As aspiring medical school students plan for the future, they should ensure they have a good understanding how much it will cost and the amount they can safely borrow.
Key Takeaways
- Before you turn to private student loans, combine scholarships, service programs and employer-sponsored tuition.
- Plan early, identifying your total cost of attendance and calculating your funding gap before applying to medical school.
- Compare multiple private student loans and prioritize fixed-rate options with forbearance during medical school.
New federal loan limits will reduce the amount medical students can borrow, leaving many with funding gaps. Grad PLUS loans will be phased out beginning in July 2026. Loans will not be available to new borrowers after that date, though existing Grad PLUS borrowers can still borrow as they complete their programs. New limits for professional programs, including med school, are up to $50,000 per year with a $200,000 lifetime borrowing limit.
That lifetime borrowing limit could fall significantly short of the actual cost to attend medical school, which typically exceeds $200,000 and can top $400,000, including undergrad tuition and fees.
If you’re facing a gap between the cost of medical school attendance and federal financial aid, learn the details on federal borrowing limits and what your options are beyond the Grad PLUS loan program.
Related:
Private vs. Federal Student Loans: What’s the Difference?
Changes to Federal Loans for Med School
With these changes, medical students will no longer be able to borrow up to the cost of attendance with Grad PLUS loans. In addition, Parent PLUS loans will have a cap of $20,000 per student per year and a lifetime limit of $65,000 per dependent student. Although undergraduate loans are unchanged, they will count toward lifetime limits.
Grad PLUS loans have been used to cover the difference between federal unsubsidized loan limits and the full cost of attendance. With a federal loan limit that will be below the typical cost of medical school, students must seek school funding alternatives.
“These shifts mean that med school students will likely have to rely on private loans to make their dream of becoming a doctor or nurse a reality,” says Leslie H. Tayne, finance and debt expert and founder of Tayne Law Group. “While they may be the only option on the table, private loans can be risky because they typically have fewer protections and carry higher interest rates.”
Calculating What You Can Afford for Med School
Understanding what medical school will cost and how much you can safely borrow can help you get a picture of what you’ll owe and what your payments may look like after graduation. Start with your school’s cost of attendance, including tuition, required fees and health insurance. This data is available from the Association of American Medical Colleges, and medical schools typically publish cost reports.
Once you know the cost, subtract what you can pay toward school, including scholarships, grants and savings. Then, subtract your federal loan eligibility, which, beginning July 1, 2026, will be up to $50,000 per year with a $200,000 lifetime cap.
The amount left over is your funding gap, which you’ll need to cover with private loans or other alternatives to federal loans.
“Project total borrowing under the new caps,” says Anthony Sozzo, associate dean for student affairs and director of student financial planning at New York Medical College. “Start with each school’s cost of attendance and subtract likely institutional scholarships and federal unsubsidized Direct Loan limits. Then research private student-loan lenders, comparing terms, interest rates and cosigner requirements.”
Knowing your financial gap can help you strategize, target schools with stronger scholarship packages, apply for tuition-free or service-based programs, and/or plan for private financing.
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Best Medical School Loans
Medical School Funding Beyond Federal Loans
Once you know the size of the gap between federal loans and the cost of medical school, you’ll need to find alternative funding options. Institutional scholarships, service commitments and other programs can reduce or eliminate the need to take out private student loans.
Scholarships
Institutional scholarships and tuition waivers should be your first priority, says Sozzo. “Always ask each medical school for the typical scholarship award profile,” he says. “Some schools award large merit- or need-based aid.”
Check with the school’s financial aid office and the American Association of Medical Colleges scholarship programs database. Even small awards can add up over four years to reduce your need to borrow or make it easier to attend a program that might otherwise be out of reach.
Tuition-Free Medical School
Tuition-free or reduced-tuition medical schools, such as Kaiser Permanente Bernard J. Tyson School of Medicine and Alice L. Walton School of Medicine, can lower the cost of medical education. These programs cover tuition, but students are responsible for living expenses, health insurance and fees.
Service Commitments
Service-commitment programs, including state and specialty society scholarships and grants, can help fill funding gaps for students who are willing to exchange years of service for financial support. Programs such as the National Health Service Corps and Health Professions Scholarship Program may offer full tuition and a monthly stipend for students who commit to working in specific medical settings after graduation.
For example, primary care physicians who will work in federally designated ‘Health Professional Shortage Areas’ can get scholarships or loan repayment from the NHSC. Those who agree to serve as a commissioned medical officer in the U.S. Army, Navy or Air Force can get full tuition and a monthly living stipend with HPSP.
Paid Academic Roles
Institutional roles and paid academic opportunities, such as research or teaching assistantships, peer tutoring or lab positions, can pay a stipend or hourly wage. Though these roles may not cover tuition, they can reduce how much you need to borrow.
Employer-Sponsored Tuition
Some employers sponsor tuition in exchange for post-graduation employment commitments, reimbursing a portion of tuition each year or offering loan repayment assistance for physicians employed with the organization. Though it can limit your flexibility after graduation, these programs can reduce your costs if you’re comfortable with a specific employer.
Read:
Best Private Student Loans.
Private Student Loans
After you’ve exhausted all other sources of student aid, private student loans can fill the gap. However, you should approach private student loans cautiously, as they lack federal protections including income-driven repayment and forgiveness programs, and typically have higher interest rates.
Sozzo says private loans should only be considered to cover a shortfall for a single year, to lock a lower fixed rate, or when you cannot meet service commitments you previously accepted. The risks include a loss of federal protections, variable rates and cumulative cost, cosigner dependency and the temptation to refinance right out of residency, Sozzo warns.
If you can’t avoid private student loans, shop multiple lenders and get prequalified rate quotes to compare your options. Sozzo recommends prioritizing loans with forbearance flexibility during residence.
“My best advice is to only borrow what is necessary, says Tayne. “You will thank yourself later.”
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