Best Medical School Loans in USA

Best Medical School Loans in USA Best Medical School Loans in USA

Best Medical School Loans in the U.S.

Graduating with a medical degree is like a dream come true for many. Still, there are thousands of deserving candidates who are unable to get admission into medical schools because of a lack of finances.

Medical education is fulfilling but it is also very expensive. Studies show that the average medical school debt is around US$ 232,200.

Still, there are ways an aspiring candidate can afford to get admission into reputed schools with medical school loans in the USA.

Best Medical School Loans in the USA

Best Medical School Loans in the USA

If you aspire to become a doctor but are worried about the huge fee of medical schools, then this article will be helpful. Here, we have listed the best medical school loans that you can apply for in the US.

1 – Federal Direct Unsubsidized Loan

The Federal Direct Unsubsidized Loan is considered to be the best overall for medical school loans in the US. The loan comes with the lowest fixed interest rate.

The best part is that as this loan is not awarded based on your credit history, you won’t need to find a co-signer on it.

Eligible medical school graduates can request, and receive, this loan irrespective of their credit rating.

However, there are chances that applicants with a good credit history are likely to get the loan at a lower interest rate from private lenders, they do not get to enjoy the wide variety of consumer protections that are often useful in the future.

If you qualify for the federal graduate unsubsidized loan then you also get access to impressive income-driven repayment options that decrease the due amount. Borrowers working in the public service fields are also eligible for loan forgiveness.

Although most private lenders do not charge any, you will have to pay around 1.057% of the requested loan amount as an origination fee for direct unsubsidized loans. However, for many, the loan benefits and low-interest rates make the loan fee worth it.

Eligibility criteria for direct unsubsidized loans dictate that applicants should be enrolled at least part-time in a medical school that is part of the federal direct loan program.

This loan is provided for a term duration ranging between 10 to 25 years, according to the specific repayment plan.

The Federal Direct Unsubsidized Loan awards between US$ 20,500 per annum and US$ 73,000 on average. This also includes loans for undergraduate courses.

2 – Federal Graduate PLUS Loan

The Federal Graduate PLUS Loan offers numerous benefits to borrowers. This loan is usually advised to cover those expenses that the federal unsubsidized loans cannot.

As compared to the federal direct unsubsidized loan, the federal graduate PLUS loan has a high-interest rate while the origination fee is set around 4.228%. The origination fee is deducted from the loan amount.

However, applicants for the federal graduate PLUS loans will have to undergo a credit check. The eligibility criteria for this loan require applicants to be enrolled part-time at a reputed medical school and should have a good credit history.

The Federal Graduate PLUS Loan comes with a loan tenure ranging between 10 to 25 years, relying on the specific repayment plan.

3 – Ascent

Ascent offers medical school loans with a convenient 3-year grace period after graduation, before starting the repayment process.

This is extremely helpful for fresh graduates to find employment and make convenient arrangements for repayment of the loan. This lender also offers a 4-year deferment period.

This helps medical residents with low income to put their student loan repayment on hold. Besides, borrowers are also eligible to receive cash-back rewards of 1% of the loan’s principal balance, after graduation.

However, Ascent medical student loans come at a significantly high-interest rate of 13%, which is higher than most on our list.

US students pursuing medical school at least half-time, and international students with US citizens as co-signer, can apply for Ascent loans.

The company offers varying loan repayment terms, ranging from 7 to 20 years for variable-rate loans, and from 7 to 12 years for fixed-rate loans.

Ascent offers as much as US$ 2,001 to cover the total cost of attendance and a total of US$ 200,000 annually in Ascent loans.

4 – College Ave

College Ave offers a 3-year post-graduate grace period for loan repayment. It also offers a 4-year deferment period for residency. College Ave max interest rates are comparatively lower and the lender offers various loan repayment options too.

However, there are no graduation rewards with College Ave. Students from abroad will need to have a Social Security number and a US citizen as a co-signer, to qualify for this loan.

Eligibility criteria for this loan require applicants to pursue a medical degree with full-time, half-time or part-time attendance.

The loan term varies from 5, 8, 10, 15 and 20 years. College Ave offers medical school loans with US$ 1,000 to cover the cost of attendance and up to US$ 150,000 in the total loan amount.

5 – Citizens Bank

If a student borrower, or their co-signer, already has an account with the Citizens Bank, then they get an extra 0.25% loyalty discount to lower the overall interest rate with auto-pay to 0.50%.

The bank offers a 6-month grace period after graduation but does not provide a rate estimate through a soft credit check to the borrower.

The eligibility criteria for this loan require students to be enrolled for at least half-time. International students can also apply for this loan if they have a co-signer with US citizenship.

The Citizens Bank medical student loan comes with term durations of 5, 10 or 15 years. The bank awards US$ 1,000 to US$ 350,000 as a loan amount for medical courses.

Additionally, borrowers can choose to defer payments for a maximum of 8 years, which includes a residency period too.


The above is our list of the best medical school loans in the USA for 2021. Make sure to check the exact, detailed eligibility criteria and other information on the lender’s official website.

Feel free to drop in a comment below and let us know how helpful this article was to discover the best student loans for medical schools in the US.

See Also

How to pay for medical school without loans?

Student Loan Forgiveness for Healthcare Workers

Medical Education Grants

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