Medical school is one of the biggest investments most doctors ever make, with graduating debt commonly around $200,000 or more. How you borrow matters, and the rules changed significantly in 2025 — including the end of the Grad PLUS loan program — so older advice can steer you wrong. This guide explains today’s options for financing medical school and how to borrow wisely.
A Major 2025 Change: Grad PLUS Is Ending
For years, medical students relied on the federal Grad PLUS loan to cover whatever costs other loans didn’t. That’s changing. Under the 2025 federal budget law, the Grad PLUS program is being phased out for new borrowers starting with the 2026–27 academic year, and new federal borrowing caps apply.
Under the new limits, professional students in fields like medicine can borrow up to $50,000 per year in federal loans, with a $200,000 total cap for the professional degree — higher than the caps for other graduate students but a real ceiling nonetheless. Students who already had Grad PLUS loans before the change are generally grandfathered and can keep borrowing under the old rules for a limited period. Because this is new and the details matter, confirm the current rules with your school’s financial-aid office.
Federal Loans: Start Here
Federal loans remain the foundation, and everything starts with the Free Application for Federal Student Aid (FAFSA). The main federal option for medical students is the Direct Unsubsidized Loan, which accrues interest while you’re in school and has fixed rates set each year. Federal loans carry borrower protections that private loans don’t — income-driven repayment plans, deferment options, and eligibility for Public Service Loan Forgiveness.
That forgiveness matters for doctors: under Public Service Loan Forgiveness (PSLF), the remaining balance on federal loans can be forgiven after 10 years of qualifying payments while working for a nonprofit or government employer — which describes many hospitals. For that reason alone, federal loans usually belong at the front of your plan.
Private Loans and Filling the Gap
With Grad PLUS gone and federal caps in place, some students will face a gap between federal loans and the full cost of attendance. Private student loans from banks and specialty lenders can fill it, but they lack federal protections — no income-driven repayment, no PSLF, and approval and rates depend on credit (often requiring a cosigner).
If you need private loans, compare several lenders on interest rate, repayment terms, and any borrower benefits, and borrow only what you truly need. It’s also worth exhausting scholarships, grants, and school-based aid first, since that money never has to be repaid.
Loan Forgiveness and Repayment Help
Doctors have unusually strong loan-forgiveness options, so factor them into your plan from the start. Beyond PSLF, the National Health Service Corps and many state programs repay a large share of student debt in exchange for practicing in underserved areas, and the military and the NIH offer their own repayment programs. Some hospitals and residency programs add loan-repayment or sign-on assistance.
On the repayment side, federal income-driven plans tie payments to your income — valuable during low-earning residency years. Mapping out which forgiveness path you might pursue can shape how much you borrow and which loans you choose, so it’s worth thinking about early rather than at graduation.
How to Borrow Smart
A few principles keep medical-school debt manageable. Borrow only what you need, not the maximum offered. Prioritize federal loans for their protections and forgiveness eligibility. Track your interest, since it compounds during school and residency. And live like a student now to avoid living like one later — modest spending in school meaningfully lowers the debt you carry into practice.
Because the rules just changed, revisit your plan each year and lean on your financial-aid office, which is tracking the new caps and options in real time. Good decisions here pay off for a decade or more after you finish training, and small differences in how you borrow can add up to tens of thousands of dollars over the life of your loans.
Common Questions
Can medical students still get Grad PLUS loans? Not for long. The Grad PLUS program is being phased out for new borrowers starting with the 2026–27 academic year under the 2025 federal law. Students who already have Grad PLUS loans are generally grandfathered for a limited time. Confirm current rules with your financial-aid office.
How much can I borrow in federal loans for medical school? Under the new rules, professional students such as medical students can borrow up to $50,000 per year in federal loans, capped at $200,000 total for the degree. Anything beyond that must come from scholarships, savings, or private loans. Amounts and rules can change, so verify the current figures.
Should I use federal or private loans? Federal loans first, almost always — they offer income-driven repayment, deferment, and Public Service Loan Forgiveness that private loans don’t. Use private loans only to fill a remaining gap, compare lenders carefully, and borrow the minimum you need.
