Best of
9 Best Medical School Loans of July 2020
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Benefits like student loan forgiveness and income-driven repayment make federal student loans a better option than private student loans for medical school.
There are two main types of medical school loans: federal and private. In general, use federal student loans for medical school first because they have benefits private loans for medical school lack, including access to income-driven repayment plans and loan forgiveness programs.
The following lenders offer student loans specifically designed for medical students and other graduate-level health professionals. Compare specific lenders below — see which let you postpone payments in residency under Key Facts — and keep reading to learn more about the differences between federal and private student loans.
There are two main types of medical school loans: federal and private. In general, use federal student loans for medical school first because they have benefits private loans for medical school lack, including access to income-driven repayment plans and loan forgiveness programs.
The following lenders offer student loans specifically designed for medical students and other graduate-level health professionals. Compare specific lenders below — see which let you postpone payments in residency under Key Facts — and keep reading to learn more about the differences between federal and private student loans.
Summary of Best Medical School Loans of July 2020
| Lender | NerdWallet Rating | Fixed APR | Variable APR | Min. Credit Score | Learn More |
|---|---|---|---|---|---|
Best for All borrowers as a first option | 2.75 - 4.30% | N/A | None | Read review | |
Best for Manageable payments post-graduation | 5.30 - 5.30% | N/A | None | Read review | |
Best for Private loans for medical school | 5.23 - 10.78% | 4.11 - 9.94% | 680 | Check Rate on Ascent's website | |
Best for Private loans for medical school | 3.98 - 9.75% | 1.79 - 8.69% | Mid-600s | Check Rate on College Ave's website | |
Best for Private loans for medical school | 4.25 - 12.35% | 1.25 - 11.15% | Does not disclose | Check Rate on Sallie Mae's website | |
Best for Private loans for medical school | 5.45 - 9.74% | 3.31 - 9.29% | 660 | Check Rate on CommonBond's website | |
Best for Private loans for medical school | 4.29 - 11.95% | 1.30 - 11.44% | Does not disclose | Check Rate on Citizens Bank's website | |
Best for Private loans for medical school | 4.53 - 10.72% | 3.39 - 10.09% | Does not disclose | Read review | |
Best for International medical students | N/A | 7.52 - 12.00% | N/A | Read review |
Our pick for
All borrowers as a first option
Start with federal direct unsubsidized loans if low-cost federal health professions student loans aren’t available for medical school.
Federal Subsidized/Unsubsidized Loan
Fixed APR
Variable APR
Min. Credit Score
Our pick for
Manageable payments post-graduation
Federal benefits like student loan forgiveness and income-driven repayment can make grad PLUS loans a better option than private student loans for medical school.
Federal Grad PLUS Loan
Fixed APR
Variable APR
Min. Credit Score
Our picks for
Private loans for medical school
These lenders offer specific private loan products for medical students. These may come with unique features, like letting you postpone or make minimal payments during residency. But you or a co-signer will need excellent credit to get the lowest possible rates.
on Ascent's website
Ascent Medical Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Ascent's website
on College Ave's website
College Ave Medical Student Loan
Fixed APR
Variable APR
Min. Credit Score
on College Ave's website
on Sallie Mae's website
Sallie Mae Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Sallie Mae's website
on CommonBond's website
CommonBond Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on CommonBond's website
on Citizens Bank's website
Citizens One Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Citizens Bank's website
Wells Fargo Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
Our pick for
International medical students
International students without an eligible co-signer have fewer options to get a student loan for medical school.
Prodigy Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
Federal loans for medical school
There are multiple types of federal loans for medical school. Consider them in this order:
Federal health professions student loans. These loans have interest subsidies and lower interest rates than other federal loans. But they're only available to borrowers who demonstrate financial need and attend participating schools. Ask your school about its application process to see if you qualify.
Federal direct unsubsidized loans. These loans aren't based on financial need, and medical students should max out these loans before PLUS loans because they have lower interest rates and fees. You can borrow up to $20,500 per year and $138,500 total, including any undergraduate loans.
Federal PLUS loans. Consider PLUS loans after you've exhausted other federal loans for medical school. PLUS loan interest rates are 5.30% for the 2020-21 school year, which may be close to the rate you'd get with a private loan. But PLUS loans come with a 4.236% fee that most private lenders don't charge.
To get federal loans for medical school, complete the Free Application for Federal Student Aid — this FAFSA guide can help. If your school participates in the health professions student loan program, you may need to fill out a different application.
There's no credit check for direct unsubsidized loans. There is a credit check for PLUS loans, but you don't necessarily need good credit to qualify — you just can't have adverse credit history or negative marks on your credit.
Private medical school loans
Private medical school loans can make sense if you have excellent credit and don't plan to pursue Public Service Loan Forgiveness. Unlike federal loans, which have the same fixed rates for all borrowers, private loans have lower rates for borrowers with good credit, and they typically don't have fees.
Before approving you, the lender will do a hard credit pull to check your credit history. The interest rate you get will depend on factors like your credit, the loan term and whether you choose a fixed or variable rate.
Many lenders — including Ascent, Sallie Mae and Wells Fargo — offer private medical school loans with specific benefits for aspiring health professionals, like the ability to postpone or make reduced payments during residency. Weigh such features vs. getting the lowest interest rate possible.
Medical school loans for international students
International students aren't eligible for federal student loans. But they may be able to qualify for a private medical school loan with an eligible co-signer.
If you're an international medical student without a credit history or co-signer, you'll have fewer options.
MPOWER lends to international students, but caps loan amounts at $50,000 annually, which may not be enough to cover med school. Prodigy Finance offers higher loan limits ($220,000) but isn't available in every state.
Managing medical school loans
Going to medical school means taking on a lot of medical school loans. The average medical school debt among the class of 2019 was $201,490.
Explore tactics for paying off medical school debt before you borrow. Depending on your career goals and the type of loans you have, the best strategy may be refinancing medical school loans during or after your residency, seeking loan forgiveness for doctors or riding out an an income-driven repayment plan.
Last updated on July 2, 2020
To recap our selections...
NerdWallet's Best Medical School Loans of July 2020
- Federal Subsidized/Unsubsidized Loan: Best for All borrowers as a first option
- Federal Grad PLUS Loan: Best for Manageable payments post-graduation
- Ascent Medical Student Loan: Best for Private loans for medical school
- College Ave Medical Student Loan: Best for Private loans for medical school
- Sallie Mae Private Student Loan: Best for Private loans for medical school
- CommonBond Private Student Loan: Best for Private loans for medical school
- Citizens One Private Student Loan: Best for Private loans for medical school
- Wells Fargo Private Student Loan: Best for Private loans for medical school
- Prodigy Private Student Loan: Best for International medical students
Frequently asked questions
Medical students can get up to $20,500 per year and $138,500 total in unsubsidized federal student loans. You can borrow up to your cost of attendance in federal PLUS loans or private student loans.
To pay for medical school, you may be able to receive federal health professions student loans (only at participating schools); federal unsubsidized and PLUS loans; and private student loans.
Medical students aren’t eligible for subsidized federal loans. But you may receive subsidized health professions student loans if your school participates in this program and you have financial need.
Federal student loans are typically your best bet for medical school because they offer benefits that private loans lack, like income-driven repayment plans and loan forgiveness programs.
