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March 7, 2024
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Are you dreaming of medical school, but worried about the hefty price tag? You're not alone. In fact, according to the AAMC, a staggering 70% of medical students rely on loans to finance their education. But do not fear. There are strategies you can implement to increase your chances of securing financial aid and lightening the burden of debt.
Whether you're just beginning your journey or already knee-deep in applications, being aware of your financial options is key, and we’ve got you covered. In this guide, we will go over the different pressing questions you may be facing, like:
Let’s dive right in!
You can breathe easy; there’s a slew of choices for you when it comes to financing your studies, and Med School is no exception.
Student loans are given by the Department of Education and have really competitive interest rates, especially if you compare them to private loans.
Student loans come in four different types:
Of these four types, only direct plus and direct unsubsidized loans are available for medical students. Let’s check them out in more detail.
Direct unsubsidized loans are federal student loans available to undergraduate and graduate students. Unlike subsidized loans, the government doesn’t cover the interest on these loans while you're in school or during deferment. Rather, interest accumulates on the loan from the moment it’s disbursed until it is completely repaid.
The amount you can borrow will be determined by your school of choice, but the upper limit is defined by the federal government at $22,500. Additionally, interest rates vary depending on your academic stage. As of 2024, you’ll find that:
It’s worth mentioning that just because you can borrow up to $22,500 doesn’t mean you should do so. Pace yourself, consider your future earnings, and borrow accordingly.
Direct PLUS loans are federal loans available to:
These loans are also known as Parent PLUS loans when taken out by parents and Grad PLUS loans when taken out by graduate or professional students.
Unlike direct subsidized and unsubsidized loans, PLUS loans require a credit check. Nonetheless, credit requirements for PLUS loans are less strict than those for private loans. If a parent or graduate student has an unfavorable credit history, they may still be able to receive a PLUS loan by either:
PLUS loans have fixed interest rates and typically higher interest rates compared to subsidized and unsubsidized loans. As of 2024, the rate amounts to 8.05%. Additionally, the borrower is responsible for repaying the loan and any accrued interest, starting shortly after the loan is fully disbursed.
Student loans may feel a bit daunting. They have a less-than-stellar reputation and may be a source of concern for undergraduates and graduates alike.
But student loans aren’t a financial death sentence. As long as you’re mindful of your borrowing and plan accordingly, they can be a powerful tool. Nevertheless, you should add more weapons to your financial arsenal, and fortunately, there are plenty available.
It’s a long list, so brace yourselves. Some alternatives include:
Let’s take a closer look
The private counterpart to student loans. Any financial entity will be able to lend you money, though you will need a good credit score. Also, the interest rates will be less competitive, and you’ll have no option but to pay promptly.
These are loans similar to subsidized direct loans, offered to students in a specific field of medicine. They have excellent interest rates, even lower than federal loans, and a longer grace period before you start paying these interests.
These are federal loans that are available to qualifying students based on financial need. Students must also come from a disadvantaged background.
Scholarships can be an amazing boon for any student, even if they are partial. They are as diverse as can be, based on everything, from merit to background to financial need.
An advantage of scholarships is that you can apply for them and be eligible even before being accepted into med-school. However, if you get the scholarship but don’t enter the selected school, that scholarship will be lost.
Grants are similar to scholarships, though they are often deeply tied to a specialty or an interest group like Native Americans or the LGBTQ+ community.
It's a federal student aid program that provides part-time employment opportunities for eligible students to help finance their education expenses. Through FWS, students can work on or off-campus in various positions, often related to their field of study or community service.
The American military offers scholarships in exchange for service in a myriad of specialties; medicine is not an exception. If you are willing to serve in the armed forces after you graduate, both a scholarship and a monthly stipend are offered.
So, we’ve seen the wealth of opportunities available to afford your medical education. But it may have left you wondering: How exactly do you get financial aid for medical school?
It all starts with the FAFSA form. FAFSA is short for Free Application for Federal Student Aid, and as its name indicates, filling it out is mandatory to receive financial aid.
The form will allow you to provide your potential schools with a detailed picture of your financial situation, which they'll use to assess your eligibility for financial aid.
To complete the FAFSA, you’ll need:
Once you have your account and all the required data, you can proceed with filling out the form. It's relatively long but easy, and it shouldn’t take you more than an hour. In the form, you should state which school/s you are interested in pursuing; they are the ones that will receive and evaluate your information.
Keep in mind that each college is unaware of your applications to other institutions, so it's wise to apply to a wide range of schools. It’s key to give yourself as many opportunities as you can, you will have time to evaluate any offers.
Outside of FAFSA, you can always search for financial opportunities in your community. Social clubs and organizations might have scholarships and grants for members of the community.
Lastly, you will always have the possibility of taking on private loans. If you do apply for private loans, you’ll probably want some expert help in building a beneficial payment plan.
Paying for medical school can be a daunting task, but with careful planning and consideration, you can navigate the financial challenges more effectively.
There’s no two ways about it; you’ll need to be on your toes when it comes to financing your studies. We know it’s a stressful point, but with the proper guidance and preparation, getting financial aid is possible.
If you want to maximize your chances for scholarships, we’d love to see if we’re a good fit. Here at Premed Catalyst, we specialize in guiding aspiring medical students on their path to medical school success. Through personalized mentorship and tailored advice designed for your unique journey, we maximize the strength of your application. Just complete our brief form (which takes no longer than two minutes), and you're well on your way to wearing the white coat!