How to pay for medical school: 5 strategies

Medical school comes with a hefty price tag, with tuition often exceeding $50,000 per year for many students. Without savings to cover those costs, you’ll likely need to pay for medical school with a combination of scholarships, grants, loans, and other strategies. You may also consider attending a public medical school in your state to save on costs, or exploring tuition-free schools. This guide will help you navigate the financial maze of medical school with practical tips and strategies to find the funding you need.

Medical school costs have been rising by 3% to 4% annually on average over the past decade, according to the Association of American Medical Colleges. The good news is, there are ways to make going to medical school more affordable. 

For example, attending an in-state public school will save you, on average, $23,466 per year compared to attending an out-of-state school. These figures don’t account for additional expenses beyond tuition and fees, such as textbooks ($1,266 on average) and living expenses ($27,200 on average), which can increase costs significantly. 

As of the 2023-24 academic year, the average annual tuition costs for medical school were: 

Scholarships and grants should be your priority when paying for medical school because, unlike loans, you typically don’t need to repay them. Start by looking into scholarships from organizations like the American Medical Association (AMA) and the National Health Service Corps (NHSC). These organizations, as well as many other private foundations, offer scholarships specifically for medical school students. 

The Association of American Medical Colleges also maintains a database of scholarships, fellowships, student loan repayment, and forgiveness programs available to students in the medical and health professions.

Assistantships and fellowships provide valuable opportunities for you to gain experience and financial support simultaneously. These types of positions often come with stipends or tuition waivers that can reduce your out-of-pocket costs. 

• Assistantships involve paid work in a teaching or research capacity. You might lead discussions, grade papers, assist with lab courses, or support faculty with their projects. To find an assistantship, contact professors, department heads, or the medical school’s career services office. A strong academic record and relevant skills increase your chances of landing these positions.
• Fellowships are highly competitive, merit-based awards that provide financial support for advanced study or research. You can find fellowships through your school, professional organizations, and research institutes. Applying for fellowships usually requires submitting a detailed proposal and letters of recommendation, and having a solid academic record.

Several medical schools now offer tuition-free programs to reduce students' financial burdens and waive barriers to medical education. They allow you to pursue your passion for medicine without depleting your financial resources or worrying about student loan debt. 

Here are a few to consider:

• The NYU Grossman School of Medicine offers every student enrolled in its MD degree program a full-tuition scholarship. 
• The Cleveland Clinic Lerner College of Medicine offers a full-tuition scholarship to all students. The scholarship also covers some fees.
• Columbia University Vagelos College of Physicians and Surgeons offers the Vagelos Scholarship Program. This program pays 100% of the demonstrated financial need for qualifying students.

Federal student loans can be a crucial resource for many medical school students. These loans come with flexible repayment options, including income-based plans and loan forgiveness options. The federal student loan options available to medical students are:

• Direct Unsubsidized Loans: Medical students can borrow up to $20,500 per year in Direct Unsubsidized Loans, with an aggregate limit of $138,500. The interest rate on these loans is set at 8.08% for the 2024-25 school year.
• Grad PLUS loans: There’s no cap on borrowing with a grad PLUS loan. The amount you can borrow is your school’s cost of attendance minus any other financial aid you receive. The interest rate is set at 9.08% for the 2024-25 school year. 

If you need to borrow for medical school, start with Direct Unsubsidized Loans due to their lower interest rate. For any remaining costs, consider a grad PLUS loan. However, if you have good credit (670 or above on the FICO scale), a private student loan may offer a more favorable interest rate than a PLUS loan. 

To apply for federal student loans, complete the Free Application for Federal Student Aid (FAFSA). Your school will send an award letter detailing the types of federal financial aid you qualify for.

When scholarships, grants, and federal loans aren’t enough to cover the cost of med school, you may need to turn to private student loans to bridge the gap.

Several lenders specialize in loans for medical students. Shopping around to compare offers can help you find competitive rates and repayment options. Here are a few lenders to consider:

• Sallie Mae offers fixed- and variable-rate medical school loans with no origination fees. You can defer loan payments for up to 48 months during your residency and fellowship.
• Ascent provides specialized loans for medical students that include a generous 36-month grace period after graduation. Plus, borrowers can benefit from a 1% cash-back reward upon graduation and receive Amazon gift cards for successful referrals.
• College Ave provides medical school loans, as well as a medical residency and relocation loan, to help cover students’ moving and living expenses.

If you decide to take out private student loans, only borrow what you need to cover tuition, fees, and essential living expenses. Avoid overborrowing, as this will increase your debt load after graduation. 

In 2023, more than half of all medical students graduated with a median debt of $200,000 or more, as reported by the Association of American Medical Colleges. Such significant debt can make it tough to meet other life milestones, like buying a home, saving for retirement, and starting a family. But using a combination of repayment strategies can help you pay off your loans quickly: 

• Automate your payments: Enrolling in automated payments helps you avoid missed or late payments, which can damage your credit score and result in late payment fees. Some lenders also offer interest rate reductions for borrowers who sign up for autopay.
• Apply for an income-driven repayment plan: Income-driven repayment plans adjust your federal student loan payments based on your income and family size. They also forgive your remaining loan balance at the end of your repayment period.
• Make extra payments: Whenever possible, make extra payments toward your student loan’s principal balance. Even small extra payments can reduce the interest you’ll pay over the life of the loan and potentially shave years off of your repayment. Prioritize high-interest-rate loans to maximize your savings.
• Refinance your student loans: Refinancing involves getting a new loan — usually with a lower interest rate — and using it to pay off your existing federal or private loans. Refinancing can reduce your monthly payments and lower the amount you’ll pay over the life of the loan. Just remember that refinancing federal loans with a private lender means losing benefits like income-driven repayment and loan forgiveness programs.

Loan forgiveness and loan repayment assistance programs can help you reduce or even eliminate your educational debt after college. Some require you to work in underserved or public service areas.

Here are a few programs to look into if you decide to take on federal or private student loans: 

• Public Service Loan Forgiveness (PSLF): PSLF is a federal program that forgives the remaining balance on certain federal student loans after you make 120 qualifying monthly payments under an income-driven repayment plan. You must work full-time for a qualifying employer to be eligible. Qualifying employers include government organizations and some not-for-profit organizations.
• National Health Service Corps (NHSC) Loan Repayment Program: This program offers up to $75,000 in loan repayment assistance to medical graduates who commit to working full-time in underserved areas for at least 2 years. Up to $37,500 is awarded to those who commit to half-time. 
• Indian Health Service (IHS) Loan Repayment Program: The IHS offers up to $50,000 in loan repayment for a 2-year commitment to serve in facilities that provide care to American Indian and Alaska Native communities. If you qualify, you can extend your contracts annually until you pay off your loans.
• Employer-sponsored loan repayment assistance: Some employers offer student loan repayment assistance as part of their employee benefits package. It’s worth exploring potential employers’ offerings when considering job opportunities.
• State loan repayment programs: Some states offer loan repayment assistance programs for medical professionals who agree to work in designated shortage areas. For example, the Nebraska Loan Repayment Program offers up to $180,000 in loan relief for doctors and dentists who agree to work in a state-designated shortage area for 3 years. These programs vary by state, so research options available in your state or in a state you’re willing to relocate to. 

Aspiring doctors typically pay for medical school through a combination of scholarships, grants, federal and private student loans, and personal savings. Many also seek part-time job opportunities and assistantships.

Student loans are a common and often necessary way to pay for medical school. However, it’s important to explore other options first, such as scholarships and grants, since you won’t need to repay them. If you take out loans, borrow only what you need to cover tuition, fees, books, and essential living expenses.

Unique financing options for medical school include military scholarships and stipends, service commitment programs, employer tuition reimbursement plans, and income share agreements. These alternatives can help reduce your reliance on student loans.

Non-U.S. citizens generally don’t qualify for federal student loans unless they’re U.S. permanent residents. However, international students may qualify for scholarships, grants, and private student loans. Some medical schools also offer financial aid to international students.

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