4 Federal Loans for Medical School

Federal Loans for Medical School Federal Loans for Medical School

Federal Loans for Medical School

Federal loans for medical school make it possible to pay for your medical degree. Federal loans typically have lower interest rates compared with many private loans.

Make sure to first apply for federal grants for medical bills and treatment before considering a loan as a last resort.

Federal loans during undergraduate school may subsidize some portion that reduces the burden of interest capitalization during medical school and residency.

Every year, the Department of Education updates interest rates for federal loans.

Federal Loans for Medical School - Primary Source of Funding

Federal Loans for Medical School – Favorable Features

Federal Loans for Medical School – Favorable Features

Medical school is considered the most expensive form of professional training. Not all families can afford to pay the costs of a medical degree without some form of financial aid.

Federal loans for medical students are the primary source of student loans. Here are some of the features of federal loans for medical school.

  1. They are not tied to formal credit evaluations. Therefore, students with good credit, bad credit, or no credit can borrow from the William D. Ford Federal Direct Loan Program.
  2. Interest rates on federally funded loans are commonly low and carry fixed rates that allow for budgeting and consistent repayment.
  3. Several flexible repayment alternatives facilitate timely payments and affordably structured terms.

Federal Loans for Medical School – Eligibility & Process

Federal Financial aid requires timely Free Application for Federal Student Aid (FAFSA) filing.

Therefore, every medical student seeking loans should complete a FAFSA. The application gathers family financial information to determine how you’ll pay for college.

Deadlines may vary depending on the school and state. You can check with the financial aid offices of the schools you are applying for, their aid procedures and application deadlines, and how and when you’ll receive your federal loan.

After examining your funding needs, financial aid administrators from government agencies and individual college campuses work to put together financial assistance packages.

Federal Loans for Medical School - How it Works?

Federal Loans for Medical School – Types of Federal Loans

Types of Federal Loans for Medical School

Federal loans for medical school are considered the best borrowing option for students of higher education. Here are four types of federal loans:

  • Direct Unsubsidized Loans

Also referred to as Stafford Loans, these are low-interest loans (6.8%,) that are available for undergraduate and graduate-level studies regardless of demonstrating financial need.

Your school considers how much it costs you to attend medical school, and calculates how much loan is required.

Direct Unsubsidized Loans require you to pay interest throughout the loan’s lifetime.

If you decide to defer interest payments while you are in school or during the grace period, that interest will continue to be collected and added to the loan principal, which means you will have to pay off more debt.

For more information, https://studentaid.gov/types/loans/subsidized-unsubsidized.

  • Direct PLUS Loans

PLUS Loans provide unsubsidized funding from the Department of Education at 7.9% interest. These loans cover any costs of attendance not covered by other financial aid you may be receiving.

PLUS Loans are secured with formal credit checks.

Students and parents with adverse credit histories are excluded from the program unless cosigners guarantee loans with positive credit histories.

Also, student applicants must adhere to general federal financial aid eligibility requirements. PLUS, loans begin to accrue interest immediately after they are disbursed.

For more information, https://studentaid.gov/plus-app/

  • Perkins Loan

Individual campus financial aid departments administer Perkins loans to supplement the exceptional need for financial assistance. Not all students with financial needs receive help.

Financially disadvantaged students who have outstanding higher education expenses, even after scholarships and government grants, qualify for campus-based Perkins Loans.

It is recommended to apply for this aid early through FAFSA and talk to your school’s financial aid office about support as early as possible. Perkins candidates must submit signed promissory notes.

  • Primary Care Loan

The Health Resources and Services Administration (HRSA) offers Primary Care loans to students who are in need and plan to specialize and practice in primary care.

The funding is sent directly to medical schools, which is then lent to students. It is a revolving loan fund, which means that the new funds become available as old funds are repaid.

Find out if your school participates in this program, and contact a representative in your financial aid office for more information.

For more information, visit https://bhw.hrsa.gov/funding/schools-apply-loan-program/primary-care-loans-faq.

Federal Loans for Medical School - What you Need?

Federal Loans for Medical School – Pay for Medical Degree


Federal loans help medical students who are seeking loans to pay for their degrees. It carries fixed and low-interest rates. After gathering family data, financial need is calculated, and loans are given.

All federal loans for medical school require applicants to fill out the Free Application for Federal Student Aid (FAFSA). Visit https://studentaid.gov/h/apply-for-aid/fafsa and apply today!

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About the Author

Abigail Friedland
I am a medical student who dedicated herself helping individuals and non profit organizations for finding medical grants for medical bills, medical treatment, medical education, research and medical equipment.

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