repay the loan. Make sure to confirm that everything in those documents is correct and comprehensible for you. If you feel that everything is okay then proceed with signing the final agreement and return it to your lender for disbursement.

Tips to Compare Medical School Loans

It’s important to compare different lenders before choosing one. The following tips can help you get the loan best suited to you and your needs.

  • Get quotes and compare rates: Different lenders have different interest rates. Moreover, the same lender may offer varying rates to different students based on their credit scores and history. It’s best to get quotes from multiple lenders that offer soft credit checks to find the one that is offering you the lowest rates.

It’s best to apply with a credit-worthy cosigner if you have poor credit as it can get you much cheaper interest rates. You can use the student calculator to determine your monthly payments and total loan cost based on the interest rates you are offered.

Enter your loan information

Loan amount

Interest rate

Loan term

  • Opt for a fixed interest rate: Student interest rates rise with time and going for a fixed rate can ensure that it does not change for you with time. With variable rates, the cost of your student loan might rise over time and it may become more expensive to pay off.
  • Repayment options and benefits: Look for lenders that are offering multiple repayment options and have repayment benefits. There are some private lenders that offer interest-only repayment plans, longer grace periods, and deferment too. Choosing such lenders can help you in the future in case you are facing difficulties in paying off your loan installments.

FAQS

Can you get a student loan for medical school?

Yes, medical students can get both federal loans and private loans to fund their education. However, different lenders have different eligibility requirements. Therefore, it’s best to check the eligibility requirements for any particular lender you are interested in.

Should I get a federal or private loan for medical school?

For most students, federal loans are the best. Federal loans offer better repayment plans and have lower rates compared to private loans. Students in medical school should consider private loans if they are international students or if federal loans are not enough to cover the whole cost of attendance.

What are the best loans for medical students?

The best loans for medical students are the federal loans both direct unsubsidized loans and Grad PLUS Loans. They offer better terms such as lower interest rates and flexible repayment plans, and you can qualify for loan forgiveness.

How do I get a loan for medical school?

You can get a loan for medical school by first filling out the FAFSA and seeing what loan you can qualify for. Private lenders also offer loans that are designed for students enrolled or planning to enroll in medical school.

How much in loans can I take out for medical school?

For federal loans, medical students can borrow up to $40,500 per year in Direct Unsubsidized loans. The aggregate maximum borrowing limit for health professional students is $224,000 which includes undergraduate and graduate Subsidized Federal Direct Loans, Unsubsidized Federal Direct Loans, and Federal Student Loans.

Private lenders allow you to borrow up to your full cost of attendance if you meet their eligibility requirements.

Does FAFSA give loans for medical school?

FAFSA helps determine eligibility for federal loans for medical students. If eligible, medical students can get loans through FAFSA including a direct unsubsidized or Stafford loan, GradPLUS Loans, and also other types of federal financial aid.

How to afford medical school without loans?

There are various grants available to medical students to help complete their studies. Medical students can also enroll in a service program, find a tuition-free medical school if they have a good academic standing or require financial need, apply for scholarships, or get a part-time job.

Are there medical school loans for international students?

Yes, there are various private student loans offered to international students who are pursuing a medical degree in the U.S. M Power is one of the lenders that provide private loans to international medical students.

Do medical school loans cover living expenses?

Student loans are meant to be used primarily on tuition. However, the surplus can help pay for other education-related living expenses like books and supplies, room and board, rent, basic groceries, transportation, etc.

Do I need a cosigner for medical school loans?

Most private lenders give out loans on the basis of the applicant’s credit score and require a cosigner if it is not up to the mark. Federal student loans, however, do not require a cosigner generally as they give out loans on the basis of financial need. Direct PLUS loan, is the only federal loan that considers your credit history and in case of anything adverse, requires an endorser which is similar to a cosigner.