MEDICAL SCHOOL LOANS, EXPLAINED.
Sources & our approach
LOAN BASICS / NO BACKGROUND KNOWLEDGE NEEDED

Medical school loans,
from the beginning.

A student loan is money you borrow for education and repay, usually with interest. Who lends it to you determines many of your options later.

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U.S. DEPARTMENT OF EDUCATION

Federal student loans

Government loans with rules and borrower protections set by federal law.

How you apply
FAFSA (the federal aid application), then your school’s financial aid office.
During repayment
Eligible loans can offer income-driven payments and PSLF.
What to know now
New borrowing limits took effect in July 2026. Some continuing students have an exception.

For MD/DO students, Direct Unsubsidized Loans are the main current federal option. Grad PLUS remains relevant for existing debt and eligible continuing borrowers.

See which borrowing rules apply
BANKS & OTHER PRIVATE LENDERS

Private student loans

Loans offered by a lender, with rates and repayment terms set in your contract.

How you apply
Directly with a lender. Credit and a co-signer may matter.
During repayment
No federal income-driven plans or PSLF. Residency and hardship terms vary.
What to compare
APR, fees, total cost, co-signer terms, and payments during training.

A private school loan pays for education. A private refinance replaces existing debt. Refinancing federal debt permanently removes its federal benefits.

Read the offer checklist
THE NAMES YOU’LL ACTUALLY SEE

Which loans can pay for medical school?

FEDERAL

Direct Unsubsidized Loan

The main federal borrowing option for eligible MD and DO students. Interest accrues while you are in school, even when a payment is not required. A federal loan’s fixed rate depends on when it is first disbursed.

New limits apply from July 2026, with an exception for some continuing students. Your school determines your actual eligibility and award.

Understand the current federal limits
EXISTING DEBT / LIMITED CONTINUING BORROWING

Graduate PLUS (Grad PLUS)

This federal loan historically helped graduate and professional students cover costs beyond other aid. It is unavailable to new borrowers under the July 2026 rules.

Some continuing students can borrow under a temporary exception. Existing Grad PLUS balances remain federal loans; the change does not turn them into private debt.

Check the continuing-student exception
PRIVATE

Private medical school loan

A bank, credit union, or other lender may offer a loan for costs your other funding does not cover. Approval, rates, co-signer requirements, and training-period payments depend on the lender.

“Physician” or “medical” branding does not create federal protections. Read the agreement, including what happens during residency and fellowship.

Know what to ask before signing
ASK YOUR SCHOOL

Institutional and school-administered loans

Some schools administer their own loans or special programs. HRSA’s Primary Care Loan and Loans for Disadvantaged Students programs may be available to eligible MD/DO students through participating schools.

These are separate from Direct Loans. Primary Care Loans include a primary-care training and practice commitment. Ask about eligibility, repayment, and service obligations before accepting.

Review HRSA’s programs

Already have undergraduate loans?

Keep them in your inventory, too. Older federal FFEL or Perkins balances have different rules from Direct Loans. A federal consolidation may change eligibility and other benefits. Check each loan before combining balances.

Consolidation versus refinancing
PUT THE PIECES TOGETHER

Build a funding plan in this order.

  1. Find your actual cost.

    Start with the school’s cost of attendance: tuition, fees, and an allowance for living expenses. Subtract grants, scholarships, and money you can contribute.

  2. Understand the federal aid available to you.

    Complete the FAFSA and work with your financial aid office. Confirm your loan type, borrowing limits, fees, and any continuing-student exception.

  3. Evaluate the remaining gap.

    Ask about school aid and service programs. If considering private borrowing, compare written terms and plan for every year of school—not just the first approval.

Calculate your funding gap
A SMALL TRANSLATION GUIDE

Six terms that make the rest easier.

Principal
The amount you owe before accrued interest. As you repay principal, the balance on which interest is calculated can fall.
Interest and APR
Interest is the cost of borrowing. APR expresses an annualized borrowing cost including certain fees. Compare offers with the same amount and term.
Origination fee
A charge for making a loan. It may be deducted before the funds reach you, so the amount received can be less than the amount borrowed.
Repayment plan
The rules for your monthly bill. A loan type and a repayment plan are different: eligible federal loans can have several repayment options.
PSLF
Public Service Loan Forgiveness. A conditional federal forgiveness program tied to qualifying loans, payments, and employment. It is not a separate loan.
Loan servicer
The company handling your bills and account. MOHELA is a servicer, not a type of loan or repayment plan.

Rates change by disbursement year and product. Check official federal interest rates and fees ↗ rather than assuming an older borrower’s rate applies to you.

Sources checked September 13, 2026 · Educational overviewFederal Student Aid · federal and private loansCFPB · ways to pay for college or graduate schoolFederal Student Aid · 2026 changesFederal Student Aid · July 2026 implementation and court orderCornell Financial Aid · federal aid changesHRSA · school-administered loan programsCFPB · consolidation and refinancingFederal Student Aid · interest rates and fees